District of New Jersey
Press releases recorded for this federal judicial district.
Bayonne, New Jersey, Police Officer Sentenced to 42 Months in Prison for Using Excessive Force During Arrest, Filing False ReportRead the Press Release
Also Had Role in Fraudulent $20,000 Home Rehabilitation Loan Scheme
NEWARK, N.J. – A former Bayonne, New Jersey, police officer was sentenced today to 42 months in prison for using excessive force during an arrest, falsifying records in an attempt to conceal his conduct and helping a relative fraudulently obtain a home rehabilitation loan, U.S. Attorney Craig Carpenito announced.
Domenico Lillo, 48, of Bayonne, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with one count of deprivation of civil rights under color of law and one count of falsifying records to impede a civil rights investigation. Lillo also pleaded guilty to an information charging him with assisting in the filing of a false report to the U.S. Department of Housing and Urban Development (HUD) in connection with a federally funded home rehabilitation loan worth $20,000.
According to documents filed in this case and statements made in court:
On the early evening of Dec. 27, 2013, Lillo and other police officers from the Bayonne Police Department went to an address in Bayonne to arrest a man on a warrant from Sussex County. Lillo admitted that he struck the individual they were arresting in the head with a flashlight while the individual was handcuffed and not resisting arrest, injuring him. Lillo also admitted that he falsified a Bayonne Police Department Use of Force Report related to the arrest with the intent to impede an investigation into the case.
Lillo also admitted that on May 10, 2012, he aided a relative in preparing and submitted a fraudulent HUD application to get a federally funded rehabilitation loan on a home Lillo co-owned.
In addition to the prison term, Judge McNulty sentenced Lillo to three years of supervised release and ordered him to pay restitution of $20,000 to the City of Bayonne.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 U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre of the U.S. Attorney’s Office Special Prosecutions Division, Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.
Defense counsel: Frank Arleo Esq. and Thomas Cammarata Esq., West Orange, New Jersey
Burlington, New Jersey, Doctor Arrested for Role in $20 Million Telemedicine Compounded Medication SchemeRead the Press Release
NEWARK, N.J. – A Burlington, New Jersey, man was arrested Friday for his role in a telemedicine scheme to prescribe expensive compounded medications to patients who did not need them, U.S. Attorney Craig Carpenito announced.
Dr. Bernard Ogon, 45, is charged by complaint with one count of conspiracy to commit health care fraud. He made his initial court appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $500,000 secured bond.
According to documents filed in this case and statements made in court:
Telemedicine allows health care providers to evaluate, diagnose, and treat patients remotely – without the need for an in-person visit –by interacting with a patient using telecommunications technology, such as the internet or telephone. Ogon was paid by various telemedicine companies to prescribe exorbitantly expensive compounded medications, such as pain creams, scar creams, migraine creams, and metabolic supplements/“wellness capsules,” regardless of whether they were medically necessary for the patient.
The telemedicine companies sent Ogon prescriptions to sign for compounded medications, and Ogon signed the prescriptions without having established any prior doctor-patient relationship, speaking with the patient, or conducting any kind of medical evaluation.
The telemedicine companies often filled out the prescriptions completely – including selecting the compound medications to be prescribed – before Ogon ever saw them. Once Ogon received the filled-out prescriptions, he needed only to sign them to complete the prescription.
Ogon often received little or no information about the patients before he signed the prescriptions. As a result, Ogon on multiple occasions signed prescriptions for either expensive compounded scar cream or pain cream even though he had not received any information indicating that the patient needed them. Ogon also signed prescriptions for patients residing in states where he was not licensed to practice medicine.
After Ogon signed the medically unnecessary prescriptions, they were sent to compounding pharmacies with whom he or other entities involved in the scheme had relationships. The compounding pharmacies then filled the prescriptions and billed the patient’s health care benefit program regardless of medical necessity.
The telemedicine companies paid Ogon on a per-prescription basis for many prescriptions he signed. One telemedicine company paid Ogon between $20 and $30 per prescription. Ogon’s participation in the conspiracy caused a loss to health care benefit programs of more than $20 million, at least $3 million of which was sustained by TRICARE – a health care benefit program for members of the military and their families.
The charge of conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and a fine of $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, and special agents of the Department of Health and Human Services, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Erica Liu, Chief of the Opioid Abuse Prevention and Enforcement Unit 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.
Former New Jersey Corrections Officer Sentenced to Five Years in Prison for Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A former officer with the N.J. Department of Corrections was sentenced today to 60 months in prison for receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Salamak, 39, of Lodi, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with receipt of child pornography. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Salamak used email to seek and obtain images of child pornography, including images of prepubescent children.
In addition to the prison term, Judge McNulty sentenced Salamak to 10 years of supervised release.U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Union County, New Jersey, Woman Admits Role in $2 Million Debt Payoff SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, woman today admitted making and using phony money orders, cashier’s checks, receipts and other fabricated documents to fraudulently discharge $2 million in mortgages, student loans, and other financial obligations, U.S. Attorney Craig Carpenito announced.
Melissa Reynolds, 43, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge William H. Walls to an information charging her with conspiracy to commit mail fraud, mail fraud affecting financial institutions, and bank fraud.
According to documents filed in this case and statements made in court:
Beginning in early 2014, Reynolds and Germaine H. King, 41, of Elizabeth, began making fraudulent money orders, cashier’s checks, and other fictitious documents on their home computer. They began mailing these phony money orders to financial institutions and other lenders in their attempt to fraudulently discharge their lawful debts. Reynolds discharged and attempted to discharge more than $2 million in lawful debts.
For example, in May 2014, Reynolds and King mailed fraudulent money orders for $22,260 and $39,585 to a credit union in an effort to fraudulently pay off their Mercedes-Benz cars. They also made and mailed a fraudulent money order for $432,000 to a financial institution as a complete payoff of the mortgage on Reynolds’ home in Elizabeth. The financial institution erroneously accepted the fraudulent payment and credited it as a payoff for her mortgage. Later, a state court reinstated the mortgage.
Reynolds and others unsuccessfully used the same scheme to seek the discharge of other mortgages, including Reynolds’ second residence in Newark, the residence of a conspirator in Hillside, New Jersey, the residence of an individual in West Orange, New Jersey, and the residence of an individual in Bowie, Maryland. Certain of these mortgages were Federal Housing Administration mortgages backed by the U.S. Department of Housing and Urban Development, including the mortgage on Reynolds’ Newark residence. Reynolds and her conspirators mailed fraudulent money orders to HUD or companies acting on behalf of HUD. These payments were rejected.
Reynolds also sought to fraudulently discharge more than $52,000 in student loans with fraudulent money orders and cashier’s checks. On March 20, 2017, Reynolds sent a fraudulent cashier’s check in the amount $67,000 to the Department of Education’s processing company. These payments were rejected.Beginning in early 2017, Reynolds, King, and Daniel K. Dxrams, a/k/a “Daniel Kusi,” a/k/a “Danny D. Dxrams,” a/k/a “Randy N. Amoateng,” 40, of Maplewood, New Jersey, conspired to fraudulently pay off Dxrams’ auto leases on a 2012 Bentley, 2016 Rolls Royce Coupe, 2015 Mercedes-Benz, 2016 Mercedes-Benz, and Dxrams’ family member’s 2015 Mercedes-Benz. Reynolds sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain title to the Bentley, which Dxrams sold to a third party for approximately $85,000 and then issued a genuine cashier’s check to King for approximately $25,000. Reynolds, King, and Dxrams used this scheme to fraudulently pay off the other luxury cars.
The mail fraud and bank fraud conspiracy to which Reynolds pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 19, 2019.
On Nov. 9, 2018, a federal grand jury sitting in Newark returned a second superseding indictment against King and Dxrams. This indictment charged King with conspiracy to commit mail and bank fraud conspiracy and bank fraud charges. It also charged King and Dxrams with conspiracy to commit mail fraud related to the luxury car scheme and substantive mail fraud counts. The indictment charged Dxrams with bankruptcy fraud and making a false oath in a bankruptcy proceeding.
U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Geoffrey Wood; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The charges and allegations in the second superseding Indictment and previously filed complaint are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit, and Assistant U.S. Attorney Lakshmi Srinivasan Herman, of the National Security Unit, in Newark.
Defense counsel:
Reynolds: Robert J. Degroot Esq., and Oleg Nekritin Esq., Newark
Owner of Bulk Mailing Company Admits $1.5 Million Mail Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – The owner and operator of a Gloucester County 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.
Anthony L. Bucolo, 75, of Ridley Park, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
Bucolo owned and operated 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 one of his employees, Bucolo defrauded the USPS of more than $1.5 million in postage while billing clients as if such postage had been paid. Bucolo and his conspirator underreported the volume of mail pieces actually mailed, altered USPS forms, and added mail onto pallets, trays, tubs or sacks after the mail had been accepted and postage assessed and collected by a postal employee.
The wire fraud conspiracy charge to which Bucolo 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, Bucolo agreed to make restitution for the full amount of the loss, $1.5 million, which was paid in full today. Sentencing is scheduled for Feb. 22, 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, and special agents of the USPS-Office of Inspector General, under the direction of Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, 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: Michael J. Engle Esq., Philadelphia
Georgia Man Sentenced to 210 Months in Prison for Being Felon in Possession of 28 Illegal Firearms, Possession of Methamphetamine with Intent to DistributeRead the Press Release
NEWARK, N.J. – A Georgia man with prior felony convictions was sentenced today to 210 months in prison for illegally possessing weapons and possessing methamphetamine with the intent to distribute, U.S. Attorney Craig Carpenito announced.
Tyheed Jefferson, 36, a/k/a “Solo,” of Albany, Georgia, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an indictment charging him with six counts of being a felon in possession of a weapon and one count of possession of methamphetamine with the intent to distribute. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Jefferson was arrested in July 2017 after a 10-month investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Georgia, Alabama and New Jersey. He admitted that on various dates between May 7, 2017, and July 18, 2017, he possessed 28 firearms in New Jersey. All of those firearms were recovered by the ATF during the course of the investigation. Jefferson also admitted that on May 24, 2017, a date on which he also possessed illegal firearms, he possessed 1,500 pills containing more than 50 grams of methamphetamine.
In addition to the prison term, Judge Chesler sentenced Jefferson to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of John B. DeVito, Newark Field Division, and Special Agent in Charge Wayne L. Dixie, Atlanta Field Division, as well as the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan and the N.J. State Parole Board, under the direction of Chairman James Plousis, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Violent Crime Unit in Newark.
Defense counsel: Howard Brownstein Esq., Union City, New Jersey
Drug Supplier to Violent Street Gang Admits Drug TraffickingRead the Press Release
NEWARK, N.J. – A long-time drug supplier to members and associates of the New Jersey Grape Street Crips today admitted his role in a conspiracy to distribute kilograms of heroin, U.S. Attorney Craig Carpenito announced.
Hanee Cureton, a/k/a “City,” a/k/a “Fat Boy,” 34, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to conspiracy to distribute one kilogram or more of heroin (Count Four) and possession with intent to distribute one kilogram of heroin (Count Five) in the seventh superseding indictment.
Cureton and 13 other defendants were previously charged with, among other crimes, RICO conspiracy, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. Thirteen of the 14 defendants charged in the indictment have been convicted and one is awaiting trial.
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 statements made in court:
Beginning in 2003, Cureton was a major supplier of heroin to members of the Grape Street Crips at the James Baxter Terrace housing complex until it was demolished in 2009.
After Baxter Terrace was torn down, Cureton continued to distribute heroin, even while he was serving a prior federal prison sentence for conspiracy to distribute heroin. On Nov. 12, 2013, Drug Enforcement Administration agents searched one of Cureton’s heroin mills, seizing more than a kilogram of heroin, cutting agents, and packaging material. In 2014, Cureton sold to DEA confidential informants nearly $10,000 worth of heroin in one transaction alone. Cureton and his drug-trafficking organization were responsible for distributing hundreds of kilograms of heroin across Newark.
Under the terms of the plea agreement, if accepted by the Court, Cureton faces a sentence of 12 years in federal prison and a term of supervised release of five years. Sentencing is scheduled for Feb. 19, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson with the investigation. 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 work on the investigation.
The case is being prosecuted by Assistant U.S. Attorney Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit, 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.
The charges and allegations in the indictment against the defendant who is awaiting trial are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: Troy A. Archie Esq., Cinnaminson, New Jersey
Sussex County, New Jersey, Tax Preparer Admits Failing to Pay Payroll Taxes and Make Personal Income Tax ReturnsRead the Press Release
NEWARK, N.J. – A Lafayette, New Jersey, tax preparer today admitted he did not pay payroll taxes and failed to make a personal income tax return, U.S. Attorney Craig Carpenito announced.
Thomas Kurczewski, 71, pleaded guilty before U.S. District Court Judge Esther Salas to an information charging him with one count of failing to pay payroll taxes and one count of failing to make personal income tax returns, resulting in a total loss of $338,204.
According to documents filed in this case and statements made in court:
Kurczewski was the sole owner and manager of a tax return preparation business that used the names “Tom K – The Tax Consultant” and “Tom K and Associates – The Tax Consultants.” During the years 2011 through 2014, the tax return preparation business employed two individuals, but Kurczewski failed to pay payroll taxes for them. He also failed to file an individual tax return and pay federal income taxes for calendar years 2011 through 2015.
The failure to pay payroll taxes count carries a maximum potential penalty of five years in prison and a $250,000 fine. The failure to file personal income tax returns count carries a maximum potential penalty of up to one year in prison and a $100,000 fine. Sentencing is scheduled for Feb. 20, 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, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney J. Stephen Ferketic of the U.S. Attorney’s Office Criminal Division in Newark.
New York Man Sentenced to 25 Years in Prison for Producing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Pearl River, New York, man was sentenced today to 300 months in prison for photographing and filming a child engaged in sexually explicit conduct and sharing those images online, U.S. Attorney Craig Carpenito announced.
Richard Murphy, 33, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with sexual exploitation of a minor. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Murphy admitted that in December 2016, he persuaded a child to engage in sexually explicit conduct for the purpose of taking photos and videos of that conduct. Murphy also admitted that he took video of the child performing a sex act on him. In addition, Murphy admitted that he shared the sexually explicit images with another individual online.
In addition to the prison term, Judge Vazquez sentenced Murphy to 15 years of supervised release. Restitution will be determined at a hearing within 90 days of today’s sentencing.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented Assistant U.S. Attorneys Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit, and Leticia Vandehaar, Chief of Staff to the U.S. Attorney.
Defense counsel: David I. Goldstein Esq., Chestnut Ridge, New York
Egg Harbor Township, New Jersey, Man Admits Receiving Child PornographyRead the Press Release
TRENTON, N.J. – An Atlantic County, New Jersey, man today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Matthew Wolny, 40, of Egg Harbor Township, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of receipt of child pornography. Wolny was previously arrested and charged by complaint on June 6, 2018.
According to documents filed in this case and statements made in court:In September 2013, Wolny, who was then living in Jackson, New Jersey, used a peer-to-peer file sharing software, which he had installed on his computer, to download video files containing images of child sexual abuse from the internet to his computer hard drive.
The charge of receiving 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 April 8, 2019.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber of the Criminal Division in Trenton.
Defense counsel: Jack Wenik Esq., Newark
Camden County Police Officer Charged with Civil Rights Violation and Obstruction of JusticeRead the Press Release
CAMDEN, N.J. - A federal grand jury indicted a Camden County police officer for multiple offenses arising from an assault on the streets of Camden, New Jersey, United States Attorney Craig Carpenito announced.
Nicholas Romantino, 25, of Egg Harbor Township, New Jersey was charged in a two-count Indictment that was unsealed today. The Indictment alleges that Romantino violated a victim’s civil rights by repeatedly punching the victim in the head and then falsified a police report to cover up the assault. A federal grand jury returned the sealed Indictment on November 7, 2018.
According to documents filed in this case and statements made in court:
On or about February 22, 2018, Romantino was working in his official capacity as a Camden County Police Officer when he responded to a radio dispatcher’s report of a “man with a gun” in the area of Collings and New Hampshire Roads. Romantino was one of several police officers who responded.
When officers arrived at the location, another officer stopped the victim and told him to put his hands up. The victim complied. Romantino approached the victim from behind and tried to pull his arm behind his back, which startled the victim. The victim reacted by pulling his arm away from Romantino. Romantino then threw the victim to the ground.
Once on the ground, Romantino rolled the victim over onto his stomach at which point another officer grabbed the victim’s legs and a second officer grabbed the victim’s right arm. Romantino grabbed the victim’s left hand.
Romantino, without provocation, punched the victim multiple times in the back of his head. Ultimately, the victim was transported in police custody to Virtua Hospital in Camden, New Jersey, where he received treatment for head injuries, as a result of the punches that he received from Romantino.
After the victim was transported to the hospital, Romantino checked himself into Virtua Hospital where he received treatment for injuries to his right hand, as a result of the punches that he delivered to the victim’s head.
Romantino then returned to the police station to prepare his reports in connection with the victim’s arrest. To justify his actions against the victim, Romantino prepared and submitted a false and fraudulent police report in which Romantino falsely stated that the victim “placed his left hand under his chest and began to try [to] lift himself off the ground. Due to the fact that the male was trying to lift himself up and I was unable to see his right hand I began to strike the male in the head with a closed fist . . . .” Contrary to Romantino’s representations in his report, Romantino held the victim’s left hand while he punched the victim in the back of his head and another officer held the victim’s right arm.
The violation of civil rights count carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster of the Philadelphia Division, with the investigation leading to today’s indictment. U.S. Attorney Carpenito also recognized the contributions of the Internal Affairs Unit of the Camden County Police Department, under the direction of Chief J. Scott Thomson, and investigators assigned to the Special Prosecution Unit of the Camden County Prosecutor’s Office.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Hudson County, New Jersey, Woman Admits Conspiracy to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A Hoboken, New Jersey, woman today admitted her role in a conspiracy to promote a voter bribery scheme, U.S. Attorney Craig Carpenito announced.
Lizaida Camis, 55, pleaded guilty before U.S. District Court Judge William J. Martini in Newark federal court to Count 2 of an indictment charging her with conspiracy to use the mail to promote a voter bribery scheme during the 2013 municipal election in Hoboken.
According to documents filed in this case and statements made in court:
Camis, Dio Braxton, and others, at former Hoboken City Council candidate Frank Raia’s direction, agreed to pay certain Hoboken voters $50 each if those voters applied for and cast mail-in ballots for the November 2013 Hoboken municipal election. Camis and others provided these voters with vote-by-mail applications and then delivered the completed applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, Camis and others went to the voters’ residences and, in some cases, instructed the voters to vote for a rent control referendum that Raia supported. Camis, Braxton and others promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Bank records show that voters who interacted with Camis and Braxton received $50 checks from an entity associated with Raia.
Raia and Braxton were indicted on Oct. 31, 2018, for their roles in the scheme.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2019.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charges and allegations against Raia and Braxton are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense Counsel: Brandon D. Minde, Esq., Cranford, New Jersey
Head of Stock Trading Operation Was Sentenced Today to 30 Months in Prison for Trading on Inside InformationRead the Press Release
TRENTON, N.J. – The owner and operator of a stock trading operation was sentenced today to 30 months in prison for trading on inside information related to confidentially marketed stock offerings as part of a multimillion-dollar insider trading scheme, U.S. Attorney Craig Carpenito announced.
Steven Fishoff, 61, of Westlake Village, California, previously pleaded guilty before U.S. District Judge Michael A. Shipp to Count Four of an indictment, charging him with securities fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On numerous occasions between May 2010 and August 2013, Fishoff, Ronald Chernin, Steven Costantin, Paul Petrello, and Joseph Spera short sold the securities of numerous public companies, on the basis of inside information obtained by Fishoff and others acting with or on behalf of Fishoff.
For each of these offerings, Fishoff or one or more of the day traders that he employed —including his friend, Chernin, and his brother-in-law, Costantin — entered into confidentiality or “wall-crossing” agreements as representatives of Fishoff’s trading entities, whereby they agreed not to disclose or trade on inside information concerning the offerings, such as the name of the issuers and the timing and pricing of the transactions, and were “brought over the wall” for the narrow purpose of determining whether to purchase the offered securities.In breach of the confidentiality and trading restrictions of the wall-crossing agreements, Fishoff tipped Petrello and Spera (who is identified as CC-1 in the indictment), either directly or through Petrello, with the inside information about the confidentially marketed offerings — specifically, advising them of the stock trading symbols of the companies, and the timing and sometimes the pricing of the upcoming offerings.
Fishoff shorted the stock of the public companies, including Synergy Pharmaceuticals, Inc., based on the inside information, in anticipation of a drop in the stocks’ price when the stock offerings were disclosed to the public. Fishoff and his co-defendants traded through the accounts of their respective trading entities or through related accounts that they controlled, shorting the securities and covering the short positions after the stock offerings were publicly announced.
By trading on this valuable, nonpublic information in violation of the confidentiality agreements, Fishoff and his co-defendants gained more than $3.9 million in profits over the course of the three-year scheme. Petrello and Spera split their profits with Fishoff, generally on a 50-50 basis, as compensation to Fishoff for the inside information that he provided to them. Chernin and Costantin, who executed trades using Fishoff’s capital, also split their combined profits with Fishoff on a 50-50 basis.
In addition to the prison term, Judge Shipp sentenced Fishoff to three years of supervised release and fined him $50,000. Fishoff also agreed to settle the parallel civil forfeiture action, United States of America v. The Contents of Wedbush Securities Account Number 8313 et al., Civil Action No. 17-5334, and to forfeit the property named as defendants in rem in the verified complaint filed in the parallel civil forfeiture action.
Chernin, Costantin, Petrello, and Spera also have pleaded guilty in the insider trading scheme and are awaiting sentencing.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Sanjay Wadhwa.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery Money Laundering Unit, Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Recovery Money Laundering Unit.
Defense counsel: Daniel Brown Esq. and Lionel André Esq., Washington, D.C.
Atlantic County, New Jersey, Therapist Charged with Assault-For-Hire PlotRead the Press Release
CAMDEN, N.J. – A Somers Point, New Jersey, woman has been charged with planning the assault of a North Attleboro, Massachusetts, man, U.S. Attorney Craig Carpenito announced today.
Diane Sylvia, 58, is charged by criminal complaint with one count of solicitation to commit a crime of violence. She is scheduled to appear today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 24, 2018, an individual contacted the FBI. The individual is a former member of an organized criminal gang who sought therapy from Sylvia, a licensed clinical social worker who provides mental health counseling at an office in Linwood, New Jersey. Knowing the patient’s past history with this violent gang, Sylvia allegedly asked the individual to conspire to kill a man who resides in Massachusetts, whom Sylvia said had been bilking her for money over the years. The individual alerted law enforcement to Sylvia’s plans and discontinued therapy with her.
In early October, at the direction of law enforcement officials, the individual introduced Sylvia to a purported hitman, who was in reality an undercover FBI agent. Sylvia told the undercover FBI agent that she did not want the Massachusetts man killed; she wanted him beaten and permanently disfigured. Sylvia said, “He needs his pretty little face bashed in, that’s what I really want.” She later added that “a broken arm would help, too,” explaining that “all he has is, like, his big muscles and his cute face.” She later repeated, “I really just want his face punched in, I swear to God. And his arm broken, that’s what I want.” When the undercover agent asked why Sylvia wanted to do this, she claimed the man “ended up with some stuff on me that he was gonna report me to the licensing board, which means I have no job.” When asked how assaulting this man would help Sylvia, she replied, “It’s just gonna make me feel better” and “it’s the only way I can get him back.”
The undercover agent advised Sylvia to purchase a pre-paid phone to communicate with him about the assault, which she did. Sylvia arranged two more meetings with the undercover FBI agent, all at her office. During one of the meetings, Sylvia clarified how she wanted the intended victim assaulted: “Something that makes him not so cute”—while making a slashing motion on her cheek—“something so he can’t do push-ups, so he can’t work out.” During the last two meetings, Sylvia paid the undercover FBI agent a total of $5,000 cash to carry out the assault plan.
The solicitation of a crime of violence charge carries a statutory maximum of five years in prison and $250,000 fine.
U.S. Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to the charges. He also thanked the Atlantic County Prosecutor's Office, the Atlantic County Sheriff's Office, the Department of Labor-Office of Inspector General, the N.J. Department of Human Services Police, the N.J. State Police, and the Northfield Police for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Michael Paulhus Esq., Toms River
Verona, New Jersey, Man Sentenced to 22 Months in Prison for Illegal Possession of Multiple Guns, Including Replica He Turned into Machine GunRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 22 months in prison for possessing three guns as a previously convicted felon, including a replica Thompson submachine gun that he modified into a working automatic firearm, U.S. Attorney Craig Carpenito announced.
David Lutter, 69, of Verona, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of possessing three firearms as a previously convicted felon. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In January 2017, Lutter met with an undercover agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF-E) and negotiated the sale of a functioning Thompson submachine gun. The gun had originally been a replica, but Lutter had modified it with real gun parts to convert it into a functioning automatic firearm, which, according to Lutter, could fire 20 to 25 bullets per second. Lutter had also equipped it with what he called a “rock-and-roll switch,” which could toggle between semi-automatic and automatic mode.
Lutter sold the undercover agent the submachine gun, a .32-caliber revolver, and 100 rounds of ammunition for $525. A few months later, in May 2017, Lutter sold the undercover agent a .45-caliber semi-automatic pistol, bullets, and gun parts for $500. When Lutter was arrested in June 2017, law enforcement searched a storage facility he rented and recovered several hundred additional bullets and firearm parts. All three firearms and the recovered ammunition are in the possession of law enforcement.
At no time was Lutter licensed to sell firearms and was prohibited from possessing them due to his 1993 felony conviction for sexual assault of a minor.
In addition to the prison term, Judge Salas sentenced Lutter to two years of supervised release.U.S. Attorney Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. DeVito, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
U.S. Attorney’s Office and Law Enforcement Partners Seize 352 Firearms in Fiscal Year 2018Read the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito announced today that the District of New Jersey seized 352 firearms as part of criminal prosecutions in Fiscal Year 2018.
The District of New Jersey worked jointly with its law enforcement partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, Homeland Security Investigations, the U.S. Marshal’s Service, and numerous agencies of the State of New Jersey.
“As part of our mission to keep the public safe from violent crime, the United States Attorney’s Office has removed more than 300 firearms from the hands of criminals in the last year alone,” U.S. Attorney Carpenito said. “Each one of these firearms represented a clear and present danger to the safety of our citizens, and we are proud to work with our federal, state, and local law enforcement partners to reduce the threat of armed criminals in New Jersey.”
“Taking these guns off the streets is proof that Attorney General Sessions’ initiatives to fight gun violence are successful and are having an impact,” ATF Newark Field Division Special Agent in Charge John B. DeVito said. “The use of Crime Gun Intelligence is instrumental in achieving these objectives, and ATF remains committed to removing the firearms that endanger our communities.”
During the 2018 fiscal year, firearms seizures in the District of New Jersey included:
• Nine AR-15 type assault rifles
• More than a dozen other “long guns,” including shot guns and rifles, and even an M2 machine gun
• More than 300 pistols and revolvers“To keep New Jersey streets safe, the FBI along with our local and state partners will aggressively pursue the seizure and forfeiture of guns from violent criminals and convicted felons,” Newark FBI Special Agent in Charge Gregory W. Ehrie said.
“Transnational criminal organizations operating in New Jersey rely on firearms as a tool to further their criminal activity,” Brian Michael, Special Agent in Charge, HSI Newark, said. “HSI and all our law enforcement partners are determined to keep these weapons out of the hands of dangerous criminals that pose a threat to public safety and the special agents/officers that pursue them each and every day.”
“When we remove crime guns and the criminals who carry them from our communities, we attack the root of gun violence,” N.J. Attorney General Gurbir S. Grewal said. “The 352 guns forfeited by the U.S. Attorney’s Office in collaboration with law enforcement partners across New Jersey represent 352 guns that will never kill or maim a resident or one of our law enforcement officers. We work best when we work together, and our collaborative efforts to prosecute gun crimes and share intelligence about illegal guns trafficked into New Jersey are having a strong impact.”
“We are pleased to have partnered with the U.S. Attorney’s Office the recovery of over 300 firearms this year,” Newark Public Safety Director Anthony F. Ambrose said. “We will remain vigilant in working with U.S. Attorney Carpenito and his law enforcement partners in the confiscation of illegal firearms with an aim towards an ongoing reduction of violent crime.”
“U.S. Attorney Carpenito’s unwavering leadership to reducing gun violence has facilitated a significant statistical decrease in the number of gun homicides and firearm related aggravated assault incidents in Camden,” Camden County Police Chief J. Scott Thomson said. “Removing violent criminals and their guns from the streets with the promise of federal prosecution continues to serve as a major deterrent that makes neighborhoods safer.”
The U.S. Attorneys’ Offices, along with their law enforcement partners, are responsible for seizing and forfeiting firearms that are involved in criminal activities. Many of these forfeitures result when previously-convicted felons continue to carry firearms, and are convicted of being felons in possession of weapons, pursuant to Section 922(g) of Title 18 of the United States Code. The law requires that these firearms be forfeited.
Head of Newark, New Jersey, Drug Trafficking Organization Admits Conspiracy to Distribute Heroin, Fentanyl, and Crack Cocaine and Possession of A FirearmRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a conspiracy to distribute more than a kilogram of heroin, 150 grams of fentanyl, and 240 grams of crack cocaine as well as being a previously convicted felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.
Ahmad Johnson, a/k/a “OC,” 38, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin, 28 grams of cocaine base, and 40 grams of fentanyl, and one count of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
From September 2016 through June 2017, Johnson and other members of the Johnson DTO engaged in a heroin distribution conspiracy that operated in and around Newark.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement officers learned that Johnson was a leader of the conspiracy and was responsible for obtaining wholesale amounts of narcotics, including heroin and cocaine, and processing and packaging the narcotics for sale in the Newark area. At times, after the narcotics were processed and packaged for sale, Johnson found users to “test” the narcotics to evaluate the quality, potency, and danger for broader distribution. After the narcotics were tested, members of the Johnson DTO sold the narcotics to other distributors and to users.
The conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The charge of being a felon in possession of a firearm is punishable by up to 10 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 20, 2019.
U.S. Attorney Carpenito credited special agents and officers with the Drug Enforcement Administration’s High-Intensity Drug Trafficking Area (HIDTA) Group 1, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force / Narcotics Unit in Newark.
Defense counsel: Dennis S. Cleary Esq., West Orange, New Jersey
Civil Settlement Reached with Kiewit Constructors Inc.Read the Press Release
NEWARK, N.J. – A Delaware corporation headquartered in Woodcliff Lake, New Jersey, will pay $1.87 million to resolve allegations that it improperly reported Disadvantaged Business Enterprise (DBE) participation on government contracts, U.S. Attorney Craig Carpenito announced today.
On Aug. 25, 2009, Kiewit Constructors Inc. entered into a contract with the Long Island Rail Road (LIRR) to design and implement Phase II of the Atlantic Avenue Viaduct Rehabilitation Project. The Atlantic Avenue Viaduct is an approximately 1.5 mile long bridge connecting Jamaica, New York, with Brooklyn, New York. Kiewit’s work on the project, which was partially funded by federal funds, included furnishing and installing new steel girders and spans, along with related steelwork.
Because of the federal funds used on the project, the LIRR was required to establish a program requiring its contractors to subcontract with DBEs and establish DBE goals to ensure that contractors make “good faith efforts” to achieve those goals. Kiewit subcontracted with Iron Eagle Construction Corp., an established steel erection company certified as a DBE by the State of New York, to furnish and install steel spans.
The settlement resolves allegations that Kiewit failed to meet its DBE obligations under its contract with the LIRR. Under the subcontract, Iron Eagle was obligated to manage the steel fabrication process, conduct inspections, and coordinate steel delivery schedules. The United States contends that Iron Eagle did not perform a commercially useful function for the furnishing of steel spans under the DBE subcontract, in that it did not sufficiently manage the steel fabrication process, conduct necessary inspections, or coordinate steel delivery schedules. The United States asserts that Kiewit did not take contractually mandated steps to address Iron Eagle’s failure to perform a commercially useful function, and that it failed to meet its DBE obligations under the Contract.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Inspector General Calvin L. Scovell III; special agents of the Port Authority of New York and New Jersey, Office of Inspector General, under the direction of Inspector General Michael Nestor; and special agents of the Metropolitan Transportation Authority, Office of Inspector General, under the direction of Inspector General Barry L. Kluger, with the investigation.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark, and David E. Dauenheimer, Deputy Chief of the U.S. Attorney's Civil Division in Newark.
Defense counsel: Frederick M. Levy Esq., Washington, D.C.
Union County, New Jersey, Man Sentenced to 45 Months in Prison for Interstate Theft SchemeRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 45 months in prison for operating a scheme to fraudulently obtain hundreds of thousands of dollars in commercial and residential merchandise from various companies, U.S. Attorney Craig Carpenito announced.
Roy Depack, a/k/a “Ray Depack,” a/k/a “Roy Soriano,” a/k/a “John Soriano,” 44, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit mail and wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning in 2014, Depack and others conspired to fraudulently obtain merchandise – including Apple computers, digital scales, a walk-in freezer, a snow blower, a gas backpack blower, Samsung televisions, and Milwaukee tools kits – from at least six different victim companies. Depack fraudulently obtained and attempted to obtain more than $900,000 in merchandise.
Depack called the victim companies and falsely claimed to be a representative of companies that had pre-existing business relationships, lines of credit, or accounts with the victim companies. Depack would then direct the victim companies to ship the products to various addresses in New York, Newark, Elizabeth, and Union, New Jersey, while the victims billed the companies that Depack was pretending to represent. Depack and others sold the goods to pawn stores and other individuals.
For example, on April 10, 2017, Depack, using the name “Mike Clarke” and falsely claiming to be a representative of a food distribution company, ordered one digital scale, valued at approximately $3,614, from a victim identified in the information as “Company Six,” and directed that it be delivered to Elizabeth. After the scale was delivered on April 11, 2017, Depack and another individual sold it at a pawn store in Newark for approximately $700.
In addition to the prison term, Judge Martini sentenced Depack to three years of supervised release and ordered him to pay restitution of $394,143.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation.
The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s Office National Security Unit in Newark.
Defense Counsel: Dennis S. Cleary Esq., West Orange, New Jersey
Monmouth County, New Jersey, Doctor Charged with Illegally Distributing Prescription Controlled SubstancesRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, doctor to appear in court today on charges of illegally prescribing prescription drugs, U.S. Attorney Craig Carpenito announced.
Martin Fried, 60, a pediatric gastroenterologist in Ocean Township, New Jersey, was charged in a three-count complaint with attempting to distribute oxycodone and distribution of Adderall and Xanax outside the usual course of professional practice and not for a legitimate medical purpose. Fried is scheduled to make his initial appearance today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
Fried owned and was the sole practitioner at a medical practice, Healthy Days LLC, specializing in pediatric gastroenterology, and touting specialties in “nutrition,” “Lyme disease and co-infection,” and “genetic/DNA testing.”On July 20, 2018, Fried accompanied two men – referred to in the complaint as “Individual-1” and “Individual-2” – to two pharmacies in the area of Toms River, New Jersey, to obtain oxycodone, a Schedule II controlled substance; Adderall, a Schedule II controlled substance; and alprazolam, a Schedule IV controlled substance, using prescriptions Fried had written. When the first pharmacy refused to fill the prescriptions, Fried and the two men went to a second pharmacy. Fried prescribed the controlled substances to Individual-1 and Individual-2 outside the usual course of professional practice and with no legitimate medical purpose.
Two days earlier, Fried had accompanied the same two men to another pharmacy obtain Adderall, Xanax, and gabapentin, using prescriptions he had written. Based on Fried’s prescriptions, Individual-1 obtained approximately 120 tablets of Adderall, 90 tablets of Xanax, and 120 tablets of gabapentin (a drug commonly abused with opioids because it enhances the euphoria caused by the opioid). The drugs were prescribed by Fried outside the usual course of professional practice and with no legitimate medical purpose.
On July 31, 2018, Fried surrendered to the U.S. Drug Enforcement Administration his DEA registration to prescribe controlled substances. In a consent order with the N.J. Board of Medical Examiners filed in September, Fried agreed to an indefinite suspension of his medical license, pending a future demonstration of his fitness to practice, and further action by the Board.
Each count of the complaint is punishable by a maximum of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greater.U.S. Attorney Carpenito credited special agents of the DEA, under the direction of Special Agent in Charge Valerie Nickerson in Newark, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Colin J. Keiffer of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Matthew Adams Esq., Morristown, New Jersey
Mercer County, New Jersey, Man Sentenced to 100 Months in Prison for Armed Robbery Spree of Electronics Stores in New Jersey and PennsylvaniaRead the Press Release
CAMDEN, N.J. – A Trenton, New Jersey, man was sentenced today to 100 months in prison for robbing Metro PCS stores in Willingboro, New Jersey, Lumberton, New Jersey, and Levittown, Pennsylvania, in September and October 2016, U.S. Attorney Craig Carpenito announced.
Rodney Day, 27, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to commit Hobbs Act robberies. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On Sept. 29, 2016, Day, Zeldrick Nance, 31, of Trenton, and Lisa Anderson, 35, of Griffithville, Arkansas, drove to the Willingboro Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped the store occupants and placed them into a store bathroom. Meanwhile, Anderson stole cellular telephones and money from the cash registers. During the robbery, Day demanded the keys to a car owned by one of the victims. Day, Nance, and Anderson fled with the stolen cellular telephones and money in that stolen car.
On Oct. 7, 2016, Day, Nance, and Anderson drove to the Lumberton Metro PCS Store. Day brandished what appeared to be a firearm while Nance duct taped a store occupant, put that victim in a storage room, and took the victim’s wallet and keys. Meanwhile, Anderson stole cellular telephones and money from the cash registers.
On Oct. 12, 2016, Day, Nance, and Anderson drove to the Levittown Metro PCS Store. Day once again brandished what appeared to be a firearm while Nance duct taped the victims inside the store and put them in a store bathroom. Anderson subsequently entered the store and stole cellular telephones and money from the cash registers.
In addition to the prison term, Judge Rodriguez sentenced Day to three years of supervised release and ordered to pay $26,307 in restitution.
Nance has previously pleaded guilty and is scheduled to be sentenced Nov. 8, 2018. Anderson has previously pleaded guilty to her role in the robberies and is currently scheduled for sentencing on Nov. 13, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Willingboro, Lumberton, and Levittown police departments, as well as the Burlington and Mercer County Prosecutor’s Offices for their assistance in this case.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Peter A. Levin Esq., Philadelphia
U.S. Attorney’s Office Reminds New Jersey Voters about Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito announced today that Senior Trial Counsel Allen B.K. Urgent will lead the office’s efforts in connection with the Justice Department’s nationwide Election Day Program for the Nov. 6, 2018, general election.
Urgent, Senior Trial Counsel Mark McCarren and Assistant U.S. Attorney Gabriel Vidoni have been appointed to serve as District Election Officers (DEOs) for the District of New Jersey, and are responsible for handling complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Free and fair elections are the cornerstone of our democracy,” U.S. Attorney Carpenito said. “Every voter must be free to cast a ballot without being intimidated or harassed, and their votes must be counted accurately and without being subjected to fraud of any kind.”
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. Actions designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
In order to respond to complaints of election fraud or voting rights abuses on Nov. 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Carpenito said the DEOs will be on duty in this District while the polls are open. They can be reached by the public at: (888) 636-6596.
The FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (973) 792-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, by phone at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Two People Arrested for Trafficking Guns in Camden AreaRead the Press Release
CAMDEN, N.J. – A man and woman from Fayetteville, North Carolina, who were arrested for conspiring to engage in illegal gun-trafficking in South Jersey will be making their initial appearances in court in New Jersey today, U.S. Attorney Craig Carpenito announced.
Anthony Doyle, 27, and Anastacia Thomas, 26, are charged by complaint with conspiring to illegally traffic firearms. Doyle is also charged with being a felon in possession of firearms.
The defendants appeared in federal court in North Carolina following their arrest earlier this month and were detained. They are scheduled to appear in New Jersey this afternoon; Doyle will appear before U.S. Magistrate Judge Joel Schneider in Camden federal court and Thomas will appear 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 Jan. 25, 2018, law enforcement officers conducted a traffic stop of a car registered to Doyle, who was riding as the front seat passenger while Thomas was driving. The officers observed a Glock handgun in plain view on the front seat passenger floor. Doyle told the officers the gun, which was loaded with 14 hollow tip bullets, belonged to a friend. The officers also observed a firearm box in the backseat of the car, next to a backpack. A search of the car and backpack revealed four additional handguns and two additional firearm boxes.
Law enforcement officers learned that the four handguns in the backpack had been purchased by Thomas on Jan. 22, 2018, from a pawnshop in Jonesboro, Georgia. Thomas purchased several additional firearms from that same pawnshop over the course of multiple visits, and Doyle accompanied Thomas to the pawnshop on at least two of those visits.
The investigation revealed that from Nov. 30, 2017, to Jan. 25, 2018, Doyle and Thomas conspired and worked together to engage in the business of dealing in firearms without a license. Thomas was responsible for purchasing firearms from federally licensed firearms dealers; meanwhile, Doyle used social media to advertise firearms for sale, negotiate pricing for firearms, and arrange for firearm transactions. Doyle discussed the various firearm transactions in great detail over the course of hundreds of pages of online messages that were analyzed by law enforcement.
The charge of conspiring to engage in gun trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The charge of possessing a firearm while being a convicted felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations, and both Doyle and Thomas are considered innocent unless and until proven guilty.
Defense counsel:
Doyle: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Thomas: Paul A. Sarmousakis Esq., Avalon, New Jersey
Former Hoboken City Council Candidate and Campaign Worker Indicted for Conspiring to Use Mail to Promote Voter Bribery SchemeRead the Press Release
NEWARK, N.J. – A former candidate for the Hoboken City Council and a campaign worker were charged today by a federal grand jury with conspiracy to promote a voter bribery scheme by use of the mail, U.S. Attorney Craig Carpenito announced.
Francis Raia, 67, of Hoboken, New Jersey, was a candidate for city council in 2013. Dio Braxton, 43, of Hoboken, worked for Raia’s campaign. A federal grand jury charged them today with conspiracy to violate the federal Travel Act for causing the mails to be used in aid of voter bribery, contrary to New Jersey state law, during the 2013 election. Lizaida Camis, a conspirator, was charged by indictment on Oct. 17, 2018; her case is pending.
According to documents filed in this case and statements made in court:
Under New Jersey law, registered voters are permitted to cast a ballot by mail rather than in-person. To receive a mail-in ballot, voters must complete and submit to their County Clerk’s Office an Application for Vote By Mail Ballot (VBM Application). After the VBM Application is processed by the County Clerk’s Office, voters receive a mail-in ballot.
From October 2013 through November 2013, Raia instructed Braxton and other conspirators to pay certain Hoboken voters $50 if those voters applied for and cast mail-in ballots in the November 2013 Hoboken municipal election. Conspirators provided these voters with VBM applications and then delivered the completed VBM Applications to the Hudson County Clerk’s office. After the mail-in ballots were delivered to the voters, the conspirators went to the voters’ residences and, in some cases, instructed the voters to vote for Raia and in favor of a ballot referendum that Raia supported relating to rent control. Conspirators promised the voters that they would be paid $50 for casting their mail-in ballots and told them that they could pick up their checks after the election at Raia’s office in Hoboken. Bank records show that voters living in Hoboken received $50 checks from an entity hired by Raia’s political action committee.
Raia and Braxton each face a maximum penalty of five years in prison and a $250,000 fine on the conspiracy charge.
U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
The charges and allegations in this indictment, and against Camis, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Union County, New Jersey, Man Admits to Scheme to Manipulate Microcap Stock by Touting A “Wellness Social Community for People and Their Pets”Read the Press Release
TRENTON, N.J. – The owner of a purported business consulting firm today admitted operating a $1.1 million scheme that artificially inflated the stock price of a publicly traded company he controlled, U.S. Attorney Craig Carpenito announced.
James Farinella, 52, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to one count of conspiracy to commit securities fraud.According to the documents filed in this case and statements made in court:
From June 2012 through December 2012, Farinella and others allegedly operated a scheme to profit by fraudulently inflate the prices of Pazoo Inc. (PZOO). Pazoo had little or no real business operations, and when it started trading in June 2012, Farinella controlled 98 percent of the free-trading shares in Pazoo.
Farinella and other conspirators allegedly inflated the price of those shares by orchestrating a series of trades between accounts they controlled to create the appearance that Pazoo stock was rising in price and heavily traded. In order to further inflate the prices, Farinella and his conspirators also disseminated misleading promotional materials to lure investors to purchase the stocks, including touting Pazoo as a leading provider of nutritional supplements for people and their pets.
After inflating the price of the stock, Farinella and his conspirators sold large volumes of the stock to investors at the artificially inflated prices. The company’s stock price then dropped, causing victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $1.1 million in gross trading proceeds.
The conspiracy to commit securities fraud count 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. Sentencing is scheduled for Feb. 5, 2019.The U.S. Securities and Exchange Commission (SEC) has a civil complaint pending against Farinella.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Justin S. Herring, Chief of the Cybercrimes Unit in Newark.
MS-13 Member Sentenced to Ten Years in Prison for Orchestrating, from Inside A California Prison, the Trafficking of Drugs to New JerseyRead the Press Release
NEWARK, N.J. – A member of MS-13 was sentenced to ten years in prison for orchestrating, from inside a California state prison, the trafficking of methamphetamine, heroin, and cocaine to New Jersey, U.S. Attorney Craig Carpenito announced.
Luis Calderon, 32, a/k/a “Lagrima,” of Los Angeles, previously pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an indictment charging him with conspiracy to distribute, and to possess with intent to distribute, methamphetamine, heroin, and cocaine. Sentence was imposed today by U.S. District Judge Jose L. Linares.
According to the documents filed in this case and statements made in court:
Between August 2015 and November 2015, Calderon was incarcerated at the Calipatria State Prison in California. However, Calderon had access to multiple contraband cellular telephones, which he used to communicate with conspirators outside the prison.
Law enforcement officers lawfully recorded numerous telephone conversations between Calderon and an MS-13 member based in New Jersey, identified in the indictment as “Individual-1.” Among other topics, Calderon and Individual-1 discussed plans to distribute crystal methamphetamine, heroin, and cocaine in the New Jersey area. Calderon and Individual-1 ultimately settled on that plan that involved Calderon and others outside the prison sending a package containing controlled substances to a business center in Edison, New Jersey.
Shortly before the package arrived, Calderon informed Individual-1 by telephone that he was sending Individual-1 a package containing four ounces each of heroin and cocaine. Calderon stated that the package would also likely contain two ounces or more of crystal methamphetamine. Calderon told Individual-1 that the total cost for the heroin, cocaine, and crystal methamphetamine was $9,000, and stated that Individual-1 could keep the proceeds made from selling the drugs once Individual-1 paid Calderon for the shipment. Calderon subsequently gave Individual-1 the names that would appear on the package and the tracking number.
On Nov. 4, 2015, federal agents lawfully intercepted and searched the package. The search revealed approximately 95.5 grams of heroin, 54.7 grams of cocaine, and 52.4 grams of methamphetamine hidden inside a box of Little Debbie Swiss Rolls.
In addition to the prison term, Judge Linares sentenced Calderon to 5 years of supervised release.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing. He also thanked Immigration and Customs Enforcement (ICE) Enforcement Removal Operations (ERO), the Calipatria State Prison, the Plainfield Police Department, the Union County Prosecutor’s Office, and the U.S. Attorney’s Office for the Central District of California for their assistance.
The government is represented by Assistant U.S. Attorneys Jamari Buxton of the U.S. Attorney’s Office Criminal Division and James Donnelly, Chief of the U.S. Attorney’s Office Violent Crimes Unit.
Defense counsel: Stacy Ann Biancamano Esq., Chatham, New Jersey
Former CEO of Mariner’s Bank and Accomplice Both Charged with Scheme to Obtain Nominee Loans from Mariner’s BankRead the Press Release
NEWARK, N.J. – The former CEO of Mariner’s Bank and an accomplice both were charged today for their roles in a scheme to obtain nominee loans from Mariner’s Bank, U.S. Attorney Craig Carpenito announced.
Fred Daibes, the former CEO and Chairman of the Board of Directors at Mariner’s Bank, and Michael McManus, the CFO of Daibes Enterprises, a consortium of companies specializing in real estate development, were charged by a federal grand jury with one count of conspiracy to misapply bank funds and to make false entries to deceive a financial institution and the FDIC. Daibes, 61, of Edgewater, New Jersey, also was charged with five counts of misapplying bank funds, six counts of making false entries to deceive a financial institution and the FDIC, and one count of causing reliance on a false document to influence the FDIC. McManus, 61, of Madison, New Jersey, was charged with four counts of misapplying bank funds, one count of making false entries to deceive a financial institution and the FDIC, one count of causing reliance on a false document to the influence the FDIC, and two counts of loan application fraud. The defendants will have their initial appearances and arraignments at a later date.
According to documents filed in this case:
Daibes was the founder and, until April 2011, Chairman of the Board of Directors of Mariner’s Bank. During the relevant time period, Mariner’s Bank was subject to federal banking regulations that placed limits on the amount of money that the bank could lend to a single borrower (the “Lending Limits”). Between January 2008 and December 2013, Daibes, McManus, and others orchestrated a nominee loan scheme designed to circumvent the Lending Limits by ensuring that millions of dollars in loans (the “Nominee Loans”) flowed from the nominees to Daibes, while concealing his beneficial interests in those loans from both Mariner’s Bank and the FDIC.
Daibes and others recruited nominees, including McManus, to make materially false and misleading statements and material omissions to Mariner’s Bank to obtain the Nominee Loans, including by concealing that Daibes was the true beneficiary. After receiving the proceeds of the Nominee Loans, the nominees distributed these monies to Daibes. Daibes and the nominees also failed to disclose to Mariner’s Bank that, in certain instances, Daibes pledged the collateral for the Nominee Loans, while, in other cases, he arranged to make both the interest and principal payments on the Nominee Loans.
In order to convince Mariner’s Bank to approve two of the Nominee Loans, McManus signed and provided to Mariner’s Bank a false certification attesting to the profitability of gas stations that two of the nominees had pledged as collateral after purchasing the gas stations from Daibes in sham transactions. After the FDIC began an investigation into one of the Nominee Loans, Daibes, McManus, and others created and submitted to the FDIC a backdated sales contract to make it falsely appear as though one of the nominees had obtained one of the nominee loans from Mariner’s Bank in order to pay Daibes for his interest in a real estate venture.
On the count of conspiracy to misapply bank funds and to make false entries to deceive a financial institution and the FDIC, the defendants face a statutory maximum term of imprisonment of 5 years and a maximum fine of $250,000. On the counts of misapplying bank funds, making false entries to deceive a financial institution and the FDIC, and causing reliance on a false document to influence the FDIC, the defendants face a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000. On the counts of loan application fraud, McManus faces a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000.
U.S. Attorney Craig Carpenito credited investigators from the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas Mahoney, special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant United States Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Assistant United States Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.
The charges and allegations in the indictment are only accusations and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Daibes: Lawrence S. Lustberg, Esq., Newark, New Jersey
McManus: John C. Whipple, Esq., Morristown, New JerseyEssex County, New Jersey Man Admits to Illegal Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted today that he took part in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Manuel Venegas, 54, of Newark, New Jersey, 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.
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’s daughter, Maria Teresa Venegas, was the listed owner of Jenny’s Deli and pleaded guilty to the same crime in September 2018.
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.
The SNAP fraud charge carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 6 2019.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Laurie Fierro, Esq.
One Federal Inmate Sentenced to Additional Ten Years in Prison in Fort Dix Prison Child Pornography RingRead the Press Release
CAMDEN, N.J. – A Tennessee man was sentenced to an additional ten years in prison in connection with a child pornography ring at Federal Correctional Institution Fort Dix that was operated by inmates who were imprisoned for related offenses, U.S. Attorney Craig Carpenito announced.
Charles Wesley Bush, 38, of Knoxville, Tennessee, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of possession of child pornography. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Bush admitted that he possessed a micro SD Card containing 2,471 images and 95 videos of child pornography, including depictions of sexual abuse of pre-pubescent children, bestiality, and sadistic and masochistic conduct. In connection with his plea, Bush also admitted that he used a cellular telephone inside the prison to obtain and possess child pornography and that he knowingly engaged in the distribution of child pornography by agreeing to transfer the micro SD card to another inmate.
In addition to the additional prison term, Judge Rodriguez sentenced Bush to 10 years of supervised release. Restitution will be determined at a later date.
Six other inmates – all of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case – have pleaded guilty: Erik M. Smith, 36, of Iron Mountain, Michigan; Anthony C. Jeffries, 32, of Orange, Virginia; Brian J. McKay, 47, of Brookhaven, Pennsylvania; Christopher D. Roffler, 30, of Virginia Beach, Virginia; Jacob S. Good, 26, of Fredericksburg, Virginia; and Jordan T. Allen, 31, of Plain City, Ohio. Smith was sentenced to 151 months in prison, Good was sentenced to 10 years in prison; McKay and Allen were sentenced to 160 months in prison, and the other two defendants are awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: David Rudenstein Esq., Philadelphia
Illegal Alien Sentenced to 18 Months in Prison for Unlawfully Returning to United States and Failing to Register as Sex OffenderRead the Press Release
CAMDEN, N.J. – A Salvadoran man previously convicted for sexually assaulting a child was sentenced to 18 months in prison today for failing to register as a sex offender after unlawfully returning to the United States and traveling to New Jersey, U.S. Attorney Craig Carpenito announced.
Samuel De Jesus Corvera-Mata, 43, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of illegal re-entry subsequent to conviction for an aggravated felony and one count of failing to register as required by the Sex Offender Registration and Notification Act (SORNA).
SORNA requires all sex offenders to register and keep that registration current in each jurisdiction where the sex offender resides.According to documents filed in this case and statements made in court:
Corvera-Mata admitted that he illegally re-entered the United States after being deported to El Salvador following a 10-year prison sentence in California for committing multiple lewd and lascivious acts upon a seven-year-old child. As a result of his prior offenses, Corvera-Mata was required to register as a sex offender if he ever returned to the United States. Corvera-Mata later illegally re-entered the country and travelled to New Jersey, where he was located and arrested in October 2017.
In addition to the prison term, Judge Simandle sentenced Corvera-Mata to 5 years of supervised release.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Camden, New Jersey
Former Bank CEO, Financier, and Business Owner Indicted for Regulatory and Bank FraudRead the Press Release
NEWARK, N.J. – The former CEO of First State Bank, a financier, and a New Jersey business owner were indicted today by a federal grand jury for their roles in an elaborate scheme to deceive the Federal Deposit Insurance Corporation (FDIC) and to deceive and defraud the now defunct First State Bank (FSB), formerly located in Cranford, New Jersey, U.S. Attorney Craig Carpenito announced.
Joseph Natale, Albert Gasparro, and Gary Ketchum were charged with conspiracy to mislead the FDIC and FSB, misleading those two entities, conspiracy to commit bank fraud and bank fraud in a 13-count indictment. Donna Conroy, a conspirator, pleaded guilty in May 2017 and is awaiting sentencing.
According documents filed in this and other cases and statements made in court:
From September 2009 to September 2010, Natale, Gasparro, Ketchum, Conroy and others created the appearance that $7 million in new capital had been invested into FSB by three bona fide purchasers when, in fact, nominee investors and FSB’s own assets had been misused for that purpose. FSB was defrauded into paying $715,000 in fees for that fabricated capital to Gasparro, who then split that money with Natale. To conceal this misconduct, three fraudulent loans were subsequently obtained from FSB, from which Ketchum wrongfully received an additional $176,000. The defendants then misrepresented the true facts underlying this misconduct to the FDIC and FSB. FSB also previously attempted to obtain funds from the Trouble Asset Relief Program (TARP), but ultimately withdrew the application.
The substantive bank and regulatory fraud charges each carry a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. The charged conspiracy has a five-year statutory maximum term of imprisonment and a maximum fine of $250,000 or twice the loss caused or gain realized from that offense.
U.S. Attorney Carpenito credited Special Agent in Charge Patricia Tarasca, FDIC, Office of Inspector General; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and Special Inspector Christy Goldsmith Romero of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
The government is represented by Senior Trial Counsel Andrew Leven of the Healthcare & Government Fraud Unit of the U.S. Attorney’s Office, District of New Jersey.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Gasparro: Lawrence Lustberg Esq., Newark
Natale: Michael Critchley Esq., Livingston, New Jersey
Ketchum: Linda Foster, Assistant Federal Public Defender, Newark
Computer Hacker Who Launched Attacks on Rutgers University Ordered to Pay $8.6m Restitution; Sentenced to Six Months Home IncarcerationRead the Press Release
Defendant Also Took Part in Creating Mirai and clickfraud Botnets, Infecting Hundreds of Thousands of Devices with Malicious Software
TRENTON, N.J. – A Union County, New Jersey, man was ordered today to pay $8.6 million in restitution and serve six months of home incarceration for launching a cyber-attack on the Rutgers University computer network, U.S. Attorney Craig Carpenito announced.
Paras Jha, 22, of Fanwood, New Jersey, previously pleaded guilty before U.S. District Judge Michael Shipp to violating the Computer Fraud & Abuse Act. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this and other cases and statements made in court:
Between November 2014 and September 2016, Jha executed a series of “distributed denial of service” (DDOS) attacks on the networks of Rutgers University; these occur when multiple computers acting in unison flood the Internet connection of a targeted computer or computers. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multiple consecutive periods, causing damage to Rutgers University, its faculty, and its students.
On Dec. 8, 2017, Jha, Josiah White, 21, of Washington, Pennsylvania, and Dalton Norman, 22, of Metairie, Louisiana, also pleaded guilty to criminal informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet, targeted “Internet of Things” devices – non-traditional computing devices that have been connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain administrative or high-level access to victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of other DDOS attacks. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
Jha and Norman also pleaded guilty to criminal informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected more than 100,000 primarily U.S.-based Internet-connected computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet.
The defendants then used the compromised devices as a network of proxies through which they routed Internet traffic. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that utilizes “clicks,” or the accessing of URLs and similar web content, for the purpose of artificially generating revenue.
Judge Shipp also sentenced Jha to five years of supervised release and ordered him to perform 2,500 hours of community service.
On Sept. 18, 2018, all three defendants were sentenced in federal court in Alaska to serve a five-year period of probation, 2,500 hours of community service, ordered to pay restitution in the amount of $127,000, and have voluntarily abandoned significant amounts of cryptocurrency seized during the course of the investigation.
For additional information on cybersecurity best practices for IoT devices, please visit: /media/906536/dl?inline .
All three cases were investigated by the FBI. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division.
Additional assistance was provided by the FBI Newark Cyber Task Force, Rutgers University Police Department, N.J. State Police, the Federal Protective Service, FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai.
Defense counsel: Robert Stahl Esq., Westfield, New Jersey
Twenty-Seven Defendants Charged in Takedown of Violent Trenton Drug Trafficking GangRead the Press Release
12 Arrests Made in Coordinated Takedown by Federal and State Law Enforcement; Four Defendants At-Large, Remaining 10 Defendants Already in Custody
TRENTON, N.J. – Federal criminal charges were filed against 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, U.S. Attorney Craig Carpenito announced today.
The complaint unsealed today charges 26 defendants with conspiracy to distribute one kilogram or more of heroin. Six of the defendants – Jakir Taylor, Timothy Wimbush, Taquan Williams, Jubri West, and Dennis Cheston Jr. – are also were charged with possessing firearms in furtherance of a drug trafficking crime. Wimbush, Williams, and Cheston are additionally charged with unlawfully possessing firearms after having been convicted of a felony. In a separate criminal complaint filed today, Keyanda Phelps was charged with unlawful possession of a firearm by a convicted felon. (See attached chart for information on the defendants.)
“Despite progress in reducing gun violence in Trenton, we cannot rest,” U.S. Attorney Carpenito said. “A recent spate of shootings shows that we must always be vigilant, and ready to respond to gang violence. Our message to the Trenton community should be loud and clear: We are here, we are watching, and we will not stand idly by while illegal drug distribution, firearms possession, and violent crime terrorize this great city.”
“Today’s arrests reflect the commitment of the FBI and our state, local and federal partners,” Gregory W. Ehrie, Special Agent in Charge of the FBI's Newark Division, said. “We will continue to target these violent offenders who prey on the City of Trenton and the surrounding communities.”
“ATF will always stand shoulder to shoulder with our law enforcement partners in furtherance of our combined goal to reduce violent crime and protect the citizens of New Jersey,” ATF Newark Field Division Special Agent in Charge John B. DeVito said. “This investigation is yet another example of how effective utilization of crime gun intelligence affords law enforcement the ability to successfully identify, isolate and stop those individuals and organizations that endanger our communities.”
The 12 defendants arrested today, as well as 10 defendants who were already in custody, are scheduled to have their initial appearances this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court. One defendant is serving a sentence in state prison and will have his initial appearance at a later date. Four defendants remain at-large.
According to documents filed in this case and statements made in court:
From 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, Middle Rose, and Southard streets; and Hoffman and Coolidge avenues. The defendants sought to profit from the sale of heroin and other illegal drugs in Trenton.
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 Jakir Taylor and Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin (a brick is approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from David Antonio, whom they referred to as “Papi.” Other key members of the drug trafficking conspiracy included Omar Council, Gary Ausmore, Brian Phelps, Davias Taylor, and others.
Members of the conspiracy re-distributed the heroin supplied by Papi and other sources, for profit, to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, pricing, packaging, quantity, and customer satisfaction.
To protect their drug-trafficking activities, multiple conspirators possessed, shared, supplied, and actively sought to obtain firearms. Law enforcement seized at least five semiautomatic firearms possessed by members of the conspiracy, including three semiautomatic handguns and an assault rifle located in a vehicle’s secret compartment specially outfitted to hide contraband. On another occasion, Jakir Taylor sent to another conspirator a photograph of three handguns—one outfitted with an extended magazine capable of loading approximately 50 rounds of ammunition—accompanied by a message that read, “War ready.”
The charges filed today come on the heels of a recent spate of gun violence in the area of Martin Luther King Jr. Boulevard, Sanford and Middle Rose streets, primary locations of the conspiracy’s drug trafficking operations. The investigation is continuing; however, based on the information and evidence obtained to date, law enforcement has reason to believe that a significant amount of this recent gun violence resulted from an ongoing dispute between members of the conspiracy and a rival gang. The charges are the result of a two-year investigation by the Greater Trenton Safe Streets Task Force. Led by the FBI, the Task Force is comprised of various federal, state, and local law enforcement agencies whose mission is to combine resources and intelligence to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around Trenton.
The drug conspiracy count carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The count charging Taylor, Wimbush, Williams, West, and Cheston with possessing a firearm in furtherance of a drug-trafficking crime carries a statutory mandatory minimum term of five years, which must run consecutive to any other sentence imposed, and a maximum potential penalty of life in prison. The felon-in-possession charges against Wimbush, Williams, Cheston, and Keyanda Phelps carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
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 Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Acting Police Director Christopher Doyle; 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 N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the case, including with today’s charges.
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.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
18-369
Defendants
Name
Age
Residence
Jakir Taylor
28
Trenton
Omar Council*
39
Lawrence
David Antonio
30
Trenton
Jerome Roberts
Unknown
Willingboro
Gary Ausmore
28
Ewing
Brian Phelps
40
Incarcerated
Major Anderson
42
Trenton
Alonzo Leary
37
Trenton
Davias Taylor
Unknown
Incarcerated
Taques Hall
26
Trenton
Kahlil Hampton
Unknown
Lumberton
Donte Ellis
Unknown
Trenton
Dennis Cheston Jr.
37
Incarcerated
Timothy Wimbush
28
Incarcerated
Taquan Williams
Unknown
Trenton
Jubri West
19
Trenton
Malik Bingham
34
Trenton
Deavon Warner
27
Trenton
Jaquan Wade
28
Trenton
Quiana Welch
Unknown
Trenton
Keyanda Phelps
33
Incarcerated
Kaleib Cox*
Unknown
Incarcerated
Varlee Koon*
29
Incarcerated
Brandon Council*
24
Trenton
Wayne K. Bush
40
Incarcerated
Shaquel Rock
24
Trenton
Latrice Wharton
30
Trenton
*denotes at-largeMonroe Township, New Jersey, Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 10 years in prison for possessing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Sam Cynamon, 68, of Monroe Township, New Jersey, and formerly of Springfield, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of possession of child pornography. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
On July 10, 2017, law enforcement officers lawfully obtained multiple computers and electronic storage media belonging to Cynamon from his residence. The computers and electronic storage media contained multiple images and videos of child pornography, including images of prepubescent children being sexually abused.
In addition to the prison term, Judge Arleo sentenced Cynamon to eight years of supervised release and ordered him to pay restitution of $21,000.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing.
The government is represented by Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
Georgia Woman Charged with Credit Card Fraud and Aggravated Identity Theft ConspiracyRead the Press Release
NEWARK, N.J. – A woman was arrested in Georgia today for her alleged participation in a credit card fraud and aggravated identity theft conspiracy, U.S. Attorney Craig Carpenito announced.
Funmilola Adekanmi, 29, of Duluth, Georgia, is charged by complaint with one count of bank fraud conspiracy and one count of aggravated identity theft. Adekanmi is expected to make her initial appearances today before U.S. Magistrate Judge Russell G. Vineyard in federal court in Atlanta, Georgia.
According to documents filed in this case and statements made in court:
Between July 2016 and May 2017, Adekanmi conspired with Akintunde Adeyemi, Oluwaseun Jato, and others to obtain control of credit card accounts using stolen personal identifying information (PII) of third parties. Adeyemi, Jato and other conspirators submitted to a financial institution identified in the complaint as “Victim Bank 1” applications for credit card accounts using stolen PII, including the names, addresses, and other identifying information of the unsuspecting identity theft victims. After establishing the accounts, the conspirators contacted Victim Bank 1 to change the address associated with the accounts so that Victim Bank 1 would send the credit cards to those addresses. The conspirators then monitored those addresses and intercepted the cards before the residents of the addresses received them. Some of these addresses were located near the conspirators’ residences in New Jersey and Georgia. The conspirators, including Adekanmi, then used the cards at retail stores in New Jersey and Georgia, among other places, to purchase merchandise, including gift cards, which they then used or sold for profits. The conspirators defrauded Victim Bank 1 of more than $600,000.
The investigation to date has revealed that the conspirators played unique roles in the scheme. Adeyemi obtained the stolen PII from other conspirators and used it to create the fraudulent credit card accounts. He then sent the account information to others, including Jato, who coordinated with other conspirators to retrieve the credit cards associated with the compromised accounts. Adeyemi also provided compromised credit card accounts to Adekanmi, who used the accounts to make retail purchases, including purchasing gift cards. Adekanmi received a percentage of the scheme’s profits for her assistance in the fraudulent transactions. She was recorded on store surveillance footage on multiple dates in April 2017 making purchases using some of the compromised credit card accounts.
The bank fraud conspiracy charge carries a maximum potential penalty of up to 30 years in prison and a fine of up to $1 million. 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 by the court.
On July 17, 2018, conspirators Adeyemi and Jato were charged by criminal complaint with conspiracy to commit bank fraud and aggravated identity theft for their roles in the scheme. Jato was arrested in Atlanta, Georgia, on July 24, 2018. On Aug. 2, 2018, Jato and Adeyemi were indicted and charged with conspiracy to commit bank fraud and aggravated identity theft. That case is pending. Adeyemi has not yet been arrested and remains at large.
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 U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo 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
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Violent Grape Street Crips Member Sentenced to 30 Years for Murder and Attempted Murder as Part of RICO ConspiracyRead the Press Release
NEWARK, N.J. – A high-ranking member of the New Jersey Grape Street Crips was sentenced today to 30 years in federal prison for his role in orchestrating a murder, participating in a separate attempted murder, and conspiring to distribute copious amounts of crack cocaine, all as part of a racketeering conspiracy, U.S. Attorney Craig Carpenito announced.
Rashan Washington a/k/a “Shoota,” 31, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to five counts in the sixth superseding indictment, which charged him with murder and attempted murders as part of a RICO conspiracy, conspiracy to commit aggravated assault in aid of racketeering, conspiracy to possess a firearm, conspiracy to distribute 280 grams or more of crack cocaine, and participating in a continuing criminal enterprise. Judge Arleo imposed the sentence today in Newark federal court. Washington’s sentence will run consecutively to a 14-year sentence previously imposed by the Essex County Superior Court for his role in a separate shooting.
Washington was one of 14 defendants charged in November 2016 in a 22-count indictment with, among other things, seven murders, numerous attempted murders and other violent and drug trafficking crimes committed as part of the racketeering conspiracy. Twelve of the 14 defendants have now been convicted. The two remaining defendants, Hanee Cureton and Khalil Stafford, are pending trial.
An additional 68 members and associates of the Grape Street Crips 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, Washington admitted that he orchestrated Anwar West’s murder on the orders of the gang’s leader, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 42, of Newark, New Jersey. Hamlet, Washington, and other gang-members believed that West had been disloyal by setting up a meeting at the Mall at Short Hills in Millburn, New Jersey, in an attempt to end a long-running feud between Hamlet and Almalik Anderson, a rival.
To set up West’s murder, Washington purposely left him alone inside of a blue Jeep Cherokee knowing that another gang-member intended to shoot and kill West. Washington admitted that, after he set up West in the Jeep Cherokee, another gang-member shot West once in the head, killing him. Afterwards, Washington was promoted to the rank of “G,” of “Gangster,” within the NJ Grape Street Crips.
After the Short Hills meeting, Hamlet used a social media account to post a report from the Essex County Prosecutor’s Office purportedly indicating that Anderson had provided a statement to law enforcement. Just three days after Hamlet’s social media post, gang members – acting on Hamlet’s orders – repeatedly shot and nearly killed Anderson and Saidah Goines, a bystander who was inside Anderson’s car. Following the attempted murder of Anderson, Hamlet ordered Washington and another gang member to murder West.
Washington also admitted that on Oct. 7, 2013, he and other gang members sought to avenge the murder of a fellow gang member who had recently been killed by rival gang members. Washington and his fellow gang members travelled to the area of Avon Avenue in Newark where one of Washington’s fellow gang members fire 14 shots in an attempt to shoot members of the rival gang. After returning to their staging area after the shooting, Washington fled law enforcement who attempted to arrest him and his fellow gang members.
Finally, Washington admitted to participating in a conspiracy to distribute 280 grams or more of crack cocaine and participating in a continuing criminal enterprise.
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 Valerie A. Nickerson with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their work on the case.
The case is being prosecuted by Osmar J. Benvenuto, Chief of the Organized Crime and Gangs Unit 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.
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Defense Counsel: Pasquale F. Giannetta Esq., Newark
Owner and Operator of New Jersey-Based Real Benefits Association LLC Sentenced to 18 Months in Prison for Selling Bogus Health InsuranceRead the Press Release
TRENTON, N.J. – An insurance broker who stole nearly $1 million while continuing to sell health care coverage he knew was fake was sentenced today to 18 months in prison, U.S. Attorney Craig Carpenito announced.
David Clark, 75, of Morristown, New Jersey, previously pleaded guilty before U.S. District Judge Michael Shipp to an information charging him with conspiracy to commit wire fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Clark owned and operated Real Benefits Association LLC (RBA), a New Jersey limited liability company he incorporated on Dec. 17, 2003, under a similar name. Clark established RBA as a purported labor organization and as a way to market and sell health insurance to the general public through the RBA Welfare Plan. Initially, the Welfare Plan was fully insured through Perfect Health, a licensed New York insurance company. Participants paid insurance premiums to bank accounts of RBA or the Welfare Plan, which Clark then remitted to Perfect Health.
Perfect Health was purchased by Health Insurance Programs (HIP) in 2008, and HIP discontinued its insurance policy with the RBA Welfare Plan. The federal government notified Clark that RBA did not qualify as a labor organization and was required to cease operating.
Clark continued, however, to market and sell the health insurance plans to unsuspecting participants. Participants began to complain to their respective state insurance departments when their medical claims were not being paid, which prompted various departments throughout the United States to issue cease and desist orders.
Clark and conspirators continued to market and sell bogus health insurance, and from December 2008 to July 2011, they collected approximately $1.8 million in premiums for RBA health insurance coverage. Clark diverted $962,027 from the premiums paid by RBA participants for his personal use, including by using victims’ premiums to fund personal debit and credit card purchases, college tuition payments and deposits to a relative’s bank account.
In addition to the prison term, Judge Shipp sentenced Clark to two years of supervised release.
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 for the New York Region Michael C. Mikulka; the U.S. Department of Labor Employee Benefits Security Administration (EBSA), under the direction of Darren Cohen, Regional Director; and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s sentencing.
The government is represented by Senior Trial Counsel Jacob T. Elberg of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
If you have information or think you might be a victim of this scheme, please contact (866) 444-3272 to speak to an EBSA benefits advisor.
Defense counsel: John P. McDonald Esq., Somerville, New Jersey
Former Treasurer for Newark Mayor Election Campaign Sentenced to 30 Months in Prison for Embezzling over $220,000Read the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for embezzling more than $220,000 in campaign funds while serving as the treasurer for a Newark mayoral campaign, U.S. Attorney Craig Carpenito announced.
Frederick Murphy Jr., 56, of Bloomfield, New Jersey, previously pleaded guilty before Chief U.S. District Judge Jose L. Linares to Counts One, Two, and Five of an information charging him with wire fraud, bank fraud, and tax evasion. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between January 2014 and March 2017, Murphy served as the treasurer for election campaign accounts associated with a Newark mayoral candidate. Murphy admitted that during that time, he embezzled over $220,000 from those accounts by writing phony checks in the names of various consultants and vendors for services that were never performed.
Murphy cashed the checks by presenting them to a bank in Essex County with the forged signature of the check payees as well as Murphy’s own signature as a double endorsement. Murphy then reported the fraudulent checks as legitimate campaign expenditures in quarterly filings with the New Jersey Election Law Enforcement Commission. The false reports were uploaded by the Election Law Enforcement Commission onto its website for public reference.
Murphy also admitted under-reporting $102,954 in embezzled campaign funds on his personal income tax return for 2016.
In addition to the prison term, Judge Linares sentenced Murphy to three years of supervised release and ordered him to pay restitution of $277,826.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS–Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Alan Dexter Bowman Esq., Newark
Three More Men Charged with Interstate Transport of $2.3 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Three more Florida men have been charged for their alleged roles in transporting $2.3 million worth of stolen perfume products out of New Jersey, U.S. Attorney Craig Carpenito announced.
Juan Crespo, 41, of Homestead, Florida, and Felix Castillo, 45, and Asnay Fernandez, 28, both of Hialeah, Florida, were each charged by complaint with one count of conspiring to transport stolen property in interstate commerce. All three defendants are scheduled to appear today in Newark federal court before U.S. Magistrate Judge Leda Dunn Wettre.
Previously, two other defendants, Carlos Duvergel and Yunior Estevez, were charged in this case in June 2018; their charges remain pending.
According to documents filed in this case and statements made in court:
In November 2017, the defendants and others obtained unauthorized access to a warehouse storing perfume products in Edison, New Jersey, and drove away with at least one tractor trailer filled with stolen perfume products. The value of the stolen perfume products is estimated to be $2.3 million.
The count with which the defendants are charged is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offenses.U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the Edison Police Department, under the direction of Chief Thomas Bryan, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charges and allegations against the defendants are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Jersey City Police Officer Sentenced to 23 Months in Prison for Conspiracy to Commit Fraud and Accept Corrupt PaymentsRead the Press Release
NEWARK, N.J. – A Jersey City police officer was sentenced today to 23 months in prison for accepting corrupt payments in exchange for helping employers operate at worksites without the required presence of an off-duty police officer, U.S. Attorney Craig Carpenito announced.
Juan Berrios, 42, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Berrios was a police officer with the Jersey City Police Department from 2004 to 2017. Under Jersey City’s municipal code, police officers performing off-duty work were not permitted to receive cash payments directly from other employers. Rather, the employers were supposed to pay Jersey City, which would then pay the off-duty police officers, minus certain fees, taxes and deductions.
Berrios agreed with numerous off-duty employers to accept payments directly from them and cut Jersey City out of the process. In exchange for the payments, Berrios permitted off-duty employers to operate at worksites without the presence of a police officer when such a presence was required.
On several occasions, Berrios submitted off-duty vouchers seeking and obtaining compensation for working as a traffic director or security guard. Berrios also sought and received overtime compensation for appearing in court at the same time he was purportedly performing off-duty work. As a result, Berrios fraudulently obtained compensation from Jersey City for separate assignments that occurred at the same time.
In addition to the prison term, Judge Vazquez sentenced Berrios to three years of supervised release and ordered forfeiture of $50,000 and restitution of $34,951.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Vikas Khanna, Deputy Chief of the U.S. Attorney’s Office Criminal Division, and Assistant U.S. Attorney Sarah Devlin of the Asset Recovery and Money Laundering Unit, in Newark.
Defense counsel: Danny J. Welsh Esq., Jersey City, New Jersey
Former Middlesex Borough Fire Inspector Sentenced to 34 Months in Prison for Conspiring to Commit Strongarm ExtortionRead the Press Release
NEWARK, N.J. – A former fire inspector for Middlesex Borough and other New Jersey municipalities was sentenced today to 34 months in prison for conspiring with another person to commit a strongarm extortion, U.S. Attorney Craig Carpenito announced today.
Billy A. Donnerstag, 50, of Hackettstown, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with conspiring to commit extortion using threats of force, violence, and fear. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Donnerstag conspired with Joseph P. Martinelli of Kenvil, New Jersey, to extort the owner and operator of a real estate development and construction company – referred to in the indictment as “Individual 1” – using threats of physical harm if Individual 1 did not pay Donnerstag and Martinelli thousands of dollars. In a series of telephone and in-person conversations with Individual 1, Donnerstag and Martinelli told Individual 1 that, in addition to being a fire inspector for Middlesex Borough, Donnerstag also collected debts. Donnerstag and Martinelli wanted Individual 1 to pay Martinelli, stating that Individual 1 had not paid Martinelli enough money for the sale of a property a decade earlier. During the course of the conspiracy, both Donnerstag and Martinelli made a series of threatening statements to Individual 1 that the consequences of failing to pay Donnerstag and Martinelli would involve physical harm to Individual 1.
Donnerstag told Individual 1:
• “if you were in front of me right now, you’d be on the floor. Okay? Cause I don’t talk—I don’t get talked to like that. You don’t know who I am.”
• “You need to iron this out with Joe. Again, if, if I have to come meet you now—again, it, it, it, it’d become, it’s gonna be a problem.”
• “What I do, is I make sure that people don’t take advantage of other people. Do you understand that? Now I also do other things, but this is one of the things that I do. Now, again if you’re not figuring wh, what my business is by now, you’re either, and again I, I say this with as much respect as I can, either an idiot, or you’re just lying because you don’t want to, to, to understand that I come from somewhere that most people don’t wanna see.”
Ultimately, over two separate meetings (both of which were lawfully recorded), Donnerstag and Martinelli obtained $15,000 in cash from Individual 1. The cash had been provided by the FBI.
In addition to the prison term, Judge Arleo sentenced Donnerstag to three years of supervised release.
Martinelli pleaded guilty before Judge Arleo on March 2, 2018, to conspiring with Donnerstag to commit extortion and is scheduled to be sentenced Nov. 26, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Zahid N. Quraishi Esq., Morristown, New Jersey
Contractor Sentenced to 21 Months in Prison for Stealing from Paterson Municipal Utilities Authority and Jersey City Childhood Development CentersRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man was sentenced today to 21 months in prison for conspiring with officials at the Paterson Municipal Utilities Authority (MUA) and the Jersey City Childhood Development Centers Inc. (JCCDC) to fraudulently obtain payments for services he never provided, U.S. Attorney Craig Carpenito announced.
Carnell Baskerville, 51, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him intentionally conspiring with a former commissioner with the Paterson MUA to commit extortion under color of official right and conspiring with Robert E. Mays, the former Executive Director of the JCCDC, to embezzle and obtain by fraud funds that were under the care and control of the JCCDC, an organization that received more than $10,000 in federal program benefits annually. Judge Linares imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Baskerville was a self-employed contractor based in Linden who provided contracting services for both residential homes and commercial businesses. Around 2014, Baskerville became acquainted a conspirator who was then a commissioner with the since-dissolved Paterson MUA, which had been created to manage the hydroelectric plant on the Passaic River and care for certain surrounding properties.
Baskerville and the conspirator entered into an agreement whereby the conspirator, who exercised control over Paterson MUA finances, would approve payments from the Paterson MUA to Baskerville’s company for services rendered, even though both Baskerville and the conspirator knew that Baskerville had not and would not perform those services.
Between December 2014 and May 2015, the conspirator wrote a series of Paterson MUA checks totaling $146,500 to Baskerville’s company. Baskerville deposited these checks in his bank account and kicked back a significant percentage in cash to the conspirator to reward him for his official assistance in carrying out the scheme.
Baskerville entered into a similar scheme with Mays, the Executive Director of the JCCDC, which operated as a non-profit organization created to serve impoverished and disabled children in Jersey City. In February 2014, Baskerville and Mays entered into a purported contract for Baskerville to provide kitchen renovation work on behalf of JCCDC, knowing full well that Baskerville had not and would not perform those services.
In late February 2014, Mays issued a JCCDC check in the amount of $29,675 to Baskerville. Baskerville and Mays met at a check cashing business in Jersey City where they cashed the check and split the proceeds between them.
In addition to the prison term, Judge Linares sentenced Baskerville to three years of supervised release and ordered him to pay restitution of $176,175.Mays pleaded guilty to wire fraud on June 7, 2016 before U.S. District Judge Susan D. Wigenton. On July 31, 2017, he was sentenced to 18 months in prison and ordered to pay restitution in the amount of $257,418.20.
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.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Arthur Abrams Esq., Jersey City
New York Woman Sentenced to 18 Months in Prison for Trafficking more than $3 Million in Counterfeit Footwear and Handbags through Port of NewarkRead the Press Release
NEWARK, N.J. – A Flushing, New York, woman was sentenced today to 18 months in prison for her plan to distribute counterfeit Nike sneakers, Louis Vuitton handbags, and other phony merchandise that was shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Xiao Xia Zhao, 42, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging her with one count of trafficking in counterfeit goods. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From November 2013 through February 2017, Zhao received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit merchandise. Zhao asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zhao directed that they be delivered to other individuals, who would then distribute the merchandise in New Jersey and elsewhere.
However, law enforcement officers intercepted the containers before Zhao could distribute the goods. At no time was Zhao authorized to import Nike footwear, Louis Vuitton handbags, or any of the other counterfeit merchandise in the containers.
In total, Zhao trafficked in thousands of pairs of fake Nike footwear, Louis Vuitton handbags, and other counterfeit items, with a total estimated retail value of over $3 million. Zhao also paid individuals over $75,000 in exchange for the delivery of the containers.
In addition to the prison term, Judge Linares sentenced Zhao to three years of supervised release.
U.S. Attorney Carpenito credited officers of U.S. Customs and Border Protection, under the direction of Francis J. Russo, Acting Director of Field Operations, New York Field Office; and 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.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Former U.S. Army Employee at Picatinny Arsenal Admits Receiving Bribes and Directing KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man admitted today that he abused his position as an employee of the U.S. Army Contracting Command New Jersey (ACC-NJ) in connection with his role in two conspiracies in construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix Lakehurst (Ft. Dix), U.S. Attorney Craig Carpenito announced.
Kevin Leondi, 57, of Stroudsberg, Pennsylvania, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count One, conspiring to defraud the United States by soliciting and accepting bribes, and Count Two, conspiring to steer kickbacks from one conspirator to another.
According to documents filed in this case and statements made in court:
Leondi represented the Army in renovation projects at PICA and Ft. Dix. A company referred to in the indictment as “Construction Company No. 1” served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Fort Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale projects at PICA and Ft. Dix. George Grassie ran a construction, excavating and landscaping business in Pennsylvania that did subcontracting work at the bases.
From December 2010 through August 2015, Leondi solicited and accepted more than $150,000 in bribes from Grassie and others in return for task orders and other favorable assistance at the bases, and for not denying them future work. Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating property that Leondi owned in East Stroudsburg, Pennsylvania.
Leondi also admitted that he conspired to steer at least $48,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Ft. Dix. The kickbacks included cash payments to help Conway pay his mortgage as well as free construction work at Conway’s home in Pennsylvania.
Grassie pleaded guilty in February 2017 to one count of conspiracy and one count of providing unlawful kickbacks for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both defendants are awaiting sentencing.
Each conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 30, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz and Senior Trial Counsel Mark J. McCarren, of the U.S. Attorney’s Office’s Special Prosecutions Division.
Defense counsel: Thomas Calcagni Esq. and Peter Katz Esq., Newark
California Man Sentenced to 10 Years in Prison for Role in Cross-Country Conspiracy to Distribute More Than Five Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Riverside, California, man was sentenced today to 120 months in prison for his role in a conspiracy to transport more than five kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Edwin Garcia Cambero, 26, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with conspiracy to possess with intent to distribute more than five kilograms of cocaine. Judge Linares imposed the sentence today in Newark federal court.
Garcia Cambero was originally charged by complaint on Dec. 13, 2017, with Luis Michel Donascimento, 37, of Perris, California, and Humberto Ramos Cervantes, 34, of Los Angeles.
According to documents filed in this case and statements made in court:
On Nov. 29, 2017, Donascimento allegedly flew from California to Atlantic City, New Jersey, and met with a government informant and two undercover federal agents. During the meeting, Donascimento agreed to sell the agents 20 kilograms of cocaine, as well as 10 AR-15 semiautomatic rifles.
On Dec. 12, 2017, Donascimento allegedly met with the agents at a hotel in California and delivered them 10 AR-15 rifles as promised. Garcia Cambero also attempted to deliver approximately five kilograms of cocaine to the agents, which he had received from Ramos Cervantes earlier that day at his residence.
In addition to the prison term, Judge Linares sentenced Garcia Cambero to five years of supervised release.
The charges and allegations against Donascimento are merely accusations, and he is presume innocent unless and until proven guilty. Cervantes previously pleaded guilty and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the FBI Riverside, California, Resident Agency, under the direction of Assistant Director in Charge Paul D. Delacourt in Los Angeles, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit.
Defense counsel: Henry Klingeman Esq., Newark
Middlesex County, New Jersey, Tax Preparer Charged with Additional Tax Fraud CountsRead the Press Release
NEWARK, N.J. – A Keasbey, New Jersey, tax preparer who was indicted May 3, 2018, for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled was charged today with 11 new tax fraud counts, U.S. Attorney Craig Carpenito announced.
A federal grand jury returned a superseding indictment against David Patterson, 37, adding eight counts of aiding and abetting in the filing of false tax returns and three counts of failure to file tax returns. He was originally charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned on the new indictment at a date to be determined.
According to the indictment:
Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent. He also failed to file an individual tax return and pay federal income taxes for calendar years 2013 through 2015.
The false filing counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The failure to file counts each carry a maximum potential penalty of up to one year in prison and a $100,000 fine.
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 charges.
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.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
New York Man Charged with Possessing with Intent to Distribute More Than Two Kilograms of Heroin and More Than One Kilogram of Fentanyl PrecursorRead the Press Release
TRENTON, N.J. – A New York man who was arrested in Mercer County, New Jersey, with more than a kilogram of the fentanyl precursor ANPP, and possessing more than two kilograms of heroin in his New York apartment, made his initial appearance in Trenton federal court, U.S. Attorney Craig Carpenito announced today.
David Valle Campos, 45, of Spring Valley, New York, is charged by complaint with one count of possessing with intent to distribute approximately two kilograms of heroin, and one count of possessing with intent to distribute more than a kilogram of 4-Anilino-N-phenethyl-4-piperidine (ANPP), a Schedule II controlled substance used in the manufacture of fentanyl. He appeared Oct. 16, 2018, before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained without bail.
According to the complaint:
On Oct. 15, 2018, law enforcement officers learned that Campos planned to sell a substantial quantity of either heroin, fentanyl or both to a buyer in the Trenton area. The officers set up surveillance in the Hamilton Township, New Jersey, parking lot where they expected the transaction to occur. They observed Campos meet with another individual and return to his vehicle. Officers stopped the vehicle and discovered approximately 1.2 kilograms of a substance that tested positive for ANPP. A subsequent search of Campos’s Spring Valley, New York, apartment resulted in the seizure of approximately 2.1 kilograms of a substance that tested positive for heroin.
Campos faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Cherry Hill, under the direction of Special Agent in Charge Brian Michael of HSI Newark, with the investigation leading to the charges. He also thanked the Rockland County Sheriff’s Office; the Rockland County Intelligence Center; the Drug Enforcement Administration; the N.J. State Police; the Village of Spring Valley, New York, Police Department; and the Customs and Border Protection Air Unit, New York, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the Criminal Division in Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Last Four Defendants Convicted in Multi-State Dog Fighting CaseRead the Press Release
A federal jury in Trenton, New Jersey convicted four defendants yesterday of violating the animal fighting prohibitions of the federal Animal Welfare Act. The jury deliberated six hours following a nearly four-week long trial before U.S. District Judge Peter G. Sheridan. The four defendants convicted yesterday are the last to be adjudicated in this case, which is part of Operation Grand Champion, an ongoing multi-state dog fighting investigation. The defendants are Justin Love of Sewell, New Jersey; Robert A. Elliott, Sr. of Millville, New Jersey; Dajwan Ware of Fort Wayne, Indiana; and Robert Arellano of Albuquerque, New Mexico.
Each count of conviction carries a maximum of five years in prison and a criminal fine of up to $250,000. The defendants will be sentenced on Feb. 20, 2019. Five other defendants in the case previously pleaded guilty to dog fighting and firearms charges and were sentenced to a total of 153 months in prison.
The jury convicted four defendants of engaging in a conspiracy to sponsor and exhibit dogs in animal fighting ventures and to buy, sell, possess, train, transport, deliver and receive dogs for purposes of having the dogs participate in animal fighting ventures. They also found defendants Love and Arellano guilty of unlawfully trafficking in fighting dogs and defendants Love and Elliott of unlawfully possessing fighting dogs.
The evidence at trial established that Arellano sold and shipped two fighting dogs to Love and co-conspirator Anthony “Monte” Gaines by air cargo in December 2014. One of those dogs was subsequently fought in a “roll” or test fight the following day, and sustained a serious injury. Gaines also transported a fighting dog named “Bubbles” to Dajwan Ware in order to hide her from law enforcement after local authorities in New Jersey located Gaines’s dog fighting yard. For his part, Elliott, Sr., housed a fighting dog named “Fancy” on behalf of Gaines and co-conspirator Frank Nichols, and possessed twelve fighting dogs of his own.
“Under the leadership of Attorney General Sessions, our Division is aggressively pursuing those who engage in the cruel and brutal practice of dog fighting, which is often linked with many forms of violent and organized criminal activity,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “Yesterday’s four convictions demonstrate our firm commitment to fight back against those who would abuse these animals, in clear violation of federal law, to satiate bloodthirsty spectators and gamblers. I applaud the law enforcement officers and prosecutors who worked tirelessly to deliver justice in these cases.”
“Dog fighting is vicious and cruel. And beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” said U.S. Attorney Carpenito. “The message from these convictions is simple: if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“This is a great example of interagency cooperation — in this case USDA and Cherry Hill HSI — stopping a barbaric practice that permanently damages and often kills dogs,” said Brian Michael, Special Agent in Charge, HSI Newark. “Those who engage in this heinous activity should know that they face serious legal consequences.”
The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 123 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The case was prosecuted by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary. The case was investigated by the U.S. Department of Agriculture – Office of Inspector General; Homeland Security Investigations, Cherry Hill Office; and the Federal Bureau of Investigation.
Four Defendants Convicted in Multi-State Dog Fighting Case After Three-Week Jury TrialRead the Press Release
New Jersey, New Mexico, and Indiana Defendants Convicted As Part of Operation Grand Champion
TRENTON, N.J. – Four men were convicted at trial in connection with their respective roles in a multi-state dog fighting operation, U.S. Attorney Craig Carpenito and Assistant Attorney General Jeffrey Clark of the Justice Department’s Environment and Natural Resources Division announced today.
Justin Love, 38, of Sewell, New Jersey; Robert A. Elliott Sr., 49, of Millville, New Jersey; Dajwan Ware, 45, of Fort Wayne, Indiana; and Robert Arellano, 64, of Albuquerque, New Mexico, were convicted Oct. 16, 2018, of engaging in a conspiracy to sponsor and exhibit dogs in animal fighting ventures and to buy, sell, possess, train, transport, deliver and receive dogs for purposes of having the dogs participate in animal fighting ventures. The jury also found Love and Arellano guilty of unlawfully trafficking in fighting dogs and defendants Love and Elliott of unlawfully possessing fighting dogs. The jury deliberated six hours following a three-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. The four defendants convicted today are the last to be adjudicated in this case, which is part of Operation Grand Champion, an ongoing multi-state dog fighting investigation.
“Dog fighting is vicious and cruel. And beyond the needless suffering it inflicts on animals, it exacts a toll on local animal shelters, humane organizations, and the taxpayers of New Jersey,” U.S. Attorney Carpenito said. “The message from these convictions is simple: if you fight dogs in New Jersey, you will face prosecution and imprisonment.”
“Under the leadership of Attorney General Sessions, our Division is aggressively pursuing those who engage in the cruel and brutal practice of dog fighting, which is often linked with many forms of violent and organized criminal activity,” Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division said. “Yesterday’s four convictions demonstrate our firm commitment to fight back against those who would abuse these animals, in clear violation of federal law, to satiate bloodthirsty spectators and gamblers. I applaud the law enforcement officers and prosecutors who worked tirelessly to deliver justice in these cases.”
“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures,” Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General said. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”
“This is a great example of interagency cooperation—in this case USDA and Cherry Hill HSI—stopping a barbaric practice that permanently damages and often kills dogs,” said Brian Michael, Special Agent in Charge, HSI Newark. “Those who engage in this heinous activity should know that they face serious legal consequences.”
According to documents filed in this case and the evidence at trial:Arellano sold and shipped two fighting dogs to Love and conspirator Anthony “Monte” Gaines by air cargo in December 2014. One of those dogs was subsequently fought in a “roll” or test fight the following day, and sustained a serious injury. Gaines also transported a fighting dog named “Bubbles” to Dajwan Ware in order to hide her from law enforcement after local authorities in New Jersey located Gaines’s dog fighting yard. Elliott Sr. housed a fighting dog named “Fancy” on behalf of Gaines and conspirator Frank Nichols, and possessed 12 fighting dogs of his own.
The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 123 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
Each conviction carries a maximum of five years in prison and a criminal fine of up to $250,000. Five other defendants in the case previously pleaded guilty to dog fighting and firearms charges and have been sentenced. Sentencing is scheduled for Feb. 20, 2019.
U.S. Attorney Carpenito and Assistant Attorney General Clark credited special agents of the U.S. Department of Agriculture – Office of Inspector General; the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the U.S. Attorney’s Office in Newark and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.
Defense counsel:
Arellano: Samuel Bregman Esq., Albuquerque, New Mexico
Elliott: Ronald Thompson Esq., Sicklerville, New Jersey
Love: Wayne Powell Esq., Cherry Hill, New Jersey
Ware: Thomas Ambrosio Esq., Lyndhurst, New JerseyOwner of Pharmacies Charged with Conspiracy to Defraud IRSRead the Press Release
TRENTON, N.J. – The owner of several retail pharmacies, including a pharmacy in Piscataway, New Jersey, was arraigned today on charges he conspired to defraud the IRS, U.S. Attorney Craig Carpenito announced.
Rao Desu, 51, of Warren, New Jersey, was charged by indictment with two counts of conspiracy to defraud the IRS and four counts of aiding and assisting in subscribing to false tax returns. Desu was arraigned before U.S. District Judge Michael A. Shipp in Trenton federal court and pleaded not guilty.
According to documents filed in this case and statements made in court:
Rao Desu was a 50 percent owner in DVS Pharma Inc., (d/b/a Heights Pharmacy), a retail pharmacy in Piscataway. Darshna Desai was the other 50 percent owner and worked as the lead pharmacist. From April 2004 through November 2013, Desu conspired with Desai to conceal from the IRS the cash income that was earned by the pharmacy as part of a cash-skimming scheme. In particular, Desu’s relative, who assisted at times in the operation of several of Desu’s businesses, instructed Desai to separate the cash earned by Heights Pharmacy from other income received, remove a portion of the cash that was paid to Desai as cash salary, and then split the remainder in two, with one portion given to Desu and the other portion given to Desai.
Desu was also a 50 percent owner of Manvihar Pharmacy (d/b/a Arthur Avenue Pharmacy) in Bronx, New York. The other 50 percent owner in Arthur Avenue Pharmacy worked at Arthur Avenue Pharmacy as the lead pharmacist. From June 2005 through November 2013, Desu conspired with the co-owner to conceal from the IRS the cash income that was earned by the pharmacy as part of a separate cash-skimming scheme. Specifically, Desu instructed the co-owner to separate the cash earned by Arthur Avenue Pharmacy from other income received, and to split the cash in two, giving half to Desu and giving half to the co-owner.
For tax years 2004 through 2012 Desu and Desai filed false corporate income tax returns, IRS Forms 1120S, for Heights Pharmacy, which failed to disclose the cash that Desai received in salary and that was split between Desu and Desai. From tax year 2005 through 2012, Desu and the co-owner filed false IRS Forms 1120S for Arthur Avenue Pharmacy, which failed to disclose the cash that was split between Desu and co-owner. Accordingly, for tax years 2004 through 2012, Desu filed false personal income tax returns, IRS Forms 1040, which failed to disclose the cash that Desu received from both Heights Pharmacy and Arthur Avenue Pharmacy.
Desai pleaded guilty to conspiracy to defraud the IRS in 2014. Her sentencing is pending.
Conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a $250,000 fine. Assisting and aiding in subscribing to false tax returns carries a maximum potential penalty of three years in prison and a $100,000 fine.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with for the investigation leading to today’s charge. Carpenito also thanked special agents of the U.S. Department of Justice, Office of Inspector General, under the direction of Acting Special Agent in Charge Ron G. Gardella for their role in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Karen D. Stringer of the Special Prosecutions Division.
The allegations and charges in the Indictment are only accusations and the defendant is considered innocent unless and until proven guilty.