District of New Jersey

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

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

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

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.

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

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.

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.

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

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 Jersey

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.

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

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

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

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

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.

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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-large

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.

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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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.

18-368                                                      

Defense Counsel: Pasquale F. Giannetta Esq., Newark

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

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

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.

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

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

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

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.

 

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

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

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

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.

 

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.

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 Jersey

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.

NEWARK, N.J. – A husband and wife were sentenced today for their roles in a scheme to smuggle counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the United States, U.S. Attorney Craig Carpenito announced.

Roberto Volpe, 36, an Italian national, was sentenced to 22 months in prison, and his wife, Andreina Becerra, 33, a Venezuelan national, was sentenced to three years of probation, including six months of house arrest. A third co-defendant, Rosario La Marca, 55, an Italian national and resident of Naples, Italy, was sentenced July 21, 2017, to 37 months in prison.

The three defendants previously pleaded guilty before U.S. District Court Judge Kevin McNulty to Count One of an indictment, charging conspiracy to traffic in counterfeit goods, to smuggle goods into the United States, and to structure financial transactions, and Count Two, charging trafficking in counterfeit goods. Judge McNulty imposed the sentences on Volpe and Becerra today in Newark federal court.

The three defendants were originally charged in an eight-count indictment returned in April 2015 with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.  

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

From July 2009 through February 2014, the defendants conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.

The defendants then re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.

The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.  

In addition to the prison terms, Judge McNulty sentenced the defendants to Volpe to two years of supervised release and fined him $25,000. Becerra was fined $20,000. As part of their plea agreements, Volpe and Becerra agreed to forfeit their interest in 10 bank accounts, three Florida condominiums, and approximately $167,000 in cash.

Jianhua Li, a Chinese national currently residing in California, pleaded guilty in Feb. 2, 2018, and is awaiting sentencing.

U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Newark Seaport Investigations Group, under the direction of Special Agent in Charge Brian Michael; and the Bergen County Prosecutor’s Office, under the direction of Acting Bergen County Prosecutor Dennis Calo, with the investigation leading to today’s sentencings. He also thanked Europol and Italy’s Guardia di Finanza for their assistance.

The government is represented by Senior Trial Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey, and Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section.

   

NEWARK, N.J. – A member of the Grape Street Crips gang was indicted today on additional charges in connection with the murder of a bystander at a summer cookout in 2010, U.S. Attorney Craig Carpenito announced today.

Khalil Stafford, a/k/a “Stod,” 34, of Newark, was indicted today on additional charges in a seventh superseding indictment, including RICO conspiracy, murder in aid of racketeering, and using a firearm during a crime of violence, in connection with a June 19, 2010, shooting that left a woman dead and two other people wounded. Stafford was previously acquitted of the murder following a trial in Essex County Superior Court.

Stafford – along with Hanee Cureton, a/k/a “City,” a/k/a “Fat Boy,” 33, of Newark, and 12 other defendants – was previously charged with RICO conspiracy, conspiracy to distribute one kilogram or more of heroin, and possession with intent to distribute one kilogram of more of heroin. Twelve of the 14 defendants charged in the indictment have been convicted. Stafford and Cureton are awaiting trial.

Another 66 members and associates of the Grape Street Crips who were arrested along 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 the indictment and statements made in court:

On June 19, 2010, during a family cookout on Garside Street in Newark, Stafford confronted an individual about money he claimed the individual owed him. Stafford and several other gang-members left the cookout to retrieve firearms and later returned. They fired numerous shots at the person Stafford had originally confronted. Three people were struck – including a woman who was not involved in the confrontation, but was merely standing on a nearby porch, and was killed – and two other people who were wounded and survived.

Stafford and Cureton were involved in the distribution of heroin from 2003 through 2015.  Cureton was a major supplier of heroin to members of the Grape Street Crips at the James Baxter Terrace housing complex from 2003 until Baxter Terrace was demolished in 2009. Stafford distributed both heroin and cocaine at Baxter Terrace.

After Baxter Terrace was torn down, Cureton and Stafford continued to distribute heroin.  On Nov. 12, 2013, agents with the DEA searched one of Cureton’s heroin mills, seizing more than a kilogram of heroin, cutting agents, and packaging material. In 2014, Cureton and Stafford sold to DEA confidential informants nearly $20,000 worth of heroin in separate transactions.

Stafford faces a mandatory life sentence in connection with the murder in aid of racketeering and conspiracy to distribute one kilogram of more of heroin. For using a firearm during a crime of violence, he faces a mandatory minimum term of 10 years in prison and a maximum sentence of life in prison. For the RICO conspiracy, Stafford faces a maximum term of life in prison.

Cureton faces a mandatory minimum term of 20 years and a maximum sentence of life in prison for the charge of conspiracy to distribute one kilogram or more of heroin. For the RICO conspiracy, Cureton faces a maximum sentence of life in prison.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, and investigators from the U.S. Attorney’s Office with the investigation leading to today’s indictment. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sherriff’s Office, under the direction of Armando B. Fontoura, for their assistance with the investigation.

The government is represented 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.

 

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

Kristie Masucci, 36, of Cedar Run, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with conspiracy to commit health care fraud.

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

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

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

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

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

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

According to the information, the Pharmacy Benefits Administrator paid the Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey, including $1.88 million for prescriptions submitted by Masucci and her cohorts. Masucci received $388,608 for her role in the scheme.

Masucci faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 5, 2019. As part of her plea agreement, Masucci must forfeit her criminal proceeds and pay restitution in an amount to be determined at sentencing.

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

The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and R. David Walk, Jr. of the U.S. Attorney’s Office in Camden.

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

NEWARK, N.J. – The Department of Justice announced today that Indal Technologies Inc. (Indal) has agreed to pay $3.5 million to resolve allegations that it knowingly sold defective helicopter landing systems designed for U.S. Navy destroyers. Indal, of Ontario, Canada, is a division within Curtiss-Wright Corporation of Charlotte, North Carolina.

Since the 1970s, Indal has produced the Recovery, Assist, Secure, and Traverse (RAST) system attached to U.S. Navy’s Arleigh-Burke class destroyers. RAST systems allow helicopters to land on destroyers.

The RAST system includes a device that locks a hovering helicopter onto a trolley. Once locked in place, the helicopter moves along a series of steel track plates into a shipboard hangar.  The trolley must remain securely connected to the track plates, because the helicopter may be required to land during rough seas and high winds. The Navy’s contracts for RAST systems expressly required track plates made of HY100 steel due to the material’s increased strength, combat ruggedness, and protection from corrosion. 

The settlement announced today resolves allegations that Indal, without informing the Navy, knowingly substituted a different, less expensive type of steel in numerous RAST system track plates delivered to the Navy. 

“When government contractors supply equipment to our armed forces that fail to meet performance standards, they not only cheat taxpayers, but can put service member lives at risk,” said Assistant Attorney General of the Justice Department’s Civil Division Joseph H. Hunt. “Today’s settlement demonstrates our commitment to ensuring our military receives products that meet its requirements and for which it has paid.”

“American taxpayers are entitled to get what they pay for under government contracts, and that is especially true when the health and safety of U.S. armed forces are at stake,” U.S. Attorney Carpenito said. “This office will continue to pursue and hold accountable those who, like Indal, defraud the government by providing substandard goods and services in order to enrich themselves.” 

“Fraud is never a victimless crime. This case of using inferior materials damaged the readiness of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest,” said Special Agent in Charge Leo S. Lamont of the Naval Criminal Investigative Service.

This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. In the District of New Jersey, the government was represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division, Newark.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

The Department of Justice announced today that Indal Technologies Inc. (Indal) has agreed to pay $3.5 million to resolve allegations that it knowingly sold defective helicopter landing systems designed for U.S. Navy destroyers.  Indal, of Ontario, Canada, is a division within Curtiss-Wright Corporation of Charlotte, North Carolina.

Since the 1970s, Indal has produced the Recovery, Assist, Secure, and Traverse (RAST) system attached to U.S. Navy’s Arleigh-Burke class destroyers.  RAST systems allow helicopters to land on destroyers.

The RAST system includes a device that locks a hovering helicopter onto a trolley.  Once locked in place, the helicopter moves along a series of steel track plates into a shipboard hangar.  The trolley must remain securely connected to the track plates, because the helicopter may be required to land during rough seas and high winds.  The Navy’s contracts for RAST systems expressly required track plates made of HY100 steel due to the material’s increased strength, combat ruggedness, and protection from corrosion. 

The settlement announced today resolves allegations that Indal, without informing the Navy, knowingly substituted a different, less expensive type of steel in numerous RAST system track plates delivered to the Navy. 

“When government contractors supply our armed forces with equipment that fails to meet performance standards, they not only cheat taxpayers, but they put at risk the safety of our service members,” said Assistant Attorney General Joseph H. Hunt of the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to ensuring that the military receives products that meet its requirements and for which it has paid.”

“American taxpayers are entitled to get what they pay for under government contracts, and that is especially true when the health and safety of U.S. armed forces are at stake,” said U.S. Attorney Carpentino for the District of New Jersey.”  This Office will continue to pursue and hold accountable those who, like Indal, defraud the government by providing substandard goods and services in order to enrich themselves.” 

“Fraud is never a victimless crime. This case of using inferior materials damaged the readiness of U.S. forces. The victims are not just our men and women in uniform, but all American taxpayers. NCIS will continue to tirelessly pursue all those who seek to take advantage of the Department of the Navy and its interests while keeping the procurement system fair and honest,” said Special Agent in Charge Leo S. Lamont of the Naval Criminal Investigative Service.

This settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. The investigation was conducted by the Naval Criminal Investigative Service and the Defense Contract Audit Agency. 

The claims resolved by the settlement are allegations only; there has been no determination of liability.

CAMDEN, N.J. – An Ambler, Pennsylvania, man today admitted defrauding the Federal Emergency Management Agency (FEMA) of thousands of dollars after Hurricane Sandy, U.S. Attorney Craig Carpenito announced.

Nicholas Ochs, 54, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Counts One (disaster benefit fraud) and Four (mail fraud) of the indictment against him.

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

When a natural disaster or federal emergency occurs in the United States, federal agencies, such as FEMA, provide relief and assistance to affected individuals and entities. FEMA provides financial assistance by, among other things, helping affected individuals repair their property.

In October 2012, Cape May County suffered severe damage from wind, rain and flooding generated by Hurricane Sandy when it struck New Jersey. On Oct. 30, 2012, then-President Obama signed a Presidential Disaster Declaration for the State of New Jersey, enabling eligible individuals who were displaced by the storms to seek financial assistance from FEMA.

At the time of Hurricane Sandy, Ochs’s mother lived in a house in Ocean City, New Jersey. In January 2013, Ochs filed an application with FEMA on her behalf, seeking federal rental assistance and assistance for personal property damage under FEMA’s Individual Assistance Program. He claimed the property was damaged as a result of Hurricane Sandy and was unfit for occupancy. An inspector working on behalf of FEMA inspected the property and determined that the property was uninhabitable, that repairs were required, and that the homeowner had moved. During the inspection, Ochs, acting with power of attorney, signed the application on behalf of his mother attesting that all the information on the application was true and correct. By signing the application, Ochs also acknowledged that any disaster relief money awarded would be returned if his mother received insurance benefits for the same loss.

FEMA initially denied Ochs’s claim, citing the fact that the property was covered by insurance. Ochs submitted documents to FEMA indicating that the insurance provider denied his mother’s claim. Based on that, in February 2013, FEMA awarded Ochs’s mother funds for rental assistance and home repair.

In applying to FEMA for home repair and rental assistance claiming that his mother was displaced by Hurricane Sandy, Ochs submitted fraudulent leases claiming that his mother was renting another property on the same block in Ocean City. Ochs also provided fictitious rental receipts. Ochs failed to disclose that the property his mother was renting was owned by his family and that no rent was ever paid. To support his mother’s continued need for rental assistance, Ochs was required to complete FEMA forms, and he faxed fraudulent lease agreements and rental receipts to FEMA.

In February 2013 Ochs contacted FEMA and made a false claim for transportation assistance, claiming that his mother’s 1985 Mercedes Benz was damaged by Hurricane Sandy and submitting fraudulent documentation to that effect.

Between February 2013 and December 2013, FEMA paid Ochs’ mother $17,229 for rental assistance and $4,345 for home repairs, through the issuance of direct deposits into bank accounts that Ochs controlled. Ochs then used the money to pay his personal expenses.

FEMA’s National Flood Insurance Program indemnifies flood insurance providers when a claim is paid out. At the time of the storm, Wells Fargo Bank held the mortgage on Ochs’s mother’s property. After Ochs made a claim to the insurance provider, the insurance provider sent the insurance proceeds to Wells Fargo. To entice Wells Fargo to release the funds, Ochs presented fraudulent invoices and forms from a builder that over inflated the value of the work that the builders performed. Wells Fargo mailed numerous checks totaling $169,518 to the house in Ocean City. Ochs deposited the checks into bank accounts that he controlled and spent the money on personal expenses. The flood insurance claims were indemnified by FEMA.

The count of disaster benefits fraud to which Ochs pleaded guilty to carries a maximum potential penalty of 30 years in prison and a $250,000 fine. The count of mail fraud to which he pleaded guilty carries a potential penalty of 30 years in prison and $1 million fine. Sentencing is scheduled for Jan. 25, 2019.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Mark Tasky, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.

Defense counsel: William J. Hughes Jr., Atlantic City, New Jersey

NEWARK, N.J. – A federal grand jury has indicted a New Jersey public school teacher for conspiring to defraud the N.J. School Employees’ Health Benefits Program (SEHBP) with phony claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito announced today.

Jason Nardachone, 45, of Nutley, New Jersey, is charged with one count of conspiracy to commit health care fraud. He made his initial appearance Oct. 11, 2018, before U.S. Magistrate Judge Michael Hammer in Newark federal court.

According to documents filed in this case and statements made in court: Nardachone participated in a scheme to defraud the SEHBP by knowingly causing the billing of medically unnecessary compounded medications, such as metabolic vitamins, pain creams, and scar creams, for himself and three other teachers. From September 2015 through February 2016, Nardachone and others received medically unnecessary compounded medications that cost the SEHBP from $3,300 to $22,800 per medication. Nardachone bribed the three other teachers with monthly payments of $500 in exchange for their agreement to obtain compounded medications they did not need. Nardachone defrauded the SEHBP of more than $550,000.

The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the ongoing investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.

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

Defense counsel: Christopher A. Errante Esq., Lyndhurst, New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced to 46 months in prison for embezzling millions of dollars from a New York-based hospitality company where he was the chief operating officer, U.S. Attorney Craig Carpenito announced today.

George Dfouni, 47, of Wayne, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of wire fraud and one count of tax evasion. Judge Hayden imposed the sentence Oct. 11, 2018, in Newark federal court.

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

From 1996 through 2015, Dfouni worked as the chief operating officer for a company identified in the information as “Company A,” which owns and operates hotels in New York and New Jersey.

From 2007 through September 2015, Dfouni negotiated multiple contracts on behalf of Company A, whereby two other companies – identified as “Company B” and “Company C” in court documents – leased New York hotel properties from Company A. As consideration for the leases, Company B and Company C agreed to pay millions of dollars to Company A. Each contract included a signing bonus for Dfouni, who arranged for Company B and Company C to transmit their payments directly to him in New Jersey.

Dfouni was expected to keep his signing bonus and pay the remaining balances to Company A. Instead, Dfouni skimmed a portion of the payments due to Company A to support his lavish lifestyle and gambling expenses. In total, Dfouni embezzled $13.8 million from Company A.

Dfouni willfully failed to report $27,739,114 in income to the IRS between 2007 and 2014, including the funds that he embezzled from Company A.

In addition to the prison term, Judge Hayden sentenced Dfouni to two years of supervised release.

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

The government is represented by Assistant U.S. Attorney Francisco J. Navarro.

Defense counsel: Peter Carter Esq., Newark

NEWARK, N.J. – A Bergen County, New Jersey, man who served as a trustee of a pension fund was charged with embezzling more than $180,000 from an employee benefit fund, U.S. Attorney Craig Carpenito announced today.

Howard Preschel, 62, of Teaneck, New Jersey, is charged by complaint with one count of embezzlement from an employee benefit plan and one count of failure to file an annual report. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond.

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

Preschel served as a trustee for the CMG Vending Inc. Pension Trust Fund. CMG Vending operated, leased, and rented vending machines throughout New Jersey and New York. Preschel, by law, was a fiduciary and therefore required to act solely in the interest of the participants and beneficiaries of the fund. From at least October 2013, Preschel embezzled $186,123 from the pension trust fund.

Preschel was also required to publish and file annual reports with the Secretary of Labor. To conceal the ongoing embezzlement, Preschel failed to inform the participants and beneficiaries that insufficient funds were being forwarded to the pension trust and failed to file a required annual report for the plan.

The embezzlement charge carries a maximum penalty of five years in prison. The failure to file an annual report charge carries a maximum penalty of 10 years in prison.

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

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Criminal Division 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: Howard Miller Esq., Hackensack, New Jersey

NEWARK, N.J. – Criminal charges against 17 members, associates, and drug suppliers of a Newark street gang that distributed heroin and crack cocaine and possessed and used firearms in furtherance of the gang’s drug trafficking activities were announced today by U.S. Attorney Craig Carpenito.

The charges are the result of a long-running wiretap investigation led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office, in conjunction with the Drug Enforcement Administration, the Newark Police Department and numerous state and local partners. The charges include conspiracies to distribute one kilogram of heroin and/or 280 grams of crack cocaine, possession of multiple firearms in connection with drug trafficking crimes, and unlawful possession of firearms by convicted felons. (See attached chart for detailed information on defendants.)

The 14 defendants arrested today are scheduled to appear before U.S. Magistrate Judge Michael A. Hammer this afternoon in Newark federal court. Three defendants were already in custody on state charges.

“The criminal complaint unsealed today describes an active marketplace where heroin and crack cocaine are sold openly on the streets of Newark and surrounding areas and illegal firearms and threats of violence are used to protect that trade,” U.S. Attorney Carpenito said. “The wiretaps and surveillance provide a glimpse into the dangerous world these defendants have created in one neighborhood. Our office, working together with our federal and local law enforcement partners, is focusing on ridding neighborhoods of this type of activity, one gang at a time. Today’s arrests signal an important step in our continuing fight to retake our streets from violent gangs and drug dealers.”

“In conjunction with Attorney General Session’s Project Safe Neighborhoods initiative and ATF’s Violent Crime Reduction and Prevention strategy, today’s events mark the culmination of over a year of collaborative effort between ATF and our federal, state and local law enforcement partners,” ATF Special Agent in Charge John B. Devito, Newark Field Division, said. “Through the comprehensive use of Crime Gun Intelligence, law enforcement has removed a component of the criminal element that was driving violent crime in the community.”

“This joint investigation was vital in removing guns from the streets of Newark,” Valerie A. Nickerson, Special Agent in Charge of the DEA’s New Jersey Division, said. “Every gun seized has the potential to save a life. The DEA will continue to work with our other federal, state, and local law enforcement partners to have the biggest impact throughout the region.”

“A significant portion of the work of the Essex County Prosecutor’s Office is fueled by easy access to illegal guns,” Acting Essex County Prosecutor Theodore N. Stephens II said. “Whether we are dealing with homicides or street level drug deals, the availability of guns often turn relatively minor disputes into deadly clashes. Anything that we can do to trace these weapons once they have been used in a crime or stem the flow of illicit guns into the hands of criminals makes our job easier and the streets safer.”

“I applaud the outstanding work of U.S. Attorney Carpenito, Special Agent in Charge Devito of ATF, Special Agent in Charge Nickerson of the DEA, Essex County Prosecutor Stephens, Essex County Sheriff Fontoura and N.J. State Police Superintendent Callahan and their invaluable partnership in bringing these suspects into custody,” Newark Public Safety Director Anthony F. Ambrose said. “We are pleased that today’s advanced gun-tracing technology affords us the ability to link shootings occurring in the City of Newark back to those individuals suspected of using the weapons involved in committing crimes on our streets.”

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

The defendants are members and associates of the Famous Boyz – a subset of the Brick City Brims set of the Bloods street gang – which dealt significant quantities of heroin and crack cocaine, primarily in and around the area of South 18th Street and 15th Avenue in Newark, which often was referred to by the gang as the “8 Block,” “18th,” or simply by reference to the number “8.”

John Mosley was a primary source of narcotics for the Famous Boyz and often directed the gang’s drug operations. Mosley and others shared narcotics, customers, and firearms with one another in furtherance of their narcotics trafficking activities, and used juveniles to distribute narcotics and stash firearms. Patricio Hernandez and Jonathan Hernandez were among the main suppliers of crack cocaine to Mosley. Jahid Vauters supplied Mosley with heroin. During the investigation, law enforcement recovered a Smith & Wesson 9mm and a Ruger .357 firearm from Vauters’ residence, along with bricks of heroin and more than 100 grams of crack cocaine. Law enforcement continues to investigate more than a dozen shootings that are linked to a rivalry between the Famous Boyz and another Newark gang.

Heroin sold by Famous Boyz members contained a fentanyl analogue, an extremely dangerous and highly addictive substance. One of Mosley’s heroin customers actually complained about the fentanyl, telling Mosley: “I’ll be honest – cause it’s fentanyl bro, I don’t want to kill myself, you know what I’m trying to say like ….” After Mosley acknowledged, the customer then added, “I’m just trying to fucking like have a good time not kill myself.”

Members of the Famous Boyz used social media to promote the gang’s criminal activities, advertising their narcotics trafficking activities and proceeds and threatening both rival gang members and any individuals who consider cooperating with law enforcement. For example, gang members have used the mantra, “No Face No Case,” and spread the word that if individuals are “ratting,” there’s “gone be a murder.”

Members of the Famous Boyz who sold narcotics also enriched themselves by committing other crimes, including robberies. Law enforcement officers, acting on information obtained from a wiretap, arrested Angelo West while he was attempting to commit a robbery. After they seized a .40 caliber firearm from the scene, Mosley was overheard complaining to Javon Holmes “so all the rachets gone” and “damn we just lost all the straps,” referring to the Famous Boyz losing their firearms.

U.S. Attorney Carpenito credited special agents of ATF, under the direction of Special Agent in Charge Devito in Newark, and members of the Newark Department of Public Safety, under the direction of Director Ambrose, with the investigation leading to the charges.

He also thanked the DEA, under the direction of SAC Nickerson, the Essex County Prosecutor’s Office, under the direction of Prosecutor Stephens, the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, the N.J. State Police, under the direction of Col. Patrick J. Callahan, the Belleville Police Department, under the direction of Chief Mark Minichini, and the Livingston Police Department, under the direction of Chief Gary Marshuetz.

This investigation is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

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

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

NEWARK, N.J. – A Kissimmee, Florida, man was sentenced today to 30 months in prison for tax fraud, U.S. Attorney Craig Carpenito announced.

Sixto Rodriguez was previously found guilty of all 17 counts of an indictment charging him with three counts of filing false tax returns on behalf of himself and fourteen counts of aiding and assisting in the preparation and presentation of false tax returns on behalf of his tax preparation clients. He was convicted following a one-week trial before U.S. District Judge Kevin McNulty.

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

From 2004 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.

Rodriguez inflated education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. On average, for the clients charged in the indictment, this resulted in his clients receiving more than $4,000 in refunds per return, to which they were not entitled. Rodriguez also failed to report more than $230,000 in net profits he made from his business from 2007 through 2009 and personally avoided paying more than $89,000 in taxes as a result.

In addition to the prison term, Judge McNulty sentenced Rodriguez to one year of supervised release.

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

The government is represented by Senior Trial Counsel Daniel V. Shapiro of the Economic Crimes Unit in Newark and Assistant U.S. Attorney David M. Eskew, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit.

NEWARK, N.J. – A New Brunswick certified public accountant (CPA) was arrested today for allegedly underreporting more than $650,000 of income on his personal tax returns, U.S. Attorney Craig Carpenito announced.

Amit Govil, 58, of New Brunswick, New Jersey, is charged by indictment with two counts of making and subscribing false tax returns. Govil was arrested earlier today at his home and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Govil is licensed in New York and New Jersey as a CPA. He operated a sole proprietorship referred to in the indictment as “Company A,” a business providing risk management and audit services to community banks, headquartered in East Brunswick, New Jersey.

For the tax years 2010 and 2011, Govil underreported and failed to report the gross receipts or sales of Company A on Schedule C of his personal tax returns, as he was obligated to do. Govil, through Company A, earned more than $3.9 million in gross receipts or sales for tax year 2010, and more than $4.3 million in gross receipts or sales for tax year 2011. Notwithstanding the actual gross receipts or sales that Govil earned through Company A, he reported gross receipts or sales of only $3,352,848 for tax year 2010, and $4,205,175 for tax year 2011.

Each count of making and subscribing false tax returns carries a maximum potential penalty of three years in prison and $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited Special Agents of the IRS, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s arrest.

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

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

Defense counsel: Jeffrey Alberts Esq., New York

CAMDEN, N.J. - A federal grand jury has indicted an Atlantic City police officer for multiple offenses arising from an assault outside the Tropicana Hotel and Casino in June 2013, U.S. Attorney Craig Carpenito announced.

In an indictment returned Oct. 10, 2018, and unsealed today, Sterling Wheaten, 34, of Mays Landing, New Jersey, was charged with one count of violating an individual’s civil rights and one count of falsifying a record for submitting a false police report about the assault. He made his initial appearance today before U.S. Magistrate Judge Joel Schneider in Camden federal court and was released on $50,000 unsecured bond.

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

On June 15, 2013, Wheaten was working in his official capacity as an Atlantic City Police Department (ACPD) officer with his K-9 partner. That day, four ACPD officers encountered the victim in the area of the Tropicana. After the victim was told to leave the area, the victim walked across Morris Avenue and began yelling threats and obscenities at the police officers. After several minutes, ACPD Officer #1 ran across the street toward him to arrest him.

While ACPD Officer #1 and other officers attempted to grab the victim, the victim pulled away and grabbed ACPD Officer #1 around the waist as the victim was taken to the ground. ACPD Officer #1 fell to the ground with the victim on top of him. Three ACPD Officers, Officers #2 through #4, pulled the victim from on top of ACPD Officer #1. The four officers then delivered knee strikes to the victim’s shoulder and back, punches to the victim’s back, and baton strikes to the victim’s back and legs. Eventually, ACPD Officer #5 arrived and delivered two knee strikes to the victim before successfully handcuffing the victim’s left hand.

During the struggle, which lasted less than two minutes, ACPD Officers radioed for the assistance of a K-9 Officer. Wheaten responded to the call. When he arrived, the victim was laying on his stomach with ACPD Officer #1 kneeling on the victim’s head/neck area and several ACPD Officers were pressing on the victim’s back and legs.

Wheaten immediately took his dog out of the vehicle and ran directly at the victim and the five ACPD Officers. ACPD Officer #5 got off of the victim while still holding the handcuff, which caused the victim’s chest to be exposed to the dog. Without issuing a warning that he would deploy the dog, or allowing the victim a chance to surrender, Wheaten released the dog, and the dog bit the victim in the chest.

The victim pushed the dog off of his chest and rolled to his side. The dog bit the victim on the back of his neck. Wheaten did not immediately remove the dog from the back of the victim’s neck, but instead told the dog to “hold” on the victim’s neck. During his training at the K-9 Academy, Wheaten was trained that the only type of K-9 apprehension that has resulted in the death of a suspect occurred when a K-9 bit a suspect on his neck, and that even though the K-9 was immediately recalled and medical care given, the suspect died.

While the dog was biting the back of the victim’s neck, Wheaten punched the victim twice in the shoulder/neck area. Eventually, the victim was handcuffed and the dog was placed into the police vehicle. ACPD Officer #6 administered first aid to the victim’s head and neck until paramedics arrived. The victim was taken to AtlanticCare Regional Medical Center in Atlantic City in police custody, where he was treated for dog bites to his head, neck and chest.

After the victim was transported to the hospital, Wheaten and ACPD Officers #1 through #5, returned to the police station to prepare their reports. Prior to writing the reports, ACPD Officer #1 obtained Tropicana’s surveillance video of the assault. Wheaten met with ACPD Officers #1 through #4 and they watched the security video from the Tropicana before preparing their police reports.

To justify his actions against the victim, Wheaten prepared and submitted false and fraudulent police reports. He wrote that the victim was “fighting my K9 partner,” “[struck] my partner with his right hand,” “a further violent struggle ensued,” and, in an effort to falsely justify the utilization of the K-9, that the “suspect violently assaulted uniformed law enforcement officer[s] with hands and fists . . . .” As part of the report, Wheaten, in an effort to falsely justify the closed fist punches to the victim, falsely stated that he feared that the victim “was going to get up and retrieve his weapon to injure us or flee the area endangering the public.” As part of the report, Wheaten falsely stated that he provided first aid to the victim’s wound until the ambulance/EMT arrived.

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 Gregory W. Ehrie in Newark, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden in the criminal case.

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

CAMDEN, N.J. – A New Jersey resident was convicted by a federal jury today of two counts of threatening to murder U.S. Rep. Frank LoBiondo and members of the congressman’s staff, U.S. Attorney Craig Carpenito announced.

Joseph Brodie, 39, of Millville, New Jersey, was convicted in Camden federal court following a seven-day trial on two counts of making threats to officials, officers and employees of the United States – specifically, for threatening to murder LoBiondo’s chief of staff and threatening to murder LoBiondo, his chief of staff, his veterans affairs liaison, and all of the staff of the Mays Landing office. The jury deliberated for approximately six hours before returning the verdict.

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

In the spring of 2017, Brodie reached out to LoBiondo seeking assistance with the medical care and treatment that Brodie was receiving from the Veterans Administration. Over the course of the next few months, Brodie spoke and corresponded with the congressman’s Veterans Affairs Liaison and a caseworker, both of whom assisted him with appointments and meetings regarding his medical care. On Sept. 19, 2017, Brodie contacted the congressman’s office and spoke to the chief of staff on the phone. Brodie wanted the chief of staff to arrange a meeting with the congressman, but the chief of staff refused. During this phone call, Brodie became angry and ultimately threatened the life of the chief of staff – calling him “a dead man.”

Approximately an hour and a half later, Brodie sent an email to the congressman’s veterans’ affairs liaison as well as the caseworker, threatening their lives as well as the lives of the congressman and his staff in the Mays Landing Office. In this email, Brodie stated that he wanted to meet the congressman “face to face” and he pointed out “how easy” it was to find the congressman’s Mays Landing Office. Brodie also attached a terrain map of the area, with the area around the congressman’s office enlarged for detail and a red pinpoint location marker on the office. Writing about the map, Brodie stated, “[i]t even shows the environment and surrounding terrain, parking lots, wooded areas, etc., (like the kind a highly trained Combat Infantryman would use)…”

On the same day as the threats, Brodie sent text messages to his fiancée stating: “I threaten the life of a Congressman’s Chief of Staff. I’m pretty sure the Secret Service are going to investigate.”  He also wrote that he was “prepared” for any law enforcement officers who might respond to his home. He wrote, “I’ll give them a chance to leave. If not, it’ll be First Blood Part II Type Shit (if you never saw that Rambo movie.” Brodie also wrote, “I won’t surrender.  It’s not in me.” The same day, Brodie spoke to his fiancée on the phone and told her that he was going to an address in New Jersey, that he had GPS coordinates in his car, and that he was going to kill LoBiondo’s chief of staff, and that there was going to be a “blood bath.”

One week later, in a statement recorded by the FBI, Brodie confessed to having made the phone threat to the chief of staff on Sept. 19, 2017, and to having sent the email threat on Sept. 19, 2017.

The evidence showed that at the time Brodie made these threats, Brodie owned several firearms and a large amount of ammunition at his home. 

U.S. Attorney Craig Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the U.S. Capitol Police, under the direction of Chief Matthew R. Verderosa;  officers from the N.J. State Police, under the direction of Col. Patrick J. Callahan; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to today’s conviction.

The counts on which Brodie has been convicted are punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing will be scheduled at a later date.

The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason Richardson, of the Camden office.

NEWARK, N.J. – A Bergen County, New Jersey, woman was sentenced today to 60 months in prison for using bogus litigation support companies to obtain millions of dollars from two law firms where she was a partner, U.S. Attorney Craig Carpenito announced.

Keila Ravelo, 52, of Englewood Cliffs, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to two counts of an indictment charging her with conspiracy to commit wire fraud (Count One) and tax evasion (Count Nine). Judge McNulty imposed the sentence today in Newark federal court.

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

Ravelo worked as a partner for a company identified in the indictment as “Law Firm 1” from July 1, 2005, through October 2010. She then became partner in another law firm, identified in the indictment as “Law Firm 2,” and worked there from October 2010 through November 2014.

From 2008 through July 2014, Ravelo and her husband, Melvin Feliz, 52, conspired to defraud Law Firm 1 and Law Firm 2, forming two limited liability companies, “Vendor 1” and “Vendor 2,” which purported to provide litigation support to the firms, but in fact provided no actual services to the firms. Ravelo and Feliz controlled Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1 and Law Firm 2 for work that was never performed for the law firms or their clients. Ravelo, in her capacity as a partner at the law firms, approved payments to Vendor 1 and Vendor 2, which Ravelo and Feliz later used for personal expenses. The law firms paid Vendor 1 and Vendor 2 approximately $7.8 million. Ravelo and Feliz willfully failed to report the fraudulent earnings on their tax returns.

On Aug. 25, 2015, Feliz pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud and one count of tax evasion. Feliz admitted that from 2008 through July 2014, he and Ravelo controlled the Vendor 1 and Vendor 2 bank accounts and submitted invoices to Law Firm 1and Law Firm 2 for work that was never performed for the law firms or their clients. He admitted that Ravelo, in her capacity as a partner at the law firms, approved payments to Vendor 1 and Vendor 2 that Ravelo and Feliz later used for personal expenses. Before pleading guilty for the role he played in this wire fraud and tax evasion conspiracy, Feliz pleaded guilty to an indictment which charged him and two other men with conspiring to distribute approximately 20 kilograms of cocaine.    

In addition to the prison term, Judge McNulty sentenced Ravelo to three years of supervised release.

U.S. Attorney Carpenito credited law enforcement officers of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, and law enforcement officers of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s sentencing.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The government is represented by Assistant U.S. Attorneys Andrew Kogan, Brian Urbano of the U.S. Attorney’s Office Criminal Division, Ronnell Wilson, Chief of the OCDETF Unit, and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing images of child sexual abuse over the internet, U.S. Craig Carpenito announced.

Samuel LaSala, 47, of Cedar Grove, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of distributing child pornography.

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

LaSala, who was employed as a computer programmer at a New Jersey university, admitted that between May 2017 and January 2018 he possessed videos of child sexual abuse on his laptop computer and made those videos available for others to download via an online peer-to-peer file sharing network. He admitted possessing approximately 100 videos, which included images of prepubescent children.

The count of distribution of child pornography to which LaSala pleaded guilty carries a maximum penalty of 20 years in prison, a mandatory minimum prison sentence of five years, and a maximum fine of $250,000. As part of his guilty plea, LaSala agreed to forfeit the computer he used to commit the offense. He will also be required to register as a sex offender. Sentencing is scheduled for Jan. 22, 2018.

U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Child Exploitation Group, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Heather Suchorsky and Vera Varshavsky of the Criminal Division in Newark.

Defense counsel: Joseph D. Rotella Esq., Newark

CAMDEN, N.J. – A Plain City, Ohio, man was sentenced today to an additional 160 months in prison for possessing hundreds of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense involving the receipt of child pornography, U.S. Attorney Craig Carpenito announced.

Jordan T. Allen, 31, 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:

Allen admitted that he possessed a micro SD Card containing 577 images and 340 videos of children being sexually abused, including videos of sadistic and masochistic sexual conduct involving infants and toddlers. In connection with his plea, Allen also admitted that he distributed child pornography to another inmate.

Allen and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Allen and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.

In addition to the prison term, Judge Rodriguez sentenced Allen 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 Charles Wesley Bush, 38, of Knoxville, Tennessee. Smith was sentenced to 151 months in prison, Good was sentenced to 10 years in prison; McKay was sentenced to 160 months in prison, and the other three 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.

William H. Noble, 52, of Lowell, Massachusetts, was indicted on May 23, 2018, and is scheduled for trial next year. The charges and allegations against Noble are merely accusations, and he is presumed innocent unless and until proven guilty.

Defense counsel: Justin T. Loughry Esq., Camden

CAMDEN, N.J. – A Vineland, New Jersey, man was sentenced today to 78 months in prison for stealing a car and using it as part of a South Jersey bank robbery spree in September and October 2016, U.S. Attorney Craig Carpenito announced.

Nathan L. Wallace, 29, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with three counts of bank robbery. Judge Bumb imposed the sentence today in Camden federal court.

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

Wallace admitted stealing a 2003 Chrysler Sebring on Sept. 22, 2016, by threatening the victim with a toy revolver resembling an actual firearm. Wallace also admitted taking the Sebring on Sept. 24, 2016, to a BB&T Bank in Buena Vista Township, New Jersey, where he used the toy revolver to threaten bank employees and demand money. After taking cash from the employees, Wallace fled in the Sebring.

Wallace also admitted traveling in the same stolen Sebring with Quintin L. Jones, 36, of Vineland, to rob a Newfield National Bank in Newfield, New Jersey, on Oct. 7, 2016, and a Cape Bank in Upper Deerfield Township, New Jersey, on Oct. 11, 2016. During both robberies, one of the defendants used a toy revolver to threaten bank employees and steal money before they both fled in the stolen Searing. Wallace admitted that he and Jones set fire to the Sebring on Oct. 15, 2016, in order to destroy evidence of the robberies.

In addition to the prison term, Judge Bumb sentenced Wallace to three years of supervised release and ordered him to pay restitution of $33,206.

Jones pleaded guilty on Nov. 8, 2017, and was sentenced by Judge Bumb on Sept. 12, 2018, to 100 months in prison.

U.S. Attorney Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, as well as the Vineland Police Department, the Hamilton Township Police Department, the Newfield Police Department, the Cumberland County Prosecutor’s Office, and the Salem County Prosecutor’s Office, 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 Criminal Division in Camden.

Defense counsel: Maggie F. Moy Esq., Camden