District of New Jersey
Press releases recorded for this federal judicial district.
Pennsylvania Woman Charged with Stealing $160,000 in Social Security Benefits, Federal Student Financial AidRead the Press Release
TRENTON, N.J. – An Allentown, Pennsylvania, woman was arrested this morning for allegedly stealing $136,879.24 in social security benefits and over $23,000 in federal student financial aid, U.S. Attorney Craig Carpenito announced.
Martha Aguilar, 56, a former resident of Middletown, New Jersey, is charged by indictment with one count each of theft of government funds, social security fraud, false statements in furtherance of social security fraud, and student loan fraud. She will appear this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to the indictment:
From November 2004 to January 2015, Aguilar collected approximately $136,879.24 in social security benefits that she was not entitled to receive. During that time, Aguilar indicated in forms to the Social Security Administration (SSA) that she was completely disabled and unable to work.
However, Aguilar regularly worked during that 10-year time period as a paralegal for various law firms and attorneys. Aguilar also fraudulently applied for and received temporary disability from the state of New Jersey totaling $13,622 and unemployment benefits from the state of New Jersey totaling $103,738, all of which she concealed from the SSA. Overall, Aguilar failed to report over $470,000 in benefits and income she received from November 2004 to January 2015.
In addition, Aguilar falsified her son's applications for federal student financial aid by indicating she had no income other than social security benefits. As a result, her son was given $23,195 in federal financial aid that he was not entitled to receive.
The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. The false statement and social security fraud counts are each punishable by a maximum potential penalty of five years in prison and a $250,000 fine. The student loan fraud count is punishable by a maximum potential penalty of five years in prison and a $20,000 fine.
U.S. Attorney Carpenito credited special agents of the SSA, Office of the Inspector General, under the direction of John F. Grasso; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the New Jersey Department of Labor & Workforce Development, Division of Fraud Prevention & Risk Management-Special Investigations Unit, with the investigation.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Newark Man Charged with Firearms Offenses in Connection with Shooting of 5-Year Old ChildRead the Press Release
NEWARK, N.J. – A Newark man made an initial appearance in federal court today on charges of being a convicted felon in possession of a handgun, U.S. Attorney Craig Carpenito announced.
Jamar Battle, 30, was charged by complaint Aug. 10, 2018, with one count of being a convicted felon in possession of a firearm and ammunition. He was arrested on Aug. 11, 2018, and appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and ordered detained.
According to the complaint filed in the case:
On July 4, 2018, Battle, who was convicted in 2015 for illegally possessing a firearm, fired a handgun on Avon Avenue in Newark after engaging in a verbal dispute with another person. While the defendant did not hit his intended target, he did hit a 5-year-old child who had been walking down the same street with her father. The child was injured and required medical treatment.
The charge of being a felon in possession of a weapon carries a maximum potential penalty of 10 years in prison and a fine of up to $250,000.
U.S. Attorney Carpenito credited law enforcement officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco and Firearms, under the direction of Special Agent in Charge John B. Devito; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel Robert Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Violent Crimes 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.
Fourth Defendant Sentenced to 18 Months in Prison for Defrauding Clifton-Based Trucking Company of More Than $900,000Read the Press Release
NEWARK, N.J. – A Clifton, New Jersey, woman was sentenced today to 18 months in prison for her role in a scheme to defraud a New Jersey-based trucking company of more than $900,000, U.S. Attorney Craig Carpenito announced.
Lisa Popewiny, 56, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging her with wire fraud. Brothers Miguel Vidal, Angel D. Vidal, and Angel Gabriel Vidal previously pleaded guilty to wire fraud charges for their roles in the scheme. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in Court:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, and the Vidals, including Miguel Vidal – a former truck driver for the Company – engaged in a scheme to defraud the company of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the fraudulent paychecks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could falsely add them to the payroll. Popewiny input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
In addition to the prison term, Judge Arleo sentenced Popewiny to three years of supervised release and ordered to pay $920,379 in restitution and $735,591 in forfeiture.
U.S. Attorney Carpenito credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Cari Fais, of the Special Prosecution Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Assistant Attorney General Benczkowski Announces Newark/Philadelphia Regional Medicare Fraud Strike ForceRead the Press Release
NEWARK, N.J. – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force (Regional Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Justice Department’s Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for the District of New Jersey and the Eastern District of Pennsylvania, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA).
Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Craig Carpenito for the District of New Jersey; U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General Gary Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John Martin of the DEA.
“The devastation the opioid epidemic is inflicting on communities across the country and here in the Mid-Atlantic region is staggering—and health care fraud has played a role in feeding that epidemic,” said Assistant Attorney General Benczkowski. “It is estimated that each year tens of billions of dollars in American taxpayer money are lost to fraud, waste, abuse and improper payments. According to the CDC, in 2016, more than 40 percent of all U.S. opioid overdose deaths involved a prescription opioid. Our Medicare Fraud Strike Forces, which we have now expanded into Newark and Philadelphia, constitute one of our most important and effective means for containing these threats to the American people.”“New Jersey is home to some of the best healthcare facilities and most successful pharmaceutical companies in the country,” U.S. Attorney Carpenito said. “Unfortunately, that also means that we offer substantial targets for those who would try to defraud the health care system or try to profit from the misery of people battling addiction to opioids. We’ve already developed one robust unit to go after these criminals, the Healthcare & Government Fraud Unit, and I added another, the Opioids Unit, in February upon rejoining the office as U.S. Attorney. The arrival of the Medicare Fraud Strike Force in our District will serve as an additional force-multiplier and enable us to do even more of these cases, further protecting the citizens of New Jersey from this kind of fraud and abuse.”
“Medicare fraud costs our government billions of dollars,” Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office said. “The Medicare Strike Force will aggressively target waste, fraud and abuse in federal health care programs ameliorating the intolerable burden on the taxpayer and Health Care System.”
“The proven-effective Strike Force model combining specialized investigators and prosecutors will no doubt be highly successful in the ongoing fight against health care fraud in the District of New Jersey,” said Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We look forward to working closely with the U.S. Attorney’s Office, Justice Department’s Criminal Division, FBI, DEA, and other law enforcement partners to protect taxpayer-funded federal health care programs and the millions who rely on those benefits.”
“The Newark/Philadelphia Regional Medicare Fraud Strike Force is a great opportunity for collaboration with our partners to share vital information,” Valerie A. Nickerson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division said. “This Strike Force can be an effective tool to combat these crimes by combining the resources of the agencies that are responsible for detecting, enforcing and prosecuting violations of these regulations and laws.”
Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 10 cities across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C. The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.
The Regional Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the U.S. Attorney’s Offices for the District of New Jersey and Eastern District of Pennsylvania, and special agents with the FBI, HHS-OIG and DEA. In addition, the Regional Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units. The Strike Force will focus its efforts on aggressively investigating and prosecuting cases involving fraud, waste, and abuse within our federal health care programs, and cases involving illegal prescribing and distribution of opioids and other dangerous narcotics.
In June, Attorney General Jeff Sessions and HHS Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.
The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the prosecutors in the 10 Medicare Fraud Strike Force locations have charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.
Previously Convicted Bank Robber Thwarted by Law Enforcement During Cedar Grove Bank Robbery AttemptRead the Press Release
NEWARK, N.J. – A Hoboken man was arrested today while allegedly trying to rob a Cedar Grove bank, U.S. Attorney Craig Carpenito announced.
Frank Meletti, 53, is charged by complaint with one count of attempted bank robbery. He will appear in Newark federal court at a later date.
According to the complaint:
Meletti was previously convicted of bank robbery in June 2009 in the District of New Jersey. He was sentenced to 120 months in prison and five years of supervised release.
In early August 2018, Meletti allegedly asked another individual to act as the getaway driver for an upcoming bank robbery and provided the individual with details about the plan, including the name of the target bank and where to park during the robbery.
On Aug. 9, 2018, Meletti and the other individual went to the Investors Bank in Cedar Grove to investigate whether the bank had an armed guard or other security. Meletti instructed the other individual to pick him up for the bank robbery the following morning.
Earlier today, the individual picked up Meletti at the agreed upon time and asked Meletti if he was sure that he wanted to go through with the plan. Meletti responded affirmatively. During the ride to Cedar Grove, Meletti drafted numerous versions of a demand note that he would use for the robbery.
At approximately 10 a.m., Meletti exited the vehicle from a parking lot adjacent to the bank. He was wearing dark sunglasses, a black hat, and a black sweatsuit, and carrying a bag to hold proceeds from the robbery.
Meletti approached the front entrance to the Investors Bank and attempted to open the exterior door, tugging on it several times and attempting to look through the windows, whereupon he was arrested. The final version of the demand note was recovered from his person and read, “Place money in bag. No dye. No cops. No alarms.”
The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge John B. Devito, with the investigation leading to today’s arrest. He also thanked the Verona and Cedar Grove Police Departments for their assistance.
The government is represented by Assistant U.S. Attorney Matt Feldman 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.
Union County Man Sentenced to 17 Years in Prison for Armed Crime Spree of Bank Robberies; Carjackings, and HostageRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 204 months in prison for robbing seven banks – and attempting to rob an eighth bank while brandishing a firearm – committing one carjacking and attempting to commit three additional carjackings, and taking a hostage at gunpoint while fleeing, U.S. Attorney Craig Carpenito announced.
Marlon Peek, 42, of Plainfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to Counts One through 11, 13, 15, and 17 of an indictment. The counts include: seven counts of bank robbery, one count of carjacking, one count of attempted bank robbery with a dangerous weapon, one count of use and brandishing of a firearm during a crime of violence, three counts of attempted carjacking, and one count of forced accompaniment in attempting to avoid apprehension for the attempted armed bank robbery.
Peek robbed or attempted to rob the following New Jersey banks:
Bank
Location
Date
TD Bank
Edison, New Jersey
March 17, 2015
Magyar Bank
Edison, New Jersey
March 31, 2015
Investors Bank
Dunellen, New Jersey
April 9, 2015
Wells Fargo Bank (aiding and abetting)
South Plainfield, New Jersey
April 14, 2015
Unity Bank
Middlesex Borough, New Jersey
April 15, 2015
PNC Bank
South Plainfield, New Jersey
April 21, 2015
TD Bank
Springfield, New Jersey
April 21, 2015
Bank of America (armed attempt)
Linden, New Jersey
May 6, 2015
According to documents filed in this case and statements made in court:
From March 2015 to May 2015, Peek and others committed a string of crimes. At each bank, Peek presented a note demanding cash from bank tellers, including, on at least six occasions, statements that he had a gun and would shoot. During the robbery of the TD Bank in Edison, New Jersey, on March 17, 2015, Peek handed a teller a note that read, in part, “I have gun will shoot to kill you have 3 seconds.” In the course of the attempted robbery of the Bank of America, Peek pointed a loaded firearm directly at a bank teller.
Peek admitted that he committed a carjacking in Plainfield, New Jersey, on April 21, 2015, between robbing the PNC Bank and the TD Bank that day, and that he committed three attempted carjackings using a loaded firearm directly after attempting to rob the Bank of America in Linden on May 6, 2015. He also admitted that in attempting to flee from the attempted robbery of the Bank of America, he entered a warehouse, took a hostage, held a loaded gun to the hostage’s head, and forced the hostage to accompany him. Law enforcement officers arrived on the scene and ordered Peek to drop his gun. Peek then surrendered his weapon and was arrested.
In addition to the prison term, Judge Hayden sentenced Peek to five years of supervised release and ordered him to pay restitution of $21,598.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Linden Police Department, under the direction of Chief David Hart; the Edison Police Department, under the direction of Chief Thomas Bryan; the Dunellen Police Department, under the direction of Chief Jeffrey E. Nelson; the South Plainfield Police Department, under the direction of Chief James Parker; the Middlesex Police Department, under the direction of Chief Matthew P. Geist; the Plainfield Police Department, under the direction of Director Carl Riley; and the Springfield Police Department, under the direction of Chief John Cook with the investigation leading to today’s guilty plea. U.S. Attorney Carpenito also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their assistance.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Alyssa A. Cimino Esq., Fairfield, New Jersey
Former Convergex Global Markets CEO Pleads Guilty in New Jersey for Role in Securities and Wire Fraud SchemeRead the Press Release
WASHINGTON – The former Chief Executive Officer of ConvergEx Global Markets Limited (CGM Limited) pleaded guilty this afternoon in federal court in Newark, New Jersey for his role in a scheme to commit securities and wire fraud from 2006 through 2011.
Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) made the announcement.
Anthony Blumberg, 53, of Short Hills, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares of the District of New Jersey, in Newark, to one count of conspiracy to commit securities and wire fraud. Sentencing has been scheduled for Dec. 5 before Chief Judge Linares.
According to court documents, CGM Limited was a wholly owned subsidiary of ConvergEx Group LLC (“ConvergEx Group”). As part of his plea today, Blumberg admitted that clients placed orders to buy or sell securities with G-Trade Services LLC and ConvergEx Limited, subsidiaries of ConvergEx Group that offered global trading services to clients, which in turn routed orders to CGM Limited. Blumberg also admitted that traders at CGM Limited executed the orders and sometimes added a “spread,” (a mark-down on the sale of a security or a mark-up on the purchase of a security) to the prices they had obtained for non-fiduciary clients. To hide the fact that spread had been taken, on several occasions from 2007 to 2011, Blumberg and traders acting under his direction, acting in response to requests by clients for information that could reveal the existence of spread, sent false reports (known as time and sales reports) to these clients. The false time and sales reports contained fabricated details regarding the individual transactions, or “fills,” executed during the course of a day to complete a client’s orders, including false information concerning the number of shares involved in a fill, the time at which the fill was executed, and the price at which shares were either purchased or sold.
Blumberg also admitted that he and his co-conspirators agreed to violate a client’s instructions to provide real-time transactional data through an immediate data feed with details of trades that CGM Limited executed for the client by providing “batch fills” that hid the actual information the client sought.
Blumberg is the fourth individual to plead guilty as a result of the investigation into ConvergEx Group and CGM Limited’s practices. On Dec. 18, 2013, CGM Limited pleaded guilty to conspiracy to commit securities and wire fraud before Judge Linares. On the same day, ConvergEx Group entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C. and New York offices of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorney Gary A. Winters and Assistant Chief Justin D. Weitz of the Criminal Division’s Fraud Section and by Assistant U.S. Attorney Paul Murphy, Chief of the U.S. Attorney’s Office for the District of New Jersey Economic Crimes Unit in Newark. The Department appreciates the substantial assistance of the Securities and Exchange Commission.
Former Convergex Global Markets CEO Pleads Guilty for Role in Securities and Wire Fraud SchemeRead the Press Release
NEWARK, N.J. - The former Chief Executive Officer of ConvergEx Global Markets Limited (CGM Limited) pleaded guilty this afternoon in Newark federal court for his role in a scheme to commit securities and wire fraud from 2006 through 2011.
U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, and Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) made the announcement.
Anthony Blumberg, 53, of Short Hills, New Jersey, pleaded guilty before Chief U.S. District Judge Jose L. Linares to Count One of a superseding indictment charging him with conspiracy to commit securities and wire fraud. Sentencing is scheduled for Dec. 5, 2018
According to court documents, CGM Limited was a wholly owned subsidiary of ConvergEx Group LLC (ConvergEx Group). As part of his plea today, Blumberg admitted that clients placed orders to buy or sell securities with G-Trade Services LLC and ConvergEx Limited, subsidiaries of ConvergEx Group that offered global trading services to clients, which in turn routed orders to CGM Limited. Blumberg also admitted that Traders at CGM Limited executed the orders and sometimes added a “spread,” (a mark-down on the sale of a security or a mark-up on the purchase of a security) to the prices they had obtained for non-fiduciary clients.
To hide the fact that spread had been taken, on several occasions from 2007 to 2011, Blumberg and traders acting under his direction, acting in response to requests by clients for information that could reveal the existence of spread, sent false reports (known as “time and sales reports”) to these clients. The false time and sales reports contained fabricated details regarding the individual transactions, or “fills,” executed during the course of a day to complete a client’s orders, including false information concerning the number of shares involved in a fill, the time at which the fill was executed, and the price at which shares were either purchased or sold.
Blumberg also admitted that he and his conspirators agreed to violate a client’s instructions to provide real-time transactional data through an immediate data feed with details of trades that CGM Limited executed for the client by providing “batch fills” that hid the actual information the client sought.
Blumberg is the fourth individual to plead guilty as a result of the investigation into ConvergEx Group and CGM Limited’s practices. On Dec. 18, 2013, CGM Limited pleaded guilty to conspiracy to commit securities and wire fraud before Judge Linares. On the same day, ConvergEx Group entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.
The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C. and New York offices of the USPIS. The case is being prosecuted by Trial Attorney Gary A. Winters and Assistant Chief Justin D. Weitz of the Criminal Division’s Fraud Section and by Assistant U.S. Attorney Paul Murphy, Chief of the U.S. Attorney’s Office Economic Crimes Unit in Newark. The Department appreciates the substantial assistance of the Securities and Exchange Commission.
18-265
Defense counsel: Seth L. Levine Esq., New York
Social Security Administration Employee Charged in Scheme to Steal Disability Benefits PaymentsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man employed with the Social Security Administration (SSA) was arrested today for unlawfully accessing the Social Security accounts of individuals and falsifying their records in order to steal government funds for his own use, U.S. Attorney Craig Carpenito announced.
Nicholas Pao, 37, of Egg Harbor Township, New Jersey, was charged by criminal complaint with one count of theft of government funds and five counts of aggravated identity theft. He is scheduled to appear today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
Pao was a 10-year employee of the SSA who worked as a claims technical expert in the Egg Harbor Township office, responsible for determining eligibility and payment amounts, processing difficult cases, assisting in case reviews, and making special payment approvals. From December 2014 to July 2018, Pao allegedly used his SSA credentials to access the confidential records of several individuals without their knowledge or authority. Pao would alter their records and make fraudulent changes that caused the SSA to issue Social Security benefits to these individuals. He then allegedly intercepted these benefits, which were issued by way of a Direct Express account and credit card and used the money without the knowledge or consent of the individuals. Pao has allegedly stolen $99,967 in Social Security funds.
The count of theft of government funds is punishable by a maximum potential penalty of 10 years in prison. The counts of aggravated identity theft are each punishable by a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of theft of government funds. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.
Anyone who believes they might have been the victim of this scheme is asked to call the SSA Office of the Inspector General at (888) 487-9917.
U.S. Attorney Carpenito credited special agents of the SSA, Office of the Inspector General, under the direction of John F. Grasso, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the Criminal Division, Trenton.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Hoboken Man Charged with Secretly Photographing Minor on A Cruise ShipRead the Press Release
NEWARK, N.J. – A Hoboken man was arrested for allegedly using his cell phone to take a picture underneath a girl’s dress, U.S. Attorney Craig Carpenito announced.
Jeffrey Goldstein, 31, was arrested July 31, 2018 and charged by complaint with one count of violating a voyeurism statute that prohibits photographing a minor’s private area without consent when that individual has a reasonable expectation of privacy. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $25,000 unsecured bond.
According to the complaint:
On July 8, 2018, a cruise ship left Bayonne for Bermuda. Goldstein was a passenger. That evening, a thirteen-year old girl was standing on the deck of the cruise ship facing outward toward the water.
Goldstein allegedly approached the victim and, without her permission, placed his iPhone underneath the skirt of her dress, pointed the camera upward towards the victim’s genitalia and buttocks and took a picture. The victim felt something touch her leg. Goldstein moved to the side of the victim and soon walked away.
A nearby adult saw Goldstein take a photo up the victim’s dress. Cruise ship personnel reviewed surveillance footage of the incident, which confirmed the witness’s account and identified Goldstein as the man in the footage.
Pursuant to a search warrant, the FBI later downloaded the contents of Goldstein’s iPhone and found the photo of the girl, along with several other “up-skirt” images.
Goldstein faces a maximum potential penalty of one year in prison and a $100,000 fine.
The federal government has special maritime jurisdiction. U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Matt Feldman 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: Donald M. Lomurro Esq., Freehold, New Jersey.
Former Financial Advisor Charged with Fraud in Alleged Ponzi Scheme Targeting Elderly InvestorsRead the Press Release
NEWARK, N.J. – A former registered investment advisor was arrested today on charges stemming from an investment fraud targeting elderly investors, U.S. Attorney Craig Carpenito announced.
Daniel Rivera, 48, of Hillsborough, New Jersey, was indicted by a federal grand jury on July 31, 2018, on three counts of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the indictment:
From 2008 through 2017, Rivera allegedly engaged in an investment fraud where he solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera told investors the company was staffed by experienced real estate professionals who used investor funds to invest in real estate ventures. Rivera allegedly told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera allegedly also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.
The counts of wire fraud with which Rivera is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrimes Unit in Newark.
Cardiologist Gets 20 Months in Prison for Billing Veterans Affairs for Hundreds of Bogus Medical ProceduresRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man was sentenced today to 20 months in prison for defrauding the Veterans Affairs program by billing for services he never performed, U.S. Attorney Craig Carpenito announced.
Apostolos Voudouris, 44, previously pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with health care fraud. Voudouris also entered into a civil settlement agreement with the government, under which he will pay $476,460 to resolve the government’s claims under the False Claims Act.
According to the documents filed in the case and statements made in court:
Voudouris is a physician specializing in cardiology and electrophysiology. Beginning in 2006, Voudouris provided services to eligible veterans at the Veterans Affairs Medical Center in East Orange, New Jersey, pursuant to his contract with the Department of Veterans Affairs (VA). Voudouris admitted that on more than 350 occasions between 2011 and 2015, he submitted documentation to the VA claiming to have performed procedures he never performed. As a result, Voudouris fraudulently received $238,230 from the VA.
In addition to the prison term, Judge Walls sentenced Voudouris to two years of supervised release and fined him $7,500. As part of his plea agreement, Voudouris must pay restitution of $238,230 to the VA in addition to the $476,460 civil settlement, for a total of $714,690.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Sean Smith; the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.The government is represented by Assistant U.S. Attorney Jacob T. Elberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kristen Santillo Esq., Newark
Camden Man Sentenced to 80 Months in Prison for Firearm OffenseRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 80 months in prison for possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Anthony Thomas, 27, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an indictment charging him with one count of possession of a firearm as a convicted felon. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Thomas, a previously convicted felon, was arrested Aug. 13, 2017, by the Camden County Police Department after officers observed him displaying a handgun to a second man. Shortly before, Thomas had retrieved the handgun from underneath the front passenger seat of a vehicle that two young children had been entering and exiting as they played nearby. After displaying the handgun to the second man, Thomas, the second man and both children entered the vehicle. Police approached and directed Thomas and others to exit the vehicle. Thomas fled on foot and was apprehended a short time later. A search of the vehicle revealed a loaded, Glock Model 17, 9mm handgun beneath the seat where Thomas had been sitting.
In addition to the prison term, Judge Bumb sentenced Thomas to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the ATF Camden Field Office, under the direction of Special Agent in Charge John Devito, and the Camden County Police Department, under the direction of Chief J. Scott Thomson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Thomas J. Young Esq., Assistant Federal Public Defender, Camden
Illegal Alien Arrested for Unlawfully Returning to the United States After Prior Drug ConvictionsRead the Press Release
NEWARK, N.J. – A man from the Dominican Republic who was previously convicted of federal and state drug crimes made his initial court appearance today on charges he unlawfully returned to the United States, U.S. Attorney Craig Carpenito announced.
Francisco Nicholas Brito, a/k/a “Nicholas Brito,” a/k/a “Jose,” 51, is charged by complaint with one count of aggravated illegal re-entry into the United States. He made his initial appearance before U.S. Magistrate Court Judge James B. Clark III and was detained.
According to documents filed in this case and statements made in court:Brito illegally re-entered the United States after being deported to the Dominican Republic following a 46-month prison sentence in the Eastern District of Pennsylvania and a five-year prison sentence in New Jersey for committing drug crimes. After his deportations, Brito illegally re-entered the country and was found in New Jersey, where he was located and arrested in June 2018.
The count of illegal re-entry carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited deportation officers of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office’s National Security 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: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Guilty Verdict Against New York Man for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Yonkers, New York, man was convicted by a federal jury of possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced today.
Francisco Vallejo, 28, was convicted of possessing a firearm despite his three prior felony convictions in Passaic County Superior Court. Vallejo was convicted on July 26, 2018 following a four-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and the evidence at trial, on June 7, 2015, Vallejo was arrested in Passaic, New Jersey, after reports of a disturbance and gunshots were made to the Passaic Police Department. Responding officers detained Vallejo on the street, and thereafter located a loaded .25 caliber firearm in a nearby garbage can. A nearby security camera captured Vallejo stashing the firearm in the garbage can, and he was later found to have gunpowder residue on his hands.
Vallejo faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 5, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge John B. Devito, officers of the Passaic Police Department, under the direction of Chief of Police Luis A. Guzman, and officers of the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney J. Brendan Day and Senior Litigation Counsel R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Pasquale Giannetta Esq., Newark
Former New Jersey Corrections Officer Pleads Guilty to Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A former officer with the N.J. Department of Corrections today admitted receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Stephen Salamak, 38, of Lodi, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with receipt of child pornography.
According to documents filed in the case and statements made in court, Salamak used email to seek and obtain images of child pornography, including images of prepubescent children.
The receipt of child pornography charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Salamak will be required to register as a sex offender. Sentencing is currently scheduled for Nov. 15, 2018.U.S. Attorney Carpenito credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Brian Neary Esq., Hackensack, New Jersey
Essex County Man Gets 12 Years in Prison for Possessing Firearm as Previously Convicted FelonRead the Press Release
CAMDEN, N.J. – A Newark man was sentenced today to 144 months in prison for possessing a firearm as a previously convicted felon for a second time and violating his supervised release, U.S. Attorney Craig Carpenito announced.
John Cottle, 47, previously pleaded guilty to an information charging him with one count of being a felon in possession of a firearm and one count of violation of supervised release from his first felon in possession of a firearm conviction from 2010. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In December 2016, investigators from the Newark and Hillside police departments responded to reports of a robbery in the area of South 13th Street, near Avon Avenue, in Newark. Officers encountered Cottle in the area and upon investigation found him to be in possession of a loaded .40 caliber Glock semi-automatic handgun.
Cottle has numerous prior felony convictions, including a 2010 felon in possession of a firearm conviction in the District of New Jersey – from which he was still on supervised release at the time of the 2016 arrest – and is prohibited from possessing a firearm under federal law.
Judge Hillman also sentenced Cottle 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. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino; the Newark Police Division, under the direction of Public Safety Director Anthony F. Ambrose; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan; and the Hillside Police Department, under the direction of Chief of Police Vincent Ricciardi, for their assistance.The government is represented by Executive Assistant U.S. Attorney Zach Intrater.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, CamdenCliffside Park, New Jersey, Man Charged with Distributing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Cliffside Park, New Jersey, man was arrested by federal agents today for allegedly distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
George Karkantzelis, 27, was arrested at his home by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). He is charged by complaint with one count of distributing child pornography.
According to documents filed in this case and statements made in court:
Karkantzelis used peer-to-peer file sharing on his computer to distribute files containing images and videos of child sexual abuse, including images of prepubescent children. He made his initial appearance today before U.S. Magistrate Court Judge Steven C. Mannion and was released into third-party custody.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Craig Carpenito credited HSI special agents, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Andrew Macurdy of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
South Carolina Man Admits Distribution of Child PornographyRead the Press Release
CAMDEN, N.J. – A South Carolina man today admitted his role in distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Rashad Russell, 28, of Bennettsville, South Carolina, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with one count of distribution of child pornography. Russell was previously arrested and charged by complaint on March 13, 2018, and was indicted on April 6, 2018.
According to documents filed in this case and statements made in court:
Between December 2017 and March 2018, Russell contacted a law enforcement officer working in an undercover capacity through Facebook messenger. The undercover officer’s Facebook profile purported to be a young mother living in New Jersey with an 8-year-old child. On Jan. 8, 2018, Russell sent two images and one video of child pornography to the undercover officer, including images of prepubescent children being sexually abused.
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 Oct. 29, 2018.U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael, with the investigation leading to today’s guilty plea.
The government is represented by Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender (Camden)
Philadelphia Man Sentenced to One Year and One Day in Prison for Role in Scheme to Steal and Cash Postal Money OrdersRead the Press Release
CAMDEN, N.J. – A Philadelphia, Pennsylvania, man was sentenced today to 12 months and one day in prison for his role in fraudulently cashing stolen U.S. Postal Service money orders, resulting in more than $22,000 in losses, U.S. Attorney Craig Carpenito announced.
Anthony J. Bell, 39, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued U.S. Postal Service money orders with intent to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.9
According to the documents filed in this case, other cases, and statements made in court:
Bell admitted that a former U.S. Postal Service employee, Marc. E Saunders, 39, of Sicklerville, New Jersey, provided Bell with stolen money orders and told him to recruit others to cash them. Bell admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money from the fraudulently cashed money orders for Saunders and himself. Bell also admitted he recruited an individual in York, Pennsylvania, to cash the money orders and paid the individual a small fee, keeping the rest of the money from the fraudulently cashed money orders for himself.
In addition to the prison term, Judge Rodriguez sentenced Bell to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the USPS, Office of the Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, CamdenOwner of Russian Import/Export Company Charged with Evading U.S. Export Controls by Smuggling Sensitive Electronics to Russian Military and Intelligence AgenciesRead the Press Release
NEWARK, N.J. – A resident and citizen of Russia was indicted by a federal grand jury today for his alleged role in an international procurement network that smuggled over $65 million worth of electronics from the United States to Russia in violation of export control laws, U.S. Attorney Craig Carpenito announced.
Alexander Brazhnikov Sr., 72, of Moscow, is charged by indictment with one count each of conspiracy to commit money laundering, conspiracy to smuggle goods from the United States, and conspiracy to violate the International Emergency Economic Powers Act (IEEPA). Brazhnikov Sr. is currently at large.
According to documents filed in this case and statements made in court:
Brazhnikov Sr. was the owner, chief executive officer, and principal operator of ABN Universal, a privately held Russian microelectronics import/export company in Moscow. His son, Alexander Brazhnikov Jr., 39, of Mountainside, owned and operated four New Jersey-based microelectronics export companies in Carteret, Mountainside, Union, and Manalapan.
Brazhnikov Sr. and Brazhnikov Jr. participated in a sophisticated procurement network that secretly acquired large quantities of electronic components from U.S. manufacturers and vendors and exported those parts to Russia on behalf of Russian business entities authorized to supply those parts to the Ministry of Defense of the Russian Federation, the Federal Security Service of the Russian Federation (FSB) and Russian entities involved in the design of nuclear warheads and other weapons.
As part of the scheme, Brazhnikov Sr., through his Moscow business, obtained initial requests for quotes for the U.S.-based electronics components from various Russian entities and sent these requests directly to U.S.-based vendors electronically or to his son for implementation. Brazhnikov Sr., Brazhnikov Jr., and others then used Brazhnikov Jr.’s New Jersey export companies to purchase the electronic components from the U.S.-based distributors and re-package them for shipment to Moscow.
In order to obscure the extent of the network’s procurement activities and avoid filing the necessary export control forms, Brazhnikov Sr., Brazhnikov Jr., and others routinely falsified the true end-users and value of the components they exported. Each shipment from the United States was sent to one of 12 false addresses or shell locations in Moscow established at Brazhnikov Sr.’s direction, re-directed to a central warehouse he and others controlled, and ultimately shipped to the end-users in Russia, including the Russian defense contracting firms.
The funds for these illicit transactions were obtained from various Russian purchasers and initially deposited into one of Brazhnikov Sr.’s primary accounts in Russia. In order to further conceal the actual customers and the source of the funds, disbursements for purchases were then made through one or more foreign accounts held by shell corporations in the British Virgin Islands, Latvia, Marshall Islands, Panama, Ireland, England, United Arab Emirates, and Belize, and ultimately into one of Brazhnikov Jr.’s U.S.-based accounts.
The money laundering conspiracy charge carries a maximum potential penalty of 20 years in prison and a $500,000 fine. The conspiracy to violate the IEEPA carries a maximum potential penalty of 20 years in prison. The charge of conspiracy to smuggle goods carries a potential penalty of five years in prison and a $250,000 fine.
Brazhnikov Jr. previously pleaded guilty to his role in the scheme and was sentenced June 30, 2016, to 70 months in prison.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York; and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorney David Recker of the Department of Justice National Security Division’s Counterintelligence and Export Control Section.
The charges and allegations contained in the indictment are merely accusations, and Brazhnikov Sr. is considered innocent unless and until proven guilty.
Bergen County, New Jersey, Man Admits Role in Multiple Bank Robberies and Robberies of Liquor Store and Gas StationRead the Press Release
NEWARK, N.J. – An Oradell, New Jersey, man today admitted robbing four banks, a liquor store, and a gas station between June 2017 and December 2017, U.S. Attorney Craig Carpenito announced.
Joel Robbins, 47, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with four counts of bank robbery and two counts of Hobbs Act robbery.According to documents filed in this case and statements made in court:
Robbins robbed the following locations on the dates set forth below:
Bank
Location
Date
Chase Bank
Whippany
June 6, 2017
Santander Bank
Parsippany
July 20, 2017
The Liquor Factory
Hopatcong
October 15, 2017
Chase Bank
Edgewater
October 25, 2017
Raceway Gas Station
Pinebrook
November 26, 2017
TD Bank
Mahwah
December 3, 2017
In the TD Bank robbery, Robbins walked into the bank wearing gray pants, a black jacket, sunglasses, a dark skull cap, and light-colored latex gloves. As he entered the bank, Robbins pulled a bandana over his face. Robbins’s accomplice, Wanda Soel, 52, of Hasbrouck Heights, New Jersey, allegedly waited for Robbins in a Toyota Corolla parked outside the bank.
Robbins pulled a black handgun (later determined to be fake) from his waistband and pointed it at two bank tellers, demanded money from them and warned them not to “make me have to kill you.” The tellers complied and handed Robbins money. Robbins took the money and walked out of the bank, dropping several bills as he departed.
Robbins got into the passenger seat of the Corolla and Soel allegedly drove them away. Nearby law enforcement officers, who had received a report of the bank robbery while it was in progress, pursued the Corolla. Soel allegedly drove into the parking lot of a nearby hotel, where she and Robbins tried to switch places so Robbins could drive. When Soel got out of the Corolla, she tripped and fell, and Robbins drove away without her. Law enforcement officers arrested Soel in the hotel parking lot. Her bank robbery charges are pending.
Robbins drove out of the hotel parking lot but eventually hit a curb, blew a tire, and crashed. Law enforcement officers caught up to the Corolla and arrested Robbins. They recovered U.S. currency sticking out of Robbins’s pants and other cash bills strewn inside the Corolla, along with a fake black handgun. Officers also recovered sunglasses, a bandana, a dark knit cap, and latex gloves from the Corolla, resembling the items Robbins was seen wearing when he robbed the bank. Robbins was wearing a black jacket when he was arrested.
The counts of bank robbery and Hobbs Act robbery with which Robbins is charged each carry a maximum punishment of 20 years in prison and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, with the investigation leading to the charge. He also thanked the Mahwah Township Police Department for its contribution to the case, as well as the police departments of Hanover Township, Parsippany, Hopatcong, Edgewater and Montville.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Criminal Division of the U.S. Attorney’s Office in Newark.
The charges and allegations against Soel are merely accusations, and she is presumed innocent unless and until proven guilty.Defense counsel: Perry Primavera Esq., Hackensack, New Jersey
Two Essex County, New Jersey, Men Charged with $600,000 Credit Card Fraud, Identity Theft ConspiracyRead the Press Release
NEWARK, N.J. – Two Essex County men were charged today for their alleged roles in a conspiracy that used stolen personal identifying information to open credit cards and defraud a victim bank out of approximately $600,000, U.S. Attorney Craig Carpenito announced.
Akintunde Adeyemi, a/k/a “AK,” 33, of East Orange, New Jersey, and Duluth, Georgia, and Oluwaseun Jato, 29, of Newark, are charged by complaint with one count each of bank fraud conspiracy and aggravated identity theft. Jato was arrested this morning in Atlanta and will appear today before U.S. Magistrate Judge Justin S. Anand in Atlanta federal court. Adeyemi is still at large.
According to the complaint:Between July 2016 and May 2017, Adeyemi, Jato and others conspired to use stolen personal identifying information to fraudulently apply for credit card accounts with an entity referred to in the complaint as “Victim Bank 1.” As part of the conspiracy, Adeyemi obtained the stolen personal information from other conspirators and used it to create the fraudulent credit card accounts.
After establishing the accounts, the conspirators contacted Victim Bank 1 to change the addresses associated with the accounts so that Victim Bank 1 would send the credit cards to addresses controlled by members of the conspiracy, including locations near Adeyemi and Jato’s residences in New Jersey and Georgia. Jato and other conspirators then used the cards at retail stores in New Jersey and Georgia, among other places, to purchase smartphones, tablets, and other high-value items, which were later sold for profit. Overall, the conspirators defrauded Victim Bank 1 of approximately $600,000.
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 imposed.
U.S. Attorney Carpenito credited inspectors of 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 in Newark, with the investigation leading to today’s charges
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit and David M. Eskew, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty
Verona, New Jersey, Man Admits Illegal Possession of Multiple Guns, Including Replica He Turned into Machine GunRead the Press Release
NEWARK, N.J. – A Verona man today admitted possessing three guns as a previously convicted felon, including a replica Thompson submachine gun that he modified into a working automatic firearm, U.S. Attorney Craig Carpenito announced.
David Lutter, 69, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of possessing three firearms as a previously convicted felon.
According to documents filed in this case and statements made in court:
In January 2017, Lutter met with an undercover agent from the Bureau of Alcohol, Tobacco, and Firearms (ATF) and negotiated the sale of a functioning Thompson submachine gun. The gun had originally been a replica, but Lutter had modified it with real gun parts to convert it into a functioning automatic firearm, which, according to Lutter, could fire 20 to 25 bullets per second. Lutter had also equipped it with what he called a “rock-and-roll switch,” which could toggle between semi-automatic and automatic mode.
Lutter sold the undercover agent the submachine gun, a .32-caliber revolver, and 100 rounds of ammunition for $525. A few months later, in May 2017, Lutter sold the undercover agent a .45-caliber semi-automatic pistol, bullets, and gun parts for $500. When Lutter was arrested in June 2017, law enforcement searched a storage facility he rented and recovered several hundred additional bullets and firearm parts. All three firearms and the recovered ammunition are in the possession of law enforcement.
At no time was Lutter licensed to sell firearms and was prohibited from possessing them due to his 1993 felony conviction for sexual assault of a minor.
The illegal firearms possession count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 30, 2018.U.S. Attorney Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. Devito, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Essex County Man Gets 35 Months in Prison for Defrauding Customers, Stealing Their Credit Card InformationRead the Press Release
NEWARK, N.J. – A Bloomfield, New Jersey, man was sentenced today to 35 months in prison for failing to deliver goods his business sold to customers, stealing his customers’ credit card information and falsely claiming that purchases on his own account were fraudulent, U.S. Attorney Craig Carpenito announced.
Scott Spina Jr., 21, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Spina was in the business of selling sneakers and other high-end items to customers that included professional athletes. However, after he contracted with these customers and collected payment, he failed to deliver the goods as promised.
Spina also made personal purchases using credit card information provided by his customers and others without their authorization. In addition, he contacted his credit card company and falsely claimed that numerous purchases on his account were fraudulent. Altogether, Spina admitted he obtained or sought to obtain more than $550,000 in money or goods.
In addition to the prison term, Judge Salas sentenced Spina to three years of supervised release and ordered him to pay restitution of $516,396.33.
U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, with the investigation leading to today’s sentence. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the East Hanover Police Department, under the direction of Chief Christopher F. Cannizzo; and the West Orange Police Department, under the direction of Chief James P. Abbott, for their assistance with the case.
The government is represented by Senior Litigation Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit in Newark.
Defense counsel: Vincent Scoca Esq., Bloomfield
Bergen County Man Admits Using Personal Information Stolen from U.S. Service Members to File Phony Tax ReturnsRead the Press Release
TRENTON, N.J. – A Fort Lee, New Jersey, man today admitted generating phony tax refunds using personal identifying information stolen from current and former members of the U.S. army, U.S. Attorney Craig Carpenito announced.
Shope Oluwo, 33, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an indictment charging him with one count each of conspiracy to commit wire fraud, access device fraud, and aggravated identity theft.
According to documents filed in this case and statements made in court:
From January through February 2016, Oluwo conspired with others, including Dermot Sutherland, 29, of Philadelphia, to obtain personal identifying information that was stolen from current or former members of the U.S. Army. Oluwo used that stolen information to create fake military identification cards and fraudulent W-2 forms bearing the victims’ names.
Oluwo provided the phony cards and W-2 forms to Sutherland, who posed as the victims and filed phony returns with a tax preparation company. Afterwards, Sutherland received debit cards from the tax preparation company that contained the ill-gotten refunds.
The conspiracy to commit wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The access device fraud charge carries a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a term of imprisonment of two years which must run consecutively to any other prison term. Sentencing is scheduled for Oct. 26, 2018.
Sutherland previously pleaded guilty to his role in the scheme and awaits sentencing.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos; and special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the U.S. Attorney’s Office Organized Crime and Gangs Unit.
Defense counsel: Patrick Brackley Esq., New York
Middlesex County Man Sentenced to 10 Years in Prison for Conspiracy to Distribute Two Kilograms of Heroin in New JerseyRead the Press Release
NEWARK, N.J. – A Parlin, New Jersey, man was sentenced today to 120 months in prison for delivering two kilograms of heroin to another individual in Harrison, New Jersey, U.S. Attorney Craig Carpenito announced.
Pedro Rodriguez, 44, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to possess with intent to distribute more than a kilogram of heroin. Judge Cecchi imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
On Oct 19, 2017, law enforcement officers observed Pedro Rodriguez outside of a restaurant in Newark, where he met with another individual and retrieved a bag that was suspected of containing narcotics. Afterwards, Pedro Rodriguez drove to Harrison, met with Rafaelito Rodriguez (no relation), 43, of East Stroudsburg, Pennsylvania, and provided him a bag containing approximately two kilograms of heroin. Rafaelito Rodriguez was arrested in Harrison shortly afterwards. Pedro Rodriguez was later arrested at his home in Parlin.
In addition to the prison term, Judge Cecchi sentenced Rodriguez to five years of supervised release.
Rafaelito Rodriguez was sentenced July 17, 2018, to 57 months in prison and three years of supervised release.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s sentencing.
Defense counsel: Pedro Rodriguez is represented by Michael Pedicini Esq.
Former Mail Handler Admits Stealing Parcels Containing DrugsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) mail handler today admitted stealing approximately 16 packages containing marijuana, U.S. Attorney Craig Carpenito announced.
Akeem Cauthen, 30, of Newark, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of theft of mail. He was released on $40,000 unsecured bond.
According to documents filed in this case and statements made in court:
Cauthen was a mail handler at the Northern New Jersey Metro Processing and Distribution Center in Teterboro, New Jersey. From May to November 2017, Cauthen looked for parcels from Arizona, California, or Colorado, and then smelled, opened or poked holes in the packages to search for marijuana. Upon finding marijuana, Cauthen stole the parcels by replacing the original mailing labels with labels containing addresses in Paterson where he later picked them up. Overall, Cauthen obtained approximately $32,000 worth of marijuana.
The theft of mail charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 24, 2018.
U.S. Attorney Carpenito credited special agents with USPS-Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Essex County Man Charged with Robbing Three Banks in Northern New JerseyRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man appeared in federal court today to face allegations that he robbed three North Jersey banks between January and April 2018, U.S. Attorney Craig Carpenito announced.
Mark Macon, 45, is charged by indictment with three counts of bank robbery. He appeared this afternoon before U.S. District Judge Esther Salas in Newark federal court and was detained.
According to the documents filed in this case and statements made in court:
Macon allegedly robbed a TD Bank in Union City on Jan. 13, 2018, a TD Bank in Jersey City on April 19, 2018, and a Chase Bank in Jersey City on April 23, 2018. Macon robbed each location by handing a teller a note stating the bank was being robbed and demanding cash. Macon was arrested on April 26, 2018 and has been in state custody since that time.
Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the Jersey City and Union City police departments for their assistance.
The government is represented by Assistant U.S. Attorney Matt Feldman of the U.S. Attorney’s Office Public Protection Unit in Newark.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: John H. Yauch Esq., Assistant Federal Public Defender, Newark
Insurance Salesman Who Embezzled His Client’s Inheritance Money Sentenced to Three Years in PrisonRead the Press Release
TRENTON, N.J. – An insurance salesman who was entrusted with managing his client’s inheritance was sentenced today to 36 months in prison for fraudulently using the funds for his own benefit, U.S. Attorney Craig Carpenito announced.
Patrick McCullagh, 70, of Georgetown, Kentucky, was previously convicted of an indictment charging him with one count of wire fraud. He was convicted following an eight-day trial before U.S. District Judge Mary L. Cooper, who imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
McCullagh was the principle of MidAtlantic Regional Services Inc., a purported insurance company located in Bordentown, New Jersey. In 2001, the victim entrusted McCullagh with money that the victim had inherited from his mother after her death. McCullagh falsely told the victim that he would use the funds to invest in a manner that would preserve the principle while paying the victim back in interest.
Instead, McCullagh pocketed some of the funds directly and forged withdrawal requests so he could loot money from the victim’s investment accounts. In order to deceive the victim, McCullagh also had the victim’s account statements diverted from the victim’s address.
In addition, the “interest” payments that McCullagh paid the victim on a monthly basis were actually funds McCullagh had siphoned from the investment accounts’ principle balance. McCullagh even fraudulently told the victim that some of the investments were tied-up in legal disputes surrounding a Kentucky property and that he needed money for legal fees, which the victim later provided. Altogether, McCullagh defrauded the victim out of more than $100,000.
In addition to the prison term, Judge Cooper ordered McCullagh to serve one year of supervised release and pay restitution of $98,067.82.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Molly Lorber and Senior Litigation Counsel Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: James Patton Esq., Livingston, New Jersey
Heroin Supplier for Trenton Drug Trafficking Organization Pleads GuiltyRead the Press Release
TRENTON, N.J. – A Trenton woman today admitted her role in a drug trafficking conspiracy that distributed hundreds of grams of heroin in Trenton and the surrounding area, U.S. Attorney Craig Carpenito announced.
Ileana Sanchez, a/k/a “Lilly,” a/k/a “Mami,” 34, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an indictment charging her with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin.
In December 2016, Sanchez and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Sanchez is the last of the 10 defendants to plead guilty.
According to documents filed in this case and statements made in court:
From July 2015 through December 2016, Sanchez and others participated in a drug trafficking organization that operated in the area of Spring Street and Passaic Street in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Sanchez and Jose Joaquin Torres-Mezquita.
Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement.
The conspiracy charge to which Sanchez pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential sentence of 40 years in prison and a $5 million fine. Sentencing is scheduled for Oct. 24, 2018.
U.S. Attorney Carpenito credited the Greater Trenton Safe Streets Task Force, including special agents of the FBI Trenton Resident Agency, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Acting Director Pedro Medina; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Brian A. Michael, Newark Field Office; officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: John M. Holliday Esq., Hackensack, New Jersey
Former Teacher and Summer Camp Employee Admits Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man today admitted his role in producing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Colin M. Skeele, 32, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of producing child pornography. Skeele was previously arrested and charged by complaint on Aug. 4, 2016.
According to documents filed in this case and statements made in court:
Skeele previously worked as a counselor at a boys’ summer camp in Hardwick, New Jersey, and as a teacher at parochial schools in Boonton, New Jersey, and Stirling, New Jersey.
In 2011, Skeele became Facebook friends with a boy that Skeele met while working as a counselor at a boys’ summer camp in Hardwick, New Jersey. In Facebook messages with the minor, Skeele offered to pay money for the minor to take sexually explicit photographs to send to Skeele. In one instance, Skeele paid the boy approximately $100 to send nude images of himself. Skeele later sent at least one pornographic image of that minor to another minor that had also attended the summer camp.
On multiple occasions in February 2012, Skeele communicated online with individuals located in the Philippines to purchase live child sexual abuse shows, which Skeele viewed via an online video chat service. Instant messages obtained during the investigation revealed that Skeele used an online fund transfer service to purchase live sexual abuse videos of young children.
Anyone with information regarding possible victims of this activity is urged to contact the Department of Homeland Security in Newark, New Jersey, at 973-776-5500.
The charge of producing child pornography to which Skeele pleaded guilty is punishable by a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 22, 2018.
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 that led to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Criminal Division.
Defense Counsel: Jay V. Surgent, Esq., Parsippany, New Jersey
Long-Time Leader of Violent Grape Street Crips Street Gang and Two Members Convicted of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – Three members of the New Jersey set of the violent street gang “Grape Street Crips” – including its long-time leader – were convicted by a federal jury today of racketeering conspiracy and a host of murders, shootings, and drug trafficking crimes, U.S. Attorney Craig Carpenito, FBI Special Agent in Charge Gregory W. Ehrie and DEA Special Agent in Charge Valerie A. Nickerson announced.
The leader of the enterprise, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 41, of Belleville, New Jersey; and associates Tony Phillips, a/k/a “Blue,” 27, of Newark; and Ahmad Manley, a/k/a “Fresh,” a/k/a “Moddi G,” 32, of Summit, New Jersey, were convicted following a two-month trial before U.S. District Judge Madeline Cox Arleo in Newark federal court. The jury deliberated for four days before returning the verdicts. (A chart outlining the counts per defendant and maximum potential penalties is attached below.)
“The jury’s verdicts are the culmination of this Office’s investigation and prosecution of more than 60 members of the Grape Street Crips, a violent criminal organization that committed murders and other acts of violence in order to maintain control of a large portion of the illegal drug trade in Newark,” U.S. Attorney Carpenito said. “Today’s convictions of Corey Hamlet, the leader of that organization, as well as two of his senior gang members, represent our steadfast, ongoing commitment to ensuring the safety of New Jersey’s citizens and the communities in which they live. We will not back down from our duty to protect the public through the investigation and prosecution of violent and dangerous criminals like Hamlet and his gang.”
“The FBI is working jointly with county and local authorities, to include the local community, to combat the violent epidemic of gangs in our neighborhoods,” FBI Newark Special Agent in Charge Ehrie said. “In this collaborative effort in delivering the greatest impact toward restoring the community and bringing those bad seeds to justice, the Grape Street Crips, one of the most violent Newark gangs, was dismantled in this joint investigation. The gang was responsible for four murders, an attempted murder, racketeering conspiracy and drug trafficking. With the conviction of Corey Hamlet, the gang’s leader, and two of his associates, the Grape Street Crips gang will have been dealt a serious blow.”
“The members of the Grape Street Crips have wreaked havoc in the city of Newark for years by committing violent murders, shootings and drug trafficking,” DEA Special Agent in Charge Nickerson said. “Now the residents of Newark can rest easier knowing that these criminals have been convicted of these serious charges. The collaboration between the DEA and our law enforcement partners exemplified outstanding investigative efforts resulting in the successful conviction of some of Newark’s most violent criminals. These efforts will have a positive impact on our communities and the residents of this great city.”
The defendants were charged in November 2016 in a 22-count indictment charging 14 members and associates with, among other things, six murders, 12 attempted murders, and numerous other violent and drug trafficking crimes committed as part of the racketeering conspiracy. Twelve of the fourteen defendants charged in the indictment have now been convicted. The two remaining defendants, Hanee Cureton and Khalil Stafford, are pending trial.
An additional 68 members and associates of the Grape Street Crips who were arrested in a coordinated takedown in May 2015 were separately charged with drug-trafficking, physical assaults, and witness intimidation. Sixty-six of those individuals also have been convicted, and charges remain pending against two.
According to the documents filed in this case and other cases and the evidence presented at trial:
The Grape Street Crips engaged for years in numerous acts of murder, robbery, extortion, and drug trafficking throughout Newark. As the leader of the New Jersey set of the Grape Street Crips, Hamlet authorized six murders committed by members of the gang.
The trial highlighted numerous violent acts committed by Grape Street Crips members as part of the racketeering conspiracy, some of which targeted members of rival gangs and others that targeted Grape Street Crips members whom Hamlet perceived to be a threat to his position as the leader of the gang:
- June 14, 2010: The murder of Leroy Simmons;
- Dec. 23, 2010: The murder of Rodney Kearney;
- May 3, 2013: The murder of Tariq Johnson;
- Oct. 27, 2013: The attempted murders of Almalik Anderson and Saidah Goines.
- Nov. 12, 2013: The murder of Anwar West; and
- August 3, 2015: The murder of Andre Singh.
The trial revealed that Hamlet ordered many of the murders as revenge against Almalik Anderson, a rival with whom he had a long-running dispute. One of Hamlet’s fellow gang-members attempted to broker a truce with Anderson at the Short Hills Mall. After the meeting at Short Hills, Hamlet used his Instagram account to assert that Anderson had cooperated with law enforcement. On Hamlet’s orders, Phillips, Manley, and other gang-members then hunted Anderson down and sprayed his car with bullets, nearly killing him and passenger Saidah Goines, a relative. Within two weeks, Hamlet successfully ordered two other gang-members to murder Anwar West, the fellow gang-member who had attempted to broker peace between Hamlet and Anderson.
Hamlet was convicted of 10 counts in the indictment, including RICO conspiracy, murder in aid of racketeering, various other violent crimes in aid of racketeering, using firearms during crimes of violence, and conspiracy to distribute 28 grams or more of crack-cocaine. As part of the RICO conspiracy, Hamlet was convicted for his role in the murders of Tariq Johnson and Anwar West. Hamlet faces a mandatory sentence of life in prison.
Phillips was convicted of 10 counts in the indictment, including RICO conspiracy, murder in aid of racketeering, various other violent crimes in aid of racketeering, using firearms during crimes of violence, and conspiracy to distribute one kilogram or more of heroin. Phillips, too, faces a mandatory sentence of life in prison.
Manley was convicted of eight counts in the indictment, including RICO conspiracy. As part of the RICO conspiracy, Manley was convicted for his role in the attempted murders of Almalik Anderson and Saidah Goines. On two counts of conviction, Manley faces a maximum sentence of life in prison, including a mandatory minimum term of 15 years.
The evidence at trial also showed that members of the Grape Street Crips controlled drug-trafficking at a number of Newark public-housing complexes, including Oscar Miles, Riverview Court, Pennington Court, Wynona Lippman Gardens, Kemsco Village, John W. Hyatt housing complex, and the former Baxter Terrace public-housing complex.
Sentencing is scheduled for Oct. 15, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Nickerson with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontura, for their long and close collaboration on the case
The case was tried by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division and Assistant U.S. Attorney Richard J. Ramsay of the Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against the remaining two defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defendant
Guilty Counts/Max Penalties
Hamlet
Count 1: Racketeering Conspiracy – Life in Prison;
Count 2: Murder in Aid of Racketeering (Tariq Johnson) – Mandatory life sentence
Count 3: Use of Firearm in Violent Federal Crime (Tariq Johnson) – Life in prison; 10-year mandatory minimum
Count 4: Conspiracy to Murder in Aid of Racketeering (Almalik Anderson / Saidah Goines) – 10 years
Count 5: Attempted Murder in Aid of Racketeering (Almalik Anderson) – 10 years
Count 6: Attempted Murder in Aid of Racketeering (Saidah Goines) - 10 years
Count 7: Conspiracy to Assault with a Dangerous Weapon (Almalik Anderson / Saidah Goines) – 3 years
Count 8: Assault with a Dangerous Weapon (Almalik Anderson) – 20 years
Count 9: Assault with a Dangerous Weapon (Saidah Goines) – 20 years
Count 10: Use of Firearm in Violent Federal Crime (Almalik Anderson / Saidah Goines) – life in prison; 10-year mandatory minimum
Phillips
Count 1: Racketeering Conspiracy – Life in Prison;
Count 2: Murder in Aid of Racketeering (Tariq Johnson) – Mandatory life sentence
Count 3: Use of Firearm in Violent Federal Crime (Tariq Johnson) – Life in prison; 10-year mandatory minimum
Count 4: Conspiracy to Murder in Aid of Racketeering (Almalik Anderson / Saidah Goines) – 10 years
Count 5: Attempted Murder in Aid of Racketeering (Almalik Anderson) – 10 years
Count 6: Attempted Murder in Aid of Racketeering (Saidah Goines) - 10 years
Count 7: Conspiracy to Assault with a Dangerous Weapon (Almalik Anderson / Saidah Goines) – 3 years
Count 8: Assault with a Dangerous Weapon (Almalik Anderson) – 20 years
Count 9: Assault with a Dangerous Weapon (Saidah Goines) – 20 years
Count 10: Use of Firearm in Violent Federal Crime (Almalik Anderson / Saidah Goines) – life in prison; 10-year mandatory minimum
Manley
Count 1: Racketeering Conspiracy – Life in Prison;
Count 4: Conspiracy to Murder in Aid of Racketeering (Almalik Anderson / Saidah Goines) – 10 years
Count 5: Attempted Murder in Aid of Racketeering (Almalik Anderson) – 10 years
Count 6: Attempted Murder in Aid of Racketeering (Saidah Goines) – 10 years
Count 7: Conspiracy to Assault with a Dangerous Weapon (Almalik Anderson / Saidah Goines) – 3 years
Count 8: Assault with a Dangerous Weapon (Almalik Anderson) – 20 years
Count 9: Assault with a Dangerous Weapon (Saidah Goines) – 20 years
Count 10: Use of Firearm in Violent Federal Crime (Almalik Anderson / Saidah Goines) – life in prison; 10-year mandatory minimum
Bergen County, New Jersey, Man Sentenced to 63 Months in Prison for Purchasing Live Webcam Shows of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Wallington, New Jersey, man was sentenced today to 63 months in prison for purchasing live child sex shows from individuals overseas, U.S. Attorney Craig Carpenito announced.
Stephen Hallett, 67, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with receipt of child pornography. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court.
Hallett purchased live child sex shows from individuals located in the Philippines. He admitted that on Feb. 4, 2015, he received a webcam transmission of a minor engaging in sexually explicit conduct. Hallett also admitted purchasing live webcam shows of children engaging in sexually explicit conduct on dozens of occasions between 2013 and 2015.
In addition to the prison term, Judge McNulty sentenced Hallett to five years of supervised release and imposed a $5,000 Justice for Victims of Trafficking Act assessment.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian Michael in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Co-Chief of the U.S. Attorney’s Public Protection Unit in Newark.
Tax Preparer Admits Conspiring to File False Income Tax ReturnsRead the Press Release
TRENTON, N.J. – A former employee of Tax Pro’s and Tax Solutions & Associates, tax preparation businesses located in Essex and Union counties, admitted today to conspiring to defraud the United States by filing false income tax returns, U.S. Attorney Craig Carpenito announced.
Tony V. Russell 47, of Stone Mountain, Georgia, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to defraud the IRS.
Two members of the conspiracy have previously pleaded guilty to their roles in the fraud and await sentencing. Damien Askew, 39, of Union, New Jersey, pleaded guilty June 6, 2017, to conspiracy to defraud the IRS and filing a false federal personal income tax return. Rudolph Sanders, 41, of Newark, New Jersey, pleaded guilty May 10, 2018, to conspiracy to defraud the IRS.
Two other members of the conspiracy, Joseph Kenny Batts, 49, of Elkridge, Maryland, and Angelo K. Thompson, 38, of Reistertown, Maryland, were arrested April 17, 2018, on charges of conspiracy to defraud the IRS and aiding and assisting in the preparation of false federal income tax returns.
According to documents filed in this and related cases and statements made in court:
From at least 2009 to April 2015, Batts was co-owner, along with Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, where Russell, Sanders, Batts, Thompson, and Askew prepared tax returns. To boost their business, the defendants conspired to falsify their clients’ federal income tax returns to generate refunds from the IRS in amounts that their clients were not entitled to receive. Russell, Sanders, Batts, Thompson, and Askew inflated tax refunds by fabricating and inflating credits for education and childcare; deductions, such as charitable contributions and unreimbursed employee expenses; and business losses.
Russell and other members of the conspiracy also permitted Batts to use their Preparer Tax Identification Numbers (PTIN) – the identification number that paid tax preparers are required to place on tax returns they have prepared – when preparing tax returns to conceal Batts’ identity as the actual tax return preparer; Batts had a prior federal tax fraud conviction.
After law enforcement executed a search warrant at Tax Pro’s in April 2015, Batts discontinued Tax Pro’s and opened Tax Solutions and Associates in Union, where Russell, Thompson, and Batts continued preparing false federal income tax returns.
By fraudulently inflating the amounts of the tax refunds, Batts, Askew, Thompson, Russell, and Sanders caused a total tax loss to the IRS of approximately $900,000.
The conspiracy charge carries a maximum potential penalty of five years in prison. The aiding and assisting in the preparation of a false return charge and the filing a false return charge both carry a maximum potential penalty of three years in prison. All offenses carry a statutory maximum fine equal to the greatest of $250,000 or twice the pecuniary gain by the defendant or loss by any victims. Russell’s sentencing is scheduled for Nov. 29, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee Suh of the Special Prosecutions Division.
The charges and allegations against Batts and Thompson are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Owner of New Jersey Hedge Fund Sentenced to Six Years in Prison for Wire Fraud and Securities Fraud for Defrauding Investors of $4 MillionRead the Press Release
NEWARK, N.J. – The owner and manager of a New Jersey hedge fund was sentenced today to 72 months in prison for defrauding two investors of $4 million, U.S. Attorney Craig Carpenito announced.
Nicholas Lattanzio, 62, of Montclair, New Jersey, was previously convicted on all counts of an indictment charging him with two counts of wire fraud and two counts of securities fraud following a three-week trial before U.S. District Judge Kevin McNulty, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
From June 2013 through November 2014, Lattanzio orchestrated a large-scale scheme through which he, his hedge fund, the Black Diamond Capital Appreciation Fund L.P. (BD Fund), and several other related entities collected millions of dollars in upfront fees from two unsuspecting corporate investors in exchange for the promise of future loans or investment opportunities that did not materialize. Instead of investing the victims’ money as promised, Lattanzio stole the majority of the funds and used them to pay himself more than $500,000 in salary. He used the money for numerous personal expenses, including the purchase of a $1 million home in Montclair, New Jersey, a new Range Rover, a $10,000 diamond ring, and the payment of $500,000 in credit card debt that he incurred for other personal expenses. Lattanzio lied to the victims about the status of their funds to conceal the scheme and mislead them into believing that their investments were safe.
In addition to the prison term, Judge McNulty sentenced Lattanzio to three years of supervised release and ordered him to pay restitution of $3.93 million.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Marc P. Berger, and the N.J. Bureau of Securities, within the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Gurbir S. Grewal.
The government is represented by Assistant U.S. Attorneys Nicholas P. Grippo and Daniel V. Shapiro of the Economic Crimes Unit, and Assistant U.S. Attorney Peter Gaeta of the Office’s Asset Recovery and Money Laundering Unit.
Former Registered Broker Sentenced to 41 Months in Prison for Stock FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Darren Goodrich, a former registered broker at a brokerage firm in El Segundo, California, was sentenced by United States District Judge Eric N. Vitaliano to 41 months’ imprisonment for one count of conspiracy to commit securities fraud for Goodrich’s participation in the manipulation of the price and trading volume of the stock of Cubed, Inc. (“Cubed”), which traded under the ticker symbol CRPT. In a second stock fraud case that originated in the District of New Jersey, Judge Vitaliano sentenced Goodrich to 41 months’ imprisonment for one count of conspiracy to commit securities fraud for Goodrich’s participation in the manipulation of the price and trading volume of the following stocks: NXT Nutritional Holdings, Inc., which traded under the ticker symbol NXTH; Bioneutral Group, Inc., which traded under the ticker symbol BONU; Clear-Lite Holdings, Inc., which traded under the ticker symbol CLRH; and Mesa Energy Holdings, Inc., which traded under the ticker symbol MSEH (collectively, the “Target Companies”). Goodrich pleaded guilty to the Cubed case in June 2016 and the Target Companies case in January 2017. The sentences for both cases will run concurrently.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.
“Goodrich has been held responsible for participating in schemes designed to dupe investors into believing that companies with little in the way of assets were worth hundreds of millions of dollars,” stated United States Attorney Donoghue. “Today’s sentence sends a powerful message that this Office, together with our law enforcement partners, will hold licensed securities professionals accountable when they abuse their positions to facilitate the commission of crimes.” Mr. Donoghue expressed his appreciation to the U.S. Attorney’s Office for the District of New Jersey, which charged Goodrich in the Target Companies scheme, and the Securities and Exchange Commission (“SEC”), New York Regional Office, for its assistance in both of these cases.
“Goodrich used his status as a step stool to help him achieve his objectives in this sly scheme, in which he manipulated various securities for an illegal million-dollar profit,” stated FBI Assistant Director-in-Charge Sweeney. “By this activity, schemers like Goodrich continuously tarnish the reputation of trust and professionalism held to countless brokerage firms. In an effort to maintain this reputation, the FBI will be thorough in investigating and extracting the bad seeds of the financial industry.”
The Cubed Scheme
Between March 2014 and July 2014, Goodrich and his co-conspirators, including Abraxas J. Discala, who was recently convicted at trial, engaged in a scheme to defraud investors and potential investors in Cubed, by artificially controlling the price and trading volume of shares in the company through fraudulent concealment of the co-conspirators’ ownership interests and engineering price movements and trading volume in the stock. In March 2014, Goodrich’s co-conspirators took Cubed public through an asset purchase agreement, similar in effect to a reverse merger. Between April 22, 2014 and July 17, 2014, Goodrich and his co-conspirators placed coordinated purchases and bids to purchase the stock to deceive investors into believing that there was more market demand for the stock at certain prices than actually existed.
Goodrich and his co-conspirators also used an escrow arrangement that initially controlled all the free-trading stock to successfully control the price and trading volume of Cubed stock. On June 23, 2014, Cubed reached its highest closing price of $6.75 per share, resulting in a market capitalization of approximately $200 million. Previously, on April 21, 2014, Cubed had filed with the SEC a Form 10-Q and reported less than $1,500 in cash, zero revenue, negative stockholders’ equity, a net loss of $15,000 and accrued professional fees of $131,824. The SEC halted trading in Cubed on July 17, 2014.
The Target Companies Scheme
From 2008 through 2010, Goodrich, working with co-conspirators Nathan Montgomery and Samuel DelPresto, who both pleaded guilty in the District of New Jersey to conspiring to commit securities fraud, participated in a pump and dump scheme. As part of the scheme, the defendants obtained control over large blocks of the free-trading shares of the Target Companies, “pumped” the price of those shares by engaging in manipulative trading of the stock and circulated promotional materials encouraging others to purchase the stock. Thereafter, the defendants “dumped”, or sold, large volumes of the stock to victim investors. The Target Companies’ stock price then dropped, resulting in substantial losses to the victims. The scheme generated approximately $33 million in illicit trading proceeds for Montgomery and DelPresto. Goodrich received approximately $1.5 million in gross trading commissions.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones, Patrick T. Hein and Mark E. Bini are in charge of the prosecution, with assistance provided by Assistant United States Attorney Claire Kedeshian of the Office’s Civil Division, which is responsible for the forfeiture of assets. Assistant United States Attorney Nicholas P. Grippo investigated and charged Goodrich in the District of New Jersey in the Target Companies Scheme, prior to the transfer of the case to the Eastern District of New York for Goodrich’s guilty plea and sentencing.
The Defendant:
DARREN GOODRICH
Age: 39
Manhattan Beach, CaliforniaE.D.N.Y. Docket No. 14-CR-399 (ENV)
E.D.N.Y. Docket No. 16-CR-630 (ENV)
D.N.J. Docket No. 16-CR-544 (JLL)Delaware Man Admits Conspiring to Defraud the IRS by Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Wilmington, Delaware, man today admitted conspiring with his father to file false federal tax returns for shell companies, resulting in approximately $241,000 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Johnathan Crespo, 34, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiring with Jose Crespo to defraud the IRS by filing false corporate tax returns and cashing the resulting fraudulent refund checks.
According to the documents filed in this case and statements made in court:
Between 2011 and 2013, Johnathan Crespo and his father, Jose Crespo, filed numerous false federal corporate tax returns, IRS Forms 1120, for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false. These false tax returns resulted in approximately $241,000 in fraudulent refunds being issued by the IRS.
In filing these false tax returns, Johnathan and Jose Crespo took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing an IRS Form 4136, “Credit for Federal Tax Paid on Fuels.”
In one instance, Johnathan and Jose Crespo filed a federal corporate tax return for 2011 for Advanced Transportation Corp. that falsely claimed a fuel excise tax credit of $24,898 and a resulting refund of $20,767. Advanced Transportation Corp. was a shell company, and the fuel excise tax credit and other tax return numbers were false. Johnathan Crespo received and cashed the $20,767 refund check at a check-cashing facility in Guttenberg, New Jersey. He cashed many other refund checks for similar false tax returns at this same check-cashing facility.
Jose Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares to engaging in the fuel excise tax credit scheme and another tax fraud scheme, which together claimed fraudulent refunds from the IRS of nearly $1.5 million. He was sentenced on Dec. 20, 2017, to three years in prison.
Marilyn Crespo, Jose Crespo’s wife, pleaded guilty March 1, 2018, before Judge Linares to engaging in the same fuel excise tax credit scheme and causing a loss to the IRS of $286,742. Marilyn Crespo was sentenced on June 27, 2018, to 12 months and one day in prison and ordered to pay restitution of $286,742.
Johnathan Crespo’s brother, Jason Crespo, pleaded guilty June 28, 2018, before Judge Linares to engaging in the same fuel excise tax credit scheme and causing a loss to the IRS of $191,953. His sentencing is scheduled for Oct. 4, 2018.
The count of conspiracy to defraud the IRS carries a maximum potential penalty of five years in prison and a potential fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Johnathan Crespo’s sentencing is scheduled for Oct. 16, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, 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 in Newark.Middlesex County Man Gets 10 Years in Prison for Conspiracy to Distribute over 140 Kilograms of Heroin and CocaineRead the Press Release
TRENTON, N.J. – An Edison, New Jersey, man was sentenced today to 120 months in prison for his role in a conspiracy to distribute 140 kilograms of narcotics in New Jersey, U.S. Attorney Craig Carpenito announced.
Gemal Singleton, 41, previously pleaded guilty before U.S. District Judge Brian R. Martinotti 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. Judge Martinotti imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Singleton, Siddeeq Q. Williams, 40, of Cranford, 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 was pulled over by law enforcement 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.
In addition to the prison term, Judge Martinotti sentenced Singleton to five years of supervised release. Williams has also pleaded guilty to his role in the scheme and awaits sentencing.
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 sentence.
The government is represented by Assistant U.S. Attorney Meredith Williams, Co-Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.
Defense counsel: Robert DeGroot Esq., Newark
Former CIO Admits Accepting Approximately $1 Million in Bribes for Awarding ContractsRead the Press Release
TRENTON, N.J. – A Roslyn, New York, man today admitted demanding bribes in exchange for his assistance in securing contracts between a Texas financial services company and two New Jersey information technology staffing companies, U.S. Attorney Craig Carpenito announced.
Mark Berger, 58, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to violate the Federal Travel Act.
According to documents filed in this case and statements made in court:
From January 2011 through March 2013, Berger was the chief information officer of SWBC, a financial services company based in Texas, and had the ability and authority to hire certain companies to perform work. Berger entered into contracts between SWBC and two companies based in New Jersey, including DaVinci Technology Corp., for information technology and staffing services.
As a condition of the contracts, Berger demanded that the owner of the IT companies, Anthony Curlo, 53, of Chester, New Jersey, pay him a certain percentage of the monies that the companies would receive from SWBC.
The IT companies received approximately $3 million in revenue from SWBC. Under the terms of the illegal kickback arrangement between Berger and Curlo, Berger was supposed to receive $1.14 million in kickback payments. Berger actually received $985,000 in cash payments, which were delivered to his home in New York.
The conspiracy to violate the Federal Travel Act charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Berger also forfeited $985,000 as part of his guilty plea. Sentencing is scheduled for Oct. 10, 2018.
Curlo previously pleaded guilty to his role in the scheme on Sept. 21, 2016 and awaits sentencing.
U.S. Attorney Carpenito credited special agents of IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, 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 Criminal Division in Newark.
Defense counsel: John Carman Esq., Garden City, New York
Maplewood, New Jersey, Man Indicted on New Counts for Alleged Phony Debt Elimination SchemeRead the Press Release
Daniel K. Dxrams, 39, of Maplewood, New Jersey, was indicted today on one count of conspiracy to commit mail fraud and nine substance counts of mail fraud in connection with an alleged debt elimination scheme to unlawfully discharge his obligations for a Rolls Royce, a Bentley and two Mercedes Benz vehicles. He was originally charged by complaint with one count of conspiracy to commit mail fraud when he was arrested with four other individuals who allegedly used phony money orders, cashier’s checks, receipts and other fabricated documents to fraudulently discharge mortgages, student loans, and other financial obligations, as described in the press release of March 20, 2018.
U.S. Attorney’s Office Prosecutes Five Individuals Responsible for over $15 Million in Health Care Fraud and Three Members of South Jersey Oxycodone Ring as Part of National TakedownRead the Press Release
Defendants Include a New Jersey Doctor, an Anesthesiology Technologist for a Philadelphia Hospital, and the Owner of a Medical Billing Company
NEWARK, N.J. – The largest health care fraud and opioid enforcement action ever taken by the Justice Department resulted in three guilty pleas and five arrests in New Jersey involving a South Jersey-Philadelphia drug trafficking ring that sold over 1,100 oxycodone pills and multiple individuals who used phony claims to steal millions from state and private insurers, U.S. Attorney Craig Carpenito announced today.
The national takedown targeted over 601 charged defendants across 58 federal districts, including more than 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $2 billion in false billings. Of those charged, over 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, the Department of Health and Human Services (HHS) announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse.
As part of the national takedown, the New Jersey U.S. Attorney’s Office filed five separate cases this week charging four defendants with conspiracy to commit health care fraud and three defendants with conspiracy to distribute oxycodone.
Robert Agresti, 61, a doctor from Essex Fells, New Jersey, and Brian Catanzarite, 42, a former gym owner from Cedar Grove, New Jersey, pleaded guilty on June 26, 2018 to their roles in separate conspiracies to attain phony compounded medication prescriptions on behalf of companies that marketed those products. Enver Kalaba, 36, a Metropolitan Transportation Authority (MTA) bus driver from Old Bridge, New Jersey, pleaded guilty June 27, 2018 to a similar scheme targeting his employer.
Tiffany Marsh, 40, a medical billing company owner from West Orange, New Jersey, and Keasam Johnson, 34, a telecommunications company employee from East Orange, New Jersey, were arrested on June 26, 2018 for their alleged roles in a conspiracy to collect insurance reimbursements for chiropractic services that were never rendered.
Anthony Pepe III, 40, of Cherry Hill, New Jersey, an anesthesiology technologist for a Philadelphia hospital, along with Daniel Watson, 39, of Bellmawr, New Jersey, and Prussia Hing, 35, of Philadelphia, were arrested on June 26, 2018 for their alleged roles in an oxycodone distribution ring.
“At a time when many Americans worry about securing health insurance for their families, we’ve seen far too many instances where public and private insurance providers are raided for millions in phony reimbursements for compounded medications or non-existent therapy services,” U.S. Attorney Carpenito said. “On top of that, we are in the midst of an opioid crisis perpetuated by both rogue health care professionals and street-level dealers seeking to profit from the addiction of others. This national takedown seeks to address both fronts, and thanks to the efforts of our federal and local law enforcement partners right here in the New Jersey area, eight individuals will now answer for these crimes in federal court.”
“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Jeff Sessions. “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history. This is the most fraud, the most defendants, and the most doctors ever charged in a single operation – and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”
“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money – it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Alex M. Azar III. “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”
Agresti
Agresti admitted that from November 2014 through September 2017, he participated in a scheme to defraud health insurance plans, including New Jersey state and local employee health benefit programs, by prescribing medically unnecessary compounded prescriptions on behalf of a company that marketed those products.
Agresti was paid $300 in cash for every prescription he authorized for compounded medication, regardless of medical necessity. Agresti signed the prescriptions brought to him by other conspirators without examining or speaking with the patients. Multiple health benefit programs paid more than $8.9 million as a result of Agresti’s phony prescriptions.
“Health care fraud adversely impacts our overburdened health care system, draining valuable funds away from those in need into the greedy coffers of the conspirators,” said Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office. “The FBI will continue to vigorously investigate these so called 'victimless crimes,' which deplete our nation's resources."
Catanzarite
Catanzarite admitted that from March 2015 through January 2017, he conspired to defraud New Jersey state benefit programs. Catanzarite was recruited by one of his former gym members to become a sales representative of a company that marketed compounded medications. The marketing company received a percentage of every prescription that its sales representatives steered toward a particular compounding pharmacy.
To maximize his profit, Catanzarite convinced state beneficiaries to obtain compounded medications regardless of their medical necessity. On several occasions, Catanzarite even paid an advanced nurse practitioner, introduced to him by the marketing company, or used a telemedicine service that was paid for by the marketing company, to fraudulently obtain compounded medication prescriptions. Altogether, Catanzarite caused losses of at least $3.5 million and personally made over $1.1 million from the scheme.
“One of the Defense Criminal Investigative Service’s (DCIS) top priorities is to protect the integrity of TRICARE, the DOD’s healthcare system for military members, retirees and their dependents,” stated Special Agent in Charge Leigh-Alistair Barzey of the DCIS Northeast Field Office. “This plea is the result of a joint effort and DCIS will continue to coordinate with the DOJ, FBI, HHS-OIG, MTA-OIG and other law enforcement partners to combat health care fraud.”
Kalaba
Kalaba admitted that from April 2016 through August 2017, he conspired to defraud the MTA’s health benefits plan using fraudulent claims for medically unnecessary compounded medications. Kalaba was recruited into the scheme by another former MTA bus driver, Christopher Frusci. Both Frusci and Kalaba acted as sales representatives of a company that marketed compounded medications.
Kalaba paid MTA beneficiaries monthly cash bribes, including $100 per phony prescription. To ensure physicians prescribed compounded medications regardless of medical necessity, Kalaba referred MTA beneficiaries to telemedicine physicians who were paid by the marketing company or its affiliates. Altogether, Kalaba caused losses of $2.9 million and made $138,629 from the scheme.
“Our investigation is ongoing to determine the extent to which additional MTA employees may have participated in this fraudulent scheme,” said Inspector General Barry Kluger of the MTA Office of the Inspector General. “I applaud and am pleased to support the efforts of the U.S. Attorney, along with the FBI and the Department of Defense Office of Inspector General, to combat this nationwide epidemic of health care fraud that unfortunately, and at great cost, has infected the MTA as well.”
Marsh and JohnsonMarsh, the owner and operator of TJB Medical Billing Consultants LLC, provided medical billing to two New Jersey chiropractors. Johnson worked as a supervisor in the New Jersey office of a large telecommunications company.
Marsh used her access to the billing software at the chiropractor offices to generate false claims for out-of-network chiropractic services that were never performed. The claims were made pursuant to an agreement between Marsh and Johnson, who recruited other employees to allow false claims to be made in their names in exchange for a portion of the proceeds. From June 2016 through November 2017, Marsh submitted approximately 800 fraudulent claims seeking approximately $850,000 in reimbursements, which resulted in the payment of approximately $333,000 for chiropractic services that were never rendered.
Pepe, Watson, and Hing
Between January 2018 and May 2018, Pepe, Watson, and Hing engaged in a conspiracy which resulted in the trafficking of 1,180 oxycodone pills – 680 of which were unadulterated oxycodone and 500 of which were pressed pills mixed with hydrocodone, codeine, and methylphenidate. As part of the investigation, law enforcement observed eight controlled purchases, three of which were carried out by the defendants – including Pepe dressed in his work scrubs – in front of the Philadelphia hospital where Pepe was employed.
“Philadelphia and Camden are awash in opioids, with the human toll mounting steadily, day by day,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The idea of a medical professional taking a work break to push pills on the street, as alleged in the complaint, is at once disheartening and infuriating. The FBI will continue to doggedly investigate and bring to justice traffickers contributing to our area’s opioid crisis.”
“The individuals involved in these schemes are feeding this country’s opioid crisis,” said Scott J. Lampert, Special Agent in Charge for the Department of Health & Human Services Office of Inspector General. “This takedown sends a clear message that those suspected of engaging in health care fraud will be caught and face consequences for their actions.”
Agresti, Kalaba, Catanzarite, Marsh and Johnson each face a potential 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Agresti, Catanzarite, and Kalaba is scheduled for Oct. 30, 2018. Pepe, Watson, and Hing each face a potential 20 years in prison and a $1 million fine. The charges and allegations against Marsh, Johnson, Pepe, Watson, and Hing are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Ehrie; the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Harpster in Philadelphia; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Lampert; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Barzey; the MTA Office of the Inspector General, under the direction of Inspector General Kluger, and special agents of the U.S. Attorney’s Office with the investigations that yielded this week’s guilty pleas and arrests. He also thanked the Camden County Police Department, under the direction of Chief J. Scott Thomson, and the Cherry Hill Police Department, under the direction of William Monaghan, for their assistance.
The government is represented in these cases by Assistant U.S. Attorney Erica Liu, Chief of the U.S. Attorney's Office Opioid Abuse Prevention and Enforcement Unit in Newark, and Assistant U.S. Attorneys Lauren E. Repole, Christina O. Hud and Diana Carrig of the U.S. Attorney’s Office Criminal Division.
Repeat Offender Admits Distributing Child Pornography While on Federal Supervised ReleaseRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted distributing images of child sexual abuse and violating the conditions of his supervised release imposed in connection with a previous child pornography conviction, U.S. Attorney Craig Carpenito announced.
Barnaby Hewsen, 43, of Pennsauken, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of distributing child pornography as well as a petition charging him with violating the conditions of federal supervised release by committing another crime while under supervision.
According to documents filed in this case and statements made in court:
In May 2017, Hewsen uploaded three images containing images of child sexual abuse to a website. On June 2, 2017, law enforcement officers conducted a search of his residence and discovered seven videos and 373 images on his computer, some of which depicted prepubescent children and sadistic masochistic conduct involving the sexual abuse of infants and toddlers. In connection with the plea, Hewsen also admitted that he took these actions while on federal supervised release for a prior federal conviction for possessing child pornography.
The count of distribution of child pornography carries a mandatory minimum term of 15 years in prison and a maximum of 40 years in prison; the violation of supervised release carries a mandatory term of five years in prison, which may be imposed consecutively. Sentencing is scheduled for Oct. 5, 2018.
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 A. Michael; and the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
Bergen County, New Jersey, Man Admits Conspiring to Defraud the IRS by Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted conspiring with his father to file false federal tax returns for shell companies, resulting in $191,953 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Jason Crespo, 35, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiring with Jose Crespo, his father, to defraud the IRS by filing false corporate tax returns and cashing the resulting fraudulent refund checks.
According to the documents filed in this case and statements made in court:
Between 2010 and 2012, Jason and Jose Crespo filed numerous false federal corporate tax returns – IRS Forms 1120 – for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false. The Crespos took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing a “Credit for Federal Tax Paid on Fuels” – IRS Form 4136.
In one instance Jason and Jose Crespo filed a federal corporate tax return for 2008 for Jason Cleaning Service Corp. that falsely claimed a fuel excise tax credit of $14,556 and a resulting refund of $10,592. In fact, Jason Cleaning Service Corporation was a shell company and the fuel excise tax credit and other tax return numbers were false. Jason Crespo received and cashed the $10,592 refund check at a check-cashing facility in Guttenberg, New Jersey. He cashed many other refund checks for similar false tax returns at this same facility.
Jose Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares to engaging in the fuel excise tax credit scheme and another tax fraud scheme, both of which claimed fraudulent refunds from the IRS of approximately $1.5 million. Jose Crespo was sentenced on Dec. 20, 2017, to three years in prison.
Marilyn Crespo, Jose Crespo’s wife, pleaded guilty on March 1, 2018, before Judge Linares to engaging in the same fuel excise tax credit scheme and causing a loss to the IRS of $286,742. She was sentenced June 27, 2018, to one year and one day in prison.
The filing a false tax return count carries a maximum potential penalty of three years in prison, and a potential $250,000 fine, or twice the gross gain or loss from the offense. Jason Crespo’s sentencing is set for Oct. 4, 2018.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, 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 in Newark.
Defense counsel: Rubin Sinins Esq., Springfield, New Jersey
Salem County, New Jersey, Woman Sentenced to 12 Months in Prison for Filing False Corporate Tax ReturnsRead the Press Release
NEWARK, N.J. – A Salem County, New Jersey, woman was sentenced today to one year and one day in prison for signing false tax returns for shell companies resulting in $286,742 in fraudulent refunds, U.S. Attorney Craig Carpenito announced.
Marilyn Crespo, 50, of Carney’s Point, New Jersey, previously pleaded guilty before U.S. Chief District Judge Jose L. Linares to an information charging her one count of filing a false corporate tax return for tax year 2009. Judge Linares imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Crespo previously resided in Guttenberg, New Jersey. At the direction of her husband, José Crespo, she signed under penalty of perjury numerous false corporate tax returns, Forms 1120, for fake businesses, knowing that the businesses were not real and that the credits claimed on the tax returns were false.
In signing these false tax returns, Marilyn Crespo took advantage of fuel excise tax credits offered under federal tax law. The federal government taxes gasoline, diesel fuel, and certain other types of fuel, but certain commercial uses of these fuels are nontaxable. Businesses that purchase fuel for a nontaxable use can claim a tax credit by filing Form 4136 entitled “Credit for Federal Tax Paid on Fuels.”
Marilyn Crespo signed a federal corporate tax return for 2009 for Magnum Cleaning Service Corp. that claimed gross receipts of $115,027, a fuel excise tax credit of $20,859 and a resulting refund of $15,750. In fact, Magnum was a shell company and the gross receipts and fuel excise tax credit numbers were false. Marilyn Crespo received and cashed the $15,750 refund check at a check-cashing facility in Guttenberg. She cashed many other refund checks for similar false tax returns at this same check-cashing facility.
José Crespo pleaded guilty on Sept. 11, 2017, before Judge Linares, to engaging in the fuel excise tax credit scheme and another tax fraud scheme and causing an anticipated loss to the IRS of nearly $1.5 million. He was sentenced Dec. 20, 2017, to three years in prison.
In addition to the prison term, Judge Linares sentenced Marilyn Crespo to one year of supervised release and ordered her to pay restitution of $286,742.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Kenneth W. Kayser Esq., East Hanover, New Jersey
Paterson Police Officer Admits Assaulting Hospital Patient, Distributing NarcoticsRead the Press Release
NEWARK, N.J. – A City of Paterson police officer today admitted violating an individual’s civil rights by assaulting him at a hospital and repeatedly distributing narcotics, including drugs he stole from a crime scene while on duty, U.S. Attorney Craig Carpenito announced.
Ruben McAusland, 26, of Paterson, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with possessing with intent to distribute narcotics and deprivation of civil rights under color of law.
“McAusland’s conduct breached his duties as an officer of the law and violated the public trust,” U.S. Attorney Carpenito said. “He dealt drugs, stole from a crime scene, and viciously attacked an individual who contacted the Paterson Police Department rightfully expecting to receive assistance and protection from McAusland and his partner. The people of Paterson, and all of New Jersey, deserve better. This Office remains strongly committed to identifying and rooting out corrupt police officers and bringing them to justice under federal law.”
“Police Officers take a solemn oath to uphold the law and to protect the public. The few who take advantage of this public trust, at any level, will be investigated by the FBI and prosecuted to the fullest extent of the law. This officer not only violated his pledge but tarnished the reputation of all law enforcement by his grievous lawlessness,” said Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office.
According to documents filed in this and another case, and statements made in court:
Between October 2017 and April 2018, McAusland sold various types and quantities of narcotics to an individual who was cooperating with law enforcement. In October 2017, McAusland sold the individual approximately 35 grams of marijuana, 48 grams of heroin, 31 grams of cocaine, and 31 grams of crack cocaine. McAusland admitted that he stole these narcotics from a crime scene while on duty and in uniform as a police officer.
McAusland also sold the individual two pounds of marijuana between November 2017 and January 2018. In addition, on multiple occasions between February 2018 and April 2018, McAusland sold pills that were made to resemble Percocet doses but were actually made of heroin.
On March 5, 2018, McAusland and his partner, Roger Then, 29, of Paterson, were on duty and responded to a call from an attempted suicide victim. McAusland and Then first went to the victim’s house but were told the victim had been transported to St. Joseph’s Medical Center in Paterson.
McAusland first met the victim, who was in a wheelchair, in the hospital waiting room. McAusland admitted that during the encounter, he pushed the victim and punched him in the face. In addition, Then allegedly grabbed the victim by the neck and pushed him into the ground. Afterwards, the victim was taken to a hospital patient room.
McAusland and Then had another encounter with the victim in the hospital room, which Then recorded on his cellphone. McAusland admitted that, while the victim was on his back in a hospital bed, he put on a pair of hospital gloves and violently struck the victim twice across the face.
McAusland and Then filed a false police report in connection with the foregoing events. McAusland admitted that they purposely omitted from the repot the fact that McAusland violently struck the victim multiple times and that Then grabbed the victim by the neck and pushed him into the ground.
The victim suffered multiple injuries to his face, including an eye injury that required surgery, as a result of these assaults.
The distribution of narcotics charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The deprivation of civil rights count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 9, 2018.
Then was arrested May 30, 2018 and charged by complaint with conspiring to violate an individual’s civil rights and with misprision of felony for concealing civil rights violations. The charges and allegations against him 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 leading to today’s plea. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Defense counsel: John C. Whipple Esq., Morristown
Leader of Notorious Newark Heroin Distribution Ring Sentenced to 14 Years in Prison on Drug Conspiracy ChargesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 168 months in prison for his leadership role in a massive drug distribution ring responsible for selling millions of dollars’ worth of heroin out of a residential building near a high school in Newark, U.S. Attorney Craig Carpenito announced.
Quawee Jones, a/k/a “Hatman,” 34, of Newark, previously pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with conspiracy to distribute heroin. Judge Linares imposed the sentence today in Newark federal court
According to documents filed in the case and statements made in court:
Jones and his co-defendants operated a heroin distribution marketplace out of the first floor hallway of a residential building at 25 Johnson Avenue in Newark. The building is just a few doors away from the Malcolm X. Shabazz High School and the Terrell James Park playground. The conspiracy was led by Quawee Jones and Almalik Anderson, who, along with other heroin dealers that worked with them, took advantage of the building’s location on a dead-end street, making it difficult for law enforcement to infiltrate the distribution network despite a constant stream of buyers entering the building at all hours of the day.
“Lookouts” were paid by the defendants to alert them to any police activity coming onto the block from the only access point on Clinton Avenue. Police could not infiltrate the building without lookouts detecting their presence and signaling the sellers. Members of the drug trafficking organization also set up an escape route whereby residents were paid to keep their doors unlocked. The dealers in the hallways would run through the building and exit via fire escapes at the rear of the building or simply hide within the apartments before police could apprehend them.
The drug conspiracy operated nearly 24 hours a day and was well-known among heroin users, who came from several different counties across New Jersey. The defendants allegedly worked in carefully planned “shifts” in order to handle the constant flow of heroin buyers. The heroin was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred.
The defendants sold on average one to two kilograms of heroin per week between January 2013 and November 2015. Based upon the quantities sold, information from court-authorized wiretaps, and other evidence, the profit from the heroin distribution was estimated to be between $4 million and $7 million a year.In addition to the prison term, Judge Linares sentenced Jones to five years of supervised release.
All 16 defendants indicted for their roles in the heroin distribution conspiracy, including Anderson, have been convicted.
U.S. Attorney Carpenito credited special agents of the FBI and task force officers assigned to the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, the Essex County Sheriff’s Office under the direction of Armando B. Fontoura; the N.J. State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the Orange Police Department, under Director Todd Warren, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and David E. Malagold, and Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy Ann Biancamano Esq. and Dan Holzapfel Esq., Cranford, New Jersey
Pennsylvania Man Admits Three Armed Robberies in South JerseyRead the Press Release
CAMDEN, N.J. – A Ridley Park, Pennsylvania, man today admitted committing three armed robberies in Salem, Ocean, and Cumberland counties in November 2017, U.S. Attorney Craig Carpenito announced.
Jeffrey Edmonds, 45, pleaded guilty before Senior U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of Hobbs Act robbery, two counts of bank robbery, and one count of possession of a firearm in furtherance of a crime of violence.
According to documents filed in this case and statements made in court:
On Nov. 1, 2017, Edmonds and Terrance Robinson, 31, of Havertown, Pennsylvania, drove together to a convenience store in Upper Pittsgrove Township, stopping along the way to pick up a handgun and remove the license plates from the car that Edmonds was driving. After arriving at the convenience store, Edmonds remained in the getaway car while Robinson entered the store with the handgun and stole approximately $179.
Edmonds and Robinson later robbed an Ocean First Bank in Upper Deerfield Township on Nov. 6, 2017 and a Fulton Savings Bank in Alloway Township on Nov. 14, 2017. Prior to robbing the banks, Edmonds and Robinson removed the license plates from the getaway car. Robinson stayed in the getaway car while Edmonds entered the banks and robbed them with a handgun.
Each of the three robbery offenses carries a maximum potential penalty of 20 years in prison. The possession of a firearm in furtherance of a crime of violence charge carries a consecutive minimum term of five years in prison and a maximum potential penalty of life imprisonment. Each offense also carries a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 5, 2018.
Robinson remains charged by complaint for his alleged roles in the robberies. The charges and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge Gregory W. Ehrie, and officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense Counsel: Wayne Powell Esq., Cherry Hill, New Jersey
Passaic County, New Jersey, Man Sentenced to 92 Months in Prison for String of Bank RobberiesRead the Press Release
TRENTON, N.J. – A Passaic, New Jersey, man was sentenced today to 92 months in prison for robbing six banks in Hudson, Union, and Passaic counties in June and July of 2016, U.S. Attorney Craig Carpenito announced.
Quentin Morales, a/k/a “Quinton Morales,” 27, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with three counts of bank robbery. He also admitted to robbing two additional banks and attempting to rob another. Judge Sheridan imposed the sentence today in Trenton federal court.
Prior to his arrest in August 2016, Morales was one of Newark FBI’s most wanted bank robbers.
According to documents filed in this case and statements made in court:
Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank (attempted)
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
Wells Fargo Bank
Union, New Jersey
July 25, 2016
At each bank, Morales presented a note demanding cash from bank tellers. For example, during the June 24, 2016, robbery, Morales handed the teller a note stating “You are being robbed. Give me all the large bills you have, no alarms, no noise.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
In addition to the prison term, Judge Sheridan sentenced Morales to three years of supervised release and ordered to pay restitution of $9,217.
U.S. Attorney Carpenito credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, 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 N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Assistant U.S. Attorney Elisa Wiygul of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Linda D. Foster Esq., Assistant Federal Public Defender (Newark)
Cherry Hill, New Jersey, Man Admits Conspiring to Deal in Firearms without a LicenseRead the Press Release
CAMDEN, N.J. – A Cherry Hill, New Jersey, man today admitted his role in conspiring to sell at least 100 handguns without a federal firearms license, U.S. Attorney Craig Carpenito announced.
Fr’Neil Hickson, a/k/a “Philly,” 38, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count Two of an indictment charging him with conspiracy to deal in firearms without a federal firearms license.
According to documents filed in this case and statements made in court:
Hickson admitted that between December 2009 and April 2013 he sold or brokered the sale of at least 100 handguns obtained from sources outside of New Jersey. The investigation showed that Hickson obtained many of the weapons from Joshua Jackson, a/k/a “Apple,” a/k/a “Trent,” and that Jackson obtained most of the firearms through purchases at gun shows from unlicensed gun sellers without background checks. Some of the firearms were also purchased at Ohio gun stores by straw purchasers working for Jackson, who transported the handguns to New Jersey and resold them to Hickson and Terrance Laboo, a Camden drug dealer. Hickson admitted some of the weapons were equipped with extended magazines capable of holding more than 15 rounds of ammunition.
Hickson also sold handguns directly to Terrance Laboo. At the time of the gun sales, Laboo was engaged with others in drug trafficking, including the sale of PCP and cocaine at the corner of 4th and Chestnut streets in Camden. Hickson and Laboo sold, directed or brokered the sale of many of the firearms to other drug dealers and felons in Camden and surrounding areas.
The count of conspiracy to deal in firearms without a license to which Hickson pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 1, 2018.
Hickson has been in federal custody since his arrest in Atlanta, Georgia, on April 29, 2014. In a separate case in Atlanta, investigated jointly by ATF agents from the Atlanta office and the District of New Jersey, Hickson was arrested for illegal possession of 12 firearms. He pleaded guilty in Atlanta federal court to possession of firearms by a convicted felon and on Oct. 25, 2016, he was sentenced to four years in prison by U.S. District Judge Steve C. Jones. Hickson completed his sentence in that case in August 2017, but remained in federal custody on the indictment that resulted in today’s guilty plea.
This case was part of a long-term investigation of illegal gun trafficking referred to as “Operation Buckeye,” as the bulk of the illegal guns recovered from felons in the Camden, Philadelphia and surrounding areas were originally purchased in Ohio.
On July 21, 2016, Laboo, who had previously pleaded guilty to dealing in firearms without a license, conspiracy to deal in firearms without a license, possession of firearms by a convicted felon, and distribution of a controlled substance, was sentenced by Judge Kugler to six years in prison. On Oct. 25, 2016, Jackson, of Willingboro, New Jersey, who had previously entered a guilty plea to dealing in firearms without a license, conspiracy to deal in firearms without a license, and possession of firearms by a convicted felon, was sentenced to six years in prison.
The ATF investigation showed that the conspiracy involved the illegal acquisition, interstate transfer, and illegal sale of approximately 300 handguns to drug dealers and others.
U.S. Attorney Craig Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. Devito; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Camden County Prosecutor’s Office, under the direction of Mary Eva Colalillo; and the Burlington County Prosecutor’s Office, under the direction of Scott A. Coffina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Patrick C. Askin and Alyson Oswald of the U.S. Attorney’s Office in Camden.