District of New Jersey
Press releases recorded for this federal judicial district.
Burlington County, New Jersey, Man Admits Collecting Disabled Brother’s Monthly Benefit ChecksRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted stealing his disabled brother’s Social Security benefits, U.S. Attorney Craig Carpenito announced.
Steven Mitchell, 43, of Marlton, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
Mitchell admitted that prior to 2010 his brother was receiving Disabled Adult Child Survivor benefits from the Social Security Administration (SSA). After the death of their mother in 2009, Mitchell became the representative payee with the SSA for his disabled brother in 2010. Mitchell acknowledged that the SSA funds were to be used to pay for his brother’s care at a facility run by the N.J. Division of Developmental Disabilities. Mitchell was supposed to provide Prince Association for the Developmentally Disabled, which is part of the N.J. Division of Developmental Disabilities, with 75 percent of his brother’s survivor benefits to pay for his brother’s care and maintenance at the facility.
While Mitchell was the representative payee, the SSA paid benefits into his brother’s bank account. Mitchell admitted that instead of paying for his brother’s care, he accessed his bank account by making withdrawals and used that money to pay for his personal expenses, including utilities, food, and car payments. Mitchell admitted that from February 2010 to April 2017, he collected $110,495 to which he was not entitled.
The charge to which Mitchell pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 15, 2018.
U.S. Attorney Carpenito credited special agents of the SSA, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, with investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden and Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Trenton.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Moorestown, New Jersey, Man Admits Impersonating Federal Agent, Importing Counterfeit Coins and Bars into United StatesRead the Press Release
CAMDEN, N.J. – A Moorestown, New Jersey, man today admitted impersonating a federal agent while selling counterfeit coins and unlawfully importing counterfeit coins and bars into the United States, U.S. Attorney Craig Carpenito announced.
Jonathan A. Kirschner, a/k/a “Jonathan Kratcher,” 34, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of falsely impersonating an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and one count of unlawfully bringing counterfeit coins and bars into the United States.
According to documents filed in this case and statements made in court:
Kirschner admitted that on May 9, 2017, he sold fake gold bars to a coin collector (Victim 1) for $11,000 in cash. Kirschner wore an ATF badge on a chain around his neck and claimed to be an ATF agent in written correspondence with Victim 1 and when they met in person. Kirschner also admitted that he sold 49 counterfeit Morgan dollar coins to two people (Victims 2 and 3) in Mt. Laurel, New Jersey, on June 4, 2017. Kirschner told Victims 2 and 3, “I have my badge on,” when providing descriptive information so that Victims 2 and 3 could recognize Kirschner. He admitted that he pretended to be an ATF agent to put his victims at ease in purchasing what Kirschner claimed were gold coins and bars when, in reality, the coins and bars were fake. Kirschner admitted unlawfully bringing counterfeit coins and bars into the United States by importing multiple, falsely manifested packages from other countries, including China.
The charge of impersonating a federal officer carries a maximum potential penalty of three years in prison and the charge of unlawful importation carries a maximum potential penalty of 15 years in prison. Sentencing is scheduled for Oct. 1, 2018.
U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge John B. Devito, Newark Field Division; and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Cherry Hill Office, under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Leonard D. Biddison Esq., Haddonfield, New Jersey
Middlesex County, New Jersey, Man Found Guilty on Racketeering, Murder, and Weapon ChargesRead the Press Release
NEWARK, N.J. – A New Brunswick, New Jersey, man was convicted at trial today for his violent role in a racketeering conspiracy involving multiple brothels that employed illegal aliens throughout New Jersey, U.S. Attorney Craig Carpenito announced.
Wilmer Chavez Romero, a/k/a “Charmin,” 29, was convicted of all eight counts of an indictment charging him with one count each of racketeering, racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and conspiracy to harbor aliens; two counts of using a firearm for a violent crime; and two counts of murder in aid of racketeering. He was convicted following a two and a half-week trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated for five and a half hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
Chavez Romero served as an enforcer for a prostitution enterprise that helped illegal aliens enter the country and employed them at brothels throughout Cumberland, Essex, Mercer, Middlesex, Monmouth and Ocean counties. The enterprise used threats and acts of violence – including burglary, assaults, and murder – to expand its territory, thwart rival brothels, exact revenge, punish enterprise members and associates who had been disloyal, and silence people they believed were cooperating with law enforcement.
Chavez Romero acted at the direction of the leaders of the enterprise, Juan Fredy Hernandez-Zozaya, 40, and his girlfriend, Elizabeth Rojas, 36, both of New Brunswick, who oversaw brothels in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton.
Chavez Romero personally committed acts of violence to further the enterprise, including participating in the murders of two victims during separate robberies. On Sept. 4, 2012, Chavez Romero, armed with a firearm, entered a rival brothel house in Trenton with the intent to rob the house. During the robbery, one victim was shot in the leg and survived, while another was shot and killed.
On Jan. 23, 2013, Chavez Romero entered another rival brothel in Trenton armed with a .40 caliber firearm. Chavez Romero attempted to commit a robbery when a fight broke out and a victim was shot and killed.In addition, during recorded interviews with law enforcement in 2012 and 2014, Chavez Romero discussed his role in the murders, as well as beatings, shootings, and other acts of violence that he committed to further the enterprise’s goals and shut down its competition. As part of the enterprise, Chavez Romero also conspired to conceal and harbor aliens and aided in their interstate transport for use in the prostitution enterprise.
The racketeering and racketeering conspiracy charges carry a potential life sentence. The assault with a dangerous weapon in aid of racketeering charge carries a maximum potential penalty of 20 years in prison. Both murder in aid of racketeering counts carry a mandatory term of life imprisonment. Each use of a firearm during a violent crime count carries a mandatory consecutive term of 10 years in prison. The conspiracy to harbor illegal aliens count carries a maximum potential term of 10 years in prison. All counts in the indictment carry a potential $250,000 fine. Chavez Romero’s sentencing is scheduled for Sept. 25, 2018.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael in Newark, as well as the Cumberland County Prosecutor’s Office, Trenton Police Department, Mercer County Prosecutor’s Office, and the N.J. State Police Ballistics Lab, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Meredith Williams and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin F. Carlucci Esq. and Carol Gillen Esq., Assistant Federal Public Defenders, Newark
Passaic County, New Jersey, Woman Admits Role in Crime Spree that Included Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey woman today admitted her role in a month-long crime spree that included attempting to rob a Citizens Bank, in Tannersville, Pennsylvania, at gunpoint, conspiring to rob a Keystone Bank in Scotrun, Pennsylvania, and robbing a Spencer Savings Bank in Garfield, New Jersey, at gunpoint, U.S. Attorney Craig Carpenito announced.
Melisa Aquino Arias, 23, of Passaic, New Jersey, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging her with one count of attempted bank robbery, one count of attempted conspiracy to steal from a bank, and one count of bank robbery. On April 5, 2018, her co-defendant, Swahilys Pedraza-Rodriguez, 19, of New Haven, Connecticut, pleaded guilty before Judge Chesler in Newark to an information charging her with the same offenses.
According to documents filed in this case and statements made in court:
On Aug. 28, 2017, Arias and Pedraza-Rodriguez, both disguised in nuns’ habits, entered a Citizens Bank in Tannersville, Pennsylvania. While inside, Arias acted as a lookout as Pedraza-Rodriguez took out what appeared to be gun and demanded money from a bank teller. Arias signaled to Pedraza-Rodriguez that they should leave the bank and the women fled empty-handed.
On Sept. 20, 2017, Arias and Pedraza-Rodriguez agreed to steal money from the drive-through ATM machine at a Keystone Bank in Scotrun, Pennsylvania. Arias drove them, both wearing hijabs, to the ATM machine and again acted as a lookout while Pedraza-Rodriguez attempted to pry open the ATM machine with a screwdriver. Those attempts were unsuccessful, and the women again fled the scene.
On Sept. 27, 2017, Pedraza-Rodriguez and Arias entered a Spencer Savings Bank in Garfield, New Jersey, and asked a bank teller for information about opening a bank account. Arias, who was wearing a blue hijab, took out what appeared to be a black handgun and demanded money, while Pedraza-Rodriguez stood guard by the bank manager. After a bank teller handed them some cash, the defendants left the bank and employees immediately alerted the police. Law enforcement officers responded to the scene, but did not immediately locate the robbers.
On Oct. 15, 2017, Pedraza-Rodriguez and Arias entered an NVE Bank in Teaneck, New Jersey. Arias wore an orange hijab and Pedraza-Rodriguez wore a black head covering. They approached a bank employee and requested information about opening a bank account. The employee recognized the women as the alleged perpetrators of the Garfield bank robbery. As the employee went to alert the police, the women left the bank. Pedraza-Rodriguez and Arias were apprehended soon after by law enforcement officers.
The bank robbery and attempted bank robbery counts each carry maximum potential penalties of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy to commit bank larceny count carries a maximum potential penalty of one year in prison. Sentencing for Arias is scheduled for Sept. 12, 2018. Sentencing for Pedraza-Rodriguez is scheduled for Aug. 15, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the Garfield Police Department, under the direction of Chief Raymond Kovach; the Teaneck Police Department, under the direction of Chief Glenn M. O'Reilly; the Leonia police department, under the direction of Chief Thomas P. Rowe; and the Pocono Township Police Department, under the direction of Chief Kent Werkheiser with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Pennsylvania Man Charged with Defrauding Lending Company of More Than $400,000Read the Press Release
NEWARK, N.J. – The president of a staffing company was arrested this morning for allegedly used phony invoices and time cards to defraud a commercial finance lending company of $400,000, U.S. Attorney Craig Carpenito announced.
Jeremy Hare, 47, of Philadelphia, is charged by complaint with one count of wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
Hare was the president and managing member of Apollo Search Partners LLC, a staffing agency with an office in New Jersey. The victim company was a commercial finance lender that offers funding to companies in order to meet payroll and other obligations.
On June 16, 2017, Hare had Apollo enter into a financing agreement with the victim company. In order to get funding, Apollo would provide the Victim Company invoices and supporting time cards for each person Apollo staffed with a client. Approved clients were supposed to submit payment to the victim company.
However, between June 20, 2017 and Aug. 15, 2017, Hare submitted more than 15 invoices to the victim company even though Apollo never staffed most of the individuals listed on the invoices and the time sheets submitted with the invoices included hours that were never worked.
In response to the invoices, the victim company provided funding of approximately $400,000 to Apollo between June and August 2017. To date, the victim company has not received reimbursement for the money it funded Apollo in response to the phony invoices.
The wire fraud charge is punishable by 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 charge and allegations contained in the complaint are merely accusations, and the defendant is considered 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 arrest. He also thanked special agents of the FBI in Philadelphia for their assistance in this case.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit in Newark.
New York Man Admits Producing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Pearl River, New York, man today admitted photographing and filming a child engaged in sexually explicit conduct and sharing those images online, U.S. Attorney Craig Carpenito announced.
Richard Murphy, 32, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with sexual exploitation of a minor.
According to documents filed in the case and statements made in court:
Murphy admitted that in December 2016, he persuaded a child to engage in sexually explicit conduct for the purpose of taking photos and videos of that conduct. Murphy also admitted that he took video of the child performing a sex act on him. In addition, Murphy admitted that he shared the sexually explicit images with another individual online.
The sexual exploitation charge carries 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 Sept. 25, 2018.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented Assistant U.S. Attorneys Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit, and Leticia Vandehaar, Chief of Staff to the U.S. Attorney.
Defense counsel: David I. Goldstein, Chestnut Ridge, New York
Intermediary in Fraudulent Money Order Cashing Scheme Sentenced to 20 Months in PrisonRead the Press Release
CAMDEN, N.J. – A Knoxville, Tennessee, man was sentenced today to 20 months in prison for recruiting individuals to cash fraudulent money orders that he received from a former South Jersey U.S. Postal Service (USPS) employee, U.S. Attorney Craig Carpenito announced.
Eugene Bowen, 35, 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 USPS money orders with intent to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
According to the documents filed in this case and statements made in court:
Bowen admitted that Marc Saunders, 40, of Sicklerville, New Jersey, a former employee at the USPS branch in New Lisbon, New Jersey, provided him with stolen money orders and told him to recruit others to cash them. Bowen admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money for Saunders and himself.
In addition to the prison term, Judge Rodriguez sentenced Bowen to three years of supervised release and ordered to pay restitution of $18,470.
On Dec. 12, 2017, Saunders pleaded guilty to his role in the scheme, including producing the money orders with a stolen imprinting machine and giving them to others to cash. His sentencing is scheduled for July 24, 2018.
Acting U.S. Attorney Carpenito credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern 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: John Brennan Esq., Marlton, New JerseyCalifornia Man Admits Role in Cross-Country Conspiracy to Distribute over Five Kilograms of CocaineRead the Press Release
NEWARK, N.J. – A Riverside, California, man today pleaded guilty to his role in a conspiracy to transport more than five kilograms of cocaine from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Edwin Garcia Cambero, 26, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with conspiracy to possess with intent to distribute more than five kilograms of cocaine.
Garcia Cambero was originally charged by complaint on Dec. 13, 2017, with Luis Michel Donascimento, 36, of Perris, California, and Humberto Ramos Cervantes, 33, of Los Angeles.
According to documents filed in this case and statements made in court:
On Nov. 29, 2017, Donascimento allegedly flew from California to Atlantic City, New Jersey, and met with a government informant and two undercover federal agents. During the meeting, Donascimento agreed to sell the agents 20 kilograms of cocaine, as well as 10 AR-15 semiautomatic rifles.
On Dec. 12, 2017, Donascimento allegedly met with the agents at a hotel in California and delivered them 10 AR-15 rifles as promised. Garcia Cambero also attempted to deliver approximately five kilograms of cocaine to the agents, which he had received earlier that day at his residence from Ramos Cervantes.
The conspiracy charge to which Garcia Cambero pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing is scheduled for Sept. 20, 2018.
The charges and allegations against Donascimento and Ramos Cervantes are merely accusations, and they are considered innocent unless and until proven guilty. All three defendants have been in custody since their arrest in California on Dec. 13, 2017.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and the FBI Riverside, California, Resident Agency, under the direction of Assistant Director in Charge Paul D. Delacourt in Los Angeles, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit.
Defense counsel: Henry Klingeman Esq., Newark, New Jersey
Two Men Charged in Plot to Distribute over Nine Kilograms of Heroin, 50 Pounds of Crystal Methamphetamine in Mercer CountyRead the Press Release
TRENTON, N.J. – Two California men who were arrested in Mercer County, New Jersey, with over 50 pounds of crystal methamphetamine and nine kilograms of heroin appeared today in Trenton federal court, U.S. Attorney Craig Carpenito announced.
Gabriel Acosta Villa, 29, of Lake Forest, California, and Oscar Perez Jr., 23, of Santa Ana, California, are both charged by complaint with one count of conspiracy to possess with intent to distribute methamphetamine and one count of conspiracy to possess with intent to distribute heroin. They appeared this afternoon before U.S. Magistrate Judge Lois H. Goodman and were detained.
According to the complaint:
On June 17, 2018, law enforcement officers received information that a commercial truck driver and his accomplice planned to sell approximately 50 pounds of crystal methamphetamine to a buyer in the Trenton area. Law enforcement officers set up surveillance near the parking lot of a Robbinsville, New Jersey, restaurant and observed Acosta walking through the parking lot with two large bags. After Acosta entered a nearby vehicle, law enforcement officers stopped the vehicle and discovered 51.31 pounds of a substance that tested positive for methamphetamine.
After detaining Acosta, law enforcement officers searched the area and discovered Perez walking alone near the loading docks of a nearby hardware store. A large white tractor trailer was parked nearby with the engine still running. A subsequent search of the tractor’s cab uncovered 9.5 kilograms of a substance that tested positive for heroin.
Both defendants face a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.U.S. Attorney Carpentio credited special agents of Department of Homeland Security, Homeland Security Investigations (HSI) Cherry Hill, under the direction of Resident Agent in Charge Richard Reinhold, and overseen by Acting Special Agent in Charge Brian Michael of HSI Newark, and the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation. He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, for their assistance.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Two Men Charged with Interstate Transport of $2.3 Million Worth of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Two men have been charged for their alleged roles in transporting $2.3 million worth of stolen perfume products out of New Jersey, U.S. Attorney Craig Carpenito announced today.
Yunior Estevez, 33, of Hollywood, Florida, and Carlos Duvergel, 53, of Colorado Springs, Colorado, were both charged by complaint with conspiracy and with the interstate transport of stolen property. Estevez will make his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court. Duvergel made his initial appearance on June 6, 2018, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on bail on June 7, 2018.
According to documents filed in this case and statements made in court:
In November 2017, the defendants and others obtained unauthorized access to a warehouse storing perfume products in Edison, New Jersey, and drove away with at least one tractor-trailer filled with stolen perfume products. Toll plaza footage from the N.J. Turnpike revealed Estevez to be driving the tractor-trailer out of New Jersey and into Delaware. The value of the stolen perfume products is estimated to be $2.3 million.
The conspiracy count is punishable by a maximum potential penalty of five years in prison. The charge of interstate transport of stolen property is punishable by a maximum penalty of 10 years in prison. Both charges also carry a $250,000 fine, or twice the gross gain or loss from the offenses.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie, and the Edison Police Department, with the investigation leading to these charges.
The government is represented by Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.
Deputy Attorney General recognizes Deputy U.S. Attorney Thomas J. EicherRead the Press Release
WASHINGTON – Thomas J. Eicher, Deputy U.S. Attorney for the District of New Jersey, was one of 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell IV at the 34th Director’s Awards Ceremony today in Washington, D.C.
The District of New Jersey was one of 35 districts represented at a ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In addressing the award recipients and guests, Deputy Attorney General Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
Deputy U.S. Attorney Eicher was recognized for his leadership, effectiveness, personal integrity, and dedication to public service over the course of his 30-year career with the Department. As Chief of the Criminal Division, his breadth of experience and knowledge permits him to effectively manage one of the largest criminal divisions in the country. He helped establish New Jersey’s first federal reentry and “pre-trial” courts. He successfully pushed for innovative data-driven violent crime strategies and plays an important leadership role in the Public Safety Partnership and Violent Enterprise Source Targeting initiatives, which are key components in the Department’s strategy to combat drug trafficking and violent crime. In addition to the substantial leadership and guidance he provides, Deputy U.S. Attorney Eicher contributed to the efficiency and effectiveness of the Department through his leadership of the Criminal Chiefs Working Group and participation on the Attorney General’s Advisory Committee.
“For three decades, the past 15 years of which have been spent in our office, Tom Eicher has represented the U.S. Attorney community with professionalism and distinction,” U.S. Attorney Craig Carpenito, District of New Jersey, said. “As Chief of our Criminal Division, he developed strategies aimed at protecting the public by focusing on the most violent criminals and directed the further development of the office’s highly-regarded white collar programs. Now, as Deputy U.S. Attorney, he oversees the important work of our Camden and Trenton offices while continuing to be a trusted and reliable part of our leadership team. I am gratified that he has now been recognized with the Justice Department’s prestigious Executive Achievement Award, and I could not be prouder of Tom and the way he has represented our office.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao .
Newark Man Charged with Armed Jewelry Heist in ElizabethRead the Press Release
NEWARK, N.J. – A Newark man will appear in federal court today to face charges for his alleged involvement in the September 2017 armed robbery of a jewelry exchange located in Elizabeth, New Jersey, U.S. Attorney Craig Carpenito announced.
William Valentin, 42, is charged by complaint with one count of conspiring to commit Hobbs Act robberies, one count of Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of conspiring to use a firearm during a crime of violence. Valentin was scheduled to make his initial appearance today before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the complaint:
On the morning of Sept. 5, 2017, four masked individuals, including Valentin, entered a jewelry exchange located in Elizabeth. Valentin then brandished a firearm at an employee while the other conspirators unloaded the contents of the store’s safes into large bags. Video surveillance showed Valentin and other conspirators entering the mall, approaching the jewelry exchange, and running out with the bags of jewelry. Afterwards, Valentin and his conspirators jumped into a black Audi and drove away.
In January 2018, Valentin was arrested in Holyoke, Massachusetts, with a backpack containing jewelry stolen from the Elizabeth exchange in his possession.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. The Hobbs Act, Hobbs Act conspiracy, and conspiracy to use a firearm in the commission of a crime of violence charges each carry a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
The charges and allegations in the complaint are merely accusations, and Valentin is considered 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, the Elizabeth Police Department, under the direction of Chief Ronald Simon, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, with the investigation leading to today’s charges. He also thanked the Holyoke Police Department, under the direction of Chief James Neiswanger, for its assistance.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the U.S. Attorney’s Office Public Protection Unit in Newark.
Bronx, New York, Man Charged with Distribution of MethamphetamineRead the Press Release
TRENTON, N.J. – A Bronx, New York, man arrested for distributing approximately eight pounds of methamphetamine has made his initial appearance in federal court, U.S. Attorney Craig Carpenito announced today.
Anthony Morales, 44, was arrested June 13, 2018, and charged by complaint with one count of distribution of 500 grams or more of methamphetamine. He appeared yesterday before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and was detained.
According to the documents filed in this case and statements made in court:
In June 2018, a Homeland Security Investigations (HSI) source provided information to HSI that a sale of a large volume of methamphetamine would be taking place in the parking lot of a restaurant in Moorestown, New Jersey.
On June 12, 2018, law enforcement officers observed Morales and another individual (Person One) meet in the restaurant’s parking lot before Morales handed Person One a box. As Person One walked away from Morales, law enforcement officers converged on the parking lot and arrested both individuals. Morales told law enforcement officers that he had arrived at restaurant earlier that day to sell Person One approximately 8 pounds of methamphetamine, and that he had, in fact, distributed the methamphetamine to Person One in a box. Morales admitted that he was arrested while waiting for Person One to pay him for the methamphetamine.
The methamphetamine distribution charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of HSI, under the direction of Resident Agent in Charge Richard Reinhold in Cherry Hill, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Eric A. Boden of the U.S. Attorney’s Office in Trenton.
Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
U.S. Attorney’s Office Files Lawsuit Against Borough of Woodcliff Lake over Denial of Zoning Approval for Orthodox Jewish House of WorshipRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey filed a lawsuit today against the Borough of Woodcliff Lake, New Jersey, alleging that the borough and its zoning board violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow an Orthodox Jewish congregation to build a house of worship on its property and took steps to keep it from building a house of worship anywhere else in the borough.
According to the complaint, Valley Chabad, an Orthodox Jewish congregation located in Woodcliff Lake, spent nine years searching for a property within the area suitable to construct a house of worship. However, when Valley Chabad attempted to buy three different sites between 2005 and 2013, the borough thwarted those attempts in various ways, including expressing interest in rezoning or acquiring those properties through eminent domain after Valley Chabad entered contracts to purchase them. The borough ultimately acquired two of the properties and rezoned the third.
Unable to purchase a new property in the area that was suitable for their needs, Valley Chabad submitted a variance application to the Woodcliff Lake zoning board to construct a larger house of worship at its current location in the borough. After two years, 18 hearings, and substantial revisions by Valley Chabad to address size and transportation concerns, the zoning board denied the application.
The zoning board cited aesthetic concerns, the adverse impact on the “residential character of the neighborhood,” and safety issues that were undermined by the testimony of the zoning board’s own experts. The board also noted parking limitations that were the result of a 2016 ordinance enacted well after Valley Chabad submitted its variance application in 2014. In addition, when citing concerns that Valley Chabad would not adhere to the occupancy limits proposed in the application, the zoning board falsely characterized testimony from a Valley Chabad rabbi about prior attempts to control crowds.
“Federal law protects all religious communities from discrimination and unlawful barriers when they seek to build a place of worship,” said U.S. Attorney Carpenito. “According to the complaint, the Borough of Woodcliff Lake imposed a substantial burden on Valley Chabad’s religious freedom by repeatedly meddling in its attempts to purchase property in the area and citing subjective and misleading reasons to justify denying its zoning application.”
“The right to use land for religious exercise, free from unduly burdensome or discriminatory restrictions, is a fundamental constitutional right,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Department of Justice remains vigilant in its enforcement of federal civil rights laws protecting religious groups’ ability to establish places of worship without improper interference.”
The Department of Justice today announced the “Place to Worship Initiative,” which will focus on protecting the ability of houses of worship and other religious institutions to build, expand, buy, or rent facilities – as provided by the land use provisions of the RLUIPA. As a part of the new initiative, the Department will work with the U.S. Attorney’s Offices to strengthen awareness of the land use provisions of RLUIPA. The first community outreach event under the initiative will be held on June 25, in Newark, led by the U.S. Attorney’s Office for the District of New Jersey.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Specifically, RLUIPA bars land use regulations that impose a substantial burden on religious exercise without a compelling justification, requires governments to treat houses of worship as favorably as nonreligious assemblies, and bars governments from discriminating among religions and from totally or unreasonably excluding houses of worship.
More information about RLUIPA and the Justice Department’s new Place to Worship Initiative is available at www.justice.gov/crt/placetoworship and at www.justice.gov/crt/rluipa. Questions and answers about RLUIPA and other documents may be found at www.justice.gov/crt/about/hce/rluipaexplain.php.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division, and Assistant U.S. Attorney Susan Millenky, Civil Division.
President of New Jersey Clinical Laboratory and His Brother, A Senior Employee, Sentenced to Prison in $100m+ Test Referral/Bribery SchemeRead the Press Release
NEWARK, N.J. – The president of Parsippany, New Jersey-based Biodiagnostic Laboratory Services LLC (BLS) and his brother – a senior employee at the now-defunct company – were sentenced today to federal prison terms for their respective roles in a conspiracy in which millions of dollars in bribes were paid to physicians for blood sample referrals worth more than $100 million to the company, U.S. Attorney Craig Carpenito announced.
David Nicoll, 44, of Mountain Lakes, New Jersey, was sentenced to 72 months in prison; Scott Nicoll, 37, of Wayne, New Jersey, was sentenced to 43 months in prison. Each defendant had previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of money laundering. Judge Chesler imposed the sentences today in Newark federal court.
“Today, the president of a diagnostic lab company and his brother were sentenced for their leading roles in a scam that led to one of the largest ever prosecutions of medical professionals in a bribery case,” U.S. Attorney Carpenito said. “Medical referrals from a doctor should be based on what’s in the patient’s best interest, not on how much money the doctor is offered in kickbacks. The number of doctors and medical professionals sent to prison in this case should make that message abundantly clear.”
The investigation has resulted in the convictions of 53 defendants – 38 of them of doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has recovered more than $15 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
“The FBI views health care fraud as a severe crime problem that impacts every American,” FBI Special Agent in Charge Gregory W. Ehrie said. “Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. Today’s sentencing of David Nicoll and his brother Scott Nicoll are the result of a multi-agency investigation into a complex health care fraud scheme, requiring substantial investigative resources. The FBI, with its law enforcement partners, will continue to allocate a significant amount of expert resources to investigate these crimes and prosecute all those that are intent in defrauding the American public.”
“These two individuals masterminded an elaborate health care fraud scheme based on nothing more than greed,” Scott J. Lampert, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, said. “We trust that the work with our law enforcement partners – especially the U.S. Attorney’s Office, FBI, IRS, and Postal Inspection Service – will send a clear message and dissuade individual health ‘professionals’ from making such corrosive schemes possible.”
According to documents filed in this case and statements made in court:
On April 9, 2013, federal agents arrested BLS president and part owner, David Nicoll; Scott Nicoll, a senior BLS employee and others, who were charged by complaint with bribery conspiracy, along with the BLS company. The conspiracy made millions in illegal profits between 2006 and April of 2013. David and Scott Nicoll admitted that BLS made substantially more than $100 million from Medicare and private insurance companies – just from bills related to blood specimens sent to BLS by bribed doctors.
BLS paid doctors millions of dollars – in cash or under the guise of sham lease, service, and consulting agreements through an elaborate network of shell entities used for that purpose. The defendants also admitted that one component of the bribery scheme was to pay some doctors a fee per test to induce them to increase their ordering of certain tests.
“Health care fraud of this magnitude cannot be tolerated, and today’s sentencings are the direct result of the tremendous investigative skills of all the participating law enforcement agencies,” Bryant Jackson, Acting Special Agent in Charge, IRS - Criminal Investigation, Newark Field Office, said. “IRS - Criminal Investigation is proud to have been a part of this investigative team that helped to bring down and dismantle this massive health care conspiracy.”
“Throughout the course of this long-running investigation, Postal Inspectors, federal prosecutors and our law enforcement partners have diligently worked to unravel this elaborate bribery conspiracy,” Acting Inspector in Charge Judy Ramos of the U.S. Postal Inspection Service said. “Although, the final defendants in this matter face sentencing today, Postal Inspectors will continue to tirelessly investigate complex fraud schemes that target consumers and businesses through the U.S. Mail.”
In addition to the prison terms, Judge Chesler sentenced the Nicolls to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Lampert; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jackson, and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ramos, with the investigation leading to today’s sentencings.
The government is represented by Senior Litigation Counsel Joseph N. Minish; Assistant U.S. Attorney Danielle Alfonzo Walsman, Co-Chief of the Public Protection Unit; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Senior Litigation Counsel Barbara Ward of the office’s Asset Recovery and Money Laundering Unit.
Defense counsel:
David Nicoll: John C. Whipple Esq., Chatham, New Jersey
Scott Nicoll: Timothy M. Donohue Esq., West Orange, New JerseyJustice Department Files Lawsuit Against Borough of Woodcliff Lake, New Jersey, over Denial of Zoning Approval for Orthodox Jewish House of WorshipRead the Press Release
The Justice Department today announced that it has filed a lawsuit against the Borough of Woodcliff Lake, New Jersey, alleging that the borough and its zoning board violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Valley Chabad, an Orthodox Jewish congregation located in Woodcliff Lake, to build a new place of worship on its land in the borough.
The complaint, filed in the District of New Jersey, alleges that Woodcliff Lake’s denial of a variance imposed a substantial burden on the Valley Chabad’s religious exercise. The complaint alleges that between 2005 and 2013, the Valley Chabad sought to purchase three different sites in the borough to construct a place of worship, and that the borough took steps to thwart each attempt. The complaint also alleges that after nine years of searching for a suitable location, in 2014 the Valley Chabad sought to construct a larger place of worship at its current location in the borough. After two years, 18 hearings, and substantial revisions by Valley Chabad to address size and transportation concerns, the zoning board denied the application. The zoning board cited aesthetic concerns, the adverse impact on the “residential character of the neighborhood,” and safety issues that were undermined by the testimony of the zoning board’s own experts.
“The right to use land for religious exercise, free from unduly burdensome or discriminatory restrictions, is a fundamental constitutional right,” said Acting Assistant Attorney General John Gore. “The Department of Justice remains vigilant in its enforcement of federal civil rights laws protecting religious groups’ ability to establish places of worship without improper interference.”
“Federal law protects all religious communities from discrimination and unlawful barriers when they seek to build a place of worship,” said New Jersey U.S. Attorney Craig Carpenito. “According to the complaint, the Borough of Woodcliff Lake imposed a substantial burden on Valley Chabad’s religious freedom by repeatedly meddling in its attempts to purchase property in the area and citing subjective and misleading reasons to justify denying its zoning application.”
The Department of Justice today announced the “Place to Worship Initiative,” which will focus on protecting the ability of houses of worship and other religious institutions to build, expand, buy, or rent facilities—as provided by the land use provisions of the RLUIPA. As a part of the new initiative, the Department will work with the United States Attorney’s Offices to strengthen awareness of the land use provisions of RLUIPA.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Specifically, RLUIPA bars land use regulations that impose a substantial burden on religious exercise without a compelling justification, requires governments to treat houses of worship as favorably as nonreligious assemblies, and bars governments from discriminating among religions and from totally or unreasonably excluding houses of worship.
More information about RLUIPA and DOJ’s new Place to Worship Initiative is available at www.justice.gov/crt/placetoworship and at http://www.justice.gov/crt/rluipa.
The government in this case is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division, and Assistant U.S. Attorney Susan Millenky, Civil Division.
Bergen County Man Admits Producing Phony Massage Therapy Training Certificates for Prostitution BusinessesRead the Press Release
TRENTON, N.J. - A Closter, New Jersey, man today admitted producing and selling fraudulent massage therapy training certificates for use in various New Jersey massage parlors that engaged in prostitution, U.S. Attorney Craig Carpenito announced.
Naresh Rane, 64, pleaded guilty before Senior U.S. District Judge Anne E. Thompson to Count 1 of an indictment charging him with knowingly and intentionally using and causing the use of facilities in interstate commerce to promote, manage, establish, carry on, and facilitate the business of prostitution in violation of New Jersey law.
According to documents filed in this case and statements made in court:
Rane owned and operated Axiom Healthcare Academy, which purported to provide classes in massage therapy training. Rane held himself out as a businessman who, for a fee that ranged from $1,000 to $2,600, could provide massage therapy training certificates to anyone who wished to obtain a massage license without the required training. Rane was also willing to provide phony transcripts listing classes and grades.
Between November 2013 and March 2014, Rane provided 10 fraudulent massage therapy training certificates and transcripts to a former Westwood, New Jersey, councilman who then gave them to prostitutes working in different massage parlors located in Union, Passaic, Hudson and Middlesex Counties. Rane admitted today that he knew the documents he was producing and selling were used to disguise prostitution activities as legitimate massage services.
The charge to which Rane pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 2, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: David A. Schwartz Esq., Eatontown
Atlantic County, New Jersey, Man Arrested on Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was arrested and charged today with receiving and distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Carlos Santiago Gomez, 27, of Absecon, New Jersey, turned himself in at the Atlantic City Resident Office of the FBI this morning after returning from a business trip to Texas. He is charged by complaint with one count of receiving child pornography and one count of distributing child pornography. Santiago Gomez made his initial appearance before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
From April 2016 through March 27, 2018, Santiago Gomez allegedly viewed, received and distributed images of child sexual abuse, including images of prepubescent children. Santiago Gomez, who was employed in the IT field, administered a KIK group in which participants traded images and videos of child sexual abuse. (KIK is an instant messaging app). While administering the group, Santiago provided instructions, including:
“New comers, welcome. There are just some rules to keep in mind when posting and maintaining your position. 1. Girls only 2. No Toddler 3. Videos only, no links no pictures. 4. Goes without saying but be active. Thanks and enjoy.”
“Please don’t post adult videos.”
“If you’re using FREENET, you might as well call the cops and turn yourself in. TOR, though not 100% safe by default, is slow but way better than FREENET.”
On March 27, 2018, law enforcement officers searched Santiago Gomez’ residence and seized numerous computers and electronic devices, including Santiago Gomez’ cellular telephone. Although law enforcement officers have not yet fully completed their analysis of Santiago’s electronic devices, agents have uncovered more than 1,000 images and videos of child sexual abuse.
Each count of receiving or distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner, with the investigation leading to today’s charge and arrest.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Leader of Newark Bloods Street Gang – The South Side Cartel – Sentenced to 45 Years in Prison for Five Murders, Racketeering, Other Violent Crimes in Furtherance of the Gang EnterpriseRead the Press Release
NEWARK, N.J. – The leader of one of Newark’s most violent street gangs was sentenced today to 540 months in prison for his admitted role in five murders, an armed carjacking, an armed robbery of a drug dealer, two counts of assault with a deadly weapon, and drug conspiracy as part of a racketeering conspiracy involving the South Side Cartel, U.S. Attorney Craig Carpenito announced.
Farad Roland, 33, previously pleaded guilty before U.S. District Judge Esther Salas to violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) as part of a 27-count second superseding indictment. Judge Salas imposed the sentence today in Newark federal court.
“This sentence effectively ends Farad Roland’s reign as the leader of the South Side Cartel.” U.S. Attorney Carpenito said. “Working with our partners in the FBI, the Newark Department of Public Safety, and the Essex County Prosecutor’s Office, we have removed a dangerous and violent predator from the streets of Newark, making the city safer for everyone. Stopping violent crime is a top priority of this office, and this sentence should be a warning to those who traffic in illegal drugs and commit acts of violence in support of their criminal enterprises that the office will take action to ensure that they will no longer walk free to terrorize their community.”
“Farad Roland chose to kill for the South Side Cartel of the Newark Bloods and now he can serve time for the gang,” Newark FBI Special Agent in Charge Gregory W. Ehrie said. “This conduct will not be tolerated and today’s sentence should send a message that the FBI, together with our law enforcement partners, will pursue and prosecute members of violent street gangs who seek to inflict violence and fear in our communities. The FBI and our partners will aggressively pursue gangs wherever they surface and are steadfast to making Newark and the surrounding communities, a safe place for our citizens.”
According to documents filed in this case and statements made in court:
The South Side Cartel was a sub-set of the Bloods street gang that operated primarily on Hawthorne Avenue in Newark. Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug-trafficking business, many of the gang’s members were officially brought into the Bloods gang in 2002 and 2003. The gang often operated out of apartments located at 496-500 Hawthorne Avenue, which were dubbed “the Twin Towers.” Local law enforcement made repeated narcotics and gun arrests at this location. Many of the South Side Cartel members had tattoos showing the Twin Towers and the logo “SSC,” which represented the gang’s initials.
Between 2003 and 2010, the South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise. At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences for gang-related crimes. Roland’s two co-defendants, Malik Lowery and Mark Williams, previously pleaded guilty in federal court. Lowery was sentenced in August 2016 to more than 26 years in federal prison. Williams is scheduled to be sentenced Sept. 13, 2018.
Roland’s admission of guilt includes acknowledgement of his participation in a host of racketeering acts to further the South Side Cartel’s goals, including:
• The Feb. 20, 2005, murder of a Newark resident who was shot during a robbery attempt that Roland ordered one of his gang associates to carry out;
• The Feb. 23, 2005, murder of the 19-year-old gang associate who committed the Feb. 20, 2005 robbery-murder, to prevent him from cooperating with law enforcement and implicating Roland;
• The Oct. 20, 2007, murder of a fellow South Side Cartel member who had fallen into disfavor with the gang;
• The retaliation murders of two people on March 27, 2008, outside the Oasis Bar located on Lyons Avenue in Newark.Roland also admitted committing an armed carjacking; an assault with a dangerous weapon in the 2008 shooting of a fellow gang member with whom Roland had a dispute; an assault with a dangerous weapon in the 2009 shooting of a rival gang member; the armed robbery of a drug dealer in East Orange, New Jersey; and conspiracy to distribute more than a kilogram of heroin and 280 grams of crack cocaine.
In addition to the prison term, Judge Salas sentenced Roland to five years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie; the Newark Police Division, under the direction of Department of Public Safety Director Anthony F. Ambrose; and Acting Essex County Prosecutor Robert D. Laurino, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Robert Frazer of the Violent Crimes Unit, Assistant U.S. Attorney Courtney Howard of the Economic Crimes Unit and Assistant U.S. Attorney Desiree Grace Latzer of the Violent Crimes Unit.
Defense counsel:
Farad Roland: Richard Jasper Esq. and Michael Bachrach Esq., New York; and Stephen Turano Esq., NewarkTwo Essex County Men Found Guilty on Drug and Weapons ChargesRead the Press Release
NEWARK N.J. – Two Essex County, New Jersey, men charged with multiple drug and weapons offenses were convicted today on all counts, U.S. Attorney Craig Carpenito announced.
Jesse Tullies, 53, of Hillside, New Jersey, and Eugene Williams, 33, of Newark, were convicted on one count each of conspiracy to distribute heroin, distribution of heroin, distribution of cocaine base, being a felon in possession of a weapon, and use and carrying of a firearm in furtherance of a drug trafficking crime. The defendants were convicted following a three-day trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated three hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On Oct. 4, 2017, Essex County Sheriff’s Officers witnessed Tullies and Williams involved in what they believed were a number of illegal drug sales in the area of Clinton Place and Weequahic Avenue in Newark. Tullies and Williams were subsequently arrested and during a search, officers recovered $1,275 in cash from Tullies and $360 from Williams.
During a search of the area where officers had seen Tullies and Williams retrieve suspected narcotics from under the rear bumper of a car, detectives recovered the following items:
- One plastic bag containing 198 glassine envelopes containing suspected heroin, including four glassine envelopes stamped “Black Jack”;
- One plastic bag containing 22 smaller plastic bags and ten plastic jugs containing suspected cocaine base and cocaine;
- A 9mm Beretta NaNa semiautomatic handgun loaded with two rounds of 9mm ammunition;
- A 9mm Taurus Millennium PT111 G2 semiautomatic handgun loaded with eight rounds of Sig Sauer 9mm ammunition and four rounds of Winchester 9mm ammunition;
- A 9mm FEG PA-63 Makarov semiautomatic handgun loaded with two rounds of JSC Barnaul Machine Tool Plant 9mm hollow point ammunition.
Laboratory testing confirmed that the substances recovered from under the rear bumper of the Chevrolet Lumina were heroin and crack cocaine.
Each of the drug counts on which the defendants were convicted carries a maximum penalty of 20 years in prison. The felon in possession of a weapon counts carry a maximum penalty of 10 years in prison. The use of a firearm counts carry a consecutive mandatory minimum of five years in prison and a maximum of life in prison. Sentencing is scheduled for Oct. 4, 2018.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John Devito in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Francisco Navarro of the National Security Unit and Elaine Lou of the Organized Crime/Gangs Unit in Newark.
Former Employee of Insurance Company Pleads Guilty to $300,000 Phony Refund Check Scheme and Tax EvasionRead the Press Release
NEWARK, N.J. – A Hunterdon County, New Jersey, woman today admitted stealing outstanding customer refund checks and failing to report that income on her individual tax returns, U.S. Attorney Craig Carpenito announced.
Salomé Woolford, 49, of Lebanon, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with one count of conspiracy to commit wire fraud and one count of filing a false income tax return.
According to documents filed in this case and statements made in court:
Between May 2014 and April 2015, while working as a customer service representative for the victim company, Woolford and other employees devised a scheme to steal money by identifying outstanding refund checks that had not yet been cashed. Woolford and others then accessed the accounts for those customers in the victim company’s computer system, electronically changed the payee information to that of one of their associates and requested new checks.
As a result, the victim company reissued the refund checks in the name of the new payees. Once the checks had been received and cashed, Woolford and others changed the payee information back to the original customers’ information to conceal the fraud. As a result of the scheme, the victim company suffered losses of at least $300,000.
Woolford failed to report the money she received as part of the scheme on her tax returns for years 2013 through 2015.
The wire fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The false tax filing charge carries a maximum potential penalty of three years in prison and a $250,000 fine. As part of her plea agreement, Woolford must also pay restitution to the victim company. Sentencing is scheduled for Oct. 17, 2018.U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, Newark Division, 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 plea.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Keith Hirschorn Esq., Hoboken, New Jersey
Egg Harbor Township, New Jersey, Man Charged with Receipt of Child PornographyRead the Press Release
TRENTON, N.J. – An Egg Harbor Township man was arrested by federal agents today for allegedly receiving images of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Matthew Wolny, 40, is charged by complaint with two counts of receiving child pornography. Wolny is expected to appear this afternoon before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.
According to the complaint:In September 2013, Wolny, who was then living in Jackson, New Jersey, used peer to peer file sharing software on his computer to download video files containing images of child sexual abuse from the internet. When law enforcement officers searched Wolny's Jackson residence and his car in September 2013, they seized numerous electronic devices containing approximately 2,000 images and 1,600 videos of suspected child pornography.
Each charge of receiving child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, with the investigation. He also thanked the Little Egg Harbor Police Department, under the direction of Chief Richard J. Buzby Jr, for its assistance.
The government is represented by Assistant U.S. Attorney Molly Lorber of the Criminal Division in Trenton.
South Carolina Man Admits Illegally Storing Hazardous Waste at Camden, New Jersey, Chemical CompanyRead the Press Release
CAMDEN, N.J. – The former president and CEO of Concord Chemical Co. Inc. (Concord) today admitted illegally storing hazardous waste, U.S Attorney Craig Carpenito announced.
Miguel Castillo, 63, of Hilton Head, South Carolina, pleaded guilty before Judge Joseph H. Rodriguez to one count of storing hazardous waste at Concord’s Camden, New Jersey, facility in violation of the Resource Conservation and Recovery Act (RCRA).
According to documents filed in this case and statements made in court:
RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment by prohibiting the treatment, storage or disposal of any hazardous waste without a permit.
During its operation, Concord manufactured, repackaged and distributed a wide variety of chemical products, including cresylic acid, soaps, waxes, pipe lubricants and emulsions. Some of Concord’s products and the raw materials used to make them were hazardous. Castillo was Concord’s president or CEO from at least 2004 through August 2011.
As president and CEO, Castillo’s responsibilities included making decisions about the disposal of waste at the Camden facility. From at least 2005 through August 2010, Castillo knew that there were containers that stored hazardous waste at the Camden facility and that Concord did not have a permit to store such waste.
In August 2010, the U.S. Environmental Protection Agency (EPA) conducted a site visit of the Camden facility and discovered that the facility was devoid of employees, abandoned in a deteriorated condition and filled with drums containing corrosive and ignitable hazardous waste. From October 2010 through March 2011, the EPA removed the hazardous substances from the facility.
The illegal storage of hazardous waste charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Castillo’s sentencing is set for Sept. 10, 2018.
U.S. Attorney Carpenito credited special agents of the EPA, under the direction Special Agent in Charge Tyler Amon, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.
Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender, Camden
Previously Convicted Felon from Essex County, New Jersey, Admits Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man who was arrested following a domestic disturbance in which he discharged his weapon pleaded guilty today to possessing a firearm as a previously convicted felon, U.S. Attorney Craig Carpenito announced.
Dequan Farlow, 37, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with one count of possession of a firearm as a previously convicted felon.
According to documents filed in this case and statements made in court:
Farlow was arrested by Newark police officers on June 30, 2017 after he allegedly shot a speaker next to his ex-girlfriend’s mother and struck the mother with the gun at her residence in Newark.
Farlow admitted today that he knowingly possessed a loaded Hi-Point JCP semi-automatic handgun, despite having at least one prior felony conviction in Essex County Superior Court. As part of his plea agreement, Farlow also acknowledged that he knowingly fired the gun on June 30, 2017.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing will be scheduled at a later date.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officers of the Newark Police Division, under the direction of Department of Public Safety Director Anthony F. Ambrose, for their assistance.The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Two Customs and Border Protection Officers Indicted, Another Pleads Guilty to Assaults on Fellow Officers at Newark AirportRead the Press Release
NEWARK, N.J. – Two Customs and Border Protection (CBP) officers were indicted and another pleaded guilty for their roles in the assaults of two fellow CBP officers at Newark Liberty International Airport, U.S. Attorney Craig Carpenito announced today.
Parmenio I. Perez, 40, of Hawthorne, New Jersey, and Michael A. Papagni, 32, of Staten Island, New York, were charged by indictment today with two counts of forcibly assaulting, impeding, intimidating, and interfering with two CBP officers, identified in court documents as “Victim One” and “Victim Two,” while the victims were engaged in their duties as CBP officers. They will be arraigned at a later date.
Tito Catota, 38, of Lyndhurst, New Jersey, pleaded guilty June 4, 2018, before Senior U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with two counts of forcibly assaulting, impeding, intimidating, and interfering with Victim One and Victim Two while they were engaged in their duties as CBP officers. All three defendants were originally arrested and charged by complaint in September 2017.
According to documents filed in this case and statements made in court:
Catota, Perez, and Papagni were employed as CBP officers at Newark Liberty International Airport and were assigned to the Passenger Enforcement Rover Team (PERT). PERT was a CBP specialized unit that identified and intercepted passengers attempting to bring contraband into the United States or who might be associated with terrorist activities. PERT maintained an office on the second floor of Terminal C at Newark Liberty International Airport.
Victim One was assigned to PERT in October 2016. Within the first two weeks that Victim One worked in PERT, Papagni allegedly advised Victim One that the PERT office table was known as the “rape table” and threatened the victim that he would get him on it.
On Jan. 10, 2017, an individual identified in court documents as “CBPO 2” shut off the lights in the PERT office. Papagni, Catota, and another officer identified as “CBPO 3” grabbed Victim One’s arms and legs and threw him on top of the PERT office table. While Papagni, Catota, and CBPO 3 held him down, Perez got on top of Victim One’s mid-section and grinded his body up and down against Victim One’s genitals through the victim’s clothing in a motion simulating a sex act. Victim One unsuccessfully attempted to push Perez off his body. When Perez got off of Victim One, Papagni, Catota, and CBPO 3 released him.
On Nov. 30, 2016, Victim Two, who was assigned to the Port Director staff, went to the PERT office to speak to CBPO 1. A few minutes later, an officer identified as “CBPO 4” locked one of the doors to the office. Catota, Papagni, and Perez then grabbed Victim Two and threw him on his side on the PERT office table. Perez then allegedly simulated a sex act on Victim 2’s leg. Victim Two struggled to get free until Catota, Papagni, and Perez eventually released him.
At his plea hearing, Catota admitted that he and other CBP officers referred to the tables in the PERT office as the “rape table.” Catota also admitted helping grab Victim One and Victim Two, throwing them on the tables, and holding them down while they were attacked. In addition, Catota also admitted that he and other CBP officers discussed the assaults on the Whatsapp chat message service. For instance, on Dec. 7, 2016, Catota stated that another CBP officer had “walked out on the rape” when referring to the assault of Victim Two.
The charges against Perez, Papagni, and Catota each carry a maximum potential penalty of eight years in prison and a $250,000 fine.The charges and allegations against Perez and Papagni are merely accusations, and they are considered innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security, Office of Inspector General, New York Resident Office, under the direction of Special Agent in Charge Mark Tasky and U.S. Customs and Border Protection, Office of Professional Responsibility, New York Resident Office, under the direction of Special Agent in Charge Vance Kuhner, with the investigation leading to the indictment and guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division, and Rahul Agarwal, Deputy Chief of the Criminal Division in Newark.
Catota: Alan Zegas Esq., Chatham, New Jersey
Papagni: Chad Seigel Esq., New York
Perez: Lorraine Gauli-Rufo, Verona, New JerseyMother and Son Charged in Conspiracy Involving Distribution of Fentanyl, Heroin, Cocaine, and MarijuanaRead the Press Release
CAMDEN, N.J. – A mother who was arrested and charged along with her son for their alleged roles in a drug trafficking conspiracy appeared in Camden federal court today for a detention hearing, U.S. Attorney Craig Carpenito announced.
Candace Gottlieb, 59, of Cherry Hill, New Jersey, is charged by complaint with conspiracy to distribute and possess with intent to distribute fentanyl, heroin, cocaine, and marijuana. Following her appearance, she was detained without bail. Her son, Tyler Gottlieb, 27, was arrested in California and is charged by complaint with conspiracy to distribute and possess with intent to distribute fentanyl, heroin, cocaine, and marijuana.
According to documents filed in this case and statements made in court:
Candace Gottlieb and her son were arrested following a federal investigation into trafficking counterfeit prescription opioid pills containing fentanyl and heroin, as well as cocaine and marijuana. In March 2018, federal law enforcement officers seized $67,760 from Tyler Gottlieb as he was about to board a flight to California from Philadelphia International Airport. In the months that followed, the FBI obtained 802 counterfeit prescription pills from Tyler and Candace Gottlieb, 200 of which have been confirmed to contain fentanyl and heroin. The remaining pills are believed to also contain fentanyl and heroin. The FBI also allegedly purchased cocaine in a transaction orchestrated by Tyler Gottlieb, seized approximately 40 pounds of marijuana sent by Tyler Gottlieb to New Jersey through the mail, and obtained samples of cocaine and marijuana from Candace Gottlieb.
On June 1, 2018, federal and local law enforcement executed a search warrant at Tyler and Candace Gottlieb’s New Jersey residence and seized approximately 6,600 additional counterfeit prescription pills suspected of containing fentanyl and heroin, along with cocaine and marijuana packaged for distribution. Investigators also located and seized two handguns from inside the home and approximately $2,000 in cash.
In the early morning hours of June 2, 2018, federal and local law enforcement executed a second search warrant at another residence connected to Tyler Gottlieb. During that search, investigators seized six more firearms, including an AK-47 assault rifle, a shotgun, 1,000 rounds of ammunition, high-capacity ammunition magazines, and two handguns. Investigators also seized marijuana and packaging materials.
Candace Gottlieb was arrested on June 1, 2018, in conjunction with the search of her home and was detained following her arrest. Federal and local law enforcement arrested Tyler Gottlieb in California on June 1, 2018. Tyler Gottlieb is awaiting an appearance in federal court in California with an anticipated appearance to follow in New Jersey on a date yet to be determined.
The drug trafficking conspiracy charges carry a maximum potential penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge John Devito; postal inspectors with the U.S. Postal Inspection Service, under the direction of Daniel Brubaker, Philadelphia Division; the Camden County Sherriff’s Department, under the direction of Gilbert Wilson; the Camden County Police Department, under the direction of Chief J. Scott Thomson; and the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo.
He also thanked the Cherry Hill Police Department, under the direction of William Monaghan, the Pennsauken Police Department, under the direction of John Coffey, and special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian Michael.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Candace Gottlieb: Christopher O’Malley Esq., Camden
Tyler Gottlieb: Evan Hughes Esq., PhiladelphiaHudson County Man Sentenced to 40 Years in Prison for Production and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, man was sentenced today to 480 months in prison for producing and possessing images and videos of child sexual abuse, U.S. Attorney Craig Carpenito announced.
Gregory John Schaffer, 39, was previously found guilty on all three counts of an indictment charging him with two counts of production of child pornography and one count of possession of child pornography. He was convicted following a three-day trial before U.S. District Judge Jose L. Linares, who imposed the sentence today in Newark federal court.
According to documents filed in the case and the evidence at trial:
In 2010, Schaffer sexually abused a 12-year-old girl in a tow-truck office in Union City, New Jersey, and video recorded the abuse without her knowledge. He later stored the video recording on a laptop computer found by law enforcement in his office in Jersey City, New Jersey. Schaffer also backed-up the video recording to another electronic storage device found in his office.
Around the same time, Schaffer also sexually abused a 14-year-old girl in a hotel room and video recorded the abuse without her knowledge. Schaffer again stored the video recording on the same laptop computer and electronic storage device that law enforcement found in his office.
Law enforcement also found additional sexually explicit videos and images of minors on Schaffer’s laptop computer and electronic storage device.
In addition to the prison term, Judge Linares sentenced Schaffer to lifetime supervised release.
U.S. Attorney Carpenito credited special agents of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New York Field Office under the direction of Special Agent in Charge Angel M. Melendez; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David E. Beach, New York Field Office; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jason S. Gould and Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Thomas Ambrosio Esq., of Lyndhurst, New Jersey
Biodiesel Fuel Company Pleads Guilty to Releasing over 45,000 Gallons of Wastewater into the Arthur KillRead the Press Release
An Elizabeth, New Jersey, biodiesel fuel company pleaded guilty today to discharging over 45,000 gallons of wastewater from its commercial biodiesel fuel production into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S. Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood announced.
Fuel Bio One LLC pleaded guilty before U.S. District Court Judge William J. Martini to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.
According to court documents, Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On September 6, 2013, and November 9, 2013, employees of Fuel Bio One released a total of approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court today.
Fuel Bio One has agreed, as part of its plea agreement, to pay $100,000 and to be placed on a probationary term of five years. During the probation, the company will be required to provide to the court biannual reports of any waste it generates and the steps taken to properly dispose of such waste. Fuel Bio One will also be required to develop an employee training program to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act and any other applicable laws. The company will also be required to provide the U.S. Environmental Protection Agency full access to all offices, warehouses and facilities.
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” said U.S. Attorney Carpenito for the District of New Jersey. “Today’s prosecution and guilty plea ensures that Fuel Bio One will be punished for its past crimes, and the plea agreement puts into place a plan to make sure they don’t pollute our waterways in the future.”
“Fuel Bio One undercuts a level playing field when they illegally discharge polluted wastewater into the Arthur Kill without any regulatory approval,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants from the state’s natural resources.”
U.S. Attorney Carpenito and Acting Assistant Attorney General Wood credited special agents of the U.S. Environmental Protection Agency, under the direction of Special Agent in Charge Tyler Amon, with the investigation leading to today’s charges.
The Government is represented by Assistant United States Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the United States Department of Justice.
Biodiesel Fuel Company Admits Releasing More Than 45,000 Gallons of Wastewater into Arthur KillRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, biodiesel fuel company today admitted discharging more than 45,000 gallons of wastewater from its commercial biodiesel fuel production facility into the Arthur Kill, a narrow waterway that separates New Jersey from Staten Island, New York, U.S Attorney Craig Carpenito and Acting Assistant Attorney General Jeffrey H. Wood announced.
Fuel Bio One LLC pleaded guilty before U.S. Magistrate Judge James B. Clark 3rd to an information charging it with one count of violating the Clean Water Act, a statute that was enacted to prevent, reduce, and eliminate water pollution in the United States.
“Protecting the environment and our natural resources is one of the many ways this office works to keep New Jersey safe for everyone,” U.S. Attorney Carpenito said. “Today’s prosecution and guilty plea ensures that Fuel Bio One will be punished for its past crimes, and the plea agreement puts into place a plan to make sure they don’t pollute our waterways in the future.”
“Staten Island Sound (also known as the Arthur Kill) is a vital waterway running between New Jersey and Staten Island. Once heavily polluted and nearly devoid of marine life, this waterbody is making a comeback and again provides habitat to many species of fish and wildlife,” Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division said. “Illegal dumping of pollution into the Sound not only violates federal law, but also threatens the environmental recovery of this historic marine channel, which is important to New Yorkers and New Jerseyans alike. The Justice Department will continue to work closely with EPA Criminal Investigation Division to prosecute illegal actions like those in this case.”
“Fuel Bio One undercuts a level playing field when they illegally discharge polluted wastewater into the Arthur Kill without any regulatory approval,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This judicial action demonstrates EPA’s commitment to protecting New Jersey’s environment and ensuring that all companies play by the rules to keep pollutants from the state’s natural resources.”
According to court documents filed in this case and statements made in court:
Fuel Bio One generated wastewater that included methanol, biodiesel and other contaminants, as a byproduct of its biodiesel fuel production at its Elizabeth, New Jersey, plant. On September 6, 2013, and November 9, 2013, employees of Fuel Bio One released a total of approximately 45,000 gallons of wastewater into a storm water pit at the Elizabeth plant, causing the pump to operate and, as a result, wastewater to be discharged into the Arthur Kill. A representative of Fuel Bio One admitted to this conduct in court today.
Fuel Bio One has agreed, as part of its plea agreement, to pay $100,000 and to be placed on a probationary term of five years. During the probation, the company will be required to provide to the court biannual reports of any waste it generates and the steps taken to properly dispose of such waste. Fuel Bio One will also be required to develop an employee training program to ensure that all storage, treatment and disposal of wastewater complies with the Clean Water Act and any other applicable laws. The company will also be required to provide the U.S. Environmental Protection Agency full access to all offices, warehouses and facilities.
U.S. Attorney Carpenito and Acting Assistant Attorney General Wood credited special agents of the U.S. Environmental Protection Agency, under the direction Special Agent in Charge Amon, with the investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Adam Cullman of the Environmental Crimes Section of the U.S. Department of Justice.
Defense counsel: Christopher Adams Esq., Roseland, New Jersey
Pennsylvania Business Owner Gets Five Years in Prison for Defrauding Veterans’ GI Bill of over $24 MillionRead the Press Release
NEWARK, N.J. – A Harrisburg, Pennsylvania, man was sentenced today to 60 months in prison for his role in a scheme that fraudulently obtained more than $24 million from the Post 9/11 GI Bill, a federal education benefits program designed to help veterans who served in the armed forces following the terrorist attacks on Sept. 11, 2001, U.S. Attorney Craig Carpenito announced.
David Alvey, 51, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit wire fraud. Judge Hayden imposed the sentence today in Newark federal court.“Today’s sentence is an appropriate punishment for a man who spent years cheating our veterans by stealing millions in tax payer funds reserved for their education,” said U.S. Attorney Carpenito. “Instead of receiving the quality instruction they were promised, thousands of service men and women recruited by Ed4Mil were enrolled in unapproved online courses without their knowledge. No veteran should be treated this way.”
“The VA’s Post 9/11 GI Bill is an invaluable and comprehensive education program meant to advance our nation’s veteran’s educational and professional lives as they transition to civilian life,” said Special Agent in Charge Sean Smith, U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. “The successful prosecution of those who defraud this important program sends a clear message that those who seek to do VA harm will be pursued and prosecuted. VA OIG is committed to working closely with our fellow law enforcement and DOJ partners, and grateful for their efforts in pursuing justice in this matter”
According to documents filed in this case and statements made in court:
The Post-9/11 GI Bill provides educational assistance to eligible veterans of the U.S. Armed Forces by paying for veterans’ tuition, housing costs, and other educational expenses as long as their courses meet certain criteria. Because these tuition benefits are paid by the United States directly to the school, all entities involved in developing and administering the courses must be fully disclosed to the United States in order to assess the courses for approval.
From 2009 through August 2013, Alvey – founder and president of Ed4Mil – along with Lisa DiBisceglie and Helen Sechrist, both of whom previously pleaded guilty to a similar wire fraud conspiracy count, and others, conspired to fraudulently obtain millions of dollars in tuition assistance and other education-related benefits under the Post-9/11 GI Bill.
DiBisceglie, then an associate dean at Caldwell University, helped Alvey get approval from Caldwell’s administration to develop and administer a series of non-credit online courses for veterans in Caldwell’s name. In order for the courses to be eligible for education benefits under the Post-9/11 GI Bill, DiBisceglie, Alvey, and others prepared and submitted an application with the Veterans Administration stating that the courses were developed, taught, and administered by Caldwell faculty and met Caldwell’s stringent educational standards. The courses were subsequently approved, and Alvey, Sechrist, and others aggressively marketed the courses to veterans who were eligible to receive the benefits.
However, Caldwell did not participate in developing or teaching the online courses. The veterans were instead enrolled in online correspondence courses developed and administered by a sub-contractor of Ed4Mil. Neither Ed4Mil nor its sub-contractor were disclosed to the government, and neither were eligible to receive Post-9/11 GI Bill benefits.
Alvey and others concealed the true nature of the courses from the government and the veterans who enrolled in the courses. Thousands of veterans enrolled in the online courses believing they were taking courses from Caldwell. The scheme caused the United States to pay more than $24 million in tuition benefits under the Post-9/11 GI Bill.
“Today's action should serve as a warning to anyone who intentionally steals or misappropriates federal student aid for their own selfish purpose: you will be caught and held accountable for your criminal actions,” said Debbi Mayer, Assistant Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Eastern Regional Office. “As the law enforcement arm of the U.S. Department of Education, we will continue to aggressively pursue those who misappropriate student aid funds for their own purposes. America’s veterans and taxpayers deserve nothing less.”
“Today's sentencing of David Alvey is yet another example of the FBI's aggressive posture in pursuing those who defraud the government,” said Special Agent in Charge Gregory W. Ehrie of the Newark FBI Field Office. “This case, where the victims were U.S. military veterans, is no exception.”
In addition to the prison term, Judge Hayden sentenced Alvey to three years of supervised release and ordered restitution in the amount of $24,024,465.65.
DiBisceglie and Sechrist are scheduled to be sentenced June 5, 2018.
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 Smith; the FBI, under the direction of Special Agent in Charge Ehrie in Newark; and the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Mayer, with the investigation.
The government is represented by Assistant U.S. Attorney David M. Eskew, Deputy Chief of the U.S. Attorney’s Office Criminal Division, Senior Litigation Counsel David E. Malagold of the Criminal Division, Assistant U.S. Attorney Nicole Mastropieri of the Healthcare and Government Fraud Unit, and Assistant U.S. Attorney Jafer Aftab of the Asset Recovery and Money Laundering Unit.
Defense Counsel: Stacy Biancamano Esq., Chatham, New Jersey
On 500th Day of Trump Administration, Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
Largest Increase in AUSAs in Decades Allocates Seven Prosecutors to the District of New Jersey to Focus on Violent Crime, Civil Enforcement, and Immigration Crimes
NEWARK, N.J. – On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney for the District of New Jersey Craig Carpenito announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force, which targets the opioid crisis at every level of the distribution system.
“Under President Trump’s strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis – and today we are sending in reinforcements,” Attorney General Jeff Sessions said. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’ When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to repurpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
In the District of New Jersey, four of these AUSAs will focus on violent crime, two on civil enforcement, and one on immigration. In February, U.S. Attorney Carpenito announced a reorganization of the office to focus its work on areas of criminal and civil enforcement that will pay the biggest dividends in protecting the public.
“The additional Assistant United States Attorneys provided to New Jersey that were announced by Attorney General Sessions today will provide a tremendous boost to our efforts to take dangerous criminals off the streets and protect the public,” U.S. Attorney Carpenito said. “Whether it’s prosecuting dangerous street gangs, pushing back against the tide of opioid abuse or shutting down fraudsters who prey on the most vulnerable among us, our focus is on safety and public protection. These additional prosecutors – along with our existing staff and a growing roster of Special Assistant United States Attorneys who are joining us from our law enforcement partners at the state and local level, will give us the tools we need to accomplish our mission.”
Monmouth County, New Jersey, Man Sentenced to 10 Years in Prison for Illegally Possessing Firearm During Drive-By ShootingRead the Press Release
TRENTON, N.J. – An Asbury Park, New Jersey, man was sentenced today to 10 years in prison for being a felon in possession of a firearm while serving as the driver in a drive-by shooting in Asbury Park, U.S. Attorney Craig Carpenito announced.
Roosevelt Dante Harris, 39, of Asbury Park, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of being a felon in possession of a firearm. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Harris admitted that despite having one or more prior felony convictions in Monmouth County, he knowingly possessed a Taurus, model PT709 Slim, 9 mm pistol on Nov. 24, 2016, in Asbury Park. Harris admitted that three days earlier he accompanied another individual to a firearms dealer in South Carolina, where the other individual purchased three firearms –including the Taurus pistol that Harris possessed – on Harris’ behalf. Harris transported the three firearms from South Carolina to New Jersey.
Harris admitted that on Nov. 24, 2016, while he was driving a black minivan in Asbury Park, he possessed the Taurus pistol, which was located behind the glove compartment of the black minivan. Harris admitted that another individual shot a firearm out of the black minivan while Harris was driving.
In addition to the prison term, Judge Sheridan sentenced Harris to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito in Newark, New Jersey; officers of the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; and officers of the Asbury Park Police Department, under the direction of Deputy Chief David Kelso, with the investigation. U.S. Attorney Carpenito also thanked officers of the Lakewood Police Department, under the direction of Chief Gregory Meyer, for their assistance in the case.
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: Andrea D. Bergman Esq., Assistant Federal Public Defender, Trenton
New York Doctor Sentenced to Four Years in Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Staten Island, New York, was sentenced today to 48 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Craig Carpenito announced.
Thomas V. Savino, 59, of Staten Island, was found guilty at trial in October 2017 on all 10 counts of an indictment charging him with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud.
Savino was convicted following a six-day trial before U.S. District Judge Stanley R. Chesler, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:From July 2012 through April 2013, Savino received cash bribes totaling at least $25,000 from BLS employees and associates in return for referring his patients’ blood specimens to BLS. Savino’s referrals generated approximately $375,000 in lab business for BLS.
The investigation has resulted in 53 convictions – 38 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has recovered more than $15 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison terms, Judge Chesler sentenced Savino to three years of supervised release, fined him $100,000 and ordered forfeiture of $27,500.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Joseph N. Minish; Assistant U.S. Attorney Erica Liu, Chief of the Opioids Unit; Assistant U.S. Attorney Danielle Alfonzo Walsman, Co-Chief of the Public Protection Unit; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit; and Senior Litigation Counsel Barbara Ward of the office’s Asset Recovery and Money Laundering Unit.
Defense counsel: Eric R. Breslin Esq., Newark, and Melissa S. Geller Esq., New York
IRS Revenue Officer Admits Filing False Documents with Federal Student Loan ProgramRead the Press Release
TRENTON, N.J. – A revenue officer with the IRS admitted today that she made false statements and submitted false documents to a federal program to defer repayment on a student loan, U.S. Attorney Craig Carpenito announced.
Chandra T. Porter, 53, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging her with one count of making false statements and representations.
According to documents filed in this case and statements made in court:
In June 2008 Porter applied for a Direct Plus Loan under the Federal Family Education Loan Program so that her relative could attend a college program. Between July 2008 and June 2010, the U.S. Department of Education disbursed $49,179 to the college program on behalf of Porter’s relative. After the relative completed the college program, the loan became due in December 2010, and Porter was required to make monthly payments towards the loan. However, beginning in April 2012, Porter began submitting Unemployment Deferment Request applications to defer the loan payments, falsely representing that she was unemployed and was unable to find suitable employment. Porter was, in fact, a full-time employee of the IRS as a revenue officer. Several of the deferment applications she submitted were faxed to the loan handlers from the IRS office where Porter worked.
The count of making false statements carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 30, 2018.U.S. Attorney Carpenito credited special agents of the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent in Charge Debbi Mayer of the Eastern Regional Office, and the U.S. Department of the Treasury, Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney A. Davis, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division.
Defense counsel: David A. Schwartz Esq., East Brunswick, New Jersey
Georgia Man Admits Being Felon in Possession of 28 Illegal Firearms, Possession of Methamphetamine with Intent to DistributeRead the Press Release
NEWARK, N.J. – A Georgia man with prior felony convictions today admitted illegally possessing weapons and possessing methamphetamine with the intent to distribute, U.S. Attorney Craig Carpenito announced.
Tyheed Jefferson, 34, a/k/a “Solo,” of Albany, Georgia, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with six counts of being a felon in possession of a weapon and one count of possession of methamphetamine with the intent to distribute.
According to documents filed in this case and statements made in court:
Jefferson was arrested in July 2017 after a 10-month investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Georgia, Alabama and New Jersey. He admitted that on various dates between May 7, 2017, and July 18, 2017, he possessed 28 firearms in New Jersey. All of those firearms were recovered by the ATF during the course of the investigation.
Jefferson also admitted that on May 24, 2017, a date on which he also possessed illegal firearms, he possessed 1,500 pills containing more than 50 grams of methamphetamine.
The counts of being a felon in possession of a firearm each carry a maximum potential penalty of 10 years in prison and a $250,000 fine. The count of possession of more than 50 grams of methamphetamine carries a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 12, 2018.
U.S. Attorney Carpenito credited special agents of the ATF, under the direction of John Devito, Newark Field Division, and Special Agent in Charge Wayne L. Dixie, Atlanta Field Division, as well as the N.J. Department of Corrections, under the direction of Commissioner Gary M. Lanigan and the N.J. State Parole Board, under the direction of Chairman James Plousis, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Violent Crime Unit in Newark.
Defense counsel: Howard Brownstein Esq., Union City, New Jersey
Paterson Police Officer Charged with Conspiring to Violate Civil Rights and Concealing A FelonyRead the Press Release
NEWARK, N.J. – A City of Paterson police officer was arrested today for allegedly participating in the assault of a patient at a Paterson hospital, recording the conduct on his cellphone, and failing to include the assault in the related police report, U.S. Attorney Craig Carpenito announced.
Roger Then, 29, of Paterson, was arrested by federal agents this morning and charged by complaint with conspiring to violate an individual’s civil rights and with misprision of felony for concealing the civil rights violation. Then is scheduled to appear this afternoon before U.S. Magistrate Judge Leda D. Wettre in Newark federal court.
According to the complaint:
On March 5, 2018, Then and another Paterson police officer – identified in the complaint as “Police Officer 1” – responded to a call from an attempted suicide victim. Then and Police Officer 1 met the victim at St. Joseph’s Medical Center in Paterson.
In the hospital surveillance footage, the victim, while in a wheelchair, appears to throw an object down the hall. Afterwards, Police Officer 1 pushes the wheelchair and punches the victim in the face. As the victim falls, Then grabs him by the back of the neck and pushes him to the ground.
In the second video, which was allegedly taken by Then using his cellphone, the victim is on his back in a hospital bed. After the victim verbally insults Police Officer 1, Police Officer 1 puts on a pair of hospital gloves and violently strikes the victim twice across the face. Police Officer 1 then stands over the victim and says, “I ain’t fucking playing with you.”
Then and Police Officer 1 filed a police report in connection with the events of March 5, 2018. The police report did not mention that Police Officer 1 punched the victim or that Then grabbed the victim by the neck and pushed him towards the ground, as captured in the first video. The police report also did not mention that Police Officer 1 violently struck the victim in a hospital room, as depicted in the second video.
As a result of these assaults, the victim suffered multiple injuries to his face, including an eye injury that required surgery.
The conspiracy to violate civil rights count carries a maximum penalty of 10 years in prison. The misprision of felony count carries a maximum potential penalty of three years in prison. Both counts are also punishable by a fine of up to $250,000.
The charges and allegations in the complaint are merely accusations, and the defendant is considered 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 arrest. He also thanked the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes, the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, and the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Monmouth County Man Charged with Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Manalapan, New Jersey, man who was previously employed by a family amusement center in Freehold, New Jersey, was arrested today for allegedly convincing children to engage in sexually explicit conduct online, U.S. Attorney Craig Carpenito announced.
Angelo Curato, 26, is charged by complaint with one count of producing visual depictions of a child engaged in sexually explicit conduct. Curato is expected to appear this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
Curato used online applications, including Skype, to interact with dozens of boys while pretending to be a 17-year-old girl. During these online communications, Curato received naked pictures of the children and watched them engage in sexually explicit conduct on video.
On June 2, 2017, law enforcement officers executed a search warrant at Curato’s residence. A forensic review of Curato’s laptop revealed hundreds of sexually explicit chat messages on his Skype accounts and hundreds of screenshots of boys engaging in sexually explicit conduct.
The charge of producing child pornography carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.
Anyone with information regarding possible victims of this activity is urged to contact 866-DHS-2-ICE.
The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation.
The government is represented by Assistant U.S. Attorney Lauren Repole of the U.S. Attorney’s Office’s Criminal Division in Newark.
Georgia Man Sentenced to 26 Months in Prison for Role in Identity Theft and Wire Fraud ConspiracyRead the Press Release
NEWARK N.J. – A Georgia man was sentenced today to 26 months in prison for using a fake driver’s license in order to obtain a check issued in response to false statements and representations, U.S. Attorney Craig Carpenito announced.
Temilade Adekunle, 32, of Lawrenceville, Georgia, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of aggravated identity theft and one count of conspiracy to commit wire fraud. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Adekunle was a member of a conspiracy to fraudulently obtain money, including by committing identity theft, impersonating account holders and obtaining money from their accounts. On Aug. 8, 2017, a member of the conspiracy contacted an entity where an individual (Victim 2) had an account. The caller impersonated Victim 2 and asked to withdraw approximately $85,000 from the account. In response, the entity sent a check through a mail carrier to the account holder’s address.
A member of the conspiracy caused the mail carrier to hold the package containing the check for Victim 2 at one of its branch locations. On Aug. 14, 2017, Adekunle entered the branch and, using a driver’s license with Adekunle’s picture and Victim 2’s name and address, obtained the package containing the check. Sentencing is scheduled for May 30, 2018.
In addition to the prison term, Judge McNulty sentenced Adekunle to three years of supervised release, including 10 months of home confinement.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 U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s sentencing. He also thanked the Unified Police Department of Greater Salt Lake, Utah, under the direction of Sheriff Rosie Rivera, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jean Barrett Esq., Montclair, New Jersey
Former Paterson Municipal Utilities Authority Commissioner Admits Accepting KickbacksRead the Press Release
NEWARK, N.J. – A former commissioner with the now-defunct Paterson Municipal Utilities Authority (PMUA) today admitted his role in two schemes to steal funds from the authority, U.S. Attorney Craig Carpenito announced.
Erik Lowe, 50, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of conspiring to commit extortion under color of official right and one count of extortion under color of official right.
According to documents filed in this and other cases and statements made in court:
Lowe was a commissioner of the PMUA from February 2009 through May 2015 and exercised control over the authority’s finances. The PMUA was created to manage the hydroelectric plant on the Passaic River in Paterson and to care for and manage certain surrounding properties.
Lowe and Carnell Baskerville, a self-employed contractor, entered into an agreement whereby Lowe would approve payments from the PMUA to Baskerville’s company for services. Both men knew Baskerville had not performed and would not perform any services. Between December 2014 and May 2015, Lowe wrote $146,500 in checks from the PMUA to Baskerville’s company. Lowe directed Baskerville to deposit these checks into Baskerville’s bank account and to kick back to Lowe a significant percentage of this amount in cash to reward Lowe and a fellow MUA commissioner for their official assistance in carrying out the scheme. Baskerville pleaded guilty in February 2018 to his role in the scheme and is scheduled to be sentenced on Sept. 6, 2018.
From August 2012 through November of 2014, Lowe engaged in a similar scheme with a second contractor whose company installed and repaired fences for residential homes and commercial business. Lowe admitted that initially he inflated the checks paid to this contractor substantially above the value of the jobs the contractor performed so that the contractor could kick back thousands of dollars to Lowe. Near the end of the scheme, Lowe was issuing checks worth thousands of dollars to the contractor knowing that no job had been or would be performed. Lowe issued checks totaling $141,700 to the contractor and accepted tens of thousands of dollars in kickbacks.
The two counts to which Lowe pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 11, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark
Former Associates of New Jersey Clinical Laboratory Sentenced to 21-Month Prison Terms for Roles in Bribery SchemeRead the Press Release
NEWARK, N.J. – Two former associates of Parsippany, New Jersey-based Biodiagnostic Laboratory Services LLC (BLS) were each sentenced today to 21 months in prison for their roles in a test referral bribery scheme, U.S. Attorney Craig Carpenito announced.
Cliff Antell, 43, of Rumson, New Jersey, and Craig Nordman, 39, of Whippany, New Jersey, had previously pleaded guilty before U.S. District Judge Stanley R. Chesler to informations charging each with one count of conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act and one count of money laundering. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Nordman was a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. Antell was an associate who used an entity – Brown’s Dock Consulting – to disguise the bribe payments to doctors.
The investigation has resulted in 53 convictions – 38 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case. The investigation has recovered more than $15 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison terms, Judge Chesler sentenced Antell to three years of supervised release and fined him $10,000. Nordman was sentenced to one year of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos; IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Joseph N. Minish; Assistant U.S. Attorney Danielle Alfonzo Walsman, Co-Chief of the Public Protection Unit; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Senior Litigation Counsel Barbara Ward of the office’s Asset Recovery and Money Laundering Unit.
Defense counsel:
Nordman: Timothy R. Anderson Esq., Red Bank, New Jersey
Antell: Robert A. Weir Esq., Red BankBronx Man Sentenced to 41 Months in Prison for Role in Drug Trafficking ConspiracyRead the Press Release
TRENTON, N.J. – A Bronx, New York, man who was arrested in Warren County on Christmas Eve in 2014 was sentenced today to 41 months in prison for his role in an international drug trafficking organization, U.S. Attorney Craig Carpenito announced.
Vionel Rondon Cortorreal, 29, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In December 2014, Cortorreal and Dany Francisco-Valerio, 44, of Bronx, New York, conspired with members of the drug trafficking organization to transport and distribute kilogram quantities of heroin. On Dec. 24, 2014, Cortorreal and Francisco-Valerio were arrested in Warren County, New Jersey while transporting 15 kilograms of heroin contained in a hidden compartment in a vehicle they were operating. Francisco-Valerio was previously sentenced to 51 months in prison by Judge Sheridan.
Three other members of the conspiracy, Harry Madrid, 26, of Anaheim, California, his brother, Wilson Madrid, 32, of Norcross, Georgia, and Henry Zamora, 38, of DeKalb, Illinois, previously entered guilty pleas for their roles on behalf of the organization. Harry Madrid has been sentenced to 46 months in prison while Wilson Madrid and Zamora both received seven-year prison sentences from Judge Sheridan.
In addition to the prison term, Judge Sheridan sentenced Cortorreal to three years of supervised release.
U.S. Attorney Carpenito praised special agents of the DEA, Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson, officers from the N.J. State Police under the direction of Acting Superintendent Colonel Patrick J. Callahan, and officers from the DeKalb (Illinois) Police Department, under the direction of Chief Gene Lowrey, with the investigation leading to today’s sentencing.The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office OC/Gangs Unit in Newark and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Brian J. Neary Esq., Hackensack, New Jersey
U.S. Military Base Employee Admits Bribery Scheme Involving Government ContractsRead the Press Release
NEWARK, N.J. – A civilian employee at Picatinny Arsenal today admitted his role in a scheme that traded bribes and other gratuities for favorable treatment on government contracts, U.S. Attorney Craig Carpenito announced.
Joseph Gooch, 60, of Morristown, New Jersey, pleaded guilty before U.S. District Judge John Vazquez in Newark federal court to an information charging him with accepting or receiving things of value in return for favorable assistance with government contracts and making false claims against the United States.
According to documents filed in this case and statements made in court:
Gooch was assigned as a general engineer and was authorized by the U.S. Army to act as its representative on contracts made with federal contracting companies. As such, he had the authority to evaluate a contracting company’s work and could influence whether additional contracts should be granted.
From January 2006 through December 2017, Gooch conspired with other Picatinny Arsenal employees and employees of a defense contracting firm identified in the information as “Company A” to seek and accept gifts and other items of value, such as Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at least $150,000 to $250,000, in exchange for government contracts and other favorable assistance for Company A at Picatinny Arsenal.
Gooch also conspired with other Picatinny Arsenal and Company A employees to file false bills to the United States that wrote off the cost of the bribes as “materials” needed on the government contracts.
The conspiracy charge to which Gooch pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 11, 2018.
Irene Pombo, a Company A employee, and her daughter, Nicole Pier, another Picatinny Arsenal employee, pleaded guilty to their roles in the conspiracy in March 2018 and await sentencing.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the ongoing investigation.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: Stacy Biancamano Esq., Chatham, New Jersey
Previously Convicted Felon from Newark Sentenced to 162 Months in Prison for Firearms Possession, Drug Distribution OffensesRead the Press Release
NEWARK, N.J. – A Newark man with at least six felony convictions in New Jersey courts was sentenced today to 162 months in prison on multiple counts of illegal firearms possession and drug distribution, U.S. Attorney Craig Carpenito announced.
Carlos Bess, 39, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an indictment charging him with two counts of illegal possession of a firearm as a convicted felon and four counts of distribution and possession with intent to distribute heroin and cocaine. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Since June 2015, agents with the Drug Enforcement Agency (DEA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) have been investigating the sales of narcotics, including heroin and cocaine, as well as the unlawful possession of firearms by convicted felons. The investigation has revealed that on July 23, 2015, Bess unlawfully possessed two Rebel Arms AR-15 rifles. On Sept. 30, 2015, and Dec. 1, 2015, Bess sold heroin to another individual in Newark. During a search of a residence controlled by Bess in Newark, federal agents recovered an additional five firearms illegally possessed by Bess—a loaded .357 revolver, 2 loaded .380 pistols, a loaded 9 millimeter pistol, a 12-gauge shotgun. Agents also recovered more heroin and more than 500 grams of cocaine.
U.S. Attorney Carpenito credited special agents with the ATF, under the direction of Special Agent in Charge John Devito in Newark, and special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark.
Defense Counsel: Frank P. Arleo Esq., West Orange, New Jersey
Operator of North Jersey Tax Preparation Business Convicted of Tax FraudRead the Press Release
NEWARK, N.J. – A Kissimmee, Florida, man was convicted at trial today of tax fraud, U.S. Attorney Craig Carpenito announced.
Sixto Rodriguez, 55, was found guilty of all 17 counts of an indictment charging him with three counts of filing false tax returns on behalf of himself and fourteen counts of aiding and assisting in the preparation and presentation of false tax returns on behalf of his tax preparation clients. He was convicted following a one-week trial before U.S. District Judge Kevin McNulty.
According to documents filed in this case and statements made in court:
From 2004 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.
Rodriguez inflated education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. On average, for the clients charged in the indictment, this resulted in his clients receiving more than $4,000 in refunds per return, to which they were not entitled. Rodriguez also failed to report more than $230,000 in net profits he made from his business from 2007 through 2009 and personally avoided paying more than $89,000 in taxes as a result.
The charges on which Rodriguez was convicted each carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 21, 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 conviction.
The government is represented by Senior Litigation Counsel Daniel V. Shapiro of the Economic Crimes Unit in Newark and Assistant U.S. Attorney David M. Eskew, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
Former Treasurer for Newark Mayor Election Campaign Admits Embezzling over $220,000Read the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted embezzling over $220,000 in campaign funds while serving as the treasurer for a Newark mayoral campaign, U.S. Attorney Craig Carpenito announced.
Frederick Murphy Jr., 56, of Bloomfield, New Jersey, pleaded guilty before Chief U.S. District Judge Jose L. Linares in Newark federal court to Counts One, Two, and Five of an information charging him with wire fraud, bank fraud, and tax evasion.
According to documents filed in this case and statements made in court:
Between January 2014 and March 2017, Murphy served as the treasurer for election campaign accounts associated with a Newark mayoral candidate. Murphy admitted that during that time, he embezzled over $220,000 from those accounts by writing phony checks in the names of various consultants and vendors for services that were never performed.
Murphy cashed the checks by presenting them to a bank in Essex County with the forged signature of the check payees as well as Murphy’s own signature as a double endorsement. Murphy then reported the fraudulent checks as legitimate campaign expenditures in quarterly filings with the New Jersey Election Law Enforcement Commission. The false reports were uploaded by the Election Law Enforcement Commission onto its website for public reference.
Murphy also admitted under-reporting $102,954 in embezzled campaign funds on his personal income tax return for 2016.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Murphy also faces a maximum potential penalty of five years in prison and a $250,000 fine on the tax evasion charge. Sentencing is currently scheduled for Sept. 11, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Alan Dexter Bowman Esq., Newark
Middlesex County, New Jersey, Man Sentenced to One Year in Prison for Stealing $184,936 in Social Security Benefits Paid to Deceased RelativeRead the Press Release
TRENTON, N.J. – A Perth Amboy, New Jersey, man was sentenced today to 12 months and one day in prison for stealing Social Security benefits that were mistakenly paid to his deceased great aunt, U.S. Attorney Craig Carpenito announced.
Lance D. Nelson, 56, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count 1 of an indictment charging him with theft of government funds. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Nelson’s great aunt received Social Security retirement benefits that were sent to a joint bank account that she shared with Nelson. The Social Security Administration, unaware of her death in February 1998, continued to issue her monthly retirement benefits.
Nelson admitted that he intentionally failed to notify the Social Security Administration of her death so that he could continue to receive her benefits, which he withdrew from their joint account and used for his personal benefit. In total, Nelson, who was employed as an assistant zoning officer for the City of Perth Amboy through the end of 2017, admitted that he took $184,936 in Social Security benefits to which he was not entitled.
In addition to the prison term, Judge Thompson sentenced Nelson to three years of supervised release and ordered him to pay restitution of $184,936.
U.S. Attorney Carpenito credited special agents with the Social Security Administration - Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso of the New York Field Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Microcap Company CEO Convicted of Securities Fraud for Falsely Claiming Millions in Revenue from Contracts with Foreign CountriesRead the Press Release
NEWARK, N.J. – The chief executive officer of a publicly traded microcap company was convicted at trial for orchestrating a multi-million securities fraud scheme using false reports with the U.S. Securities and Exchange Commission, U.S. Attorney Craig Carpenito announced today.
Cary Lee Peterson, 38, of Phoenix, Arizona, was found guilty of all three counts of an indictment charging him with two counts of false certification in SEC filings and one count of securities fraud. He was convicted following a two-week trial before U.S. District Judge Anne E. Thompson in Trenton federal court. The jury deliberated for approximately an hour before returning its verdict on May 23, 2018.
According to documents filed in this case and evidence presented at trial:
Peterson, as CEO of RVPlus Inc., filed numerous false reports with the SEC, including:
- On Aug. 21, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $1.8 billion with the Ministry of Environment for Katsina State within the Federal Republic of Nigeria to provide unspecified green energy products and services.
- On Nov. 16, 2013, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $90 million with the Commission of the Foreign Affairs to the Senate for the Republic of Haiti.
- On Dec. 21, 2012, Peterson falsely certified on Form 10-Q that RVPlus held $8,653,846 in short-term accounts receivable for services rendered under the Nigeria agreement, despite prior warnings from RVPlus’ auditors that reporting these receivables as revenue was improper.
- On Dec. 27, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $10.5 million with the Federal Ministry of Planning & Economic Affairs for the Republic of Liberia.
- On March 28, 2013, Peterson falsely certified on SEC Form 10-Q that RVPlus held $17,590,837 in short-term accounts receivable from, among other sources, the Haiti and Liberia agreements.
The SEC suspended trading in RVPlus on July 19, 2013, due to questions concerning the accuracy of RVPlus’ periodic financial filings, including reported accounts receivable, assets, and operations.
Peterson also claimed that ECCO2 Corp., a not-for-profit owned by Peterson was an “affiliate organization” of the U.N. Convention on Climate Change. Peterson claimed that “[t]his status held with the sectors of the United Nations opens many windows of opportunity to over $100 billion in financial aid to fund ECCO2 projects.” ECCO2 was never an affiliate of the U.N. Convention on Climate Change. In fact, the U.N. wrote to Peterson on two separate occasions demanding that ECCO2 stop claiming that it was.
The false certification counts each carry a maximum potential penalty of 10 years in prison and a $1 million fine. The securities fraud count carries a maximum penalty of 20 years in prison and $5 million fine. Sentencing will be scheduled at a later date.
The SEC has a pending civil complaint against Peterson in New Jersey federal court alleging multiple counts of securities fraud.
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 FBI special agents under the direction of Special Agent in Charge John F. Bennett in San Francisco for their assistance with Peterson’s arrest, and the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division and Executive Assistant U.S. Attorney Zach Intrater.
Defense counsel: Eric J. Marcy Esq., Woodbridge, New Jersey
- On Aug. 21, 2012, Peterson falsely certified on SEC Form 8-K that RVPlus had entered into a contract worth $1.8 billion with the Ministry of Environment for Katsina State within the Federal Republic of Nigeria to provide unspecified green energy products and services.
One Federal Inmate Pleads Guilty, Another Indicted in Fort Dix Prison Child Pornography RingRead the Press Release
CAMDEN, N.J. – A Tennessee man became the seventh defendant to plead guilty while a Massachusetts man was indicted in connection to a child pornography ring at Federal Correctional Institution Fort Dix that was operated by inmates who were imprisoned for related offenses, U.S. Attorney Craig Carpenito announced.
Charles Wesley Bush, 38, of Knoxville, Tennessee, pleaded guilty today before Senior U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of possession of child pornography.
William H. Noble, 52, of Lowell, Massachusetts, was charged by indictment today with conspiracy to receive and distribute child pornography, receipt of child pornography, distribution of child pornography, possession of child pornography, and accessing child pornography with intent to view on federal property. He will be arraigned at a later date.
According to documents filed in this case and statements made in court:
Bush admitted that he possessed a micro SD Card containing 2,471 images and 95 videos of child pornography, including depictions of sexual abuse of pre-pubescent children, bestiality, and sadistic and masochistic conduct. In connection with his plea, Bush also admitted that he used a cellular telephone inside the prison to obtain and possess child pornography and that he knowingly engaged in the distribution of child pornography by agreeing to transfer the micro SD card to another inmate.
Noble allegedly transferred the same micro SD card to a government informant at FCI-Fort Dix on April 19, 2017. Noble allegedly downloaded the child pornography himself and with the assistance of another inmate in the prison. Noble previously pleaded guilty in the District of Massachusetts to transportation and distribution of child pornography and was serving an 81-month sentence with a scheduled release date of March 8, 2018 at the time the alleged offenses were committed. He is currently in custody pending trial on the charges in today’s indictment.
At sentencing, Bush faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Bush’s sentencing is scheduled for Sept. 10, 2018.
If convicted, Noble faces mandatory minimum terms of 10 and 15 years in prison, a potential maximum of 40 years in prison, and a lifetime of supervised release. The pending charges and allegations against Noble are merely accusations, and he is presumed innocent unless and until proven guilty.
Bush, Noble, and six other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Bush, Noble, and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. A co-defendant organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for child pornography.
Five other inmates – Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, Brian J. McKay, 47, of Brookhaven, Pennsylvania, Jacob S. Good, 26, of Fredericksburg, Virginia, and Christopher D. Roffler, 30, of Virginia Beach, Virginia – have also pleaded guilty to possession of child pornography and await sentencing.
A sixth inmate, Erik M. Smith, 36, of Iron Mountain, Michigan, pleaded guilty to the same charge and was sentenced on May 7, 2018 to an additional 151 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, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel:
Bush: David Rudenstein Esq., Philadelphia
Noble: Martin Isenberg, Esq., Gibbsboro, New JerseyNew York Woman Pleads Guilty to Trafficking over $3 Million in Counterfeit Footwear and Handbags Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Flushing, New York, woman today admitted her plan to distribute counterfeit Nike sneakers, Louis Vuitton handbags, and other phony merchandise that was shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Xiao Xia Zhao, 41, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging her with one count of trafficking in counterfeit goods. Zhao was originally arrested and charged by complaint on June 23, 2017.
According to documents filed in this case and statements made in court:
From November 2013 through February 2017, Zhao received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit merchandise. Zhao asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zhao directed that they be delivered to other individuals, who would then distribute the merchandise in New Jersey and elsewhere.
However, law enforcement intercepted the containers before Zhao could distribute the goods. At no time was Zhao authorized to import Nike footwear, Louis Vuitton handbags, or any of the other counterfeit merchandise in the containers.
In total, Zhao trafficked in thousands of pairs of fake Nike footwear, Louis Vuitton handbags, and other counterfeit items, with a total estimated retail value of over $3 million. Zhao also paid individuals over $75,000 in exchange for the delivery of the containers.
The trafficking in counterfeit goods charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. Zhao’s sentencing is scheduled for Sept. 5, 2018.
U.S. Attorney Carpenito credited officers of U.S. Customs and Border Protection, under the direction of Leon Hayward, Acting Director, New York Field Operations; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Man Sentenced to 27 Months in Prison for Role in Identity Theft and Wire Fraud ConspiracyRead the Press Release
NEWARK N.J. – A Georgia man was sentenced today to 27 months in prison for using fake driver’s licenses in order to obtain checks issued in response to false statements and representations, U.S. Attorney Craig Carpenito announced.
Abdulrasheed Yusuf, 30, of Lilburn, Georgia, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of aggravated identity theft and one count of conspiracy to commit wire fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Yusuf was a member of a conspiracy to obtain money fraudulently, including by committing identity theft, impersonating account holders and obtaining money from their accounts. On Aug. 8, 2017, a member of the conspiracy contacted an entity where an individual (Victim 1) had an account. The caller impersonated Victim 1 seeking to withdraw $34,636 from the victim’s account. The entity sent a check through a mail carrier to the account holder at caller’s address.
A member of the conspiracy caused the mail carrier to hold the packages containing the check for Victim 1 at one of its branch locations. On Aug. 14, 2017, Yusuf entered the branch and, using a driver’s license with Yusuf’s picture and Victim 1’s name and address, obtained a package he believed contained the check to Victim 1. Yusuf used a separate fake driver’s license in connection with obtaining a different check similarly issued in response to fraudulent statements.
In addition to the prison term, Judge Hayden sentenced Yusuf to three years of supervised release and ordered him to pay restitution of $46,425.
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 U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s guilty plea. He also thanked the Unified Police Department of Greater Salt Lake, Utah, under the direction of Sheriff Rosie Rivera, for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.