District of New Jersey
Press releases recorded for this federal judicial district.
Fort Dix Correctional Officer Indicted for Accepting Bribes in Exchange for Delivering Contraband to InmatesRead the Press Release
NEWARK, N.J. – A federal grand jury indicted a former Fort Dix correctional officer today for accepting cash bribes in exchange for delivering contraband to federal inmates at Fort Dix, U.S. Attorney Craig Carpenito and Special Agent in Charge Guido Modano of the U.S. Department of Justice Office of the Inspector General, New York Field Division, announced.
Paul Anton Wright, 32, of Berlin, New Jersey, was charged by indictment with two counts of agreeing to accept and accepting bribes, two counts of violating the Travel Act, and one count of providing contraband to an inmate inside a correctional facility. Wright was charged by criminal complaint in April 2018. He will be arraigned in federal court on a date to be determined.
According to documents filed in this case and statements made in court:
Wright was a correctional officer at Federal Correctional Institution Fort Dix (FCI Fort Dix), a Bureau of Prisons facility for male inmates in Burlington County. In 2015, Wright agreed to accept cash bribes in exchange for smuggling contraband, including tobacco, K2 (synthetic marijuana) and suboxone (a narcotic used treat opioid addiction), to inmates.
Wright received the cash bribes from two individuals outside of the facility. From February 2015 to September 2015, Wright traveled to Philadelphia to receive cash payments from the relative of an inmate and subsequently delivered contraband, including K2, to the inmate. For example, on April 21, 2015, Wright accepted a cash payment from the relative, deposited a portion of it into his bank account and used some of the cash to gamble at a casino in Atlantic City. In exchange for that payment, Wright subsequently delivered contraband to an inmate.
From October 2015 to December 2015, Wright traveled to Bronx, New York, to receive cash payments from the relative of another inmate’s girlfriend. He met with this relative multiple times and accepted contraband and cash. For example, on Dec. 13, 2015, Wright accepted a cash payment of several thousand dollars from this relative in exchange delivering contraband to the inmate.
The bribery counts with which Wright is charged carry a maximum penalty of 15 years in prison. The maximum fine is the greatest of three times the value of the bribe payments or $250,000. The Travel Act counts and the contraband smuggling count all carry a maximum penalty of five years in prison and a maximum fine of $250,000 per count.
U.S. Attorney Carpenito credited special agents of the Department of Justice, Office of the Inspector General, under the direction of Special Agent in Charge Modano, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division, and Tazneen Shahabuddin, Assistant U.S. Attorney in the Special Prosecutions Division.
Defense counsel: Angelo Bianchi Esq. and Peter LaGreca Esq., West Caldwell, New Jersey
Former Newark Watershed Conservation and Development Consultant Sentenced to Four Years in Prison for Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A political consultant from Essex County, New Jersey, was sentenced today to 48 months in prison for her role in a fraud scheme related to contracts with the Newark Watershed Development Corp. (NWCDC) and kickbacks to officials there, U.S. Attorney Craig Carpenito announced.
Dianthe Martinez-Brooks, 48, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging her with one count of wire fraud. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Martinez-Brooks was the owner and proprietor of a consulting company called DMart127 LLC, which provided political consulting services to local candidates and elected officials, among others, in the Essex County area. Between May 2011 and March 2013, she participated in a scheme with Linda Watkins Brashear, the former NWCDC Executive Director, and Donald Bernard, the former Director of Special Projects, to defraud the NWCDC of the honest services of Brashear and Bernard, and of money and property.
Martinez-Brooks submitted fraudulent invoices to the NWCDC in the name of DMart127 detailing services that were purportedly performed, but which sought payments that overstated the value of any services she or her company performed. Martinez-Brooks also assisted in obtaining contracts between companies owned by Kevin Gleaton and the NWCDC and contracts between a company owned by her relative and the NWCDC through Bernard and Brashear. Fraudulent invoices were submitted in the name of those companies to the NWCDC detailing services that were purportedly performed, but were never rendered by Gleaton, his companies, or Martinez-Brooks’ relative. Based on the fraudulent invoices, the NWCDC issued checks to DMart127, Gleaton’s companies and company belonging to Martinez-Brooks’ relative totaling $225,666. Martinez-Brooks kicked back a substantial amount of those proceeds to Brashear and Bernard.
In addition to the prison term, Judge Linares also sentenced Martinez-Brooks to three years of supervised release and ordered her to pay restitution of $225,666.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan Tafur; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division.
Defense counsel: Paulette Pitt Esq., Woodbridge, New Jersey
Federal Inmate at Fort Dix Sentenced to Additional 10 Years for Possessing Images and Videos of Child Sexual Abuse While in PrisonRead the Press Release
CAMDEN, N.J. – A Fredericksburg, Virginia, man was sentenced today to an additional 120 months in prison for possessing images of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for a previous offense involving the distribution of child pornography, U.S. Attorney Craig Carpenito announced.
Jacob S. Good, 26, previously pleaded guilty before Senior 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:
Good admitted that he possessed a micro SD Card which contained numerous images of child sexual abuse, some of which depicted prepubescent children. In connection with his plea, Good also admitted that he used a smart phone and access to the dark web to view and possess child pornography.
Good 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 Good 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 Good to lifetime supervised release.
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; Jordan T. Allen, 31, of Plain City, Ohio; Brian J. McKay, 47, of Brookhaven, Pennsylvania; Christopher D. Roffler, 30, of Virginia Beach, Virginia; and Charles Wesley Bush, 38, of Knoxville, Tennessee. Smith was sentenced to 151 months in prison; the other five defendants are awaiting sentencing.
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.
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 M. Simon Esq., Camden
Essex County, New Jersey, Woman Admits Role in Illegal Food Stamps SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman admitted today that she took part in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced.
Maria Teresa Venegas, 25, of Newark, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of Supplemental Nutrition Assistance Program (SNAP) benefit fraud.
According to documents filed in this case and statements made in court:From November 2011 to March 2018, Venegas was the owner of Jenny’s Deli, a small grocery store in Newark, which 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. Venegas allegedly 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 she 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 pecuniary gain/loss. Sentencing is scheduled for Jan. 25, 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 guilty plea.
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: Linda Foster Esq., Assistant Federal Public Defender (Newark)
Salem County, New Jersey, Man Admits Dealing Guns Without A LicenseRead the Press Release
CAMDEN, N.J. – A Salem County, New Jersey, man with a previous felony record today admitted illegally possessing guns and selling guns without a license, U.S. Attorney Craig Carpenito announced.
Corey Moore, 32, of Salem, pleaded guilty before U.S. district Judge Noel L. Hillman in Camden federal court to two counts of an indictment charging him with dealing in firearms without a license and unlawfully possessing firearms after having been convicted of a felony offense.
According to documents filed in this case and statements made in court:
From July 20, 2016, through Dec. 20, 2016, Moore sold firearms. On Oct. 24, 2016, Moore sold two loaded firearms – an Intratec, Model AB10, 9 millimeter Luger pistol, and a Smith & Wesson, Model 642 (marked LadySmith), .38 caliber revolver – to a man who was a confidential informant working with federal law enforcement officers. Moore, who did not have a license, sold the firearms to the informant at a convenience store in Logan Township, New Jersey. He also unlawfully possessed two additional loaded firearms: an Iberia Firearms Inc. (Hi-Point), Model JCP, .40 caliber pistol, and a Ruger, Model Security-Six, .357 magnum caliber revolver. Both of those firearms were fully operable and had been transported in interstate commerce prior to Moore’s possession of them.
Moore faces a maximum potential term of imprisonment of up to five years in prison for on the count of dealing in firearms without a license, and up to 10 years in prison on the count of being a felon in possession of a weapon. He also faces a fine of up to $250,000. Sentencing is scheduled for Jan. 4, 2019.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of John B. Devito, with the investigation.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the Criminal Division in Camden.
Defense counsel: Anne C. Singer Esq., Haddonfield, New Jersey
Comic Book Artist Admits Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A comic book artist from Essex County, New Jersey, today admitted distributing thousands of images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Timothy Yates, 31, of West Orange, New Jersey, pleaded guilty today before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of distribution of child pornography. Yates was previously arrested and charged by complaint on April 4, 2018.
According to documents filed in this case and statements made in court:
Yates is a comic book artist and the author of a comic book series which features a young female heroine on various adventures. Yates traveled to locations across the country to promote his work and attend comic book conventions, which were frequently attended by children.
On several instances in 2016 and 2017, undercover law enforcement officers accessed a publicly available peer-to-peer network and observed a computer with a certain Internet Protocol address logged into the network that was sharing child pornography images and videos. The computer and IP address were associated with Yates. Law enforcement officers executed a search warrant at the defendant’s residence and discovered electronic devices belonging to Yates, which contained thousands of images and videos of child sexual abuse.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Jan. 14, 2019.U.S. Attorney Carpenito credited special agents with U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael; inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn; the West Orange Police Department, under the direction of Chief James P. Abbott; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Union County, New Jersey Man, Sentenced to Two Years in Prison for Stolen Identity Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced to 24 months in prison for his role in a scheme to steal money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced today.
Armand Joseph, 46, of Linden, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with conspiring to defraud the United States and theft of government funds. Judge Wigenton imposed the sentence on Sept. 13, 2018, in Newark federal court.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.
Beginning in January 2012, members of the conspiracy obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking refunds to which they were not entitled. They directed the checks to addresses in New Jersey that they controlled so they could receive them. Joseph used his position as a teller at a check-cashing business to cash checks for the conspirators.
In addition to the prison term, Judge Wigenton sentenced Joseph to three years of supervised release and ordered him to pay restitution of $247,344, and to forfeit the same amount.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark;, inspectors with the U.S. Postal Service Office of Inspector General, under the direction of Inspector in Charge James Buthorn; and Carl Riley, Public Safety Director, Plainfield Police Division, Criminal Investigation Bureau, with the investigation leading to today’s charges and arrests.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division, Newark.
Defense counsel: Paul Condon Esq., Jersey City, New Jersey
Resident of Puerto Rico Charged with Conspiracy to Possess with Intent to Distribute More Than 10 Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A resident of Puerto Rico was charged today with attempting to smuggle more than 10 kilograms of cocaine into the United States through Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced.
Raynee Emrico Gilbert Contreras Crespo, 21, is charged by complaint with conspiracy to possess with intent to distribute more than five kilograms of cocaine. He had his initial appearance on the charges today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was detained.
According to documents filed in this case:
On Sept. 13, 2018, the Drug Enforcement Administration (DEA) was conducting an operation at Newark Liberty International Airport in which they were observing passengers and bags that could potentially be transporting narcotics. Agents identified two bags that potentially contained narcotics that were checked on a flight from Puerto Rico, observing that the bags were heavily weighted for their size. DEA agents in Newark established surveillance at the assigned luggage carousel for the flight and saw Crespo retrieve the bags and leave the airport.
The agents approached Crespo and asked him if his bags contained narcotics. After initially denying that the bags contained narcotics, Crespo subsequently admitted that they did, and signed a written consent to allow the agents to search the bags. Approximately 12 kilograms of a mixture and substance that field-tested positive for cocaine was found.
The drug conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life, and a $10 million fine.
U.S. Attorney Carpenito credited the special agents of the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, with the arrest.
The government is represented by Assistant U.S. Attorney Stephen Ferketic of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark
Previously Convicted Felon from Essex County, New Jersey, Admits Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted negotiating the sale of 17 firearms over a five-month period while he was a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Reginald Moultrie, 49, of Newark, pleaded guilty before U.S. District Claire C. Cecchi to an information charging him with one count of possessing a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
On July 20, 2017, Moultrie, who had at least one prior felony conviction in Essex County Superior Court, possessed an assault rifle capable of accepting a large capacity magazine. Moultrie also acknowledged that between May 1, 2017, and Sept. 30, 2017, he negotiated the sale of 17 firearms.
The felon in possession charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 16, 2019.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation, leading to today’s guilty plea. He also thanked officers from the Newark Police Department, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office National Security Unit in Newark.
Defense counsel: Patrick McMahon Esq., Newark
Bergen County, New Jersey, Man Admits Bribing State Department EmployeeRead the Press Release
TRENTON, N.J. – A Bergen County, New Jersey, man today admitted giving a bribe to an employee of the U.S. Department of State, U.S. Attorney Craig Carpenito announced.
Luis Santos, 37, of Teaneck, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of bribery of a public official.
According to documents filed in the case and statements made in court:
Santos paid $2,381 to a U.S. Consular Adjudicator in Santo Domingo, Dominican Republic, to favorably handle and review non-immigrant visas, which allowed individuals from the Dominican Republic to apply for entry into the United States.
The bribery charge carries a maximum potential penalty of 15 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 18, 2018.
U.S. Attorney Carpenito credited special agents of the U.S Department of State Diplomatic Security Service with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office, Special Prosecutions Division in Newark.
Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey
Real Estate Broker Sentenced to Prison for Role in Defrauding Banks in $3.5 Million ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – A New York real estate broker and a Bergen County, New Jersey, homeowner were sentenced today for their respective roles in a $3.5 million scheme to use false information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Craig Carpenito announced.
Michael Arroyo, 60, of Bronx, New York, was sentenced to 21 months in prison. He previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit bank fraud.
Rafael Popoteur, 67, of Ridgefield Park, New Jersey, was sentenced to three years of supervised release, including one year of house arrest. He previously pleaded guilty before Judge Vazquez to an information charging him with conspiracy to commit bank fraud.
According to documents filed in the case and statements made in court:
From 2012 through January 2014, Arroyo and others conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on residential properties in New Jersey and New York, including a residential property on Havermeyer Avenue in the Bronx. In 2013, Arroyo and others transferred ownership of the property to an individual living at the property and his family friend.
Arroyo and others then applied, in the family friend’s name, for two HELOCs from two banks using the Havermeyer Avenue property as collateral. They hid from the lenders the fact that the property was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also falsely inflated the family friend’s income without his knowledge. In addition, the equity in the property was far less than the amount of the HELOC loans that Arroyo and others applied for.
The victim banks eventually issued loans to the family friend in excess of $500,000. After the victim banks deposited money into the family friend’s bank accounts, portions of the funds were disbursed to Arroyo and others. Eventually, the family friend defaulted on the two HELOC loans.
Popoteur was a client of Arroyo and another broker. From 2012 through January 2014, Popoteur and the two real estate brokers, and others, conspired to fraudulently obtain multiple HELOCs from banks on a residential property in New Jersey. To get the banks to extend lines of credit they would not have otherwise approved, Popoteur and the real estate brokers executed a quitclaim deed to transfer ownership of a Ridgefield Park, New Jersey property to Popoteur, who also lived at the property.
Popoteur and the real estate brokers then applied for three HELOCs from multiple banks using the Ridgefield Park, New Jersey property as collateral. As the conspirators had done previously, they hid from the lenders the fact that the properties offered as collateral were either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Popoteur’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the Ridgefield Park, New Jersey property that was unencumbered by a mortgage was far less than the amount of the HELOC loans Popoteur and the others applied for.
The victim banks eventually issued loans to Popoteur in excess of $495,000. After the victim banks funded the HELOCs and deposited money into Popoteur’s bank accounts, Popoteur disbursed portions of it to the real estate brokers and others. In 2014, Popoteur defaulted on all three HELOC loans.
The overall scheme resulted in $3.5 million in losses to the victim banks.
In addition to the prison term, Judge Vazquez sentenced Arroyo five years of supervised release.
U.S. Attorney Carpenito credited special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark, 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 sentencings.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
Former Margate Mortgage Consultant Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former Atlantic County resident now living in Florida admitted defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and N.J. Attorney General Gurbir S. Grewal announced.
Robert Madonna, 36, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are 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.
Madonna was one of the owners of a company formed to market prescription compounded medications, referred to as Company 1. From May 2015 through February 2016, Madonna and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications.
The conspirators learned that certain compound medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the N.J. State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compound medication prescriptions.
Madonna and his conspirators entered into an agreement under which Company 1 would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Madonna and his conspirators. Madonna and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications without any examination by a medical professional that the medications were medically necessary. Madonna would obtain insurance and personal information from the public employees and give that information to conspirators. A doctor then would call the public employees and complete the prescription without personally examining the employees or having a prior doctor/patient relationship with them. Company 1 would receive a percentage of the amounts paid on these fraudulent prescriptions, which Madonna and others would divide.
According to the information, Madonna and his conspirators caused New Jersey to pay more than $2 million in fraudulent claims for compounded medications for public employees.
Madonna received $179,370 in gross proceeds for his role in the scheme. As part of his plea agreement, Madonna must forfeit these criminal proceeds and pay restitution of at least $2,092,791.
Madonna 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.
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 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 Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Jacqueline M. Carle of the U.S. Attorney’s Office in Camden.
Essex County, New Jersey, Man Admits Robbing 14 Hotels in New Jersey and New YorkRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted robbing 14 hotels in New Jersey and New York, U.S. Attorney Craig Carpenito announced today.
Tremone Burnett, 46, of Orange, New Jersey, pleaded guilty before U.S. District Court Judge Katharine S. Hayden in Newark federal court on Sept. 12, 2018, to two counts of an indictment charging him with one count of conspiracy to commit robbery and threaten physical violence, and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
From April 24, 2014, through June 19, 2014, Burnett robbed 12 New Jersey hotels and two New York hotels at gunpoint. The New Jersey hotels were located in Carteret, Lebanon, Newark, Rockaway, Secaucus, Avenel, Parsippany, Paramus, Weehawken, and Edison; the New York hotels were located in Airmont and Nanuet. In each robbery, Burnett wielded a handgun and, in some instances, tied the victim’s hands and feet. During one of the robberies, Burnett discharged his firearm.
The count of conspiracy to commit robbery and threaten violence carries a maximum penalty of 20 years in prison. The count of discharging a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of 10 years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 18, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Newark Department of Public Safety, under the direction of Public Safety Director Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked the Carteret, Edison, Lebanon, Rockaway, Parsippany, Weehawken and Woodbridge Township police departments in New Jersey; the Clarkstown and Ramapo police departments in New York; the N.J. State Police; and the Bergen County, Hunterdon County, Middlesex County, and Morris County prosecutors’ offices for their work on this case.
The government is represented by Assistant U.S. Attorney Stephen Ferketic of the U.S. Attorney’s Office Public Protection Unit in Newark.
Paterson, New Jersey, Man Admits Distributing Fake Percocet Pills Containing HeroinRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted distributing thousands of pills containing heroin in New Jersey, U.S. Attorney Craig Carpenito announced.
Juan Vidal, 33, of Paterson, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of conspiring to distribute, and possess with intent to distribute, more than 100 grams of substances containing heroin.
According to documents filed in this case and statements made in court:
At his residence, Vidal manufactured pills containing heroin that were made to resemble Percocet pills. He used a press to make the pills, and he another individual, Karen Rojas, sold the pills for approximately $5 per pill. Between February 2018 and April 2018, Vidal manufactured, and Rojas sold, thousands of pills.
On April 18, 2018, for example, in a recorded transaction, Rojas was asked by a cooperating witness for 100-150 heroin pills. Rojas sold the cooperating witness 40 heroin pills for approximately $200, and Rojas indicated that Vidal needed to “get supplies,” meaning purchase more heroin, in order to make additional pills. Vidal and Rojas were previously charged by criminal complaint in April 2018 with conspiracy to distribute these drugs.
The distribution of narcotics offense carries a mandatory minimum penalty of five years in prison, a maximum penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Dec. 18, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the Criminal Division.
Rojas’ case is pending. The charge and allegations against her are merely accusations, and she remains innocent unless and until proven guilty.
Passaic County, New Jersey, Woman Sentenced to 37 Months in Prison for Crime Spree that Included Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, woman, was sentenced today to 37 months in prison for her role in a month-long crime spree that included attempting to rob a Citizens Bank, in Tannersville, Pennsylvania, at gunpoint, conspiring to rob a Keystone Bank in Scotrun, Pennsylvania, and robbing a Spencer Savings Bank in Garfield, New Jersey, at gunpoint, U.S. Attorney Craig Carpenito announced.
Melisa Aquino Arias, 24, of Passaic, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging her with one count of attempted bank robbery, one count of attempted conspiracy to steal from a bank, and one count of bank robbery. Judge Chesler imposed the sentence today in Newark federal court.
Her co-defendant, Swahilys Pedraza-Rodriguez, 20, of New Haven, Connecticut, pleaded guilty before Judge Chesler on April 5, 2018, to an information charging her with the same offenses. She is scheduled to be sentenced Sept. 13, 2018.
According to documents filed in this case and statements made in court:
On Aug. 28, 2017, Arias and Pedraza-Rodriguez, both disguised in nuns’ habits, entered a Citizens Bank in Tannersville, Pennsylvania. While inside, Arias acted as a lookout as Pedraza-Rodriguez took out what appeared to be gun and demanded money from a bank teller. Arias signaled to Pedraza-Rodriguez that they should leave the bank and the women fled empty-handed.
On Sept. 20, 2017, Arias and Pedraza-Rodriguez agreed to steal money from the drive-through ATM machine at a Keystone Bank in Scotrun, Pennsylvania. Arias drove them, both wearing hijabs, to the ATM machine and again acted as a lookout while Pedraza-Rodriguez attempted to pry open the ATM machine with a screwdriver. Those attempts were unsuccessful, and the women again fled the scene.
On Sept. 27, 2017, Pedraza-Rodriguez and Arias entered a Spencer Savings Bank in Garfield, New Jersey, and asked a bank teller for information about opening a bank account. Arias, who was wearing a blue hijab, took out what appeared to be a black handgun and demanded money, while Pedraza-Rodriguez stood guard by the bank manager. After a bank teller handed them some cash, the defendants left the bank and employees immediately alerted the police. Law enforcement officers responded to the scene, but did not immediately locate the robbers.
On Oct. 15, 2017, Pedraza-Rodriguez and Arias entered an NVE Bank in Teaneck, New Jersey. Arias wore an orange hijab and Pedraza-Rodriguez wore a black head covering. They approached a bank employee and requested information about opening a bank account. The employee recognized the women as the alleged perpetrators of the Garfield bank robbery. As the employee went to alert the police, the women left the bank. Pedraza-Rodriguez and Arias were apprehended soon after by law enforcement officers.
In addition to the prison term, Judge Chesler sentenced Aria to three years of supervised release and ordered her to pay $2,900 in restitution to Spencer Savings Bank.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Garfield Police Department, under the direction of Chief Raymond Kovach; the Teaneck Police Department, under the direction of Chief Glenn M. O'Reilly; the Leonia police department, under the direction of Chief Thomas P. Rowe; and the Pocono Township Police Department, under the direction of Chief Kent Werkheiser with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Cumberland County, New Jersey, Man Sentenced to 100 Months in Prison for Bank RobberyRead the Press Release
CAMDEN, N.J. – A Cumberland, County, New Jersey, man was sentenced today to 100 months in prison for robbing two banks with an accomplice, U.S. Attorney Craig Carpenito announced.
Quintin L. Jones, 36, of Vineland, New Jersey, previously pleaded guilty before U.S. District Court Judge Renée Marie Bumb to an information charging him with two 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:
On Oct. 11, 2016, Jones and an accomplice robbed a Cape Bank in Upper Deerfield Township, New Jersey. According to bank employees and video surveillance, two men wearing black hooded sweatshirts entered the bank. While one man crouched near the entrance and pointed what appeared to be a black revolver at employees, the other man approached bank tellers and directed them to place cash into a bag.
Both robbers fled the bank. Employees observed a tan or gold vehicle with a black soft-top rapidly exit the parking lot and turn in the direction of Vineland. Security cameras at the bank and an employee also captured pictures of the car. Investigators determined that the car matched the description of a Chrysler Sebring that was stolen on Sept. 22, 2016, during a carjacking in the parking lot of a Walmart in Mays Landing, New Jersey.
On Oct. 15, 2016, troopers with the N.J. State Police responded to a vehicle fire at a parking lot in Parvin State Park in Pittsgrove Township, New Jersey. After fire personnel extinguished the flames, troopers determined that the vehicle was the same car that had been stolen in the carjacking on Sept. 22, 2016.
Subsequent investigation revealed that Jones and the accomplice had purchased a gas can at a Walmart in Vineland and then took a cab to a Wawa gas station near Parvin State Park, where they purchased gas shortly before police responded to the vehicle fire. Investigators also learned that Jones, who had been staying at a local hotel on Oct. 15, 2016, had been observed by an employee placing a large amount of cash in a bag. Acting on this and other information, the State Police later obtained state arrest warrants for Jones and the accomplice along with search warrants for their residences. Law enforcement personnel who searched the accomplice’s residence also found clothing consistent with the outfits worn by the two men during the Cape Bank robbery as well as a toy revolver, cash, gloves, and a car key that appeared to be for the Chrysler Sebring.
Jones also admitted robbing Newfield National Bank in Newfield, New Jersey, on Oct. 7, 2016, with the accomplice. During that robbery, Jones and the accomplice stole cash before fleeing in the same stolen Chrysler Sebring.
In addition to the prison term, Judge Bumb sentenced Jones to three years of supervised release and ordered him to pay restitution of $30,856.
Jones’ accomplice, Nathan L. Wallace of Vineland, pleaded guilty on Jan. 24, 2018, and is scheduled to be sentenced Oct. 9, 2018.
U.S. Attorney Carpenito credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. He also thanked 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 for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Brother and Sister Sentenced to Federal Prison for Attempting to Steal $3.7 Million with Phony Invoice SchemeRead the Press Release
TRENTON, N.J. – A brother and sister from New Jersey were sentenced today to federal prison terms for their respective roles in running a multi-million dollar fraudulent invoice scheme, U.S. Attorney Craig Carpenito announced.
Shevandra Verasawmi, 38, of Matawan, New Jersey, was sentenced to 87 months in prison and Vishallie Verasawmi, 37, of Green Brook, New Jersey, was sentenced to 48 months in prison. Both were found guilty of all four counts of an indictment charging them with one count of conspiracy to commit mail fraud and three counts of mail fraud. The defendants were convicted following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. The jury deliberated for one hour before returning its verdict.
According to documents filed in this case and the evidence at trial:
From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to cause the shell companies to be added to Victim Company 1’s accounts payable system.
Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including a luxury car and credit card payments.
The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’s proceeds from the scheme, including $1,066,830 and a 2016 BMW 750Li xDrive sedan.
In addition to the prison terms, Judge Wolfson sentenced the both of the defendants to three years of supervised release and ordered them both to pay restitution of $1,066,830. Vishallie Verasawmi was also ordered to forfeit the BMW.
The investigation was led by special agents with the U.S. Attorney’s Office, District of New Jersey.
The government is represented by Senior Litigation Counsel Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrime Unit. Senior Litigation Counsel Barbara A. Ward and Special Assistant U.S. Attorney Kathleen Robeson of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit are handling the forfeiture aspects of the case.
Bergen County, New Jersey, Man Sentenced to 61 Months in Prison for Defrauding Two International Companies of $3 Million and Failing to Pay More Than $880,000 in TaxesRead the Press Release
NEWARK, N.J. – A Park Ridge, New Jersey, man was sentenced today to 61 months in prison for using shell companies and phony invoices to scam both his and his wife’s employers out of millions of dollars, U.S. Attorney Craig Carpenito announced.
Philip Charles de Gruchy, 64, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count One and Counts 10 through 15 of a superseding indictment charging him with conspiracy to commit mail fraud and subscribing to false individual and corporate tax returns. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2007 through April 2, 2010, de Gruchy’s then-wife Barbara Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. She had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM Inc., an entity that she and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted approximately 170 invoices to Company A totalling more than $3 million for alleged marketing consulting work that was ultimately unnecessary, worthless, or never completed.
Although the checks that Company A issued to CEM were mailed to various Canadian addresses, the checks were ultimately deposited by de Gruchy into a CEM account at bank branches located in Park Ridge. De Gruchy wrote checks out of the CEM account payable directly to either de Gruchy, Brown or two companies affiliated with de Gruchy: Silk Farm Inc. and Ontario LLC. De Gruchy and Brown then used the money for personal purposes, including home renovations, mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card expenses.
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management by “Company B,” an international manufacturer and retailer of luxury suitcases and accessories, headquartered in South Plainfield, New Jersey. He was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist him on the migration project. At no time did de Gruchy reveal his personal and financial relationship with Brown.
From November 2010 until November 2011, Brown submitted invoices in her own name or the name of her company, BI Insights, totaling more than $300,000 for purported work related to the data migration project. De Gruchy approved all of the invoices submitted by Brown and BI Insights. The work was ultimately unnecessary, worthless, or never completed. Checks from Company B totaling $216,825 were sent to one of the Canadian addresses used to receive checks from Company A and deposited into a Canadian bank account. Certain funds from the Canadian bank account were thereafter transferred to de Gruchy and Brown’s joint personal bank accounts in the United States.
De Gruchy also admitted that he filed false federal tax returns, Forms 1040, for the calendar years 2009 and 2010, in which he knowingly overstated expenses and understated gross receipts, including receipts from the fraudulent conduct involving Company A and Company B. De Gruchy further admitted that he filed false federal corporate income tax returns, Forms 1120, for the calendar years 2009 and 2010 for CEM Inc. and Silk Farm Inc., in which he falsely claimed certain payments as business expenses. De Gruchy acknowledged at the plea hearing that he owes the IRS $882,844 in additional taxes for 2009 and 2010.
Brown, who was charged with de Gruchy in the superseding indictment, passed away in May 2017, and the charges against her were dismissed.
In addition to the prison term, Judge Wigenton sentenced de Gruchy to three years of supervised release. Restitution will be determined at a later date.
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 Tafur in Newark, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorney Sarah Devlin of Asset Recovery and Money Laundering Unit, in Newark.
New Jersey Man Admits Deleting Former Employer’s Network FilesRead the Press Release
NEWARK, N.J. – A former information technology employee today admitted accessing his former employer’s computer network and deleting files, U.S. Attorney Craig Carpenito announced.
David Campos, 60, of Union, New Jersey, pleaded guilty today before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with fraud and related activity in connection with computers.
According to documents filed in the case and statements made in court:
From 2005 through February 2017, Campos was an employee of and provided information technology services to a business whose corporate offices were located in Jersey City, New Jersey.
After he was no longer employed by the company, Campos accessed its network without authorization on July 25, 2017, July 28, 2017, and August 1, 2017. Each time, he deleted numerous files from the company’s network. Campos acknowledged in the plea agreement that his actions resulted in losses of more than $150,000. The United States reserved the right to argue that Campos’ actions resulted in losses of up to $1.5 million.
The charge to which Campos pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 22, 2019.
U.S. Attorney Carpenito credited and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Andrew Kogan and Assistant U.S. Attorney Justin Herring, Chief of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Essex County, New Jersey, Couple and Son Charged in Food Stamp SchemeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, couple and their son have been charged for their respective roles in a food stamps fraud scheme, U.S. Attorney Craig Carpenito announced today.
Juan Perdomo, 59, and his son, Jose Perdomo, 34, both of Newark, are charged by complaint with Supplemental Nutrition Assistance Program (SNAP) benefit fraud and conspiracy to commit wire fraud. The Perdomos and Maria Rodriguez, 58, Juan’s wife and Jose’s mother, were also charged with money laundering conspiracy. All three had their initial court appearances before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2015 to the present, the defendants managed M&R Supermarket, a small grocery store in Newark, New Jersey, that 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. They may not exchange SNAP benefits for cash. While Juan Perdomo and Jose Perdomo run the store, Maria Rodriguez owns the store and is the person registered with SNAP. According to the complaint, M&R Supermarket exchanged more than $5 million in SNAP benefits for cash between 2015 and 2018.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account. In addition to the high volume of SNAP benefits redemptions for M&R Supermarket indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of an agent working in an undercover capacity who engaged in at least 11 “purchases” at M&R Supermarket where Juan Perdomo or Jose Perdomo exchanged money for SNAP benefits.
The complaint also charges Juan Perdomo, Maria Rodriguez, and Jose Perdomo with conspiring to launder monetary instruments. The bank account of M&R Supermarket, where the store receives SNAP payments, shows numerous cash withdrawals in excess of $10,000 by Juan Perdomo and Maria Rodriguez, as well as several cashed checks in excess of $10,000 by Jose Perdomo.
The counts for SNAP benefit fraud and conspiracy to commit wire fraud against Juan Perdomo and Jose Perdomo carry a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss. The counts of money laundering against all three defendants carry a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property involved in the transaction.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Agriculture – Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins; U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian Michael; IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur; and U.S. Secret Service, under the direction of Mark McKevitt, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The allegations and charges in the complaint are only accusations and the defendants are considered innocent unless and until proven guilty.
Essex County Man Admits Role in Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – An Essex County man today admitted that he participated in a September 2015 gunpoint robbery of a club in Passaic, New Jersey, U.S. Attorney Craig Carpenito announced.
Jimmy Cooper, a/k/a “Flip,” 33, of Irvington, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a superseding indictment charging him with one count of conspiracy to commit Hobbs Act robbery and one count of Hobbs Act robbery.
According to the indictment, other documents and statements made in court:
In the early morning hours of Sept. 6, 2015, Cooper and two conspirators agreed to rob at gunpoint a club in Passaic. Cooper sent text messages to a conspirator’s phone coordinating the timing of the robbery and discussing how to smuggle the gun into the club. Minutes later, conspirators entered the office of the club, where an employee was alone. They brandished a firearm, threatened to kill the employee, and emptied the contents of an open safe into two purses that were in the office. The robbers ordered the employee to the ground and told him to count to 100 as they lowered the lights and fled in a getaway car stolen by Cooper and one of the robbers less than a week prior. The robbers led the police on a high-speed car chase through Passaic, Newark, and East Orange, New Jersey, abandoning the car in East Orange and fleeing on foot.
The Hobbs Act charges to which Cooper pleaded guilty each carry a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Pursuant to the plea agreement, Cooper faces a sentence of 60 to 70 months in prison. Sentencing is scheduled for Dec. 10, 2018.
Cooper was originally charged with Keontrae Lawrence, a/k/a “Taz,” 30, of South Orange, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of Newark, New Jersey, in November 2016. Both Lawrence and Blamahsah have pleaded guilty for their respective roles in the robbery and have been sentenced to 135 and 150 months in prison, respectively.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Mary E. Toscano of the U.S. Attorney’s Office’s Criminal Division in Newark.
Union County, New Jersey, Man Sentenced to 121 Months in Prison for Conspiracy to Distribute More Than 140 Kilograms of Heroin and CocaineRead the Press Release
Defendant Also Assaulted Federal Officers
TRENTON, N.J. – A Union County, New Jersey man was sentenced today to 121 months in prison for his role in a conspiracy to distribute 140 kilograms of narcotics, and for assaulting two law enforcement officers, U.S. Attorney Craig Carpenito announced.
Siddeeq Q. Williams, 40, of Cranford, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin and five kilograms of cocaine. Williams also pleaded guilty to one count of assaulting federal officers.
According to documents filed in this case and statements made in court:
Williams, Gemal Singleton, 41, of Edison, New Jersey, and others arranged for cocaine and heroin to be shipped to New Jersey via tractor trailer. On Aug. 27, 2017, the tractor trailer arrived in New Jersey and law enforcement conducted a vehicle stop after the driver committed several traffic violations. A subsequent search of the tractor-trailer recovered five large duffle bags containing a total of 56 kilograms of heroin and 85 kilograms of cocaine. Singleton and Williams admitted that they were supposed to meet the tractor-trailer to collect the narcotics for eventual distribution.
On Aug. 30, 2017, law enforcement officers went to speak with Singleton and Williams. Williams admitted that when two law enforcement officers operating an undercover vehicle attempted to pull him over, he sped away in a Honda Pilot. Williams also admitted that during the ensuing pursuit, he rammed the Pilot into the officers’ vehicle and drove away.
In addition to the prison term, Judge Martinotti sentenced Williams to five years of supervised release.On July 10, 2018, Judge Martinotti sentenced Singleton to 10 years in prison and five years of supervised release.
U.S. Attorney Carpenito credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s sentencing.
Defense counsel:
Williams: Jon Kearney Esq., Kearny, New Jersey
Singleton: Robert DeGroot Esq., NewarkOwner of Defense Firm Charged with Conspiracy to Defraud Department of Defense of $7 Million, Violate Arms Export Control ActRead the Press Release
NEWARK, N.J. – A Turkish man who owns a New Jersey defense contracting business has been charged in a scheme to fraudulently acquire lucrative manufacturing contracts with the U.S. Department of Defense (DoD), and for conspiring to export military technical drawings to Turkey without a license from the State Department, U.S. Attorney Craig Carpenito announced today.
Ferdi Murat Gul, a/k/a “Fred Gul,” 42, of Turkey, was indicted by a federal grand jury on Sept. 5, 2018, on one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to violate the Arms Export Control Act, and one substantive count of violating the Act. He is believed to be currently at large in Turkey.
According to the indictment:
Gul is the principal owner, chief executive officer, and general manager of two companies located in the United States: Bright Machinery Manufacturing Group Inc. (BMM), a defense contracting company located in Paterson, New Jersey; and FMG Machinery Group (FMG), a purported manufacturing company in Paterson and Long Island City, New York. Gul also maintains an ownership interest in HFMG Insaat (HFMG), a manufacturing company in Turkey.
Over approximately five years, BMM fraudulently obtained hundreds of contracts with the DoD by falsely claiming that the military parts it contracted to produce would be manufactured in the United States. From October 2010 through June 2015, the value of the contracts fraudulently awarded to BMM was approximately $7 million.
Gul routinely submitted electronic bids for DoD contracts that contained false representations about BMM’s purported domestic manufacturing operations. He falsely submitted quotes claiming that BMM would provide military goods manufactured in the United States, when in fact the company relied almost exclusively on Gul’s Turkish-based production facilities. In acquiring contracts, Gul routinely and unlawfully exported drawings and technical data, some of which was subject to U.S. export control laws, in order to secretly manufacture military parts in Turkey. Gul and his conspirators then fraudulently supplied those foreign-made parts to unwitting DoD customers in the United States.
Gul and his conspirators concealed their illicit manufacturing activities and ongoing fraud by routinely submitting forged certifications and fabricated information by e-mail to DoD representatives in New Jersey. They falsely represented that BMM and its U.S.-based subcontractors performed necessary quality control procedures in their purported domestic manufacture of military parts. BMM fraudulently acquired 346 contracts from the DoD to domestically manufacture military parts, including parts for torpedoes for the U.S. Navy, bomb ejector racks and armament utilized in U.S. Air Force aircraft, and firearms and mine clearance systems used by U.S. military personnel abroad. Testing by the DoD revealed that some parts had numerous design flaws and non-conformities and were unusable.
The wire fraud counts each carry a maximum penalty of 20 years in prison and a fine of $250,000. The Arms Export Control Act violations each carry a maximum penalty of 20 years in prison and a $1 million fine.
The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of States.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Leigh-Alistair Barzey and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Counter Proliferation Investigations, under the supervision of Special Agent in Charge Brian Michael, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, along with assistance from the U.S. Department of Justice, National Security Division, in Washington, D.C.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Asbury Park, New Jersey, Man Arraigned on Charges of Cocaine Base DistributionRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was arraigned today before U.S. District Judge Michael A. Shipp in Trenton federal court, on an indictment charging him with distributing cocaine base, more commonly known as crack, U.S. Attorney Craig Carpenito announced.
Sean Lambert, a/k/a “Pretty Tone,” 47, is charged by indictment with one count of distribution of 28 grams or more of cocaine base and one count of distribution of a quantity of cocaine base. At the time of the alleged crimes, Lambert was on federal supervised release following a 120-month prison sentence for illegally possessing a firearm. Trial is scheduled for April 8, 2019.
According to documents filed in this case:
On Feb. 28, 2018, and March 9, 2018, Lambert sold cocaine base out of an apartment in a multi-family building in Asbury Park. During the March 9, 2018, sale, Lambert sold more than 28 grams of cocaine base.
Because of his prior felony drug distribution conviction, the drug distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum $8 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
New York Man Sentenced to 44 Months in Prison for 2017 Bank Robbery in Fort Lee, New JerseyRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 44 months in prison for robbing a bank in Fort Lee, New Jersey, at knifepoint in January 2017, U.S. Attorney Craig Carpenito announced.
Andres Dominguez, 39, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of bank robbery. Judge Walls imposed sentence today in Newark federal court. Dominguez was originally arrested on Jan. 13, 2017.
According to documents filed in this case and statements made in court:
On Jan. 12, 2017, Dominguez robbed the Bank of New Jersey in Fort Lee. According to bank employees and video surveillance, a man wearing a gray Nike hooded sweatshirt, a blue rubber glove, sunglasses, a wool hat, black Adidas pants, and white sneakers entered the bank.
The robber approached one of the bank tellers with a large kitchen knife in his right hand and jumped onto the counter separating the tellers from customers. He then demanded money from the teller and instructed the teller to give him all the money in the teller drawers or he would kill her. The teller complied, and the robber jumped back over the counter and fled the bank on foot. The robber was later identified as Dominguez.
When law enforcement later searched the area around the bank for evidence of the bank robbery, they recovered a large kitchen knife from a dumpster behind the bank. They also found two blue rubber gloves, a gray Nike hooded sweatshirt, and a dark wool hat on the street at various locations within a few blocks of the bank. Law enforcement later located Dominguez in Bronx and arrested him.
In addition to the prison term, Judge Walls sentenced Dominguez to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Fort Lee Police Department for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Michigan Man Admits Role in Worldwide Trading Account Simulator Scheme; Another Conspirator IndictedRead the Press Release
NEWARK, N.J. – A Michigan man today admitted participating in a scheme to defraud hundreds of investors worldwide of $1.4 million through a purported online day-trading firm, and a co-defendant from Michigan was arrested this morning in connection with the conspiracy, U.S. Attorney Craig Carpenito announced.
Christopher D. Eikenberry, 49, of Birmingham, Michigan, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to commit securities fraud.
Jeffrey E. Goldman, 52, of West Bloomfield, Michigan, who was arrested today in Michigan, is charged by indictment with one count of conspiracy to commit securities fraud and one count of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge David Grande in Detroit federal court.
According to documents filed in the case and statements made in court:
From December 2013 to June 2015, Eikenberry, Goldman, Naris Chamroonrat, Yaniv Avnon, and Ran Armon orchestrated a scheme to defraud hundreds of investors worldwide through their operation of Nonko Trading, a purported day-trading firm. They solicited investors to open accounts with Nonko and to wire thousands of dollars to the firm to fund those accounts. Instead of using the money to fund securities brokerage accounts, the conspirators simply stole it. The conspirators tried to hide the theft by providing the victims with online trading simulator, or “demo,” accounts, and telling the investors they were real accounts to be used for trading securities.
The conspirators selected as victims only those customers who they believed would not be profitable day-traders and would be less likely to seek to withdraw funds from their accounts. They limited the scheme to inexperienced, unsophisticated “losing” traders because those customers would simply believe they lost their money trading in the open markets. If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts.
The scheme attracted more 260 customers worldwide, including several in New Jersey. Although Nonko paid back a small percentage of these customers, the conspirators stole at least $1.4 million. The majority of the funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions, including transferring proceeds of the scheme to the other conspirators.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for Eikenberry is scheduled for Dec. 12, 2018.
On May 11, 2017, Chamroonrat pleaded guilty to conspiracy to commit securities fraud in connection with the scheme, one day after a federal grand jury indicted Avnon and Armon, charging them each with one count of conspiracy to commit securities fraud and one count of wire fraud. Those cases currently are pending.
In a separate civil action, the Securities and Exchange Commission today filed an amended complaint in Newark federal court charging Eikenberry and Goldman with, among other things, violating and aiding and abetting violations of the antifraud provisions of the securities laws. The amended complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Gregory W. Ehrie, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Regional Director Marc P. Berger for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations against Goldman, Avnon and Armon are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Jersey Man Indicted for Promoting Tax Fraud SchemeRead the Press Release
A federal grand jury sitting in Camden, New Jersey has returned an indictment, which was unsealed today, charging an Atlantic City man with conspiring to defraud the United States by promoting a tax refund scheme, filing false claims, and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the indictment, Kenneth Crawford, Jr., and his co-conspirators, between 2015 and 2016, promoted and executed a “mortgage recovery” tax fraud scheme by assisting client taxpayers in obtaining the payment of false claims for tax refunds from the Internal Revenue Service (IRS). The alleged scheme was premised on a false claim that clients could recover, through tax refunds, mortgage debt they owed and paid to financial institutions. To promote the scheme, Crawford allegedly recruited and convinced clients, many of whom were behind on mortgage payments and faced foreclosure, to file false tax returns seeking tax refunds. Crawford and his co-conspirators then allegedly caused false tax forms to be filed with the IRS to make it appear that clients were eligible for refunds by falsely claiming that substantial amounts of taxes had been withheld and paid to the IRS.
The indictment further alleges that when the IRS discovered the fraud and attempted to recover the refunds issued, Crawford supplied clients with false documents to send to the IRS in response to IRS demands and warning letters. Crawford allegedly instructed clients on how to deceive the IRS by, among other things, concealing his role in causing the false returns to be filed.
The indictment charges that Crawford’s scheme resulted in over $2.3 million in fraudulent refund claims being submitted to the IRS, of which the IRS paid out more than $1.3 million. Crawford allegedly charged his clients a fee for his services of approximately 25 percent of the refund obtained.
If convicted, Crawford faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each false claim count, and three years in prison for obstructing the internal revenue laws. He also faces a period of supervised release, restitution, and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John Kane and Trial Attorney Sean Green of the Tax Division, who are prosecuting the case.
Former Newark Police Officer Indicted for Extortion, Bribery, and Filing of False Tax ReturnsRead the Press Release
NEWARK, N.J. – A former Newark police officer was charged today with allegedly soliciting and accepting cash payments from brothel owners in exchange for protecting the brothels from police action and other matters, and for failing to report those cash payments on his personal federal income tax returns, U.S. Attorney Craig Carpenito announced.
Julio Rivera, 49, of Old Bridge, is charged in a 14-count indictment with three counts of extortion under color of official right, six counts of bribery, and five counts of aiding and assisting in the preparation of false tax returns.
According to the indictment:
From 2011 to November 2016, Rivera solicited, accepted, and received more than $100,000 in cash payments from three brothel owners in Newark. While in uniform, Rivera approached each of these brothel owners, and, instead of arresting them, solicited and then began receiving regular cash payments from them. In exchange for these extortionate cash payments, Rivera performed official acts for the benefit of the brothel owners, including declining to arrest the brothel owners who were committing, facilitating, and promoting prostitution.
Rivera also intentionally withheld from his tax preparer information regarding the cash payments that he received from the brothel owners, causing Rivera’s tax returns from 2012 to 2016 to understate his total income.
The maximum terms of imprisonment are 20 years for each extortion count, 10 years for each bribery count, and three years for each tax count. Each count of the indictment carries a maximum potential fine of up to $250,000 or twice the gross gain or loss from the offense.
The charges and allegations against Rivera are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John Tafur in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorneys Cari Fais and Karen D. Stringer of the U.S. Attorney’s Office Special Prosecutions Division.
District Court Enters Permanent Injunction to Stop New Jersey and New York Companies and Executives from Distributing Unapproved and Misbranded DrugsRead the Press Release
A federal court in New Jersey granted a motion for default judgment and entered an order of permanent injunction against S Hackett Marketing LLC d/b/a Just Enhance of Trenton, New Jersey; R Thomas Marketing LLC of Bronx, New York; Shawn Hackett, the President and owner of Just Enhance; and Roger Thomas, the President and founder of R Thomas Marketing LLC, the Department of Justice announced today. The injunction, entered by the U.S. District Court for the District of New Jersey, permanently enjoins the defendants from continuing to distribute unapproved new drugs and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
On July 5, 2017, the Department filed a complaint at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that Just Enhance and R Thomas Marketing LLC use over 100 websites to promote and distribute sexual enhancement products to U.S. consumers. The complaint further alleged that many of the products are unapproved drugs containing the undisclosed ingredient, sildenafil, which is the active pharmaceutical ingredient in the prescription drug, Viagra. According to the complaint, the labeling for defendants’ products claim—without FDA approval or clinical studies demonstrating safety and effectiveness—that the products can treat or prevent a variety of serious conditions, including erectile dysfunction, impotence, and prostatitis. In addition, the labeling does not reveal the potentially adverse consequences that may result from using a product containing sildenafil.
“Compliance with the Food, Drug, and Cosmetic Act is necessary to ensure that consumers have complete confidence in the safety and effectiveness of the drugs they use,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to enforce labeling requirements and protect consumers from the dangers of undisclosed ingredients in drugs.”
After the defendants failed to respond or even appear in the action, the government moved for a default judgment with a proposed order of permanent injunction. The permanent injunction entered today resolves the litigation and requires that the defendants cease the distribution of unapproved new drugs and misbranded drugs. It directs the defendants to cease distribution of all drugs until the companies implement specified remedial measures to ensure compliance with the FDCA.
The government is represented by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Susan Pappy of the New Jersey U.S. Attorney’s Office Health Care and Government Fraud Unit, with the assistance of Associate Chief Counsel for Enforcement Laura Akowuah of the FDA, Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at www.justice.gov/usao-nj.
District Court Enters Permanent Injunction to Stop New Jersey and New York Companies and Executives from Distributing Unapproved, Misbranded DrugsRead the Press Release
TRENTON, N.J. – A federal court in New Jersey today entered an order of permanent injunction prohibiting two companies in Bronx, New York, and Trenton, New Jersey, and their executives from distributing unapproved and misbranded drugs, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division announced.
The injunction, entered by U.S. District Judge Michael Shipp in Trenton federal court, permanently enjoins S Hackett Marketing LLC d/b/a Just Enhance of Trenton, New Jersey; R Thomas Marketing LLC of Bronx, New York; Shawn Hackett, the president and owner of Just Enhance; and Roger Thomas, the president and founder of R Thomas Marketing LLC, from continuing to distribute unapproved and misbranded drugs in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
On July 5, 2017, the Justice Department filed a complaint at the request of the U.S. Food and Drug Administration (FDA). The complaint alleges that Just Enhance and R Thomas Marketing LLC use over 100 websites to promote and distribute sexual enhancement products to U.S. consumers. It also alleges that many of the products are unapproved drugs containing the undisclosed ingredient, sildenafil, which is the active pharmaceutical ingredient in the prescription drug Viagra.
According to the complaint, the labeling for defendants’ products claim – without FDA approval or clinical studies demonstrating safety and effectiveness – that the products can treat or prevent a variety of serious conditions, including erectile dysfunction, impotence, and prostatitis. In addition, the labeling does not reveal the potentially adverse consequences that may result from using a product containing sildenafil.
After the defendants failed to respond to filings or even appear in the action, the government moved for a default judgment with a proposed order of permanent injunction. The permanent injunction entered today requires that the defendants cease distributing unapproved and misbranded drugs and directs R Thomas Marketing LLC and Just Enhance to cease distribution of all drugs until the companies implement specified remedial measures to ensure compliance with the FDCA.
The government is represented by Assistant U.S. Attorney Susan Pappy of the New Jersey U.S. Attorney’s Office and Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Michael Varrone of the FDA, Office of General Counsel, and Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at https://www.justice.gov/usao-nj.
Paterson Man Sentenced to 151 Months in Prison for Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 151 months in prison for robbing a TD Bank in Paterson in June 2017 and an Investors Bank in Clifton, New Jersey, in July 2017, U.S. Attorney Craig Carpenito announced.
James M. Chestnut, 63, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with two counts of bank robbery. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
On June 30, 2017, Chestnut entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut entered an Investors Bank in Clifton and approached a teller, this time brandishing what appeared to be a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
During the plea, Chestnut also admitted attempting to rob a Chase Bank in Saddle Brook, New Jersey, on July 3, 2017.
In addition to the prison term, Judge Walls sentenced Chestnut to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Heather Suchorsky of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Investment Adviser Admits Stealing Millions of Dollars from ClientsRead the Press Release
NEWARK, N.J. – A former broker and investment adviser today admitted stealing millions of dollars from his clients in order to pay for personal expenses, U.S. Attorney Craig Carpenito announced.
Gary Basralian, 70, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of wire fraud and one count of investment adviser fraud.According to documents filed in the case and statements made in court:
Basralian was a registered broker who provided investment adviser services to clients and received compensation for advising them about investing in, purchasing, or selling securities. From 1989 until December 2017, he was registered with the Financial Industry Regulatory Authority (FINRA), or its predecessors, as working at “Securities Firm A,” a registered investment adviser and broker-dealer with its principal place of business in Jersey City, New Jersey. Securities Firm A provided a broker-dealer platform for more than 2,000 independent financial advisers across the United States.
From July 2007 through November 2017, Basralian defrauded his clients by falsely telling them that he would invest their money in securities and other investments when, in fact, he misappropriated those funds and used them for his own personal expenditures – including payments on a BMW automobile and tens of thousands of dollars in credit card bills.
In one instance Basralian wired money from at least one victim client’s investment account at Securities Firm A to various accounts that he controlled and used the proceeds for his own benefit. When the victim asked why the account had diminished in value, Basralian sent the victim a phony spreadsheet showing that the money was being invested as loans to various companies and would be paid back with interest.
Basralian admitted stealing at least $2 million.
The wire fraud count carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Dec. 3, 2018.
On May 22, 2018, the N.J. Bureau of Securities in the Office of the N.J. Attorney General issued a summary revocation order against Basralian that revoked his agent and investment adviser representative registrations.
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s guilty plea. He also thanked the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for its assistance.
The government is represented by Assistant U.S. Attorney Courtney A. Howard of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Samuel Braverman Esq., New York
Bergen County, New Jersey, Man Arrested on Child Pornography ChargesRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested and charged today with distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Barry Goldstein, 46, of Bergenfield, New Jersey, was arrested at his home. He is charged by complaint with one count of distributing child pornography. Goldstein made his initial appearance before U.S. Magistrate Judge Michael A. Hammer this afternoon in Newark federal court.
According to documents filed in this case and statements made in court:
From May 2018 through August 2018, an undercover law enforcement officer (the “UC”) communicated over an instant messaging mobile application (the “IM App”) with Goldstein. The IM App allows users to transmit and receive content after users register a username. Goldstein maintained an account on the IM App, which was accessed from Internet Protocol addresses associated with Goldstein’s home.
In May and June 2018, after engaging in explicit conversations with the UC regarding the sexual abuse of children, Goldstein used his account on the IM App to share with the UC multiple files depicting child sexual abuse. On Aug. 29, 2018, law enforcement officers searched Goldstein’s residence, interviewed Goldstein and arrested him.
The count of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s arrest.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Morris County Man Sentenced to 97 Months in Prison for Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 97 months in prison for distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Mark Derzko, 74, of Mine Hill, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of child pornography. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in the case and statements in court:
Derzko used a peer-to-peer file-sharing program, which he installed on his computer several years ago, to download videos and images of child sexual abuse. In May, August and September of 2016, law enforcement downloaded more than two dozen videos of child sexual abuse from Derzko’s computer. After executing a search warrant at Derzko’s home in October 2016, agents located more than 2,000 videos and over 8,000 images of child sexual abuse on Derzko’s computers. Derzko admitted that he was making available for others to download videos he had previously saved on his computer.
In addition to the prison term, Judge Walls sentenced Derko to five years of supervised release, ordered him to register as a sex offender and ordered him to pay restitution of $24,000.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Newark Special Agent in Charge Brian Michael, with the investigation leading to today’s sentencing. He also thanked the Morris County Prosecutor’s Office and the Wharton, New Jersey, Police Department for their assistance with the case.
The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Special Prosecutions Division in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Union County, New Jersey, Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was arrested today and appeared in federal court on charges of distribution of images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Christopher Gardiner, 35, of Cranford, New Jersey, with one count of distribution of child pornography and one count of possession of child pornography. He made his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Between March 2018 and June 2018, Gardiner allegedly engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. In a chatroom, Gardiner publicly posted multiple videos depicting the sexual abuse of children and sent similar videos to the undercover agent directly. The complaint also alleges that law enforcement discovered numerous videos of child pornography on Gardiner’s electronic devices when he was arrested at his home.
The charge of distribution of child pornography, for a repeat offender (Gardiner was previously convicted of endangering the welfare of a child and distribution of child pornography in Union County in 2007), carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The charge of possession of child pornography for a repeat offender carries a mandatory minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Peter Carter Esq., Assistant Federal Public Defender (Newark)
Nassau County, New York, Man Sentenced to 57 Months in Prison for Defrauding Multiple Residential Mortgage HoldersRead the Press Release
TRENTON, N.J. – The sole proprietor of a purported loan modification consulting company was sentenced today to 57 months in prison for fraudulently billing clients more than $400,000 for services that were never performed, U.S. Attorney Craig Carpenito announced.
Jeffrey Halpern, 63, of Hewlett, New York, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of wire fraud. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Between 2009 and 2016, Halpern operated JCK Marketing and solicited business from individuals who were seeking home loan modifications on their residential mortgages. Halpern told these individuals that, for a fee, he would negotiate loan modifications on their behalf.
In actuality, Halpern pocketed the funds but performed little or no actual services in connection with the purported loan modifications. Halpern also repeatedly demanded money for “bank fees” from his victims, even though none of the related financial institutions charged fees for loan modifications. During the relevant time period, Halpern defrauded at least 26 victims of more than $400,000.
In addition to the prison term, Judge Sheridan sentenced Halpern to three years of supervised release and ordered to pay $411,000 in restitution.U.S. Attorney Carpenito credited investigators with the U.S. Attorney’s Office and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing. He also thanked the New York State Department of Financial Services, under the direction of Superintendent Maria T. Vullo; the Federal Housing Finance Agency Office of the Inspector General, under the direction of Mark Higgins; and the Nassau County District Attorney’s office, under the direction of District Attorney Madeline Singas, for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.Defense counsel: Mitchell C. Elman Esq., Port Washington, New York
Brooklyn, New York, Man Charged with Distributing Synthetic Drugs, Fentanyl, and Oxycodone over the InternetRead the Press Release
CAMDEN, N.J. – A New York man is scheduled to appear in court today on charges of selling dangerous designer drugs, fentanyl, and oxycodone over the Internet, U.S. Attorney Craig Carpenito announced.
Shadab Chowdhury, 26, of Brooklyn, New York, is charged by complaint with eight counts of distributing and possessing with intent to distribute synthetic cannabinoids; one count of distributing and possessing with intent to distribute fentanyl; and one count of distributing and possessing with intent to distribute oxycodone. He was arrested Aug. 20, 2018, and appeared in Brooklyn federal court. He is scheduled to appear today before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case and statements made in court:
Chowdhury allegedly distributed synthetic cannabinoids, fentanyl, and oxycodone over two years by communicating with customers over three Internet websites, two email accounts, and text messages. His customers included undercover law enforcement officers located in New Jersey, New York, Kansas, North Carolina, South Dakota, West Virginia, Georgia, Ohio, Alaska, California, and Virginia.
Chowdhury allegedly arranged and coordinated shipments of synthetic cannabinoids, which he termed “fire” or “spice,” as well as shipments of fentanyl and oxycodone. He also prepared the drugs to make them more potent and negotiated pricing on the drugs. To avoid law enforcement, Chowdhury deliberately misbranded the synthetic cannabinoids and referred to the oxycodone and fentanyl in code. He received payments for his drug shipments via credit card payments, Western Union, direct bank deposit, and cryptocurrency.
Each of the 10 charges in the complaint carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Craig Carpenito credited special agents with the Drug Enforcement Administration’s Tactical Diversion Squad in the Camden Resident Office, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s arrest.
The charges and allegations in the complaint are merely accusations, and Chowdhury is considered innocent unless and until proven guilty.
The government is represented by Assistant United States Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Man from Dominican Republic Admits Role in Conspiracy to Distribute Cocaine Concealed in Airline Neck PillowsRead the Press Release
NEWARK, N.J. – A man from the Dominican Republic today admitted his role in a conspiracy to distribute three kilograms of cocaine by bringing the drugs into the United States concealed in airline neck pillows, U.S. Attorney Craig Carpenito announced.
Rafael Francisco Bautista Perdomo, 21, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a superseding information charging him with one count of conspiracy to possess with intent to distribute more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
On Oct. 11, 2017, Perdomo and a conspirator arrived at Newark Liberty International Airport on a flight from Las Americas International Airport in Santo Domingo, Dominican Republic. Both passengers brought neck pillows with them onto the flight as carry-on items.
During a routine Customs and Border Protection (CBP) screening of baggage at Newark Liberty International Airport, law enforcement discovered approximately three kilograms of cocaine sewn inside the neck pillows that Perdomo and his conspirator were carrying.
The count of conspiracy to possess with intent to distribute more than 500 grams of cocaine penalty carries a mandatory minimum penalty of five years in prison, a potential maximum of 40 years in prison, and a $5 million fine. Sentencing is scheduled for Dec. 12, 2018.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New Jersey Division, under the direction of Special Agent in Charge Brian Michael; and officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Acting Director of Field Operations Francis J. Russo, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Organized Crime and Drug Enforcement Task Force / Narcotics Unit in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Sixteen People Charged in Second Takedown of Newark Drug Trafficking OrganizationRead the Press Release
Total of 27 Individuals Charged to Date
NEWARK, N.J. – Sixteen people were charged today in connection with their alleged roles in a drug trafficking organization that distributed heroin and crack cocaine in Newark, U.S. Attorney Craig Carpenito announced.
Anthony Brinson, 27; Kayron Caldwell, 26; Calvin Cheek, 47; Murad Fleming, 18; Sherod Green, 25; Furad Loyal, 30; Jaquwin Marlin, 30; Khalif Nash, 20; Zahir Nash, 19; Dimani Newby, 25; Nasir Sanders, 21; Shawn Scott, 32; Kahlid Windley, 31; Stephan Young, 19; all of Newark, and Jeray Alson, 28; of Vauxhall, New Jersey, are each charged by complaint with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin. Loyal was additionally charged with one count of illegal possession of a firearm and one count of possession of a firearm in furtherance of a drug trafficking crime. Sean Collins, 50, of East Orange, New Jersey, was charged with one count of conspiracy to distribute and possess with the intent to distribute 280 grams of more of cocaine base, or “crack” cocaine.
Nine of the defendants are currently in custody, six of whom – Cheek, Loyal, Marlin, Scott, Windley and Young – are scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court today.
According to the documents filed in this case and statements made in court:The defendants are allegedly members of a drug trafficking organization that sold heroin and crack cocaine in and around Newark, specifically Hayes Street and 14th Avenue in the area of the New Community Corp. (NCC) community development. The organization also supplied drugs to customers and other distributors elsewhere. The organization is comprised of members of the Brick City Brim set of the Bloods street gang
On March 5, 2018, 11 defendants, including Keith Herd, the alleged leader of the organization were charged in connection with the investigation. On Aug. 1, 2018, Martin Pettiford, 23, pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute heroin. The charges against the other individuals remain pending.
The investigation revealed that in addition to selling narcotics, Herd and the other members of the organization alerted each other to police and rival gang member or drug dealer presence within NCC, shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other. Members of the organization have also engaged in violence and been the subject of violence in connection with their narcotics trafficking activities.
An investigation led by the FBI used physical and video surveillance, confidential informants, cooperating witnesses, dozens of controlled narcotics purchases, record checks, narcotics seizures, including of heroin, and multiple telephone wiretaps to uncover the operations of the drug trafficking organization.
The drug trafficking conspiracy counts carry a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The illegal possession of a firearm count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The possession of a firearm in furtherance of a drug trafficking crime count carries a mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and members of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to the charges.
He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the N.J. Department of Corrections, N.J. State Parole Board, and the U.S. Marshals for their assistance.
Keith Herd and the NCC drug trafficking organization were part of the original Violent Crime Initiative (VCI) targets. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (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, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Hudson County Man Admits Role in Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man today admitted his role in a cocaine distribution conspiracy operating in Jersey City, U.S. Attorney Craig Carpenito announced.
Rayfeal Roman, 34, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
According to documents filed in this case and statements made in court:
Roman admitted that from September 2017 through Feb. 7, 2018, he conspired with others to distribute cocaine. Roman also admitted that in February 2018 he spoke on the telephone with a conspirator and agreed to sell that person one kilogram of cocaine for $29,500. Law enforcement officials intercepted these conversations using a court order to intercept wire and electronic communications on Roman’s cellular phone.
On Feb.7, 2018, before Roman and the conspirator could complete the cocaine sale, law enforcement officers obtained and executed a search warrant for Roman’s apartment in Jersey City. They found approximately 2.5 kilograms of cocaine, approximately $30,000 in cash, and various other materials commonly associated with drug distribution, such as an electronic money-counting machine, a digital scale, and drug-packaging materials.
The distribution conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a $5 million fine. Sentencing is scheduled for Dec. 20, 2018.
U.S. Attorney Carpenito credited the Hudson County Prosecutor’s Office under the leadership of Prosecutor Esther Suarez, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Gerald Krovatin Esq., Newark
Hammonton, New Jersey, Man Sentenced to Nine Years in Prison for Conspiracy to Distribute Crystal MethamphetamineRead the Press Release
CAMDEN, N.J. - A Hammonton, New Jersey, man was sentenced today to 108 months in prison for engaging in a conspiracy to distribute 50 grams or more of crystal methamphetamine in Atlantic County, New Jersey, U.S. Attorney Craig Carpenito announced.
Ignacio Cuesta, 42, of Atlantic City, New Jersey, previously pleaded guilty before U.S. District Judge Noel Hillman in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
Cuesta was arrested on June 24, 2016, in Hammonton, New Jersey, after agreeing to sell two pounds of crystal methamphetamine to an undercover narcotics detective. The two pounds of crystal methamphetamine were seized from Cuesta’s Ford Expedition, along with approximately $9,000 in cash. Several additional pounds of crystal methamphetamine possessed by Cuesta were found hidden in vehicles and buried in a bucket in the ground in a parking lot for a local business in Hammonton. Law enforcement officers also recovered additional cash inside the trunk of a vehicle owned and used by Cuesta, which was parked in the same parking lot in Hammonton. The total seized from Cuesta and this property was more than $100,000.
In addition to the prison term, Judge Hillman sentenced Cuesta to five years of supervised release. As part of the plea agreement, Cuesta agreed to forfeit all of the cash and two vehicles that were seized on the day of the arrest.
U.S. Attorney Carpenito credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation. He also thanked the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, for its assistance.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Patrick Duffy Esq., Audubon, Pennsylvania
Defendant in 15-Kilogram Cocaine Conspiracy Receives Jail Term of 151 MonthsRead the Press Release
NEWARK, N.J. – A Sunnyside, Washington, resident was sentenced today to 151 months in prison for his role in a drug-trafficking conspiracy that ended in February 2017 with the seizure of 15 kilograms of cocaine in a parking lot in Burbank, California, U.S. Attorney Craig Carpenito announced.
Efrain Cardenas Alcaras, 41, was charged in the District of New Jersey with conspiracy to distribute more than five kilograms of cocaine. His case was later transferred to the Central District of California in Los Angeles, where Alcaras pleaded guilty to an indictment before U.S. District Judge Philip S. Gutierrez. He was charged with at least three other people, two of whom have been sentenced in New Jersey by U.S. District Judge William H. Walls in Newark federal court.
According to documents filed in this case and statements made in court:
From Aug. 31, 2016, through Feb. 8, 2017, law enforcement officers were monitoring communications between one of Alcaras’ co-defendants and others. Those communications led to law enforcement officers seizing approximately one kilogram of cocaine that a co-defendant had sold to another individual in California on Sept. 26, 2016. The cocaine was intended to be delivered to New Jersey.
On Feb. 8, 2017, in Burbank, California, law enforcement officers observed as Alcaras and his conspirators met with another individual in the parking lot of a retail establishment. The conspirators arrived in two vehicles, a black Jeep and a white sedan. Alcaras was driving the black Jeep, which was determined to contain the illegal narcotics. Approximately 15 kilograms of cocaine and a .380 caliber firearm were recovered from the scene.
In addition to the prison term, Judge Gutierrez sentenced Alcaras to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
Defense counsel: Humberto Diaz Esq., Los Angeles, CaliforniaPassaic County Man Admits Trying to Bring Loaded Gun on Plane at Newark Liberty International AirportRead the Press Release
NEWARK, N.J. – A Totowa, New Jersey, man today admitted knowingly possessing a firearm as a previously convicted felon and trying to bring a loaded gun onto a plane, U.S. Attorney Craig Carpenito announced.
Laron L. James, a/k/a/ “Juelz Santana,” 36, pleaded guilty before U.S. District Judge Stanley R. Chesler to both counts of an indictment charging him with possession of a firearm by a convicted felon and carrying a weapon on an aircraft.
According to documents filed in this case and statements made in court:
James admitted that on March 9, 2018, he knowingly possessed a loaded Derringer .38 caliber handgun despite the fact he was prohibited from possessing firearms due to his December 2012 conviction in Bergen County Superior Court for manufacturing and distributing a controlled dangerous substance. James also admitted that on that date, he attempted to bring the loaded gun onto a flight from Newark to San Francisco. The gun was discovered during the X-Ray screening of James’s luggage before he could board the flight.
Both charges in the indictment carry a maximum potential penalty of 10 years in prison. Sentencing is scheduled for Dec. 12, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
Middlesex County Man Charged with Illegally Importing Scorpions and Other WildlifeRead the Press Release
NEWARK, N.J. – A Metuchen, New Jersey, man was arrested today for allegedly smuggling shipments of live protected scorpions, giant millipedes and other species that were mislabeled to avoid detection, including one package of millipedes that was labeled as children’s toys, U.S. Attorney Craig Carpenito announced.
Wlodzimie Lapkiewicz, 29, is charged by complaint with one count of smuggling wildlife and one count of false labelling of wildlife. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $50,000 unsecured bond.
According to the complaint:
Between July 2015 and July 2018, Lapkiewicz repeatedly engaged in the illegal importation and exportation of scorpions, giant millipedes, and other invertebrate species. On multiple occasions, Lapkiewicz imported emperor and dictator scorpions, both of which are listed in the Convention on International Trade in Endangered Species treaty as protected species.
Postal inspectors learned of Lapkiewicz’s illegal imports after they found live scorpions and giant millipedes that had escaped from a parcel originating from Tanzania while in transit to Lapkiewicz in July 2015.
The investigation revealed that Lapkiewicz participated and assisted others in intentionally mislabeling parcels of live wildlife to avoid detection, including labeling a shipment of multiple live giant millipedes as “Plush Toys for my Friends Child about to be born.” The investigation also revealed that Lapkiewicz used social media to arrange buyers for the scorpions, giant millipedes, and other invertebrates that he illegally imported.
The charge of wildlife smuggling carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of false labelling of wildlife carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Special Agent in Charge Honora Gordon, with the investigation leading to these charges. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, for their assistance.
The government is represented by Special Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark
Middlesex County Man Arrested and Charged with Attempting to Obtain United States Citizenship by FraudRead the Press Release
NEWARK, N.J. – Special Agents of the Department of Homeland Security, Homeland Security Investigations (HSI) arrested a Middlesex County, New Jersey, man this morning for allegedly trying to fraudulently obtain citizenship, U.S. Attorney Craig Carpenito announced.
Pal Singh, a/k/a “Surinder Singh,” a/k/a “Harpal Singh,” 66, an Indian national residing in Iselin, New Jersey, is charged by criminal complaint with one count of naturalization fraud and one count of making false statements under oath in connection with naturalization proceedings. He made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor and was released on $200,000 bond.
According to documents filed in this case and statements made in court:
In March 1992, Singh applied for admission into the United States as a tourist at Los Angeles International Airport by presenting an Indian passport that purported to contain an entry visa to the United States. Singh was refused admission into the United States because the entry visa was deemed fraudulent and he was detained pending exclusion proceedings. Singh later applied for asylum in the United States under his true name and was released on bond while his asylum claim was evaluated. In June 1993, an immigration judge in New York denied Singh’s asylum application and Singh was ordered to surrender for deportation. Singh failed to appear for his deportation as ordered.
In August 1995, Singh fraudulently applied for asylum in the United States under the identity of “Harpal Singh,” and claimed that he had entered the United States by crossing the United States-Mexico border in December 1994. Singh did not disclose that he had previously been denied asylum under his true identity – Pal Singh. In March 1996, an immigration judge denied Singh’s second asylum application and Singh was again ordered to surrender for deportation. Singh again failed to appear for his deportation as ordered.
In May 1996, Singh fraudulently applied for asylum in the United States under the identity of “Surinder Singh,” and claimed that he had entered the United States by crossing the United States-Mexico border in November 1995. Singh did not disclose that he had previously been denied asylum under his true identity and under the identity of Harpal Singh. This application further claimed that Surinder Singh had been beaten and tortured in India in 1994 despite the fact that Singh had been living in the United States at the time under his true identity. In June 1996, the Immigration and Naturalization Service granted Singh’s third asylum application in the name of “Surinder Singh” based on fraudulent information provided by Singh.
In December 2015, Singh filed an Application for Naturalization, Form 400-N, with the U.S. Department of Homeland Security under the identity of Surinder Singh. He falsely answered questions relating to his identity, his prior immigration applications, and his immigration status. In May 2018, Singh appeared under the name of Surinder Singh before an officer of the Department of Homeland Security in Newark for an interview in connection with his application. The interview was audio and video recorded, and Singh was placed under oath. Singh was also assisted by counsel and by a Punjabi interpreter. Singh falsely answered additional questions relating to his identity, his prior immigration applications, and his immigration status.
A qualified fingerprint examiner from the U.S. Department of Homeland Security’s Biometric Support Center compared fingerprints taken of Singh when he initially attempted to enter the United States in March 1992 to fingerprints taken in the names of Harpal Singh and Surinder Singh in connection with the above-described immigration proceedings. The fingerprint examiner concluded that the same individual made all of the fingerprints
The naturalization fraud charge carries a maximum potential sentence of 10 years in prison. The false statements charge carries a maximum potential sentence of five years imprisonment.
U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to the arrest.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Thomas Kearney of the U.S Attorney’s Criminal Division in Newark.
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Defense counsel: Adalgiza A. Nunez Esq., Newark
Jersey City Man Admits Scamming Investors of $3.4 MillionRead the Press Release
NEWARK, N.J. – A Jersey City man today admitted that he swindled two investors of $3.4 million by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Craig Carpenito announced.
Antonio Fasolino, 62, entered a guilty plea before U.S. District Judge Michael Vazquez in Newark federal court to all four counts of indictment charging him with three counts of wire fraud and one count of transacting in criminal proceeds. Judge Vazquez deferred acceptance of the guilty plea until sentencing, which is scheduled for Jan. 11, 2019.
According to the documents filed in this case and statements made in court:
Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino obtained approximately $3.4 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil.
In fact, there were never any such contracts. Fasolino supplied the victims with altered bank statements and spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Each charge in the indictment is also punishable by a potential $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 Ehrie in Newark, and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s plea.
The government is represented by Executive Assistant U.S. Attorney Zach Intrater and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.
Defense counsel: Chester Keller Esq., Newark
Deputy Leader of Violent Grape Street Crips Gang Sentenced to 45 Years in Prison for Murder, Attempted Murders, Plot to Kill Witness, as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – The second-in-command of the New Jersey set of the Grape Street Crips street gang was sentenced today to 540 months in prison for his role in committing a murder, participating in numerous attempted murders, plots to kill a state witness and to kidnap a heroin trafficker, and conspiring to distribute heroin, all as part of a racketeering conspiracy, U.S. Attorney Craig Carpenito announced.
Kwasi Mack, a/k/a “Welches,” 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to eight counts of the sixth superseding indictment, which charged him with murder and attempted murders as part of a RICO conspiracy, assaults with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon, and conspiracy to distribute one kilogram or more of heroin.
According to documents filed in this case and statements made in court:
Mack admitted that as the second-in-command of the NJ Grape Street Crips he committed the following violent acts in furtherance of the RICO conspiracy:
- In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.
- On Oct. 10, 2011, during an outdoor cookout, Mack used an assault rifle to attempt to kill a gang-member who had previously cooperated in a murder investigation and whose loyalty to the gang was in question. Mack shot eight individuals, at least two of whom suffered permanent or life-threatening injuries.
- After being charged by the Essex County Prosecutor’s Office with the Oct. 10, 2011, attempted murder, Mack was provided during the discovery process with the identity of the only witness against him. Mack ordered fellow gang-members to kill that witness. Gang-members took substantial steps to carry out Mack’s orders, but the murder never took place.
- In 2013, Mack and others planned to kidnap a major heroin-trafficker in order to rob him.
- On Oct. 5, 2013, Mack ordered the murder of a person identified in the indictment as “Victim-1.” On Oct. 27, 2013, following Mack’s orders, several gang-members repeatedly shot Victim-1 and Victim-4.
- On Oct. 7, 2013, Mack and others participated in the attempted murder of rival gang-members in retaliation for the murder of a fellow gang-member.
Mack also admitted to participating in a conspiracy to distribute one kilogram or more of heroin, possessing firearms in furtherance of the RICO and narcotics conspiracies, using minors to commit these offenses, and engaging in these offenses as a pattern of criminal conduct engaged in as a livelihood.
In addition to the prison term, Judge Arleo sentenced Mack to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, for the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Criminal Division, and Richard J. Ramsay of the Office’s Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Ocean County Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Toms River man today admitted distributing images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.
David Nelson, 44, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with distribution of child pornography.
According to documents filed in this case and statements made in court:
As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995,” which was later revealed to be Nelson. Nelson was arrested April 9, 2018.
Nelson admitted today that between Oct. 24, 2017 and Oct. 26, 2017, he used his Kik account under the user name “candicesloan1995” to transmit at least 26 images of child pornography to another Kik user. Nelson also admitted that he was an administrator of multiple Kik chat rooms in which child pornography was shared and discussed.
The distribution charge carries a minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 19, 2018.
U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Special Agent in Charge Gregory Ehrie in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge Timothy Slater in Detroit, with the investigation. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
New York Man Admits Robbing, Attempting to Burglarize Four New Jersey BanksRead the Press Release
TRENTON, N.J. – A Manhattan man today admitted robbing banks in Jackson Township, Fort Lee, and Hasbrouck Heights, as well as attempting to burglarize a fourth bank in Englewood between December 2013 and February 2017, U.S. Attorney Craig Carpenito announced.
Eddy Cruz, 42, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with three counts of bank robbery and one count of attempted bank burglary.
According to documents filed in this case and statements made in court:
On Dec. 24, 2013, Cruz entered a PNC Bank in Jackson Township and handed a bank teller a note demanding money. After the teller handed him some cash, Cruz fled the scene. Cruz also robbed a TD Bank in Fort Lee on Feb. 13, 2017 and a TD Bank in Hasbrouck Heights on Feb. 18, 2017. During both robberies, Cruz wore a mask to disguise his identity and handed the tellers notes demanding cash.
On Feb. 24, 2017, law enforcement officers tracked Cruz’s car, which had been spotted at one of the earlier bank robberies, to a location in Manhattan. That same day, Cruz drove to yet another TD Bank in Englewood where he was apprehended moments before he robbed the bank in a similar disguise to what he wore during the previous two bank robberies.
The bank robbery and attempted bank burglary counts each carry a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 27, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory Ehrie in Newark and Special Agent in Charge John Brosnan in New York; the Bergen County Prosecutor’s Office, under the direction of Acting Prosecutor Dennis Calo; the Fort Lee Police Department, under the direction of Chief Keith M. Bendul; the Hasbrouck Heights Police Department, under the direction of Chief Michael J. Colaneri; the Roxbury Police Department, under the direction of Chief Marc Palanchi; the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg; and the Jackson Township Police Department, under the direction of Chief Matthew Kunz, with the investigation leading to today’s guilty plea. He also thanked the Greenburgh, New York, Mount Pleasant, New York, and Yonkers, New York, police departments, as well as the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark
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Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Middlesex County, New Jersey, Man Admits Role in Credit Card Fraud and Aggravated Identity Theft ConspiracyRead the Press Release
TRENTON, N.J. – A North Brunswick, New Jersey, man today admitted his role in a conspiracy to hijack the credit card accounts of multiple victims in order to fraudulently purchase hundreds of thousands of dollars in high-end products, U.S. Attorney Craig Carpenito announced.
Henry Abdul, 31, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Between October 2015 and January 2018, Abdul, Alexus Omowole, 22, also of North Brunswick, and others participated in a conspiracy to obtain control of credit card accounts by, among other things, contacting the relevant financial institution and posing as the account owner in order to change the personal information associated with the customer accounts, including the residential address, email address, and telephone number.Afterwards, members of the conspiracy opened new accounts or ordered replacement cards to be shipped to them without the customers' knowledge or authorization. Abdul’s prior residential address in Newark was used as part of the conspiracy. Afterwards, Abdul, Omowole and others used the compromised credit card accounts to purchase high-value items, including smartphones, tablets, and other electronic devices.
As part of his plea agreement, Abdul admitted that the scheme caused between $250,000 and $550,000 in losses, and involved more than 10 separate victims.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must run consecutive to any other term of imprisonment imposed. Sentencing is scheduled for Nov. 28, 2018.On May 21, 2018, Omowole pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft. She is scheduled to be sentenced on Sept.10, 2018.
U.S. Attorney Carpenito credited postal inspectors with the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Judy Ramos, and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and David M. Eskew, Chief of U.S. Attorney’s Office Health Care and Government Fraud in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark