District of New Jersey
Press releases recorded for this federal judicial district.
Morris County, New Jersey, Man Charged with Possessing Bombs, and Being Felon in Possession of Guns and Explosive MaterialsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man has been arrested and charged in connection with allegedly building and exploding a bomb, U.S. Attorney Craig Carpenito announced.
Christopher Faschan, 31, of Landing, New Jersey, is charged by complaint with one count each of possession of numerous explosive/destructive devices, possession of precursor materials, and being a felon in possession of explosive materials, firearms and ammunition. He is scheduled to appear April 5, 2019, before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 1, 2019, Faschan drove to the home of “Individual 1” in Stanhope, New Jersey, and displayed what he claimed to be a bomb to Individual 1. According to Individual 1, Faschan stated: “this may be a good area to let this thing off” before leaving the area. Shortly thereafter, Faschan detonated the bomb in the area of Lake Lackawanna in Stanhope. He then called Individual 1 and stated: “That’s something that could easily be put under someone’s car, not that I would do that or anything.”
On Feb. 4, 2019, law enforcement agents interviewed Faschan, who said that he had ignited the bomb. He described it as two pounds in weight and explained how he used and mixed Potassium Perchlorate, Aluminum Powder, and Tannerite to make several bombs that were in his home. At Faschan’s home, law enforcement agents found explosive devices, precursor materials, weapons and ammunition.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; officers of the Byram Police Department, under the direction of Chief Peter J. Zabita; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Sussex County Prosecutor’s Office, under the direction of Francis A. Koch; Morris County Sheriff James M. Gannon; Morris County Prosecutor Frederic M. Knapp; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.
The counts of possession of a destructive device, possession of explosive materials by a convicted felon, and possession of firearms by a previously convicted felon each carry a maximum penalty of 10 years in prison and a $250,000 fine.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Grape Street Crips Member Convicted of Murder of Bystander and Related Drug-Trafficking ChargesRead the Press Release
NEWARK, N.J. – A member of the Grape Street Crips gang was found guilty today by a federal jury of racketeering conspiracy, murder in aid of racketeering, conspiracy to distribute heroin, and other drug crimes, U.S. Attorney Craig Carpenito announced today.
Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 34, of Newark, was convicted following a three-week trial before U.S. District Judge Madeline Cox Arleo in Newark federal court. The jury deliberated for four hours before returning the verdicts.
Stafford was charged – along with 13 other defendants –with RICO conspiracy, murder in aid racketeering, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. All 14 defendants have now been convicted.
Another 66 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation, and all have been convicted.
According to documents filed in this case and the evidence at trial:
On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford – a long-time member of the Grape Street Crips – confronted an individual about a drug debt. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired more than a dozen shots at the person whom Stafford originally confronted. A woman who was not part of the dispute was standing on a nearby porch, and was shot and killed. Two other people were wounded and survived.
Stafford was also involved in the distribution of heroin from 2003 through 2015. Stafford sold heroin and cocaine at the James Baxter Terrace housing complex from 2003 until it was demolished in 2009. After Baxter Terrace was torn down, Stafford continued to distribute heroin and cocaine at the Wynona Lipman public-housing complex. In 2014, Stafford and a conspirator sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.
Stafford faces a mandatory life sentence in connection with the murder in aid of racketeering. For the conspiracy to distribute heroin, Stafford faces a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison. For the RICO conspiracy, Stafford faces a maximum term of life in prison. Sentencing is scheduled for June 12, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and special agents of the U.S. Attorney’s Office with the investigation leading to today’s conviction. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, Assistant U.S. Attorney Barry A. Kamar of the Criminal Division in Newark, and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Union County Man Admits Possessing Loaded Handguns While Trafficking NarcoticsRead the Press Release
NEWARK, N.J. – A Union Township, New Jersey man admitted today to possessing two loaded handguns and large quantities of narcotics with the intent to distribute those narcotics, U.S. Attorney Craig Carpenito announced.
Quadir Allen, 41, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to all three counts of an indictment charging him with possession of firearms by a previously convicted felon, possession with intent to distribute over 100 grams of heroin, and possession of firearms during and in relation to a drug trafficking crime.According to documents filed in this case and statements made in court:
In January 2018, officers with the Union Township Police Department obtained a warrant for Allen’s arrest after he fled from a motor vehicle stop. On January 31, 2018, officers located Allen and stopped the car in which he was driving. During the stop, officers observed a handgun on the front passenger’s seat, which they later determined was loaded with hollow-point ammunition. A search of Allen’s car revealed an additional handgun that was also loaded with hollow-point ammunition. Officers also located large quantities of heroin and cocaine, which were packaged for street-level distribution. Allen previously was convicted of aggravated manslaughter in Essex County Superior Court.
The possession of firearms by a previously convicted felon count carries a maximum penalty of ten years’ imprisonment and a $250,000 fine. The possession of heroin with intent to distribute count carries a minimum penalty of five years’ imprisonment and a maximum penalty of forty years’ imprisonment, and a $5,000,000 fine. The possession of firearms during a drug trafficking crime carries a minimum penalty of five years’ imprisonment, which must run consecutively to any sentence imposed on the possession of heroin with intent to distribute count, a maximum penalty of life imprisonment, and a $250,000 fine. Sentencing is scheduled for July 9, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and officers with the Union Township Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant United States Attorney Stephen Ferketic and Special Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lorraine Gauli-Rufo, Esq.
Somerset County Man Admits Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Lomere T. Walls, 27, of Franklin Park, New Jersey, pleaded before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging him with one count of receipt of child pornography.
According to documents filed in this case and statements made in court:
Walls used a peer-to-peer file sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. Between July and November of 2016, law enforcement downloaded dozens videos of child pornography from Walls’ computer. After executing a search warrant at Walls’ home in November of 2016, agents located 149 videos and 92 images of child sexual abuse on Walls’ computer and phone. Walls admitted that he had been actively searching for videos and images of child pornography, which he had previously saved on his computer.
The receipt of child pornography charge to which Walls pleaded guilty carries a maximum potential penalty of 20 years in prison, a mandatory minimum sentence of five years in prison and a $250,000 fine. Walls will be required to register as a sex offender. Sentencing is scheduled for Sept. 5, 2019.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea. The investigation was also assisted by the Somerset County Prosecutor’s Office under the direction of Michael Robertson.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Eric Mark, Esq., Newark
Paterson Police Officer Sentenced to Six Months in Prison for Concealing Civil Rights Crime in Connection with Another Officer’s Assault of Attempted Suicide VictimRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was sentenced today to six months in prison for concealing the assault of an attempted suicide victim by another police officer at St. Joseph’s Medical Center in Paterson, U.S. Attorney Craig Carpenito announced.
Police Officer Roger Then, 29, of Paterson, previously pleaded guilty before U.S. District Judge William J. Martini to Count 4 of the indictment against him, charging him with misprision of felony, for concealing the civil rights crime committed by his partner, Ruben McAusland. U.S. District Judge William H. Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and another case and statements made in court:
Then and McAusland were police officers with the Paterson Police Department. On March 5, 2018, they responded to a call from an attempted suicide victim. The victim called 911 and was taken by the Paterson Fire Department to St. Joseph’s Medical Center. Then and McAusland responded to the victim’s residence and subsequently followed the Fire Department to the hospital to monitor the victim.
Two videos captured some of the events that took place in the hospital that night. In the first video, captured by hospital surveillance, the victim was in a wheelchair. McAusland was standing at the hospital admissions desk. The victim appeared to throw an object down the hallway. McAusland, looking angry, pushed the victim’s wheelchair with his hands and punched the victim in the face. As the victim fell towards the ground, still in the wheelchair, Then grabbed the victim by the back of the neck and further pushed the victim to the ground. Then reached for his handcuffs, but McAusland told Then not to handcuff the individual and McAusland further stated, “I got this.”
In the second video, taken by Then, using his cellular telephone, the victim was on his back in a hospital bed. The victim said, “Right here? See my cheek?” McAusland said, “You have the right guy today.” Then turned the camera toward himself and smiled. Then next turned the camera back towards the victim and McAusland. The victim said, “Ha, ha, bitch.” McAusland responded, “I’m a what?” The victim said, “Do it.” McAusland put on a pair of hospital gloves and proceeded to violently strike the victim twice across the face. McAusland then stood over the victim and said, “I ain’t fucking playing with you.” The victim covered his face with his hands and was silent. McAusland continued, “Calm your ass down.” Rather than intervening to stop McAusland’s assault of the victim, Then recorded it.
Then and McAusland submitted a police report in connection with the events of March 5, 2018. The police report did not mention that McAusland punched the victim and that Then grabbed the victim by the neck and pushed the victim towards the ground, as captured in the first video. The police report also did not mention that McAusland violently struck the victim, twice, in a hospital room, as depicted in the second video. Nor did the police report mention that Then had recorded the second assault on his cell phone and failed to intervene to stop it from happening.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
McAusland previously pleaded guilty to possessing with intent to distribute narcotics and deprivation of civil rights under color of law and was sentenced March 27, 2019, to 66 months in prison.
In addition to the prison term, Judge Walls sentenced Then to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal, Deputy Chief of the Criminal Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: John P. McGovern Esq., Newark
Four Additional People Charged in Conspiracy to Distribute Heroin and Fentanyl from Bronx, New York, Drug MillRead the Press Release
NEWARK, N.J. – Four men have been charged after they were arrested in New York for their participation in a conspiracy to distribute heroin and fentanyl, U.S. Attorney Craig Carpenito announced today.
Eddy Urena Rodriguez, 34, Daury Contreras Ulerio, 34, Reimon Genao Rosario, 22, and Francisco Mercedes Gil, 30, all of Bronx, New York, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams or more of heroin and fentanyl. Rodriguez appeared today before U.S. Magistrate Judge Mark Falk and was detained. Ulerio, Rosario, and Gil all appeared last week before U.S. Magistrate Judge Steven C. Mannion and were detained.
Previously, three other individuals – Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena, a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22 – were arrested and detained after appearing before U.S. Magistrate Judges Joseph A. Dickson and Michael A. Hammer.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in quantities for distribution. Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. The plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window in the bedroom, and all but one were apprehended and arrested by law enforcement officers waiting outside.
Each defendant faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Craig Carpenito credited the Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Passaic County, New Jersey, Man Charged with Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man appeared in Newark federal court today on a charge of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Vaughn Tiedeman, 46, of West Milford, New Jersey, is charged by complaint with one count of distributing child pornography. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was remanded without bail.
According to documents filed in this case and statements made in court:
Between July 2018 and January 2019, Tiedeman distributed at least 50 videos and 100 images depicting the sexual abuse of children via the BitTorrent peer-to-peer network.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations (HSI), Newark Field Office, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to the charges. He also thanked the West Milford Police Department, the Passaic County Prosecutor’s Office, and the U.S. Postal Inspection Service for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Asbury Park, New Jersey, Man Sentenced to 11 Years in Prison for Distribution of Cocaine Base and Violating Federal Supervised ReleaseRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 11 years in prison on charges of drug distribution and violation of supervised release, U.S. Attorney Craig Carpenito announced.
Sean Lambert, a/k/a “Pretty Tone,” 48, was sentenced to 120 months in prison for distributing cocaine base, commonly known as “crack,” from a residential building in Asbury Park. He was also sentenced to an additional 12 months in prison – to be served following his completion of a 120-month prison term – for distributing the crack while he was serving a term of federal supervised release. At the time of his arrest, Lambert was on supervised release after completing a 120-month sentence for illegally possessing a firearm.
Lambert pleaded guilty before U.S. District Judge Michael A. Shipp to an indictment charging him with two counts of distributing cocaine base and entered a guilty plea admitting to having violated his court-ordered terms of supervised release. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On two occasions – Feb. 28, 2018, and March 9, 2018, Lambert sold cocaine base out of an apartment within a multi-family building in Asbury Park. During the second sale, Lambert sold over 28 grams of cocaine base.
When he was arrested, Lambert was on federal supervised release following a 2008 conviction – also in federal court in Trenton – for being a felon in possession of a firearm. As such, he was required to not commit another federal, state, or local crime during his period of supervision. Lambert admitted that, by selling cocaine base, he violated this condition.
Due to his having a prior first-degree drug distribution conviction in New Jersey, an enhanced penalty information was filed, increasing the mandatory minimum penalty on the drug distribution charge to 10 years in prison.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office in Newark.
Essex County, New Jersey, Man Convicted of Being Felon in Possession of FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man has been convicted of being a felon in possession of a firearm, New Jersey, U.S. Attorney Craig Carpenito announced today.
Shakey Hoover, 38, of Newark, was convicted March 27, 2019, of one count of being a felon in possession of a weapon following a two-day trial before U.S. District Judge Stanley R. Chesler in Newark federal court. The jury deliberated 90 minutes before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
On the evening of April 23, 2017, four individuals — Lashaunda Glenn, her boyfriend, her sister, and her sister's boyfriend — arrived by car at Glenn’s mother’s house in Newark to pick up a television belonging to Glenn’s sister. Glenn’s mother lived in the third-floor apartment of the house with Hoover, her longtime boyfriend and a convicted felon.
Glenn and Hoover began arguing. As the confrontation became more heated, Hoover pulled from his waistband a small silver revolver, pointed it at the group, and threatened to kill them. Glenn and her companions ran to a nearby police station to report what had happened. Newark police arrived at the house a few minutes later and found a silver revolver loaded with one bullet. An examination of the gun found Hoover’s fingerprint on it.
The count of being a felon in possession of a firearm carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 10, 2019.
U.S. Attorney Carpenito credited the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose; the N.J. State Police, under the direction of Col. Patrick J. Callahan; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Christopher Taylor in Newark, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Stephen Ferketic of the Criminal Divison in Newark.
Paterson Police Officer Sentenced to 66 Months in Prison for Assaulting Hospital Patient, Distributing NarcoticsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was sentenced today to 66 months in prison for violating an individual’s civil rights by assaulting him at a hospital and repeatedly distributing narcotics, including drugs he stole from a crime scene while on duty, U.S. Attorney Craig Carpenito announced.
Ruben McAusland, 27, of Paterson, pleaded guilty on June 27, 2018, before U.S. District Judge William H. Walls to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law. Judge Walls imposed the sentence today in Newark federal court.
“Today’s sentencing of Ruben McAusland marks the important role that the U.S. Attorney’s Office for the District of New Jersey plays in identifying and holding accountable officers of the law who breach their sworn duty to serve the public,” U.S. Attorney Carpenito said. “Through prosecutions like this one, police officers like McAusland – who dealt drugs, stole from a crime scene, and viciously attacked a person who sought help from the Paterson Police Department – are removed from positions where they can violate the public trust and deprive others of their civil rights under color of law. We will continue to vigilantly pursue these cases, recognizing that the people of Paterson, and all of New Jersey, deserve better.”
“The facts of this case are especially troubling to those of us in law enforcement,” Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office said. “When an officer betrays the oath to protect and serve, it tarnishes the law enforcement community and puts the public at risk. The FBI prides itself on having a solid working relationship with our state and local law enforcement partners. But by no means will we look the other way if an officer or agent of the law is breaking the rules that he or she is sworn to uphold.”
According to documents filed in this and another case, and statements made in court:
Between October 2017 and April 2018, McAusland sold various types and quantities of narcotics to an individual who was cooperating with law enforcement. In October 2017, McAusland sold the individual approximately 35 grams of marijuana, 48 grams of heroin, 31 grams of cocaine, and 31 grams of crack cocaine. McAusland admitted that he stole these narcotics from a crime scene while on duty and in uniform as a police officer.
McAusland also sold the individual two pounds of marijuana between November 2017 and January 2018. In addition, on multiple occasions between February 2018 and April 2018, McAusland sold pills that were made to resemble Percocet doses but were actually made of heroin.
On March 5, 2018, McAusland and his partner, Roger Then, 29, of Paterson, were on duty and responded to a call from an attempted suicide victim. McAusland and Then went to the victim’s house but were told the victim had been transported to St. Joseph’s Medical Center in Paterson.
McAusland first met the victim, who was in a wheelchair, in the hospital waiting room. McAusland admitted that during the encounter, he pushed the victim and punched him in the face. In addition, Then allegedly grabbed the victim by the neck and pushed him into the ground. Afterwards, the victim was taken to a patient room.
McAusland and Then had another encounter with the victim in the hospital room, which Then recorded on his cellphone. McAusland admitted that, while the victim was on his back in a hospital bed, he put on a pair of hospital gloves and violently struck the victim twice across the face.
McAusland and Then filed a false police report in connection with the foregoing events. McAusland admitted that they purposely omitted from the report the fact that McAusland violently struck the victim multiple times and that Then grabbed the victim by the neck and pushed him into the ground.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
In addition to the prison term, Judge Walls sentenced McAusland to three years of supervised release and ordered him to pay restitution of $32,892.
Then pleaded guilty before Judge Walls on Dec. 6, 2018, to one count of misprision of felony for concealing civil rights violations. He is scheduled to be sentenced April 2, 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 plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Owner of Information Technology Companies Sentenced to 15 Months in Prison for Visa Fraud and Tax FraudRead the Press Release
NEWARK, N.J. – An owner of two information technology companies was sentenced today to 15 months in prison for his role in using phony documents to fraudulently obtain H1-B visas for foreign workers and submitting false tax returns, U.S. Attorney Craig Carpenito announced.
Sowrabh Sharma, 34, of New York, New York, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with conspiracy to commit visa fraud and with subscribing to false tax returns. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals with purported IT expertise, often student visa holders or recent college graduates, and sponsored them for H-1B visas with the stated purpose of working for SMC Data and MMC Systems’ clients throughout the United States.
Sharma admitted that from 2010 through April 2015, he and others falsely represented to U.S. Department of Homeland Security, U.S. Citizenship and Immigration Services (USCIS) that dozens of foreign workers had full-time “in-house” positions, and would be paid an annual salary, as required to secure the visas. However, Sharma and his companies only paid the foreign workers when they were placed at a third-party client, or a company that entered into a contract for services with SCM Data and MMC Systems. Sharma further admitted that he and SCM Data and MMC Systems were violating USDOL regulations by not paying workers who were “benched,” or not working on a project.
Sharma also admitted that in some instances, foreign workers who were “benched” between projects and not working were told that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems to generate phony payroll checks.
Sharma also admitted that he intentionally overstated and claimed false expenses pertaining to SCM Data and MMC Systems on his U.S. Individual Tax Returns for 2011, 2012, 2013, and 2014 that resulted in a tax loss to the United States of over $1.1 million.
In addition to the prison term, Judge McNulty sentenced Sharma to one year of supervised release. Sharma made payment of the $1.1 million tax loss and penalties to the IRS prior to sentencing.
U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael: the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Michael C. Mikulka, in New York: IRS – Criminal Investigation, under the direction of John R. Tafur; and U.S. Citizenship and Immigration Service, under the direction of John E. Thompson, District Director of the Newark District, with the investigation.
The government is represented by Assistant U.S. Attorneys Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: John P. Lacey Esq. and Leo J. Hurley Esq., Newark
Middlesex County, New Jersey, Man Sentenced to Life Plus 20 Years in Prison on Racketeering, Murder, and Weapon ChargesRead the Press Release
NEWARK, N.J. – A New Brunswick, New Jersey, man was sentenced today to life plus 20 years in prison for his violent role in a racketeering conspiracy involving multiple brothels that employed illegal aliens throughout New Jersey, U.S. Attorney Craig Carpenito announced.
Wilmer Chavez Romero, a/k/a “Charmin,” 29, was previously convicted of all eight counts of an indictment charging him with one count each of racketeering, racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and conspiracy to harbor aliens; two counts of using a firearm for a violent crime; and two counts of murder in aid of racketeering. He was convicted following a two and a half-week trial before U.S. District Judge William H. Walls, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Chavez Romero served as an enforcer for a prostitution enterprise that helped illegal aliens enter the country and employed them at brothels throughout Cumberland, Essex, Mercer, Middlesex, Monmouth and Ocean counties. The enterprise used threats and acts of violence – including burglary, assaults, and murder – to expand its territory, thwart rival brothels, exact revenge, punish enterprise members and associates who had been disloyal, and silence people they believed were cooperating with law enforcement.
Chavez Romero acted at the direction of the leaders of the enterprise, Juan Fredy Hernandez-Zozaya, 40, and his girlfriend, Elizabeth Rojas, 37, both of New Brunswick, who oversaw brothels in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton.
Chavez Romero personally committed acts of violence to further the enterprise, including participating in the murders of two victims during separate robberies. On Sept. 4, 2012, Chavez Romero, armed with a firearm, entered a rival brothel house in Trenton with the intent to rob the house. During the robbery, one victim was shot in the leg and survived, while another was shot and killed.
On Jan. 23, 2013, Chavez Romero entered another rival brothel in Trenton armed with a .40 caliber firearm. Chavez Romero attempted to commit a robbery when a fight broke out and a victim was shot and killed.In addition, during recorded interviews with law enforcement in 2012 and 2014, Chavez Romero discussed his role in the murders, as well as beatings, shootings, and other acts of violence that he committed to further the enterprise’s goals and shut down its competition. As part of the enterprise, Chavez Romero also conspired to conceal and harbor aliens and aided in their interstate transport for use in the prostitution enterprise.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, as well as the Cumberland County Prosecutor’s Office, Trenton Police Department, Mercer County Prosecutor’s Office, and the N.J. State Police Ballistics Lab, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin F. Carlucci Esq. and Carol Gillen Esq., Assistant Federal Public Defenders, Newark
Former Manager of Bulk Mailing Company Admits $1.5 Million Mail Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – The former manager of a Gloucester County, New Jersey, bulk mailing company today admitted defrauding the U.S. Postal Service (USPS) of more than $1.5 million in postage, U.S. Attorney Craig Carpenito announced.
Steven Kaczorowski, 46, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of mail fraud.
According to documents filed in this case and statements made in court:
Steven Kaczorowski managed a business that prepared bulk mail, typically for shipping mass mailings on behalf of other businesses, educational institutions and charitable organizations. With the assistance of the company owner, Anthony L. Bucolo, Kaczorowski defrauded the USPS of more than $1.5 million in postage while billing clients as if such postage had been paid. Kaczorowski and Bucolo committed the fraud by various means, including by underreporting the volume of mail pieces actually mailed, altering USPS forms, and adding mail onto pallets, trays, tubs or sacks after the mail had been accepted and postage assessed and collected by a postal employee. Bucolo pleaded guilty to the conspiracy on Nov. 18, 2018, before Judge Bumb, but died prior to sentencing. The bulk mailing business is no longer operational.
The mail fraud conspiracy charge to which Kaczorowski pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. In his plea agreement, Kaczorowski agreed to make restitution for the full amount of the loss, which is estimated at more than $1.5 million. Sentencing for Kaczorowski is scheduled for July 9, 2019.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, Philadelphia Division, 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 in Camden.
Defense counsel: Patrick J. Egan Esq., Philadelphia
Middlesex County, New Jersey, Tax Preparer Admits FraudRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer today admitted filing a false tax return for two clients and failing to file a tax return, U.S. Attorney Craig Carpenito announced.
David Patterson, 37, was indicted in October 2018 and pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to Count 24, aiding and assisting in the preparation of a false income tax return, and Count 25, failure to file a tax return for 2013, of the superseding indictment.
According to documents filed in this case and statements made in court:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. He admitted preparing a fraudulent tax return on behalf of two clients for tax year 2012 in which he falsified the clients’ medical and dental expenses, gifts to charity and unreimbursed employee expenses. He also admitted failing to file an individual tax return and pay federal income taxes for calendar year 2013.
The false filing count carries a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. For purposes of sentencing, Patterson admitted to aiding and assisting in the preparation of 23 additional false tax returns and failing to file tax returns for calendar years 2014 and 2015, resulting in an aggregate loss of $290,321. Sentencing is scheduled for Aug. 12, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, the Department of Justice Tax Division, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit and Trial Attorney Eric Powers of the Department of Justice Tax Division.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Fourth Paterson, New Jersey, Police Officer Charged with Conspiracy to Violate Civil RightsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was arrested today and charged with conspiring to violate the civil rights of motor vehicle occupants and others in Paterson, New Jersey, U.S. Attorney Craig Carpenito announced.
Daniel Pent, 32, of Paterson, was arrested by special agents of the FBI on a complaint charging him with conspiring to deprive individuals of civil rights under color of law. Pent is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Pent, and other Paterson police officers, including Eudy Ramos, stopped and searched motor vehicles, without any justification, and stole cash and other items from the occupants of the motor vehicles. Pent, Ramos, and others also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from those individuals.
On Feb. 1, 2017, Pent and Ramos stopped and searched a vehicle in Paterson, detained and handcuffed the occupants, and stole approximately $10,000 from one of the occupants. Pent told Ramos that either they should take all of the money or they should take none of it, and they chose to take all of it. They split the money between themselves. Pent and Ramos subsequently arrested the victim and charged the victim with loitering in a drug area. Pent filled out a prisoner property report for the victim that falsely stated that the victim had approximately $36 on his person. Ramos and Pent submitted an incident report in which they omitted the fact that they had located, and seized, $10,000 from the victim.
A federal grand jury indicted Ramos on March 20, 2019, for his role in the conspiracy and other civil rights and false records charges. His case is pending before U.S. District Judge Katharine S. Hayden.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
East Orange, New Jersey, Man Charged with Money LaunderingRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was charged today with conspiring to transact in criminal proceeds involving $2.36 million in funds obtained through a business email scheme, U.S. Attorney Craig Carpenito announced.
Samora Patterson, 40, is charged by complaint with one count of conspiring to transact in criminal proceeds. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
In March 2015, three related real estate companies entered into a multi-million dollar transaction to sell certain commercial real estate properties. “Title Company A” was the closing agent for the transaction.
On May 7, 2015, immediately before the transaction was scheduled to close, hackers impersonating the president of the three real estate companies sent a fraudulent email to Title Company A with wire instructions for the net closing proceeds. The fraudulent wire instructions directed Title Company A to wire $2.36 million to an account controlled by Patterson. Over the next several days, Patterson withdrew the $2.36 million from his account through cashier’s checks and cash.
The count with which Patterson is charged carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.U .S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County, New Jersey, Man Charged with Bankruptcy FraudRead the Press Release
NEWARK N.J. – A Bergen County, New Jersey, man was charged today with making false declarations in relation to a bankruptcy proceeding, U.S. Attorney Craig Carpenito announced.
Victor Osorio, 40, of Cresskill, New Jersey, is charged by complaint with two counts of bankruptcy fraud. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
On Feb. 16, 2017, Osorio filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code in U.S. Bankruptcy Court for the District of New Jersey. Osorio signed the bankruptcy petition under penalty of perjury, declaring that the information provided was true and correct.
In the petition, Osorio stated that none of his affiliates had a pending bankruptcy case, failing to disclose that a business in which he had an interest, “Business 1,” had a bankruptcy case pending at the time in U.S. Bankruptcy Court for the Southern District of New York.
Osorio also filed Schedules of Assets and Liabilities, signed under penalty of perjury, in which he stated that he did not own or have an interest in any incorporated or unincorporated businesses. Osorio failed to disclose that he had an ownership interest in Business 1 – and he had declared approximately seven months earlier in Business 1’s bankruptcy documents that he was its sole owner – and had an ownership interest in another business, Business 2.
In the Schedules, Osorio also stated that he did not own or have an interest in any checking, savings or other financial accounts, failing to disclose a bank account with a bank based in the Dominican Republic in which he had an interest.
On Feb. 24, 2017, Osorio filed amendments to the schedules, disclosing a partial ownership interest in Business 1. However, the amendments still failed to disclose an ownership interest in Business 2 and the bank account in the Dominican Republic.
The bankruptcy fraud charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited New York City Police Department detectives, under the direction of New York City Police Department Commissioner Paul P. O’Neill, assigned to the Homeland Security Investigations Border Security Enforcement Task Force (BEST); and special agents of HSI-New York, under the direction of Special Agent in Charge Angel M. Melendez, assigned to HSI/NY BEST, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Dara Govan, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark; Assistant U.S. Attorney Sean M. Sherman, of the Public Protection Unit; and Special Assistant U.S. Attorney Ben Teich of the Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Paterson, New Jersey, Police Officer Charged with Conspiracy to Violate Civil Rights and Other OffensesRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a City of Paterson, New Jersey, police officer for conspiring to violate individuals’ civil rights by stopping and searching people in their vehicles and on the street and stealing their cash, U.S. Attorney Craig Carpenito announced.
Eudy Ramos, 28, of Paterson, was charged in a nine-count indictment with conspiring to violate, and violating, the civil rights of individuals in Paterson, and with filing multiple false reports to conceal his criminal conduct. Ramos was previously charged by criminal complaint in April 2018. He will be arraigned in federal court on a date to be determined.
According to documents filed in this and a related case and statements made in court:
Eudy Ramos, Jonathan Bustios, and Matthew Torres were police officers with the Paterson Police Department (PPD). From at least 2016 to April 2018, they and other police officers, identified in the indictment as PPD Officer 1 and PPD Officer 2, allegedly targeted, stopped, and searched vehicles and the occupants of those vehicles and illegally seized cash from them. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized their cash. They split the cash among themselves and submitted false reports to the PPD, omitting their illegal conduct or lying about it.
Among the methods employed to carry out the conspiracy, Ramos and the other officers used text messages to communicate about their criminal conduct. For instance, on Feb. 24, 2018 Ramos sent a text message to Bustios and Torres asking if they were in the mood for “weekend mangoes,” using the code word “mango” to refer to the illegal seizure of cash. On Feb. 25, 2018, Ramos sent a text message to Bustios, telling Bustios that Ramos was “tryna get someone in a car,” referring to Ramos’ plan to illegally steal cash from the occupants of vehicles in Paterson. On Dec. 7, 2017, Bustios sent a text message to Ramos, “83 auburn back door is open,” and Ramos responded, “On my way.” The address 83 Auburn Street was one of several locations that Ramos and others targeted for illegal cash seizures.
Some instances of Ramos’ and his conspirators illegal conduct include:
On Feb.1, 2017, Ramos and another PPD officer stopped and searched a vehicle, detained and handcuffed the occupants, and stole approximately $10,000 from one of the passengers. Ramos and his conspirator split the money between themselves and omitted any mention of the $10,000 in the PPD incident report and prisoner property report.
On Dec. 1, 2017, Ramos and Bustios stopped and searched an individual on a street corner in Paterson and stole approximately $1,000 from the individual. After the theft, a video of a portion of the encounter was posted to Twitter.
On Dec. 7, 2017, Torres and Ramos conducted a vehicle stop in Paterson. Torres and Ramos searched the vehicle, the driver, and the passenger, who had $3,100 and marijuana. Ramos told the passenger that instead of charging the passenger with distribution of marijuana they could take $500 from the passenger and have the passenger sign a piece of paper. Ramos then purportedly placed a call to his superior and told the passenger that the superior officer said it had to be $800. Ramos took out a piece of paper, wrote on it, and told the passenger to sign it. The passenger did not know what was written on the paper. Afterwards, Torres and Ramos released the driver and passenger. Torres and Ramos shared the stolen cash proceeds. Ramos and Torres did not report the stop and search of the vehicle and its occupants, or the cash seizure, to the Paterson Police Department.
The conspiracy count carries a maximum penalty of 10 years in prison and the substantive Counts 2 to 6 each carry a maximum penalty of one year in prison. The false records counts each carry a maximum penalty of 20 years in prison. The maximum fine for the felony counts is $250,000, and the maximum fine for the misdemeanor Counts 2 to 6 is $100,000.
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. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Defense counsel: Miles Feinstein Esq., Clifton, New Jersey
New York Woman Sentenced to Five Years in Prison for Role in Dominican Heroin Trafficking RingRead the Press Release
NEWARK, N.J. – A New York woman was sentenced today to 60 months in prison for her role in a Dominican drug trafficking ring responsible for distributing multi-kilogram quantities of heroin in New Jersey, U.S. Attorney Craig Carpenito announced.
Maria Peterson, a/k/a “Chabela” 48, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to distribute more than a kilogram of heroin and one substantive count of distributing more than a kilogram of heroin. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
During the course of an investigation into a drug trafficking organization operating in New Jersey, the Dominican Republic, Mexico, and elsewhere, law enforcement learned that Peterson and others served as local distributors for the organization in New Jersey and New York.
The narcotics, which were usually transported to New Jersey and New York via truck, were received and paid for by the defendants before they were distributed on the street. This drug trafficking organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015 in New York, a seizure of approximately four kilograms of heroin in November 2015 in New Jersey, and a seizure of approximately 10 kilograms of heroin in New Jersey in January 2017.
Peterson admitted that on March 25, 2015, she receiving a package of nearly two kilograms of heroin at her New York address, which she gave to a conspirator. She also admitted providing money to a conspirator in order to pay for some or all of the four-kilogram heroin shipment that was sent to New Jersey on Nov. 28, 2015.
In addition to the prison term, Judge McNulty sentenced Peterson to three years of supervised release.
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.
U.S. Attorney Carpenito credited special agents and task force officers with the Drug enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and officers of the N.J. State Police, Trafficking North Unit, under the direction of Superintendent Col. Patrick Callahan, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Scott D. Finckenauer Esq., Fairview, New Jersey
Bergen and Burlington County, New Jersey, Religious Leaders Admit Roles in Conspiracy to Evade Taxes on Millions of Dollars in Income from ChurchRead the Press Release
NEWARK, N.J. – The leader and the main treasurer of the Israelite Church of God in Jesus Christ admitted their respective roles today in a scheme in which both men caused the church to pay millions of dollars in personal expenses for the leader that the leader then omitted from his personal tax returns, U.S Attorney Craig Carpenito announced.
Jermaine Grant, 43, of Burlington Township, New Jersey, and Lincoln Warrington, 48, of Bergen County, New Jersey, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to Count One of the indictment against them, charging them with conspiring to defraud the United States.
According to documents filed in the case and statements made in court:
Grant and Warrington used their leadership positions in the church to divert to Grant millions of dollars belonging to the church and its members for Grant’s personal use and benefit. The defendants used a variety of methods to carry out the scheme. For example, Grant and Warrington created a purported entertainment company that portrayed Grant as an industry mogul whose wealth was derived from his success in the industry, thereby concealing from church members that his lifestyle was supported entirely by the church and donations from its members. Grant and Warrington also used the church’s money to pay Grant’s other personal expenses, including payments for rental real estate properties, vacations, high-end luxury items, and private school tuition for Grant’s minor children. Grant, with Warrington’s assistance, then omitted these benefits from his individual income tax returns, resulting in the evasion of a substantial amount of tax due and owing to the United States. In total, Grant and Warrington concealed millions of dollars in income from the IRS, and failed to pay at least $250,000 in taxes.
The plea agreements in this matter include a requirement that the church will develop and present to the United States a plan designed to ensure the church’s compliance with applicable federal income tax laws going forward. A preliminary version of this tax compliance plan that is satisfactory to the United States must be provided prior to the date of Grant’s and Warrington’s sentencing hearings. Before the United States returns to the church certain cash and property seized during execution of the search warrants in this case, the compliance plan must address the disposition of that cash and property and ensure that they are returned for the benefit of the the church rather than for the personal benefit of Jermaine Grant or any other individual.
The tax fraud conspiracy charge to which Grant and Warrington pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. If accepted by the court, the plea agreement further provides that each defendant will be sentenced to a maximum of 30 months in prison. Sentencing is scheduled for July 23, 2019.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, under the direction of Special Agent in Charge Gregory W. Ehrie, and IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty pleas.
The government is represented by First Assistant U.S. Attorney Rachael A. Honig and Assistant U.S. Attorney Margaret A. Mahoney, Senior Trial Counsel for the National Security Unit in Newark, New Jersey.
Defense counsel:
Grant: Gerald Lefcourt Esq. and Faith Friedman Esq., New York
Warrington: Richard Levitt Esq., New YorkTwo New Jersey Men Arraigned in Reverse Mortgage SchemeRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man and a Bergen County, New Jersey, man have been arraigned for their respective roles in a reverse mortgage scheme that took advantage of several elderly homeowners, U.S. Attorney Craig Carpenito announced today.
Rafael Peralta, 46, of Clifton, New Jersey, and Philip Puccio Jr., 40, of Mahwah, New Jersey, were indicted Feb. 8, 2019, by a federal grand jury on one count of conspiracy to commit bank fraud and six counts of bank fraud. They were arraigned March 15, 2019, before U.S. District Judge Anne E. Thompson in Trenton federal court.
According to documents filed in this case and statements made in court:
From November 2007 through December 2010, Peralta and Puccio, home repair contractors, allegedly conspired to fraudulently obtain Home Equity Conversion Mortgage (HECM) – also known as reverse mortgage – proceeds by submitting inflated and fraudulent documentation to various victim banks to influence their decision to approve and fund HECMs. Peralta and Puccio recruited a conspirator to prepare inflated real estate appraisals that falsely increased the value of the properties securing the HECMs, thereby influencing each lender’s decision to provide loans in amounts greater than what would otherwise be available.
Peralta and Puccio also caused the submission of false and fraudulent loan documents that actively concealed the disbursement of loan proceeds to Peralta, Puccio, and entities they owned and controlled. The diverted loan proceeds were deposited into bank accounts controlled by Peralta and Puccio and used for their personal benefit and to further the conspiracy.
The conspiracy to commit bank fraud and bank fraud charges carry a maximum potential penalty of 30 years in prison, a fine of $1 million, or twice the gross pecuniary gain by the defendants or twice the gross pecuniary loss to others, whichever is greater.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Acting Special Agent in Charge Robert Manchak; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and special agents of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading the charges.
The government is represented by Special Assistant U.S. Attorneys Kevin Di Gregory and Charlie Divine of the U.S. Attorney’s Office Criminal Division in Newark and the Federal Housing Finance Agency, Office of the Inspector General.
Defense counsel:
Peralta: TBD
Puccio: Kevin Roe Esq., Hackensack, New JerseyJustice Department Files Statement of Interest in Religious Land Use Case Brought by Native American GroupRead the Press Release
NEWARK, N.J. – The Department of Justice today filed a Statement of Interest in U.S. District Court in New Jersey supporting claims by the Ramapough Mountain Indians (Ramapough) that the Township of Mahwah, New Jersey, violated the tribe’s rights under the Religious Land Use and Institutionalized Person’s Act of 2000 (RLUIPA) by interfering with religious assembly on tribal property known as “Sweet Water.”
“RLUIPA protects the rights of all religious communities to worship on their land free from discriminatory barriers and unlawful burdens,” New Jersey U.S. Attorney Craig Carpenito said. “Our office will continue to vigorously enforce the rights guaranteed by RLUIPA and take steps to ensure that it is applied correctly in our District.”
“RLUIPA is an important law protecting the religious exercise of people of all faiths. The Department of Justice is committed to ensuring that this law and other laws protecting religious freedom are fully and properly applied,” Eric Dreiband, Assistant Attorney General for Civil Rights, said.
In the suit, Ramapough Mountain Indians, Inc. v. Township of Mahwah, filed last May, the Ramapough allege that the Township substantially burdened their religious exercise by rescinding a zoning permit that authorized religious worship, limiting the number of people permitted on the property for religious gatherings, demanding the removal of structures central to the Ramapough’s worship including a sweat lodge, a prayer circle, and an altar, issuing large fines, and initiating civil and criminal enforcement proceedings. The tribe also alleges that the Township treated it differently from other similarly situated nonreligious groups.
In September 2018, the Ramapough sought to amend their complaint. The United States’ Statement of Interest argues that the amended complaint properly state claims under RLUIPA. The United States argues that the Township has imposed a substantial burden on the Rampough’s religious exercise without adequate justification, and has not treated its use of the land equally with nonreligious uses of land. The Statement of Interest further argues that those RLUIPA claims, which allege that the Township’s conduct has “significantly chilled Ramapough’s use of the land for religious purposes,” are ripe for consideration by the court.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Last year, the Justice Department announced its “Place to Worship Initiative,” which focusses on RLUIPA’s provisions that protect the rights of religious institutions to worship on their land. More information is available at: www.justice.gov/crt/placetoworship.In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or on the complaint portal on the Place to Worship Initiative website.
The government is represented by Assistant U.S. Attorney Michael Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Assistant U.S. Attorney Susan Millenky, Civil Division; and Trial Attorney Noah Sacks, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Seven People Charged in $50 Million Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A federal grand jury has returned a 50-count indictment charging seven people with defrauding New Jersey state health benefits programs and other insurers out of more than $50 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced today.
William Hickman, 42, Sara Hickman, 42, Thomas Schallus, 42, Thomas Sher, 46, all of Northfield, New Jersey, Brian Pugh, 41, of Absecon, New Jersey, John Sher, 37, of Margate City, New Jersey, and Christopher Broccoli, 47, of West Deptford, New Jersey, were all charged with conspiracy to commit health care fraud and wire fraud and with individual acts of health care fraud and wire fraud. William and Sara Hickman and Brian Pugh also were charged with conspiracy to commit money laundering and individual acts of money laundering. The defendants are expected to appear later today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court. The case is assigned to U.S. District Judge Robert B. Kugler in Camden.
According to the indictment:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From July 2014 through April 2016, the conspirators recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, identified in the indictment as the “Compounding Pharmacy.” The conspirators learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.
The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications, as did some other insurance plans. An entity referred to in the indictment as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
The Compounding Pharmacy agreed to pay Boardwalk Medical LLC, a company run by William Hickman and Sara Hickman, a percentage of the amount that the Compounding Pharmacy received for prescriptions obtained by Boardwalk Medical and its associates. The Hickmans then had Pugh and other conspirators recruit individuals who had coverage for compounded medications, and those conspirators found additional recruiters, including Thomas Schallus, John Sher, Thomas Sher, and Christopher Broccoli.
The conspirators recruited public employees covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation or determination by a medical professional that the medications were medically necessary. The defendants paid individuals to agree to receive prescription medications from the Compounding Pharmacy. The defendants completed prescriptions for these individuals and selected the most expensive medications with the highest number of refills to obtain the highest possible insurance reimbursement. The conspirators would have prescriptions signed by a doctor who did not examine the patients. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
William Hickman paid Dr. John Gaffney to reward him for signing prescriptions. Gaffney previously pleaded guilty to conspiracy to commit health care fraud and admitted taking payments and signing prescriptions for patients he did not see.
After the prescriptions were filled, the Compounding Pharmacy paid Boardwalk Medical a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator. The Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications, and the Compounding Pharmacy paid William Hickman and Sara Hickman over $26 million for prescriptions obtained by the conspiracy. The Hickmans paid a portion of that amount to Pugh, Schallus, John Sher, Thomas Sher, Christopher Broccoli, and other conspirators.
The health care fraud and wire fraud conspiracy count with which all defendants are charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Each health care fraud count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the transaction. Each charge of monetary transactions in criminally derived property worth more than $10,000 carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the transaction.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the indictment. 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 and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Indian National Admits Conspiring to Smuggle Foreign Nationals into United States via Commercial FlightsRead the Press Release
NEWARK, N.J. – An Indian national today admitted conspiring to smuggle foreign nationals into the United States via commercial airline flights, U.S. Attorney Craig Carpenito announced.
Bhavin Patel, 38, of India, pleaded guilty to before U.S. District Judge John M. Vazquez to a superseding information charging him with conspiracy to smuggle foreign nationals into the United States for private financial gain.
According to documents filed in this case and statements made in court:
Agents for the Department of Homeland Security Investigations (HSI) received information that a smuggling operation run by Patel was attempting to find methods to bring foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.
Beginning in October 2013, an undercover law enforcement officer posing as a smuggler began meeting with Patel in Bangkok, Thailand. Patel told the undercover law enforcement officer that he wanted to smuggle Indian nationals into the United States. On three different occasions, Patel or his conspirator transported the Indian nationals to an airport in Thailand, at which point the undercover law enforcement officer would presumably use his contacts to smuggle them into the United States via commercial airline flights. Patel agreed to wire down payments for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.
Over the ensuing months, Patel arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport. Patel was arrested on Dec. 7, 2018, upon his arrival at Newark Liberty.
The conspiracy charge carries a maximum potential sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for July 9, 2019.
U.S. Attorney Carpenito credit special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Thomas S. Kearney of the U.S Attorney’s Office National Security Unit in Newark.
Atlantic City, New Jersey, Woman Charged with Drug Distribution Resulting in DeathRead the Press Release
NEWARK, N.J. – An Atlantic City, New Jersey, woman appeared in federal court today on charges including drug distribution that resulted in a death, U.S. Attorney Craig Carpenito announced.
Rajeri Curry, 30, is charged by federal complaint with one count of possession with the intent to distribute heroin and one count of distribution of heroin and fentanyl that resulted in a death. Curry had an initial appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained without bail.
According to documents filed in this case:
On June 1, 2018, Curry distributed a substance containing heroin and fentanyl to an individual who died as a result of using the substance. Law enforcement found the deceased victim inside a vehicle in the parking lot of an Atlantic City, New Jersey, restaurant. Inside the victim’s vehicle were multiple wax folds that contained heroin and fentanyl and were stamped with the words “BODY COUNT.” Shortly before the victim’s death, surveillance footage captured Curry distributing narcotics to the 30-year-old victim.
Curry is also charged with possession with intent to distribute heroin arising from the execution of a search warrant at her residence.
U.S. Attorney Carpenito credited special agents of the DEA’s Newark Office, under the direction of Special Agent in Charge Susan A. Gibson, officers from the Atlantic City Police Department, under the direction of Chief Henry M. White Jr., and the Atlantic County Prosecutor’s Office, under the direction of Damon G. Tyner, with the investigation leading to the charges.
The drug distribution resulting in death charge carries a maximum punishment of life in prison and a fine of $1 million.
The charges and allegations in the complaint are merely accusations, and Curry is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division in Newark.
Allentown, Pennsylvania, Woman Faces Additional Charges for Stealing $644,000 in Medicare BenefitsRead the Press Release
TRENTON, N.J. – An Allentown, Pennsylvania, woman was indicted today on additional charges stemming from her scheme to defraud the government, U.S. Attorney Craig Carpenito announced.
Martha Aguilar, 57, formerly of Middletown, New Jersey, was charged by indictment in August 2018 with theft of government funds, Social Security fraud, and making false statements in furtherance of Social Security fraud. Today’s superseding indictment adds three counts of healthcare fraud relating to Aguilar's scheme to also defraud Medicare and steal $644,605 in benefits she was not entitled to receive.
According to the superseding indictment:
From November 2004 to September 2016, Aguilar allegedly collected $136,879 in Social Security benefits and $644,605 in Medicare benefits that she was not entitled to receive. Aguilar indicated on forms to the Social Security Administration (SSA) that she was completely disabled and unable to work. However, while she was collecting Social Security and Medicare benefits, Aguilar concealed her employment as a paralegal.
Aguilar also fraudulently applied for and received temporary disability from the State of New Jersey totaling $13,622, and unemployment benefits from the State of New Jersey totaling $103,738, which she concealed from the SSA. In all, Aguilar failed to report to SSA $488,870 in benefits and income.
If convicted, Aguilar faces a maximum sentence of 30 years in prison and a total fine of $750,000.
U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of Special Agent in Charge John F. Grasso; Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Eastern Region; and N.J. Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation leading to todays indictment.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Newark
Hunterdon County, New Jersey, Man Charged with Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Hunterdon County, New Jersey, man was arrested by federal agents today for allegedly distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Mark Miller, 61, of Bloomsbury, New Jersey, is charged by criminal complaint with one count of distributing child pornography. He was arrested in his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He had his initial appearance today before U.S. Magistrate Court Judge James B. Clark III in Newark federal court and was detained without bail.
According to documents filed in this case and statements made in court:
Miller used a mobile application to distribute files containing images and videos of child pornography, including images of prepubescent children.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Craig Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael, with the investigation leading to today’s charge and arrest. He also thanked the Hunterdon County Prosecutor’s Office and N.J. State Police for their assistance.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County, New Jersey, Man Charged with Embezzlement and Failure to File Annual Report for Employee Benefit PlanRead the Press Release
NEWARK, N.J. – The trustee of a pension fund has been indicted for embezzling from an employee benefits plan and failing to file annual reports for the plan, U.S. Attorney Craig Carpenito announced today.
Howard Preschel, 62, of Teaneck, New Jersey, is charged by indictment with 10 counts of embezzlement from an employee benefit plan and three counts of failure to file an annual report. He surrendered on March 12, 2019, and made his initial appearance before U.S. Magistrate Judge James C. Clark III. Preschel was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries. From at least October 2013, Preschel embezzled $186,123 from company’s pension trust fund.
Preschel was also required to publish and file annual reports with the Secretary of Labor. In order to conceal the ongoing embezzlement, Preschel failed to inform the participants and beneficiaries that insufficient funds were being forwarded to the pension trust and failed to file required annual reports for the plan.
The embezzlement charges each carry a maximum penalty of five years in prison and a fine of up $250,000. The failure to file an annual report charges each carry a maximum penalty of 10 years in prison and a fine of up to $100,000.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka; and the U.S. Department of Labor, Employee Benefits Security Administration, under the direction of Acting Regional Director of the New York Regional Office, Thomas Licetti, with the investigation leading to the indictment.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Union County, New Jersey, Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County man was arrested today on a charge of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Jeffrey Shreve, 35, of Scotch Plains, New Jersey, was arrested at his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He is charged by complaint with one count of distributing child pornography. Shreve made his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Shreve used peer-to-peer file sharing software to seek and obtain images of child sexual abuse, including images of prepubescent children.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of HSI, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s charges.
The government is represented by Counsel to the U.S. Attorney Caroline Sadlowski of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Restructuring of U.S. Attorney’s Office Leads to Significant Results in First YearRead the Press Release
District of New Jersey sees Increase in Prosecutions of both Violent and White Collar Crime
NEWARK, N.J. – One year after U.S. Attorney Craig Carpenito reorganized the structure of the U.S. Attorney’s Office for the District of New Jersey, overall criminal prosecutions have increased 51 percent, including a 65 percent jump in violent crime prosecutions, a 39 percent jump in narcotics related prosecutions, and a 15 percent jump in white collar crime prosecutions.
U.S. Attorney Carpenito’s goal in restructuring the office was to focus on areas of criminal and civil enforcement that would pay the biggest dividends in protecting New Jersey’s citizens. To that end, he established three new units in the Criminal Division (the Opioids, Violent Crime, and Cyber Units), increased the number of prosecutors by approximately 25 percent, doubled the size of the office’s paralegal corps, and implemented an “eLitigation” program to improve the way the office receives and processes information. One year later, the results of these improvements have been felt across the state of New Jersey.
“Over the past year, we have focused our efforts in gun and drug cases to target the most violent offenders,” U.S. Attorney Carpenito said. “The results have been very encouraging. Both Newark and Camden, for example, have seen significant drops in their respective crime rates, year-over-year, and both are at their lowest crime rates in 50 years. But statistics only tell part of the story. These results also have a positive impact on the lives of the people who live here.”
“The New Jersey U.S. Attorney’s Office’s responsiveness and flexibility in dealing with a shifting threat picture is a true model for progressive prevention,” FBI Special Agent in Charge Gregory W. Ehrie said. “The reorganization of critical assets has greatly increased prosecutorial efficiency, allowing New Jersey local, state, and federal law enforcement agencies to more effectively combat criminal and national security challenges. This is yet another example of the outstanding partnership U.S. Attorney Carpenito and his office have continually displayed.”
“U.S. Attorney Carpenito’s new vision for his office is bringing great results,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “His formation of the Opioid Abuse Prevention and Enforcement Unit sends a clear message that his office will prosecute those who choose to poison our communities with these very dangerous drugs. It is very reassuring for the men and women of DEA’s New Jersey Division to know the U.S. Attorney fully supports their investigations.”
“The safety and well-being of our citizens is a vital part of our mission,” ATF Newark Field Division Acting Special Agent in Charge Christopher Taylor said. “ATF, in partnership with the United States Attorney’s Office and our other federal, state and local law enforcement partners, will continue to focus our investigative resources on arresting and prosecuting the most violent criminals who use firearms to terrorize our communities and on those individuals who supply firearms to this criminal element. Protecting our neighborhoods from violent crime is a priority for the citizens of New Jersey and ATF.”
In the fiscal year that ended Sept. 30, 2017, the U.S. Attorney’s Office charged 467 defendants by indictment or information. By contrast, in the one year since U.S. Attorney Carpenito’s reorganization, the U.S. Attorney’s Office charged 707 defendants by indictment or information, an increase of 51 percent.
The U.S. Attorney’s Office leads “Violent Crime Initiatives,” partnerships among federal, state and local law enforcement, in two major areas in New Jersey, Newark and Jersey City. (A similar model, known as “C-4,” has been active in Camden for several years.) The VCIs collect information from more than a dozen law enforcement agencies, identify and prioritize the offenders posing the highest threats to public safety, and coordinate responses to those threats. Through the VCIs, the U.S. Attorney’s Office spearheads targeted investigations into individuals and organizations responsible for significant violent activity.
In October 2018, the U.S. Attorney’s Office announced two significant takedowns of violent drug gangs. On Oct. 11, the office charged 17 members, associates, and drug suppliers of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine in Newark and possessed and used firearms in furtherance of the gang’s drug trafficking activities. And on Oct. 25, the office charged 27 individuals who used violence as part of a conspiracy to distribute significant quantities of heroin and other narcotics in Trenton, and whose members possessed numerous firearms in furtherance of the gang’s activities.
The program has already shown success:
• Crime is down 15 percent in Newark from 2017 to 2018.
• Shooting incidents are down 30 percent in Newark between 2017 and 2018, and down another 39 percent between comparable periods in 2018 and 2019.
• The office has taken more than 100 new cases arising from Newark since the reorganization.
• The VCI program has recently started in Jersey City, and shooting incidents are down 69 percent in Jersey City between comparable periods in 2018 and 2019.
• Violent crime was down 18 percent in Camden from 2017 to 2018.“The remarkable progress we’ve had in Camden is built on many things,” Chief Thomson said. “Its foundation is establishing trust with the community, but also trust among local, state and federal law enforcement partners. We have that kind of trust with the U.S. Attorney’s Office in New Jersey, and U.S. Attorney Carpenito has worked hard to provide his Camden office with the people and resources needed to be valuable contributors to the law enforcement team we’ve assembled here.”
“One of the advantages of the reorganization of the U.S. Attorney’s Office is the targeting of resources on the mission of reducing violent crime,” Public Safety Director Anthony Ambrose said. “In 2018 the U.S. Attorney’s office handled over 120 cases that specifically helped Newark, resulting in more than 100 fewer shooting victims compared to 2017 and a 35 percent reduction in robberies.”
“Violent crime, specifically related to shootings and gun offenses, has been priority number one for the Jersey City Police Department, along with its essential partner, the Hudson County Prosecutor,” Jersey City Police Chief Michael J. Kelly said. “Now, with the ‘Violent Crime Initiative’ and the Office of U.S. Attorney Craig Carpenito fully engaged, Jersey City is about to become even safer. Partnership with the U.S. Attorney’s Office is a major win for all our neighborhoods in Jersey City and bad news for those that perpetuate violence in our community.”
Along with the renewed focus on violent criminal offenders, the U.S. Attorney’s Office has continued to pursue and prosecute white collar criminals, with the number of those defendants charged by information or indictment up 15 percent in the year since the reorganization was announced. In 2019 alone, the U.S. Attorney’s Office has announced charges in several significant white collar cases, including:
• The Jan. 15, 2019, unsealing of a significant indictment charging two Ukrainian men for their roles in a large-scale, international conspiracy to hack into the Securities and Exchange Commission’s (SEC) computer systems and profit by trading on critical information they stole.
• The Feb. 13, 2019, complaint charging Gene Levoff, a former senior attorney at a global technology company, with insider trading.
• The Feb. 14, 2019, indictment charging the former President and former General Counsel of Cognizant, a Fortune 500 company, with FCPA violations for allegedly bribing officials in India.“I could not be prouder of the way this office and our federal, state and local law enforcement partners have worked to implement these changes, or the results we have achieved so far,” U.S. Attorney Carpenito said. “It’s because we are a team, no one person or entity more important to the mission than any other, that we succeed. But challenges remain and we must remain vigilant if we hope to build on our success. As the current caretaker of this office, I’m proud to have the opportunity to continue the outstanding traditions of this place and law enforcement in New Jersey.”
Hudson County, New Jersey, Man Admits Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Todd Walsh, 41, of Hoboken, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of distributing child pornography.
According to documents filed in this case and statements made in court:
From September 2016 through November 2017, undercover officers accessed an Internet-based video conferencing application and observed that a user, identified as Walsh, used the application to display images of child sexual abuse, including images of prepubescent children, to other users of the application.
The count of distributing child pornography to which Walsh pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for June 25, 2019.
U.S. Attorney Craig Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office and the Hoboken Police Department for their work on this case.
The government is represented by Assistant U.S. Attorney Ailyn Abin of the U.S. Attorney’s Office in Newark.
Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark
Tax Preparers Admit Roles in Tax Fraud SchemeRead the Press Release
NEWARK – Two Union County, New Jersey, tax preparers today admitted their respective roles in conspiring to defraud the IRS, filing false personal tax returns, and witness tampering, U.S. Attorney Craig Carpenito announced.
Samuel Davis Jr., 52, of Plainfield, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns, one count of filing false personal tax returns, and one count of witness tampering. Kyna Felder-Ruiz, 35, also of Plainfield, pleaded guilty to one count of conspiring to defraud the IRS by aiding and abetting the filing of false tax returns.
According to documents filed in this case and statements made in court:
Davis was the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. Davis retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who was employed by the N.J. State Police as a public safety dispatcher for approximately two years, was employed as a tax preparer at GOTA. For tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various GOTA clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts substantially greater than those to which the taxpayers were entitled.
For tax years 2012 through 2014, Davis filed false personal income tax returns by underreporting business income that he derived from GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes. He also admitted that in October 2018 he became aware that his son had received a subpoena to appear before a grand jury. Davis admitted attempting to persuade his son to provide false testimony to the grand jury.
The tax fraud conspiracy charge to which Davis and Felder-Ruiz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The witness tampering charge to which Davis pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing both defendants is scheduled for June 11, 2019.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty pleas.The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office’s Public Protection Unit.
Defense counsel:
Davis: Thomas Ashley Esq., Newark
Felder-Ruiz: Anthony Iacullo Esq., Nutley, New JerseySalem County, New Jersey, Man Sentenced to Eight Years in Prison for Dealing Guns Without a LicenseRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man with a previous felony record was sentenced today to 96 months in prison for illegally possessing guns and selling guns without a license, U.S. Attorney Craig Carpenito announced.
Corey Moore, 33, of Salem, previously pleaded guilty before U.S. District Judge Noel L. Hillman to two counts of an indictment charging him with dealing in firearms without a license and unlawfully possessing firearms after having been convicted of a felony offense. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From July 20, 2016, through Dec. 20, 2016, Moore sold firearms. On Oct. 24, 2016, Moore sold two loaded firearms – an Intratec, Model AB10, 9 millimeter Luger pistol, and a Smith & Wesson, Model 642 (marked LadySmith), .38 caliber revolver – to a man who was a confidential informant working with federal law enforcement officers. Moore, who did not have a license, sold the firearms to the informant at a convenience store in Logan Township, New Jersey. He also unlawfully possessed two additional loaded firearms: an Iberia Firearms Inc. (Hi-Point), Model JCP, .40 caliber pistol, and a Ruger, Model Security-Six, .357 magnum caliber revolver. Both of those firearms were fully operable and had been transported in interstate commerce prior to Moore’s possession of them.
In addition to the prison term, Judge Hillman sentenced Moore to X years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Christopher Taylor, with the investigation with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.
Dominican Republic National Admits Conspiracy and Selling Stolen IdentificationsRead the Press Release
CAMDEN, N.J. - A Dominican Republic national today admitted his role in a conspiracy to commit identity theft, U.S. Attorney Craig Carpenito announced.
Daury Cordero, 31, a citizen of the Dominican Republic with addresses in Camden, New Jersey, and Philadelphia, pleaded guilty before U.S. District Judge Noel L. Hillman to an indictment charging him with one count of conspiracy and one count of unlawful transfer, possession or use of a means of identification. A federal grand jury in Camden returned the sealed indictment Sept. 19, 2018.
IRS Criminal Investigation Special Agents located Cordero in the custody of Immigration and Customs Enforcement.
According to documents filed in this case and statements made in court:
In January 2016, one of Cordero’s accomplices, Cesar Abreu, was cleaning an office building in Cherry Hill, New Jersey. Abreu stole a list titled: “Town of Uxbridge,” which contained names, Social Security numbers, and dates of birth for 62 people. Cordero enlisted another individual, Pedro Santana, to find someone who would use the list of names to create and file fraudulent federal income tax returns. Eventually, Cordero and Santana found a buyer – who was, in fact, an undercover IRS agent – and sold him the list for $2,500.
Abreu pleaded guilty in December 2017 and was sentenced in October 2018 to three years of probation. Santana pleaded guilty in August 2015 and was sentenced in March 2017 to three years of probation and ordered to pay $4.6 million in restitution.
The count of conspiracy and the count of transferring a means of identification to which Daury Cordero pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 28, 2019.
U.S. Attorney Carpenito credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Rocco Cipparone Jr. Esq. Haddon Heights, New Jersey
Two Passaic County, New Jersey, Men Charged in Seizure of over 20 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, men are charged in connection with the seizure of more than 20 kilograms of cocaine, U.S. Attorney Craig Carpenito announced today.
Carlos Nieves, 24, and Yocadis Montas-Cepeda, 24, both of Paterson, New Jersey, were arrested in Bergen County, New Jersey, on Nov. 19, 2018. They are charged by complaint with one count each of conspiracy to distribute more than five kilograms of cocaine. Nieves is scheduled to appear later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. Montas-Cepeda is expected to make his initial appearance at a later date.
According to documents filed in this case and statements made in court:
Nieves was driving a car that was the subject of a motor vehicle stop on Interstate 80. Montas-Cepeda was a passenger in the car. The defendants’ statements and other suspicious activities caused law enforcement to believe that the vehicle was being used to traffic narcotics. After receiving consent to search the vehicle, law enforcement officers recovered approximately 20 kilograms of cocaine from the interior.
The count of conspiracy to distribute more than five kilograms of cocaine carries a mandatory minimum sentence of 10 years in prison, a maximum of life in prison, and a maximum fine of $10 million.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division, with the investigation leading to today’s charges. He also thanked the Bergen County Prosecutor’s Office and that office’s Narcotics Task Force.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Nieves: Lauriano Guzman Esq., Bronx, New York
Montas-Cepeda: Victor Molina Esq., Bergenfield, New JerseyTrenton Man Admits Role in Heroin Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man today admitted his role in a violent drug trafficking conspiracy that allegedly distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced today.
Donte Ellis, a/k/a “Shalant,” 41, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. Ellis also admitted to possessing a firearm during the offense.
In October 2018, Ellis and 25 other members of a drug trafficking conspiracy operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. Ellis is the first of the defendants to plead guilty. On Feb. 21, 2019, a grand jury returned a two-count indictment charging four defendants, Jakir Taylor, a/k/a “Jak”; Jerome Roberts, a/k/a “Righteous”; David Antonio, a/k/a “Papi,” a/k/a “Victor Arias”; and Wayne K. Bush, with conspiracy to distribute one kilogram or more of heroin. Taylor also was charged in the indictment with possessing of a firearm in furtherance of a drug trafficking crime. The charges in the criminal complaint remain pending against the other 20 defendants.
According to documents filed in this case and statements made in court:
From as early as October 2017 to October 2018, the defendants and others engaged in a narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendants Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from defendant David Antonio, whom they referred to as “Papi.” The investigation revealed that in September and October 2018, Ellis—who had been released from state prison in August 2018 for a prior conviction for conspiracy to commit first-degree murder—obtained large quantities of heroin on multiple occasions from Jakir Taylor, which he redistributed to others in and around Trenton. The investigation also revealed that, on several occasions when he obtained supplies of heroin from Taylor, he also obtained a firearm from Taylor for protection in re-distributing the narcotics.
The drug conspiracy count to which Ellis pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for June 13, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Christopher Taylor; officers of the Trenton Police Department, under the direction of Acting Police Director Pedro Medina; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case, including with today’s coordinated takedown.
The government is represented by Assistant U.S. Attorneys J. Brendan Day and Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.
Three Men Charged in Conspiracy to Distribute Heroin and Fentanyl from Bronx, New York, Drug MillRead the Press Release
NEWARK, N.J. – Three New York men have been charged for their participation in a conspiracy to distribute heroin and fentanyl after they were arrested at a heroin mill in Bronx, New York, U.S. Attorney Craig Carpenito announced today.
Jhan Carlos Capellan Maldonado, 30, Jose Antonio Vasquez Pena a/k/a “Tono,” 46, and Dilson Vasquez Genao, 22, all of Bronx, are charged by complaint with one count of conspiracy to possess with intent to distribute approximately 100 grams of more of suspected heroin and fentanyl. Maldonado appeared March 6, 2019, before U.S. Magistrate Judge Joseph A. Dickson, and was detained. Pena and Genao appeared last week before U.S. Magistrate Judge Michael A. Hammer and were detained.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned Maldonado used an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed approximately five workers at a time to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.
On February 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drove to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement office3rs, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found several individuals inside, including Maldonado, Pena, and Genao. The three defendants attempted to escape out a window in the bedroom but were apprehended and arrested by law enforcement officers waiting outside.
Each defendant faces a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine.
U.S. Attorney Craig Carpenito credited the Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Maldonado: Kathleen Theurer Platts Esq., Jersey City, New Jersey
Pena: Peter Carter Esq., Assistant Public Defender, Newark
Genao: Edward Kratt Esq., New YorkEssex County, New Jersey, Man Sentenced to 50 Months in Prison for Health Care FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 50 months in prison for his role in a conspiracy to defraud New Jersey state benefit programs, , U.S. Attorney Craig Carpenito announced.
Brian Catanzarite, 43, a former gym owner from Cedar Grove, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of healthcare fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Catanzarite admitted that from March 2015 through January 2017, he conspired to defraud New Jersey state benefit programs. Catanzarite was recruited by one of his former gym members to become a sales representative of a company that marketed compounded medications. The marketing company received a percentage of every prescription that its sales representatives steered toward a particular compounding pharmacy.
To maximize his profit, Catanzarite convinced state beneficiaries to obtain compounded medications regardless of their medical necessity. On several occasions, Catanzarite even paid an advanced nurse practitioner, introduced to him by the marketing company, or used a telemedicine service that was paid for by the marketing company, to fraudulently obtain compounded medication prescriptions. Catanzarite caused losses of at least $3.5 million and personally made over $1.1 million from the scheme.
In addition to the prison term, Judge Vazquez sentenced Catanzarite to three years of supervised release and ordered restitution of $3.5 million.
U.S. Attorney Carpenito credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Ehrie; and the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey of the DCIS Northeast Field Office, with the investigation leading to today’s sentencing.
The government is represented in these cases by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark.
Essex County, New Jersey, Man Sentenced to 18 Months in Prison for Illegal Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 18 months in prison for his role in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Manuel Venegas, 54, of Newark, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2015 to March 2018, Venegas was an employee of Jenny’s Deli, a small grocery store in Newark, New Jersey. Venegas’ daughter, Maria Teresa Venegas, was the listed owner of Jenny’s Deli and pleaded guilty to the same crime in September 2018. She was sentenced Feb. 20, 2019, to two years in prison.
Jenny’s Deli 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. According to the charges against them, Maria Teresa Venegas and Manuel Venegas exchanged more than $885,000 in SNAP benefits for cash between 2011 and 2018.
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.
In addition to the high volume of SNAP benefits redemptions for Jenny’s Deli, indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an undercover law enforcement agent who engaged in approximately 20 “purchases” at Jenny’s Deli where Manuel Venegas, Maria Theresa Venegas, or another Jenny’s Deli employee acting at their direction exchanged money for SNAP benefits.
In addition to the prison term, Judge Vazquez sentenced Manuel Venegas to two years of supervised release and ordered restitution of $573,199.
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, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Bordentown, New Jersey, Woman and Philadelphia Man Admit Roles in Scheme to Launder Money, Defraud Internet DonorsRead the Press Release
CAMDEN, N.J. - A Bordentown, New Jersey, woman and a Philadelphia man today admitted their respective roles in a GoFundMe scam that gained nationwide attention, U.S. Attorney Craig Carpenito announced.
Katelyn McClure, 28, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of conspiracy to commit wire fraud. Johnny Bobbitt, 36, pleaded guilty to an information charging him with one count of conspiracy to commit money laundering.
According to documents filed in this case and statements made in court:
In November 2017, McClure and Mark D’Amico allegedly created a crowd-source funding page on GoFundMe’s website titled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of a homeless veteran, Bobbitt. McClure and D’Amico posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a “good Samaritan” and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited to get Bobbitt off the streets and provide him with living expenses, setting a goal of $10,000.
In reality, McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure allegedly conspired to create the false story to obtain money from donors. The story was quickly picked up by local and national media outlets and went viral and raised approximately $400,000 from more than 14,000 donors in less than three weeks.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money allegedly was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts on D’Amico’s gambling, vacations, a BMW automobile, clothing, expensive handbags and other personal items and expenses.
In mid-November of 2017, when the donations had reached approximately $1,500, D’Amico and McClure told Bobbitt about the campaign and the false gas story. In December of 2017, after setting up a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The count of wire fraud conspiracy to which McClure pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 19, 2019.
The count of conspiracy to commit money laundering to which Bobbitt pleaded guilty carries a maximum penalty of 10 years in prison and a fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Carpenito credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; officers of the Florence Township Police Department; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
McClure: James J. Gerrow Jr. Esq., Hainesport, New Jersey
Bobbitt: Lori Koch Esq., Assistant Federal Public Defender, CamdenBergen County, New Jersey, Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Barry Goldstein, 46, of Bergenfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution of images of child sexual abuse.
According to documents filed in this case and statements made in court:
From May 2018 through August 2018, an undercover law enforcement officer (the “UC”) communicated over an instant messaging mobile application (the “IM App”) with Goldstein. The IM App allows users to transmit and receive content after users register a username. Goldstein maintained an account on the IM App, which was accessed from Internet Protocol addresses associated with Goldstein’s home.
In May and June 2018, after engaging in explicit conversations with the UC regarding the sexual abuse of children, Goldstein used his account on the IM App to share with the UC multiple files depicting child sexual abuse. On Aug. 29, 2018, law enforcement officers searched Goldstein’s residence, interviewed Goldstein and arrested him.
The count of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for June 6, 2019.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.
Monmouth County, New Jersey, Pharmacist Admits Cashing Millions in Checks to Avoid Paying Income TaxesRead the Press Release
NEWARK – A licensed pharmacist from Monmouth County, New Jersey, today admitted cashing millions of dollars’ worth of his pharmacy’s checks to evade the payment of income taxes, U.S. Attorney Craig Carpenito announced.
Ajay Barthwal, 43, of Morganville, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to commit tax evasion in connection with income he received from Old Bridge Drugs & Surgicals (OBDS), a retail pharmacy in Old Bridge, New Jersey, during calendar years 2009 through 2011, that he failed to report on the income tax returns he filed for those years.
According to documents filed in this case and statements made in court:
Barthwal and his wife claimed to be each 50 percent owners of OBDS. However, Barthwal was actually a one-third owner in OBDS, and two other individuals, Dilip Naik and Bhavesh Mistry, both of whom have previously pleaded guilty to related tax crimes, were each one-third owners and “silent partners.”
As a partnership, OBDS was required to file an IRS Form 1065 U.S. Partnership Income Tax Return. Income received by the business would flow through to the individual partners’ Individual Income Tax Return, IRS Forms 1040. As owners of OBDS, Barthwal, Naik and Mistry each were responsible for accurately reporting to the IRS their business income and respective personal incomes.
Barthwal admitted that from at least Jan. 1, 2009, through Nov. 5, 2012, he, Naik and Mistry all agreed to evade paying income taxes. He admitted that he, Naik and Mistry agreed to hide taxable revenue of $9,343,234, which OBDS had received, by submitting to the IRS tax returns that substantially under-reported the gross receipts of OBDS for calendar years 2009 through 2011.
Beginning in January 2009, Barthwal and Naik caused business receipts from OBDS to be cashed at a check cashier located in Jersey City, New Jersey. Barthwal then deposited only a portion of the OBDS business receipts into the OBDS operating account, and Barthwal, Naik and Mistry each received approximately one-third of the proceeds of the OBDS business receipts that were not deposited into the operating account.
In early 2009, Barthwal, Naik and Mistry agreed to hide the undeposited gross cash receipts from OBDS from the IRS. Barthwal admitted that he, Naik and Mistry failed to pay $4,114,102 in taxes that would have been due and owing to the IRS.
The count of conspiracy to commit tax evasion is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense, whichever is greater. Sentencing is scheduled for July 7, 2019.U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the Asset Recovery and Money Laundering Unit in Newark.
Defense counsel: Frank Agostino Esq., Hackensack, New Jersey
Two Men Charged in Seizure of over 20 Kilograms of FentanylRead the Press Release
NEWARK, N.J. – Two men who are charged based on the seizure of more than 20 kilograms of fentanyl made their initial court appearances in Newark federal court today, U.S. Attorney Craig Carpenito announced.
Luis Aponte, 48, of Hesperia, California, and Denny Diaz, 29, of Philadelphia, Pennsylvania, were charged by complaint with one count conspiracy to possess with intent to distribute 400 grams or more of fentanyl. They appeared before U.S. Magistrate Judge Joseph Dickson in Newark federal court. The defendants were detained without bail.
According to documents filed in this case and statements made in court:
Aponte allegedly drove a truck to a rest stop in Bloomsbury, New Jersey, on March 1, 2019. The next day, he and Diaz met in a car and, once inside, Aponte gave Diaz approximately seven kilograms of fentanyl. Agents of the Drug Enforcement Administration (DEA) arrested the two men and searched Aponte’s truck. They found an additional 13 kilograms of fentanyl and five kilograms of heroin inside.
The count with which the defendants are charged carries a mandatory minimum sentence of 10 years in prison, a maximum of life in prison and a fine of up to $10 million.
This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police. U.S. Attorney Craig Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Ray Donovan, New York Division; New York City Police Commissioner James P. O’Neill; and N.Y. State Police Acting Superintendent Keith M. Corlett with the investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
Social Security Administration Employee Admits Falsifying Records and Stealing Social Security BenefitsRead the Press Release
CAMDEN, N.J. – A Social Security Administration employee today admitted unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal funds for his own use, U.S. Attorney Craig Carpenito announced.
Nicholas Pao, 37, of Egg Harbor Township, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of theft of government funds and two counts of aggravated identity theft.
According to documents filed in this case and statements made in court:
Pao was a 10-year employee of the Social Security Administration who worked as a claims technical expert in the Social Security Administration’s office in Egg Harbor Township. Pao was responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao used his credentials to access the confidential records of several individuals without their knowledge or authority. He altered their records and made fraudulent changes that caused the Social Security Administration to issue benefits to these individuals. Pao would then intercept these benefits, which were issued by way of a Direct Express account and credit card. Pao depleted the funds issued on the Direct Express accounts without the knowledge or consent of the individuals. Pao stole approximately $100,000 in Social Security funds.
The count of theft of government funds is punishable by a maximum potential penalty of 10 years in prison. The aggravated identity theft counts are punishable by a mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of theft of government funds. Each of the counts is also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense, whichever is greatest. Sentencing is scheduled for June 12, 2019.
If anyone in the public believes that they might have been the victim of Nicholas Pao's Social Security fraud scheme, they are advised to call the Office of the Inspector General at 888-487-9917.
U.S. Attorney Carpenito credited special agents of the Office of the Inspector General, Social Security Administration, under the direction of John F. Grasso with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Member of Violent Grape Street Crips Gang Sentenced to 19 Years for Witness Intimidation and Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips was sentenced today to 19 years in federal prison for his participation in a racketeering conspiracy that involved using other gang members to intimidate a witness during a state criminal trial, as well as conspiracies to distribute heroin and crack-cocaine, U.S. Attorney Craig Carpenito announced.
Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to three counts in the sixth superseding indictment charging him with RICO conspiracy and separate conspiracies to distribute one kilogram of heroin and 280 grams or more of crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.
Singleton was charged in November 2016 in a 22-count indictment charging 14 members and associates with, among other things, seven murders, numerous attempted murders, and numerous other violent and drug trafficking crimes committed as part of the racketeering conspiracy. The gang’s leader, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 41, of Belleville, New Jersey, and two other violent gang members were convicted in July 2018 following a two-month trial. Thirteen of the 14 defendants charged in the indictment have been convicted. One remaining defendant, Khalil Stafford, is pending trial.
An additional 68 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation. Sixty-six individuals also have been convicted, and charges remain pending against two.
According to the documents filed in this case and other cases and the evidence presented at trial:
As part of the racketeering conspiracy, Singleton admitted that he used fellow members of the New Jersey set of the Grape Street Crips to intimidate a witness against him by having those gang members sitting in the gallery of the courtroom as the witness took the stand. Singleton was facing criminal charges brought by the Essex County Prosecutor’s Office for aggravated assault, possession of a weapon for an unlawful purpose, and unlawful possession of a firearm for a shooting that occurred in April 2013. As a result of Singleton’s effort, the witness refused to testify against him and the charges were dismissed.
Afterwards, Singleton was intercepted over a wiretap bragging to a fellow gang-member: “Who you know cause a ruckus on these motherfuckin’ streets, come home, do whatever the fuck they want, and still be out here, son?”
Singleton also admitted to participating in conspiracies to distribute one kilogram or more of heroin and 280 grams or more of crack-cocaine.
The Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.
In addition to the prison term, Judge Arleo sentenced Singleton to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 3rd, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for work on the case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, Assistant U.S. Attorney Barry A. Kamar of the Criminal Division, and and Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Ocean County, New Jersey, Man Sentenced to 16 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
TRENTON, N.J. – A Point Pleasant, New Jersey, man was sentenced today to 16 years in prison for planning to construct and use a pressure cooker bomb in New York on behalf of the Islamic State of Iraq and al-Sham (ISIS), U.S. Attorney Craig Carpenito and Assistant Attorney General for National Security John C. Demers announced.
Gregory Lepsky, 22, pleaded guilty March 13, 2018, before U.S. District Court Judge Michael Shipp to an information charging him with one count of attempting to provide material support to a designated foreign terrorist organization, specifically ISIS. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Feb. 21, 2017, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.
During searches of computers and other digital evidence linked to Lepsky, law enforcement officers found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.
Law enforcement officers also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery of the pressure cooker to Lepsky a short time before his arrest. In addition, law enforcement officers recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.
At his plea hearing, Lepsky admitted that beginning in January 2017, he began to formulate a plan to detonate the pressure cooker bomb in New York City on behalf of ISIS. Lepsky admitted that he used the internet to access ISIS directives, obtain bomb-making instructions, and purchase the pressure cooker and other items to be used in the attack.
In addition to the prison term, Judge Shipp sentenced Lepsky to lifetime supervised release.
U.S. Attorney Carpenito and Assistant Attorney General Demers credited the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the N.J. Office of Homeland Security and Preparedness under the direction of Director Jared Maples, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
Union County, New Jersey, Man Admits Role in Credit Card Fraud and Aggravated Identity Theft ConspiracyRead the Press Release
TRENTON, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy to hijack the credit card accounts of multiple victims in order to fraudulently purchase hundreds of thousands of dollars in high-end products, U.S. Attorney Craig Carpenito announced.
Oluwaseun Jato, 29, of Hillside, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an indictment charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
From July 2016 through May 2017, Jato and others participated in a credit card takeover conspiracy to obtain control of credit card accounts by contacting financial institutions and posing as account owners so they could change the personal information associated with their accounts, including the residential address, email address, and telephone number.Members of the conspiracy then opened new accounts or ordered replacement cards to be shipped to them without the account owners’ knowledge or authorization. Jato and others used the compromised credit card accounts to purchase high-value items, including smartphones, tablets, and other electronic devices. Jato admitted receiving 25 percent to 30 percent of the illegal proceeds from more than 10 victims.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must run consecutive to any other term of imprisonment imposed. Sentencing is scheduled for May 30, 2019.Co-defendants Alexus Omowole and Henry Abdul previously pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and are awaiting sentencing.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, and special agents of the 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. Attorneys Ray Mateo and Nicholas Grippo, Attorney-in-Charge of the Trenton Office.
Gloucester County, New Jersey, Man Charged with Sexual Exploitation of Children and Distribution of Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey man was charged today with producing and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Andrew Nicholas, 22, of Williamstown, New Jersey, is charged by criminal complaint one count of sexually exploiting children and one count of distributing child pornography. He appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained without bail.
According to documents filed in this case and statements made in court:
On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images of child sexual abuse involving a prepubescent minor.
The count of sexually exploiting children carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The distribution of child pornography count carries a mandatory minimum penalty of five years in prison, a maximum possible penalty of 20 years in prison and fine of $250,000 per count.
U.S. Attorney Carpenito credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Nancy McNamara, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Martha Nye of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Ocean County Man Sentenced to 70 Months in Prison for Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Toms River man was sentenced today to 70 months in prison for distributing images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.
David Nelson, 44, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995,” which was later revealed to be Nelson. Nelson was arrested April 9, 2018.
Nelson admitted today that between Oct. 24, 2017 and Oct. 26, 2017, he used his Kik account under the user name “candicesloan1995” to transmit at least 26 images of child pornography to another Kik user. Nelson also admitted that he was an administrator of multiple Kik chat rooms in which child pornography was shared and discussed.
In addition to the prison term, Judge Wolfson sentenced Nelson to five years of supervised release.
U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Special Agent in Charge Gregory Ehrie in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge Timothy Slater in Detroit, with the investigation leading to today’s sentencing. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
Former Deputy Executive Director of Port Authority Sentenced to 18 Months in PrisonRead the Press Release
Misused Government Property to Punish Fort Lee Mayor for Not Endorsing
Gov. Christie’s Re-electionNEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey was sentenced today to 18 months in prison for his 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.
William E. Baroni Jr., 47, formerly the deputy executive director of the Port Authority, was sentenced by U.S. District Judge Susan D. Wigenton in Newark federal court.
Baroni and Bridget Anne Kelly, 46 — formerly deputy chief of staff for legislative and intergovernmental affairs in then-Gov. Chris Christie’s office — were each convicted on Nov. 4, 2016, 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. Baroni was originally sentenced to 24 months in prison and Kelly was sentenced to 18 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. Kelly is currently appealing to the U.S. Supreme Court.
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. He was sentenced July 12, 2017, to three years' 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. Baroni knowingly and intentionally made misleading statements and false representations, including: (1) communications between members of the Port Authority Police Department and Wildstein triggered the lane and toll booth reductions; (2) the lane and toll booth reductions were part of a one-week traffic study; and (3) the failure to communicate with Fort Lee and the executive director of the Port Authority was simply the result of communication breakdowns at the Port Authority.
In addition to the prison term, Judge Wigenton sentenced Baroni to one year of supervised release, 500 hours of community service, fined him $7,500 and ordered him 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 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.
The case is being overseen by Assistant U.S. Attorney Coyne, Chief of the Appeals Division, because of the recusals of U.S. Attorney Craig Carpenito and First Assistant U.S. Attorney Rachael Honig.
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Defense counsel:
Baroni: Carlos Ortiz Esq. and Mayling Blanco Esq., Princeton, New Jersey; Michael A. Baldassare Esq., Newark
Kelly: Michael Critchley Sr. Esq., Roseland, New Jersey