District of New Jersey

NEWARK, N.J. – A Monmouth County doctor with practices in Colts Neck, New Jersey, and Staten Island, New York, was sentenced today to 24 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.

Ralph Messo, 56, of Colts Neck, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.

According to documents filed in this and related cases and statements made in court:

Messo admitted he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $3,000 per month. Messo’s referrals generated at least $828,000 in lab business for BLS.

In addition to the prison term, Judge Chesler sentenced Messo to two years of supervised release and fined him $4,000.

The investigation has thus far 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 to date recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.

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 Ruth M. Mendonca; 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 and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, of the office’s Asset Forfeiture and Money Laundering Unit.

TRENTON, N.J. - The former managing clerk for an international law firm was resentenced today to 37 months in prison for stealing sensitive, confidential information from the law firm for use in a five-year insider trader scheme that yielded net profits of more than $2 million, U.S. Attorney Craig Carpenito announced.

Steven Metro, 44, formerly of Katonah, New York, was sentenced today to 37 months in prison. U.S. District Judge Michael A. Shipp imposed the sentence in Trenton federal court.

In November 2015, Metro pleaded guilty to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud, and was sentenced to 46 months in prison in September 2016.  Metro appealed his sentence to the U.S. Court of Appeals for the Third Circuit, which vacated Metro’s sentence in February 2018 and remanded the case to the District Court for resentencing after further factual findings pertaining to the total loss amount attributable to Metro.

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

From 2009 to 2013, Metro stole material nonpublic information from Simpson Thacher & Bartlett LLP related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”

After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 44, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.

Afterwards, Tamayo would meet Vladimir Eydelman, 46, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.

After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.  

Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.

By exploiting the information that Metro stole from the firm, Metro, Tamayo and Eydelman personally, or on behalf of close affiliates, such as family members, netted more than $2 million in illicit profits over five years.

In addition to the prison term, Judge Shipp sentenced Metro to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation.  He also thanked the 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 Shirley U. Emehelu, Chief of the Asset Recovery and Money Laundering Unit, Senior Litigation Counsel R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, and Senior Litigation Counsel Barbara A. Ward of the Asset Recovery and Money Laundering Unit.

Defense counsel:  Lawrence S. Lustberg Esq., and Anne M. Collar Esq., Newark

CAMDEN, N.J. – A Virginia Beach, Virginia, man today admitted possessing images and videos of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for a previous offense involving the transportation of child pornography, U.S. Attorney Craig Carpenito announced.

Christopher D. Roffler, 30, pleaded guilty 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.  

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

Roffler admitted that he possessed a micro SD Card containing 305 videos and 16 images of child pornography, including depictions of sexual abuse of pre-pubescent children and sadistic and masochistic conduct. In connection with his plea, Roffler also admitted that he used a cellular telephone inside the prison to obtain and possess child pornography and that he transferred a micro SD card containing child pornography to another inmate. 
 
Roffler and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that Roffler 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. 

At sentencing, Roffler faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Sept. 12, 2018.   

Four other inmates – Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, Brian J. McKay, 47, of Brookhaven, Pennsylvania, and Jacob S. Good, 26, of Fredericksburg, Virginia – have also pleaded guilty to possession of child pornography and await sentencing. 
A fifth 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. 

Charges remain pending against William H. Noble, 52, of Lowell, Massachusetts, and Charles Wesley Bush, 38, of Knoxville, Tennessee, both of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations against them are merely accusations, and these defendants are presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.

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Defense counsel: Tamika McKoy Esq., Camden

NEWARK, N.J. – An Irvington, New Jersey, man today admitted his role in a phony check scheme that stole over $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.  
                        
Koreen Higgs, 44, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to commit wire fraud.

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

Starting in December 2013 and continuing through February 2017, several individuals, including Higgs, conspired to obtain merchandise or store credit from home-improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.
    
Higgs and others entered home-improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. Higgs and others then typically “purchased” the items either by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that Higgs and others had previously opened with a phony check.
    
During some of the transactions, Higgs and others displayed fake driver’s licenses that had been created by one of the other conspirators, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.
    
In total, Higgs and others stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, and South Carolina.
    
Higgs faces 20 years in prison and a $250,000 fine for the wire fraud conspiracy charge. Sentencing is scheduled for Sept. 17, 2018.
            
U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department 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: Alexander Booth Esq., Jersey City, New Jersey
 

NEWARK, N.J. - A Fairfield, Connecticut, man was sentenced today to 19 months in prison for his role in a securities scheme that defrauded investors out of more than $5 million, U.S. Attorney Carpenito said.

James Trolice, 64, previously pleaded guilty before U.S. District Judge William J. Martini to a two-count information charging him with securities fraud and transacting in criminal proceeds. Judge Martini imposed the sentence today in Newark federal court.

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

Trolice was the president and owner of Trolice Consulting Services LLC and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products. Trolice and Lee Vaccaro, 46, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.

Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency.

Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million.

In addition to the prison term, Judge Martini sentenced Trolice to three years of supervised release and ordered him to pay $5,000,512.65 representing the proceeds of his offense.

Vaccaro previously pleaded guilty to his role in the scheme and was sentenced Feb. 17, 2017 to 78 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, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Regional Director Marc P. Berger and Senior Associate Regional Director Sanjay Wadhwa, for its assistance.

The government is represented by Senior Litigation Counsel Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Executive Assistant U.S. Attorney Zach Intrater.

Defense counsel: Michael Koribanics Esq., Clifton, New Jersey 

CAMDEN, N.J. – A federal inmate already serving a lengthy sentence for a child pornography conviction was sentenced today to 151 months in prison for possessing images of child pornography while incarcerated, U.S. Attorney Craig Carpenito announced.

Erik M. Smith, 36, of Iron Mountain, Michigan, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with possession of child pornography through the use of a contraband micro SD card. Smith was already serving a 235-month sentence at Federal Correctional Institution Fort Dix (FCI Fort Dix) for his conviction in the Western District of Michigan for receipt of child pornography. Judge Rodriguez imposed today’s sentence in Camden federal court.

According to documents filed in this case and statements made in court: Smith possessed a 16-gigabyte micro SD card containing 263 images of child pornography, including 213 sexually explicit images of prepubescent children. He told another inmate the SD card included “mostly boy stuff,” referring to images of boys. Smith admitted that he downloaded these and other images of child pornography from a cloud account on behalf of other inmates.

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

In addition to the prison term, Judge Rodriguez sentenced Smith to five years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. 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 Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.

Defense counsel: Mark W. Catanzaro Esq., Mount Holly, New Jersey 

NEWARK N.J. – A Connecticut man who defrauded credit card companies of hundreds of thousands of dollars was found guilty on stolen goods charges today, U.S. Attorney Craig Carpenito announced.

Nikolay Krechet, 47, of West Hartford, Connecticut, was found guilty on all counts on which he was indicted – one count of conspiracy to sell, receive or possess stolen goods and two counts of sale, receipt or possession of stolen goods following a two-and-a-half week trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated 25 minutes before returning the guilty verdicts.

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

Krechet bought and used millions of dollars of gift cards purchased with stolen credit card information. The substantive counts corresponded to the purchase of tens of thousands of dollars of gift cards in cash and bartered electronics for gift cards at a considerable discount off their face value.

The conspiracy count carries a maximum penalty of five years in prison and the two substantive counts each carry a maximum penalty of 10 years in prison. Sentencing is scheduled for July 31, 2018.

U.S. Attorney Carpenito credited special agents of FBI, under the direction of Special Agent in Charge Gregory W. Ehrie; the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt; and the U.S. Postal Inspection Service, under the director of Acting Inspector in Charge Ruth M. Mendonca, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys David Feder and Joshua Haber of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Thomas Ambrosio Esq., Lyndhurst, New Jersey
 

NEWARK, N.J. – A Keasbey, New Jersey, tax preparer was indicted today for allegedly using false information to increase his clients’ tax refunds and secretly diverting a portion of those funds into accounts that he controlled, U.S. Attorney Craig Carpenito announced.

David Patterson, 37, is charged by indictment with 16 counts of aiding and abetting in the filing of false tax returns. Patterson will be arraigned at a later date.

According to the indictment:

Patterson owned D&D Tax Service LLC, a tax preparation business located in Keasbey. Patterson allegedly prepared multiple fraudulent tax returns on behalf of his clients by falsifying their income, charitable contributions, employee business expenses, and education costs, all so his clients would receive higher refunds than those to which they were actually entitled. Patterson then diverted a portion of the tax refunds to bank accounts he controlled without his clients’ knowledge or consent.

According to the indictment, Patterson allegedly prepared 53 phony tax returns on behalf of 19 clients for tax years 2010 through 2015, which resulted in a tax loss to the United States of $290,321.

The false filing charges each carry a maximum potential penalty of three years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation.

The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.

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

Defense counsel: Patrick Mullin Esq., Fort Lee, New Jersey

Laron L. James, a/k/a/ “Juelz Santana,” 36, of Totowa, New Jersey, is now charged by indictment with one count of possession of a firearm by a convicted felon and one count of carrying a weapon on an aircraft. The indictment was returned April 30, 2018. He was originally arrested and charged by complaint with the same counts, as described in the historic press release of March 12, 2018. His arraignment is scheduled for Thursday, May 10, 2018 at 10:30 a.m. EST before U.S. District Judge Stanley R. Chesler in Newark federal court. The indictment is attached. 

TRENTON, N.J. – An Ocean County, New Jersey, cargo pilot who travels abroad frequently has been arrested for allegedly coercing a minor to participate in acts of child sexual abuse, which he recorded on camera and imported to the United States, U.S. Attorney Craig Carpenito announced.

Frank William Maile, 62, of New Egypt, New Jersey, was arrested May 1, 2018, by agents of the Department of Homeland Security, Homeland Security Investigations (HSI). Maile is retired from the U.S. Air Force and currently works as a cargo pilot. He is charged by complaint with one count of producing visual depictions of child sexual abuse outside the United States, with the intent that the depictions be imported into the United States. Maile made his initial appearance today before U.S. Magistrate Judge Douglas E. Arpert and was remanded without bail.

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

On Dec. 2, 2015, and December 3, 2015, while in the Philippines, Maile created images and videos of two minor females engaging in multiple sex acts.

The charge of producing child pornography abroad carries a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), Cherry Hill office, under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the charges. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, and the Plumsted Township Police Department, under the direction of Chief Earl Meroney, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

Anyone with information regarding possible victims of this activity is urged to contact HSI’s tip line at 866-DHS-2-ICE.

Defense counsel: Hercules Pappas Esq., Haddonfield, New Jersey

NEWARK, N.J. – A Southampton, New Jersey, construction company will pay $1.5 million to resolve allegations that it committed multiple False Claims Act violations by contracting for public construction jobs despite paying its workers a lower hourly wage than required under state and federal law, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced today.

The settlement resolves a joint state and federal investigation of Ranco Construction’s labor practices conducted by the U.S. Attorney’s Office and the New Jersey Attorney General. The investigation began after a former Ranco employee filed a federal qui tam, or “whistle-blower,” lawsuit against the company.

In that lawsuit, the relator claimed that Ranco routinely entered into construction contracts with various state and federal entities and certified to the government that its employees were paid hourly wage rates set under federal and New Jersey prevailing wage laws.

The relator alleged, however, that Ranco systematically underpaid several of its workers and then falsified company payroll records to disguise the conduct. The relator worked for Ranco for a total of nine years – first as a laborer and then as an electrician – and left the company in 2016. He alleged in his lawsuit that Ranco forced him out for objecting to the company’s allegedly unlawful practices.

“Companies that contract with the federal government undertake an obligation to pay their employees a fair wage,” said U.S. Attorney Carpenito. “When contractors pay substandard wages and then falsely certify their compliance to the government, they not only cheat their employees, they also gain an unfair advantage in the contract bidding process, all at taxpayer expense.”

“The rules are simple: if a construction company wants to do business with the State of New Jersey, it has to pay its workers a fair wage. Ranco took the State’s money but then failed to keep up its end of the bargain,” said Attorney General Grewal. “As part of today’s settlement, we are recovering nearly half-a-million dollars for New Jersey taxpayers. Just as importantly, we are sending an important message – vendors who do business with public entities in New Jersey must act with integrity and honesty, and will be held accountable if they don’t.”

"The integrity of the DoD procurement system is a priority for the Defense Criminal Investigative Service (DCIS)," stated Special Agent-in-Charge Leigh-Alistair Barzey, DCIS Northeast Field Office. "This settlement agreement is the direct result of a joint effort by DCIS, the U.S. Attorney's Office and the New Jersey Attorney General to ensure that contractors do not gain an unfair competitive advantage by failing to comply with required federal labor laws."

The relator in the underlying qui tam will receive more than $150,000 as his statutory share of the recovery and to resolve his employment based claims in accordance with the False Claims Act. The civil lawsuit was filed in the District of New Jersey and is captioned United States ex rel. Robert Kleinow and the State of New Jersey ex rel. Robert Kleinow and Robert Kleinow individually v. Ranco Construction, Civ. Action No. 15-7278.

The civil settlement is not an admission of liability or improper conduct by Ranco.

U.S. Attorney Carpenito thanked special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, for their assistance in the investigation.

The government is represented by the Assistant U.S. Attorney David Dauenheimer, Deputy Chief of the U.S. Attorney’s Office Civil Division, and Assistant Attorney General and Section Chief Janine Matton, Deputy Attorney Generals Paul Juzdan, Carla Pereira and Nicholas Kant of the New Jersey Attorney General’s Government & Healthcare Fraud Section.

Counsel for relator: Jennifer M. Carlson Esq., Vineland, New Jersey
Counsel for defendant: Linda D. Hoffa Esq., Philadelphia

NEWARK, N.J. – Two Essex County, New Jersey, men have been charged with robbing six convenience stores at gunpoint in November and December 2017, U.S. Attorney Craig Carpenito announced.

Tione Davis, 35, of East Orange, New Jersey, and Meshach Whagar, 29, of Newark, are charged by complaint with one count of conspiring to commit Hobbs Act robberies, six substantive counts of Hobbs Act robbery, and one count of using a firearm during a crime of violence. Whagar appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. Davis is expected to make his initial appearance tomorrow.

Both defendants were previously arrested in December 2017 and have been held in state custody on related charges since that time.

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

The FBI is investigating a string of approximately 20 armed robberies of convenience stores and gas stations that took place throughout New Jersey between November and December 2017. Davis and Whagar are charged with robbing six convenience stores during that time, including locations in Middlesex, Morris, Bergen, Union, Hudson, and Passaic Counties. During those robberies, Davis, while wearing dark clothing and hiding his face with masks or scarves, allegedly brandished a handgun and demanded money from store clerks. After stealing cash from the stores, Davis fled with Whagar, who acted as the getaway driver.

Before being apprehended, the defendants led law enforcement on a high-speed vehicle pursuit in Morris County. Among the items found in their vehicle were two handguns matching the description of those Davis used during the robberies.

The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing a firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked the Morris, Union, Middlesex, Hudson, Passaic, Bergen, and Essex County Prosecutor’s Offices, as well as the Morris Plains, Springfield, Middlesex, Lodi, Roselle Park, Rahway, Parsippany, Rockaway, Mahwah, Elmwood Park, Bayonne, West Orange, East Brunswick, South River, Edison, Hoboken, Union, Clark, Kearny, Clifton, and Maplewood police departments for their work on this case.

The government is represented by Assistant U.S. Attorneys Heather Suchorsky and Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.

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

Defense counsel: Davis: Nabil Kassem Esq., Clifton, New Jersey
Whagar: Linda Foster Esq., Newark, New Jersey 

TRENTON, N.J. – Two men who were arrested with approximately one kilogram of fentanyl made their initial appearances today in Trenton federal court, U.S. Attorney Craig Carpenito announced.

Arturo Galindo Gil, 36, and Gonzalo Ayona Avila, 41, are charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl. Both men appeared before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were detained without bail.

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

During a law enforcement investigation of a drug trafficking organization operating in and around Ocean County, New Jersey, law enforcement officers learned that an individual, later identified as defendant Gil, was known to distribute large quantities of controlled substances, including fentanyl. On April 30, 2018, law enforcement officers learned that Gil was allegedly scheduled to be in Ocean County that day and in possession of a large quantity of fentanyl for distribution. Law enforcement officers identified Gil and another individual, later identified as Avila, driving around Little Egg Harbor Township, New Jersey. Law enforcement initiated surveillance of the vehicle and officers with the Little Egg Harbor Township Police Department eventually initiated a traffic stop of the vehicle. They requested consent to search the vehicle and Gil provided signed consent. Law enforcement officers discovered approximately one kilogram of a tightly packaged substance believed to be fentanyl in the back seat of the vehicle. Law enforcement field-tested a sample of the substance and it tested positive for fentanyl. 

The fentanyl distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine.  

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), Cherry Hill office under the direction of Resident Agent in Charge Richard Reinhold, with the investigation leading to the arrests. He also thanked the Little Egg Harbor Township Police Department, under the direction of Chief Richard J. Buzby Jr.; and the Atlantic City Task Force (including the N.J. State Police, the Atlantic County Prosecutor’s Office, and the Atlantic City Police Department) for their assistance.

The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis, Attorney-in-Charge of the U.S. Attorney’s Office Trenton Branch.

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

Samuel Rahamin Topaz, 24, of Fort Lee, New Jersey, was sentenced today to eight years in prison, to be followed by a lifetime of supervised release, for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

The announcement was made by Assistant Attorney General for the National Security John C. Demers, U.S. Attorney Craig Carpenito for the District of New Jersey and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark, New Jersey Division.  Saadeh previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide services and personnel to ISIS.  Judge Wigenton imposed the sentence today in federal court.

According to documents filed in this and related cases, and statements made in court:

Topaz admitted that prior to his arrest by the FBI Joint Terrorism Task Force on June 17, 2015, he planned to travel overseas to join ISIS and saved money for that purpose.  Topaz discussed plans to join ISIS with Nader Saadeh, Alaa Saadeh and Munther Omar Saleh, and he admitted that at various times each of them indicated they wanted to join ISIS.  Topaz also admitted that he and the other defendants watched ISIS-related videos, some of which depicted the execution of non-Muslims and individuals regarded as apostates from Islam.

On May 5, 2015, Nader Saadeh departed the United States with plans to travel overseas for the purpose of joining ISIS as part of the conspiracy.  Topaz admitted that he and others planned to travel overseas separately, meet up with Nader Saadeh, and then travel together to join ISIS.  After Nader Saadeh left the United States, Topaz met with Munther Omar Saleh and contacted Alaa Saadeh to discuss those plans. 

Topaz admitted knowing that ISIS was a designated foreign terrorist organization, which he knew to be taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIS’ commands. 

Nader and Alaa Saadeh both pleaded guilty to conspiring to provide material support to ISIS.  Alaa Saadeh was sentenced to 15 years in prison on May 10, 2016.  Nader Saadeh was sentenced to 10 years in prison on April 30.  Saleh and Mumuni both pleaded guilty to related charges brought by the U.S. Attorney’s Office for the Eastern District of New York.  Saleh was sentenced to 18 years in prison on Feb. 6.  Mumuni was sentenced to 17 years in prison on April 26.

Assistant Attorney General Demers and U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and the Newark Joint Terrorism Task Force with the investigation.  The JTTF is comprised of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and NYPD, among other federal, state, and local law enforcement agencies.

This case is being prosecuted by Assistant U.S. Attorneys Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.

NEWARK, N.J. – A Princeton Junction, New Jersey, man was sentenced today to 21 months in prison for failing to report over $1.5 million in income he fraudulently diverted to overseas shell companies, U.S. Attorney Craig Carpenito announced.

Albert Chang, 71, previously pleaded guilty before U.S. District Court Judge William H. Walls to an information charging him with one count of conspiring to evade income taxes and one substantive count of tax evasion. Judge Walls imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court: Chang and Michael Q. Fu, 54, of Cranbury Township, New Jersey, co-owned and operated United Products and Instruments Inc. (UNICO) located in Dayton, New Jersey. UNICO was established by Chang and Fu in 1991 and primarily engaged in the sale and export of microscopes and centrifuges for medical purposes.

As part of the conspiracy, Chang and Fu created two shell companies headquartered in China – Action Towers and Bench Top Laboratories. Chang and Fu then diverted business income to themselves by funneling money to the shell companies’ bank accounts and deducting the diverted funds from UNICO’s corporate tax return as the cost of goods sold or commission.

In addition, Chang and Fu had Shanghai Electric, a Hong Kong-based utility company, overbill UNICO by approximately five percent on legitimate invoices. Once the invoices were paid by UNICO, they directed Shanghai Electric to wire transfer the overbilled amount to their accounts in China, which they used for their personal benefit. Chang and Fu failed to report any of that income on their federal income tax returns.

In total, Change failed to report $1,559,200, resulting in a tax loss of $237,064. Fu failed to report $1,570,000, resulting in a tax loss of $321,141.

In addition to the prison term, Judge Walls sentenced Chang to three years of supervised release. Restitution will be determined at a later date.

Fu previously pleaded guilty to his role in the conspiracy and was sentenced to 37 months in prison on Jan. 24, 2017.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael; and officers of the Springfield Police Department, under the direction of Chief John Cook, with the investigation.

The government is represented by Senior Litigation Counsel Margaret Ann Mahoney of U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Robert Weir Esq., Red Bank, New Jersey 

CAMDEN, N.J. - A Camden man today admitted possessing crack cocaine with the intent to distribute as part of a drug trafficking organization operating in the city of Camden, U.S. Attorney Craig Carpenito announced.

Rajai Gaines, a/k/a “Jigga,” 36, pleaded guilty before U.S. District Judge Renée Marie Bumb to a superseding information charging him with possessing with intent to distribute 28 grams or more of cocaine base.

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

Gaines admitted that he met with two other men to prepare and package more than 300 grams of crack cocaine for distribution. While the meeting was underway, law enforcement officers executed a search warrant at the location, arrested Gaines and the two other men, and seized a large amount of crack, packaging materials, and drug paraphernalia.

The count to which Gaines pleaded guilty carries a mandatory minimum term of five years and a maximum of 40 years in prison. Sentencing is scheduled for Aug. 7, 2018.

Ten members of the drug ring – including Gaines – were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques, to uncover the operations of the drug trafficking organization. During the course of the conspiracy, members of the drug trafficking organization distributed crack cocaine, fentanyl, and heroin to users and resellers in and around Camden and to persons cooperating with the FBI. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of fentanyl and heroin, a firearm, drug paraphernalia, and recent charges against an eleventh member of the organization.

Charges remain pending against alleged leaders of the drug trafficking organization John Gunther a/k/a “Critty,” 34, and Taleaf Gunther a/k/a “Leafy” and “L,” 32, as well as alleged members William Roland a/k/a “Chill,” 36, Mark Campbell a/k/a “D” and Diz,” 38, Malcolm McCoy, 27, and Davon Leak, 19. The charges and allegations against these defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

Four other defendants – Karim Johnson a/k/a “Chicky,” 38, Daron Suiter, 23, George Williams, 43, and Latoya Whealton a/k/a “Toya,” 33 – have also pleaded guilty and await sentencing.

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; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.

The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey

NEWARK, N.J. – A Fort Lee, New Jersey, man was sentenced today to 96 months in prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, U.S. Attorney Craig Carpenito, Assistant Attorney General for National Security John C. Demers, and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Division announced.

Samuel Rahamin Topaz, 24, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide services and personnel to ISIS. Judge Wigenton imposed the sentence today in Newark federal court.

According to documents filed in this and related cases and statements made in court:

Topaz admitted that prior to his arrest by the FBI Joint Terrorism Task Force on June 17, 2015, he planned to travel overseas to join ISIS and saved money for that purpose. Topaz discussed plans to join ISIS with Nader Saadeh, Alaa Saadeh, and Munther Omar Saleh, and he admitted that at various times each of them indicated they wanted to join ISIS. Topaz also admitted that he and the other defendants watched ISIS-related videos, some of which depicted the execution of non-Muslims and individuals regarded as apostates from Islam.

On May 5, 2015, Nader Saadeh departed the United States with plans to travel overseas for the purpose of joining ISIS. Topaz admitted that he and others planned to travel overseas separately, meet up with Nader Saadeh, and then travel together to join ISIS. After Nader Saadeh left the United States, Topaz met with Saleh and contacted Alaa Saadeh to discuss those plans.

Topaz admitted knowing that ISIS was a designated foreign terrorist organization that was taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIS’ commands.

In addition to the prison term, Judge Wigenton sentenced Topaz to a lifetime of supervised release.

Nader and Alaa Saadeh both pleaded guilty to conspiring to provide material support to ISIS. Alaa Saadeh was sentenced to 15 years in prison on May 10, 2016. Nader Saadeh was sentenced to 10 years in prison on April 30, 2018. Saleh pleaded guilty to related charges brought by the U.S. Attorney’s Office for the Eastern District of New York and was sentenced to 18 years in prison on Feb. 6, 2018.

U.S. Attorney Carpenito and Assistant Attorney General Demers credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and the Newark Joint Terrorism Task Force with the investigation. The task force is comprised of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and New York City Police Department, among other federal, state, and local law enforcement agencies.

The government is represented by Assistant U.S. Attorneys Dennis C. Carletta and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.

Defense counsel: Ian J. Hirsch Esq., Hackensack, New Jersey

Nader Saadeh, 23, of Rutherford, New Jersey, was sentenced today to 10 years in prison, to be followed by a lifetime of supervised release, for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

The announcement was made by Assistant Attorney General for the National Security John C. Demers, U.S. Attorney Craig Carpenito for the District of New Jersey and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark, New Jersey Division.  Saadeh previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide material support to ISIS.  Judge Wigenton imposed the sentence today in Newark federal court.

“ISIS is a threat to the people of the United States, both here and abroad, and the National Security Division will aggressively investigate and prosecute all who seek aid it,” said Assistant Attorney General Demers.  “I applaud the dedication of the agents at the FBI and the Newark Joint Terrorism Task Force and the prosecutors here at the Department of Justice, who together thwarted the defendant’s attempt to fight for ISIS against the U.S. and its allies.”

“Saadeh traveled overseas for the sole purpose of joining and fighting for ISIS, an international terrorist organization that has repeatedly taken and threatened to take the lives of our citizens and allies all over the world,” said U.S. Attorney Carpenito.  “Thanks to the intervention of the FBI-Newark Joint Terrorism Task Force and federal prosecutors on this case, Saadeh’s criminal aspirations were never realized.  Instead of joining ISIS’ ranks, he will spend the next several years in prison.”

“I want to commend the work of the FBI's Joint Terrorism Task Force investigators and prosecutors in the U.S. Attorney's office who worked countless hours throughout this investigation to protect the community in their execution of the FBI's Counterterrorism strategy to detect, penetrate and disrupt potential acts of terrorism in the United States and abroad,” said Special Agent in Charge Ehrie.

According to documents filed in this and related cases and statements made in court:

Saadeh admitted that prior to his arrest on Aug. 10, 2015, by the FBI-Newark Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIS along with others.  Saadeh discussed his plans to join ISIS with his brother, Alaa Saadeh, Samuel Rahamin Topaz, Munther Omar Saleh and Fareed Mumuni, and admitted that at various times each of them indicated that they wanted to join ISIS.  Saadeh also admitted that he and these other men watched ISIS-related videos, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIS as enemies.

On May 5, 2015, Saadeh departed the United States with plans to travel overseas to join ISIS in furtherance of the conspiracy, according to his statements in court.  Saadeh admitted that once he reached ISIS-controlled territory he intended to fight on behalf of ISIS.  Saadeh further admitted that Saleh assisted him by giving him a contact who would facilitate his travel from Turkey to ISIS in Syria.

Saadeh admitted that prior to his departure from the United States, Saleh showed him technical drawings for making homemade bombs.  Saadeh admitted that Saleh and Mumuni discussed plans to carry out an attack in ISIS’ name using homemade bombs at locations in New York City, including Times Square, the World Trade Center, and Vaughn College of Aeronautics and Technology, in Queens, New York.

Saadeh admitted knowing that ISIS was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes and executing individuals who did not obey ISIS’ commands. 

Topaz and Alaa Saadeh have also pleaded guilty to conspiring to provide material support to ISIS.  Alaa Saadeh was sentenced to 15 years in prison on May 10, 2016.  Topaz is set to be sentenced on May 1.  Saleh and Mumuni have both pleaded guilty to related charges brought by the U.S. Attorney’s Office for the Eastern District of New York.  Saleh was sentenced to 18 years in prison on Feb. 6. Mumuni was sentenced to 17 years in prison on April 26.

Assistant Attorney General Demers and U.S. Attorney Carpenito credited the special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and the Newark Joint Terrorism Task Force with the successful investigation.  The JTTF is comprised of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and the NYPD, among other federal, state and local law enforcement agencies.

This case is being prosecuted by Assistant U.S. Attorneys Dennis C. Carletta and Francisco J. Navarro of the District of New Jersey, with assistance from Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.

CAMDEN, N.J. – A Fredericksburg, Virginia, man today admitted possessing images of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for a previous offense involving the distribution of child pornography, U.S. Attorney Craig Carpenito announced.

Jacob S. Good, 26, pleaded guilty 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.

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

Good admitted that he possessed a micro SD Card which contained numerous images of child pornography, some of which depicted prepubescent children. In connection with his plea, Good also admitted that he used a smart phone and access to the dark web to view and possess child pornography.

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

At sentencing, Good faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Aug. 7, 2018.

Four other inmates – Erik M. Smith, 36, of Iron Mountain, Michigan, Anthony C. Jeffries, 32, of Orange, Virginia, Jordan T. Allen, 31, of Plain City, Ohio, and Brian J. McKay, 47, of Brookhaven, Pennsylvania – have also pleaded guilty to possession of child pornography and await sentencing.

Charges remain pending against Christopher D. Roffler, 30, of Virginia Beach, Virginia; William H. Noble, 52, of Lowell, Massachusetts; and Charles Wesley Bush, 38, of Knoxville, Tennessee, all of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations are merely accusations, and these defendants are presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.

Defense counsel: David M. Simon, Esq., Camden

NEWARK, N.J. – A Rutherford, New Jersey, man was sentenced today to 120 months in prison for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, U.S. Attorney Craig Carpenito, Assistant Attorney General for National Security John C. Demers, and Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Division announced.

Nader Saadeh, 23, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring with others to provide material support to ISIS. Judge Wigenton imposed the sentence today in Newark federal court.

“Saadeh traveled overseas for the sole purpose of joining and fighting for ISIS, an international terrorist organization that has repeatedly taken and threatened to take the lives of our citizens and allies all over the world,” U.S. Attorney Carpenito said. “Thanks to the intervention of the FBI-Newark Joint Terrorism Task Force and federal prosecutors on this case, Saadeh’s criminal aspirations were never realized. Instead of joining ISIS’ ranks, he will spend the next several years in prison.”

“ISIS is a threat to the people of the United States, both here and abroad, and the National Security Division will aggressively investigate and prosecute all who seek aid it,” said Assistant Attorney General Demers. “I applaud the dedication of the agents at the FBI and the Newark Joint Terrorism Task Force and the prosecutors here at the Department of Justice, who together thwarted the defendant’s attempt to fight for ISIS against the U.S. and its allies.”

"I want to commend the work of the FBI's Joint Terrorism Task Force investigators and prosecutors in the U.S. Attorney's office who worked countless hours throughout this investigation to protect the community in their execution of the FBI's Counterterrorism strategy to detect, penetrate, and disrupt potential acts of terrorism in the United States and abroad," stated Newark FBI Special Agent in Charge Gregory W. Ehrie.

According to documents filed in this and related cases and statements made in court: 

Saadeh admitted that prior to his arrest on Aug. 10, 2015, by the FBI-Newark Joint Terrorism Task Force (JTTF), he planned to travel overseas to join ISIS along with others. Saadeh discussed his plans to join ISIS with his brother, Alaa Saadeh, Samuel Rahamin Topaz, Munther Omar Saleh, and Fareed Mumuni, and admitted that at various times each of them indicated that they wanted to join ISIS. Saadeh also admitted that he and these other men watched ISIS-related videos, some of which depicted the execution of individuals – both Muslim and non-Muslim – regarded by ISIS as enemies.

On May 5, 2015, Saadeh departed the United States with plans to travel overseas to join ISIS in furtherance of the conspiracy, according to his statements in court. Saadeh admitted that once he reached ISIS-controlled territory he intended to fight on behalf of ISIS. Saadeh further admitted that Saleh assisted him by giving him a contact who would facilitate his travel from Turkey to ISIS in Syria.

Saadeh admitted that prior to his departure from the United States Saleh showed him technical drawings for making homemade bombs. Saadeh admitted that Saleh and Mumuni discussed plans to carry out an attack in ISIS’ name using homemade bombs at locations in New York City, including Times Square, the World Trade Center, and Vaughn College of Aeronautics and Technology, in Queens, New York.

Saadeh admitted knowing that ISIS was a designated terrorist organization and was taking over territory overseas, expelling non-Muslims from their homes, and executing individuals who did not obey ISIS’ commands.  
    
In addition to the prison term, Judge Wigenton sentenced Saadeh to a lifetime of supervised release.

Topaz and Alaa Saadeh have also pleaded guilty to conspiring to provide material support to ISIS. Alaa Saadeh was sentenced to 15 years in prison on May 10, 2016. Topaz is set to be sentenced May 1, 2018. Saleh and Mumuni have both pleaded guilty to related charges brought by the U.S. Attorney’s Office for the Eastern District of New York. Saleh was sentenced to 18 years in prison on Feb. 6, 2018. Mumuni was sentenced to 17 years in prison on April 26, 2018.

U.S. Attorney Carpenito and Assistant Attorney General Demers credited special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark, and the Newark Joint Terrorism Task Force with the investigation. The JTTF is comprised of agents and officers from the U.S. Department of Homeland Security’s Homeland Security Investigations, Bergen County Prosecutor’s Office, Passaic County Prosecutor’s Office, New Jersey State Police, Paterson Police Department, and New York City Police Department, among other federal, state, and local law enforcement agencies.

The government is represented by Assistant U.S. Attorneys Dennis C. Carletta and Francisco J. Navarro of the U.S. Attorney’s Office National Security Unit in Newark, with assistance from Trial Attorneys Justin Sher and Robert Sander of the National Security Division’s Counterterrorism Section.

Defense counsel: Frank P. Arleo Esq., West Orange, New Jersey

TRENTON, N.J. – A doctor with offices in Asbury Park and Brooklyn today admitted unlawfully distributing prescriptions for anabolic steroids and for possessing marijuana with intent to distribute, U.S. Attorney Craig Carpenito announced.

Kevin Custis, 53, of Belle Mead, New Jersey, pleaded guilty before Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of distributing anabolic steroids and one count of possessing marijuana with intent to distribute.

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

In 2016 and 2017 Custis wrote and delivered numerous prescriptions for various types of anabolic steroids to two patients. He admitted that he knew these prescriptions were not for the treatment of any actual medical condition, but were solely for muscle enhancement, beauty, and muscle building and fitness competitions.

When agents and investigators from the Drug Enforcement Agency searched his home on June 14, 2017, they found more than four kilograms of marijuana and more than 150 grams of tetrahydrocannobinal oil. Custis admitted that he intended to distribute these substances and that he had no authority under any federal or state law or regulation to do so. Custis also admitted that he prepared marijuana products for patients in his home kitchen.

The count of distributing anabolic steroids carries a maximum sentence of 10 years in prison and a $500,000 fine. The count of possessing marijuana carries a maximum sentence of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 9, 2018.

U.S. Attorney Carpenito credited investigators for the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson; officers of the Port Authority of New York and New Jersey-Office of the Inspector General, under the direction of Michael Nestor; and the N.J. Division of Consumer Affairs, under the direction of Acting Director Kevin Jespersen, with the investigation leading to today’s guilty plea.

The government is represented by Senior Litigation Counsel David E. Malagold of the U.S. Attorney’s Office Criminal Division.

Defense counsel: Rubin Sinins, Esq., Springfield, New Jersey

“Chief Judge Jose L. Linares notified me that the U.S. District Court has appointed me United States Attorney for the District of New Jersey. I would like to thank the Chief Judge and the Court for the tremendous honor they have bestowed on me with this appointment.

“It is a great privilege for me to return to my roots as a federal prosecutor in New Jersey. Working side by side with the men and women of this great office, we will continue the tradition of fairly and vigilantly pursuing justice in service of the people of New Jersey and the United States.”

TRENTON, N.J. – A brother and sister from New Jersey were convicted at trial today of running a multi-million dollar fraudulent invoice scheme, U.S. Attorney Craig Carpenito announced.

Shevandra Verasawmi, 38, of Matawan, New Jersey, and Vishallie Verasawmi, 37, of Green Brook, New Jersey, were found guilty of all four counts of an indictment charging them with one count of conspiracy to commit mail fraud and three counts of mail fraud. The defendants were convicted following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. The jury deliberated for one hour before returning its verdict. Both defendants were originally arrested and charged by indictment in July 2017.

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

From April 2016 through August 2016, Shevandra and Vishallie Verasawmi defrauded an entity identified in the indictment as “Victim Company 1” into paying shell companies that were incorporated by Shevandra Verasawmi. Despite the fact that the shell companies never had contracts for goods or services with Victim Company 1, Vishallie Verasawmi used her position as an employee of Victim Company 1 to cause the shell companies to be added to Victim Company 1’s accounts payable system. 

Shevandra and Vishallie Verasawmi then submitted dozens of fraudulent invoices to Victim Company 1 and ultimately deposited the fraud proceeds into bank accounts they controlled. In total, Shevandra and Vishallie Verasawmi attempted to divert millions of dollars belonging to Victim Company 1 and spent the proceeds on personal expenses, including a luxury car and credit card payments. 

The indictment seeks forfeiture of Shevandra and Vishallie Verasawmi’s proceeds from the scheme, including $1,066,830 and a 2016 BMW 750Li xDrive sedan.

The mail fraud conspiracy and mail fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 7, 2018.

The investigation was led by special agents with the U.S. Attorney’s Office, District of New Jersey. 

The government is represented by Senior Litigation Counsel Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Dara Aquila Govan of the U.S. Attorney’s Office Cybercrime Unit. Senior Litigation Counsel Barbara A. Ward and Special Assistant U.S. Attorney Kathleen Robeson of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit are handling the forfeiture aspects of the case.

Defense counsel: Shevandra Verasawmi: Michael J. Pappa Esq., Hazlet, New Jersey 
Vishallie Verasawmi: Lisa Van Hoeck Esq. and Giselle Pomerleau Esq., Trenton

NEWARK, N.J. – Two high-ranking members of the Israelite Church of God in Jesus Christ (ICGJC) were arrested today for allegedly evading taxes on millions of dollars in ICGJC funds that they fraudulently diverted to their sham entertainment company and to one of the defendants for his personal use, U.S. Attorney Craig Carpenito announced.

Jermaine Grant, 43, of Burlington Township, New Jersey, and Lincoln Warrington, 48, of Teaneck, New Jersey, are both charged by indictment with one count of conspiring to defraud the United States. Grant is also charged with five counts of personal income tax evasion. They will appear later this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

According to the indictment:

From January 2007 through April 2016, Grant, the leader of ICGJC, and Warrington, a high-ranking treasurer, allegedly used their positions to divert millions of dollars for Grant’s personal use and benefit.

As part of the scheme, Grant and Warrington allegedly created Black Icon Entertainment (BIE) in order to portray Grant as an entertainment industry mogul whose wealth was derived from his professional success. In fact, BIE virtually conducts no legitimate business and is funded almost exclusively by money taken from the ICGJC. Grant and Warrington funneled approximately $2.4 million in ICGJC funds into BIE, which Grant and Warrington concealed on Grant and BIE’s federal income tax returns.

In addition, Grant allegedly siphoned over $2.9 million in income from the ICGJC through multiple personal expenditures, which Grant and Warrington failed to report as income on Grant’s federal individual tax returns. Grant used an ICGJC debit card to purchase home furnishings, luxury items, designer clothing, real estate, trips to Disneyland and other resorts for his family, multiple high-end vehicles, and private school for some of his children, who were chauffeured in a Mercedes Benz paid for with ICGJC funds.

Altogether, Grant and Warrington allegedly failed to report $5,342,920, in income derived from ICGJC from 2007 through 2015, resulting in a tax loss to the United States of $1,982,470.

Each count in the indictment carries a maximum potential penalty of five years in prison and a $250,000 fine. The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.

The government is represented by Assistant U.S. Attorney Margaret Ann Mahoney of the U.S. Attorney’s Criminal Division in Newark.

Defense counsel:

Grant: Gerald Lefcourt Esq., New York

Warrington: Richard Levitt Esq., New York

NEWARK, N.J. – A grand jury returned a seven-count superseding indictment today charging six members of the violent street gang MS-13, including one who is incarcerated in El Salvador, with various gang-related offenses, including racketeering conspiracy, murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering, Attorney General Jeff Sessions, U.S. Attorney Craig Carpenito, District of New Jersey, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Division, Field Office Director John Tsoukaris of the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations, and Acting Special Agent in Charge Brian Michael of ICE Homeland Security Investigations (HSI)  Newark, announced.

Five of the defendants, all citizens of El Salvador, are members or associates of MS-13 sub-units, or “cliques,” operating in Hudson County, New Jersey: Juan Escalante-Melgar, aka “Humilde,” 28, the former leader of the Pinos Locos Salvatrucha clique (the “Pinos clique”); Elmer Cruz-Diaz, aka “Locote,” 29, the former leader of the Hudson Locotes Salvatrucha clique (the “Hudson Locotes clique”); Oscar Sanchez-Aguilar, aka “Snappy,” 22, a member of the Pinos clique; Jose Rivera-Robles, aka “Layo,” 33, a member of the Hudson Locotes clique; and Juan Garcia-Gomez, aka “Scooby,” 22, a Hudson County MS-13 recruit, all of Union City, New Jersey. The sixth defendant, Christian Linares-Rodriguez, aka “Donkey,” 38, is a high-ranking MS-13 member who is currently incarcerated in El Salvador, and who allegedly authorized and directed much of the illegal activity described in the superseding indictment.

“MS-13 is one of the most violent and vicious gangs in America today,” said Attorney General Sessions.  “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s indictment makes clear that the Trump Administration and this Department will be relentless in taking the fight to MS-13 with every lawful tool at our disposal.  I want to thank the FBI, ICE, and DOJ Trial Attorneys for their hard work on this case, part of our aggressive effort to dismantle MS-13 and get its members off our streets for good.”

“Our office has been pursuing and successfully prosecuting the members of the violent transnational gang MS-13 for the crimes they have committed in New Jersey and elsewhere,” U.S. Attorney Carpenito said. “The facts described in the indictment returned today make it clear why: This is a vicious organization with no regard for human life or for the laws of our country. We will continue to focus our resources to ensure that the people of New Jersey are made safe from this violence.”

According to court documents and statements made in court:

The defendants and other Hudson County MS-13 members and associates allegedly engaged in various forms of illegal racketeering activity on behalf of the gang between late 2014 and late 2015. This included: the execution of a suspected rival gang member in West New York, New Jersey, on July 1, 2015, which resulted in Garcia-Gomez, the shooter, becoming eligible to join MS-13; a failed May 2015 plot to kill a member of the rival 18th Street gang, who had been lured to New Jersey by a female MS-13 associate; a plot to kill a member of the Hudson Locotes clique, whom Salvadoran MS-13 leaders had “green-lighted” – or ordered to be killed – because the Hudson Locotes clique member was suspected of violating the gang’s core rule, which prohibits assisting the authorities; extorting the proprietor of a Hudson County restaurant by threatening harm if the proprietor did not pay money to the gang; and conspiring to sell cocaine on behalf of the gang.

The murder and murder conspiracies charged in the superseding indictment are described below:

The July 1, 2015 Murder

Shortly after midnight on July 1, 2015, Garcia-Gomez shot and killed a person identified in the superseding indictment as Victim-3 as the victim was entering an apartment building in West New York.  Surveillance cameras mounted outside the apartment building captured the murder from multiple angles. Several angles show a male, later identified as Garcia-Gomez, approach Victim-3 from behind, level a revolver at Victim-3, and then fire a single shot into the back of Victim-3’s head. Additional angles show a male, later identified as Sanchez-Aguilar, watching the murder from across the street, and another male, later identified as Rivera-Robles, lingering close by and meeting with Garcia-Gomez moments after the execution. 

Investigators also retrieved surveillance footage showing Garcia-Gomez boarding a bus after the murder, and later, entering a residence in Union City, New Jersey. Investigators visited the Union City residence and located Garcia-Gomez. Investigators also obtained a warrant to search Garcia-Gomez’s residence and recovered, among other things: a pair of distinctive jeans that Garcia-Gomez wore when he committed the murder; and a box of .44-caliber ammunition, which matches the caliber of the bullet recovered from Victim-3’s body.

Through additional investigation, including witness interviews and numerous lawfully recorded telephone conversations, some of which were obtained from the Salvadoran government, investigators discovered that Garcia-Gomez shot and killed Victim-3, a suspected rival gang member, so that he could become a full member of MS-13. The investigation further revealed that Escalante-Melgar – one of the highest-ranking Hudson County MS-13 members at the time – directed Garcia-Gomez to carry out the execution, with Linares-Rodriguez’ approval from El Salvador. Escalante-Melgar also ordered Sanchez-Aguilar and Rivera-Robles to accompany Garcia-Gomez and serve as lookouts. Prior to the murder, Sanchez-Aguilar had been surveilling the victim, while Rivera-Robles and others had test-fired the murder weapon, which belonged to Escalante-Melgar.

The May 2015 Murder Plot

Around May 2015, Hudson County MS-13 members and associates engaged in a plot to kill a member of the rival 18th Street gang from the Maryland/Virginia area, identified in the superseding indictment as Victim-2. The plot involved a female associate of MS-13, identified in the superseding indictment as Co-Conspirator-3, befriending Victim-2, and then luring Victim-2 to the New Jersey area so that MS-13 members could execute Victim-2.

Victim-2 arrived in Hudson County around May 25, 2015.  Upon Victim-2’s arrival, Escalante-Melgar ordered three MS-13 members – identified in the superseding indictment as Co-Conspirator-1, Co-Conspirator-2, and Co-Conspirator-4 – to carry out the murder. When their initial attempts to make contact with Victim-2 did not go as planned, the MS-13 members decided to secure a room for Victim-2 at a local motel, and offered to transport Victim-2 back to the Maryland/Virginia area the following day. At Escalante-Melgar’s direction, the MS-13 members agreed to stab the victim to death at some point during the trip, and then dispose of the body.

The murder was foiled the following day when Victim-2 – sensing that the MS-13 members planned to harm Victim-2 – jumped from Co-Conspirator-1’s vehicle outside a tollbooth on the way to the Maryland/Virginia area. The MS-13 members later received beatings for failing to kill the rival 18th Street gang member.

The Suspected Informant Murder Plot

As alleged in the superseding indictment, Salvadoran MS-13 leaders, including Linares-Rodriguez, issued a green light to kill a member of the Hudson Locotes clique suspected of assisting the authorities, identified as Victim-1.  Linares-Rodriguez allegedly issued one green light after Victim-1 refused to carry out instructions to kill a member of the rival 18th Street gang in September 2014, and then issued a second green light when Victim-1 was suspected of assisting law enforcement in early 2015. Escalante-Melgar, Cruz-Diaz, and others discussed the kill order on Victim-1, as well as plans to carry out the kill order, which included assigning MS-13 members and associates to surveil Victim-1 in preparation for the murder. 

• Count One charges all six defendants with racketeering conspiracy. 
• Count Two charges Escalante-Melgar and Linares-Rodriguez with conspiracy to commit murder in aid of racketeering based on the May 2015 Murder Plot. 
• Count Three charges Escalante-Melgar, Cruz-Diaz, Sanchez-Aguilar, Rivera-Robles, and Garcia-Gomez with murder in aid of racketeering based on the July 1, 2015 murder.
• Count Four charges all six defendants with conspiracy to commit murder in aid of racketeering based on the July 1, 2015 murder.
• Count Five charges all six defendants with discharging a firearm during a crime of violence, and aiding and abetting that crime. 
• Count Six charges Escalante-Melgar, Cruz-Diaz, Sanchez-Aguilar, Rivera-Robles, and Garcia-Gomez with causing death through the use of a firearm based on the July 1, 2015 murder. 
• Count Seven charges Escalante-Melgar, Cruz-Diaz, and Linares-Rodriguez with conspiracy to commit murder in aid of racketeering based on the Suspected Informant Murder Plot. 

Arraignment will be scheduled at a later date.

The investigation was conducted by special agents of the FBI, under the direction of Special Agent in Charge Ehrie in Newark; U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations, under the direction of Field Office Director Tsoukaris; ICE’s Homeland Security Investigations, Newark, under the direction of Acting Special Agent in Charge Michael; FBI’s Transnational Anti-Gang Unit and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez. The Justice Department’s Office of International Affairs, the Union City Police Department, the West New York Police Department, and North Bergen Police Department also assisted in this investigation.

The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office for the District of New Jersey’s Criminal Division in Newark and Trial Attorney Matthew Hoff of the DOJ Criminal Division’s Organized Crime and Gang Section.

A grand jury in Newark, New Jersey returned a seven-count superseding indictment today charging six members of the violent street gang MS-13 with various gang-related offenses, including racketeering conspiracy, murder in aid of racketeering, and conspiracy to commit murder in aid of racketeering, announced Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Craig Carpenito for the District of New Jersey, Special Agent in Charge Gregory W. Ehrie of the FBI’s Newark Division, Field Office Director John Tsoukaris of  U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations and Acting Special Agent in Charge Brian Michael of ICE Homeland Security Investigations (HSI) Newark.

Five of the defendants, all citizens of El Salvador, are alleged members and/or associates of MS-13 sub-units, or “cliques,” operating in Hudson County, New Jersey: Juan Escalante-Melgar, aka Humilde, 28, the former leader of the Pinos Locos Salvatrucha clique (the “Pinos clique”); Elmer Cruz-Diaz, aka Locote, 29, the former leader of the Hudson Locotes Salvatrucha clique (the “Hudson Locotes clique”); Oscar Sanchez-Aguilar, aka Snappy, 22, a member of the Pinos clique and Juan Garcia-Gomez, aka Scooby, 22, a Hudson County MS-13 recruit, and Jose Rivera-Robles, aka Layo, 33, a member of the Hudson Locotes clique.  The sixth and final defendant, Christian Linares-Rodriguez, aka Burro or Donkey, 38, is a high-ranking MS-13 member who is currently incarcerated in El Salvador, and who allegedly authorized and directed much of the illegal activity described in the superseding indictment.

“MS-13 is one of the most violent and vicious gangs in America today,” said Attorney General Sessions.  “The gang has more than 10,000 members following its barbaric motto of ‘kill, rape, and control’ across 40 states, and that threatens law-abiding Americans. Today’s indictment makes clear that the Trump Administration and this Department will be relentless in taking the fight to MS-13 with every lawful tool at our disposal.  I want to thank the FBI, ICE, and DOJ Trial Attorneys for their hard work on this case, part of our aggressive effort to dismantle MS-13 and get its members off our streets for good.”

“Our office has been pursuing and successfully prosecuting the members of the violent transnational gang MS-13 for the crimes they have committed in New Jersey and elsewhere,” U.S. Attorney Carpenito said. “The facts described in the indictment returned today make it clear why: This is a vicious organization with no regard for human life or for the laws of our country. We will continue to focus our resources to ensure that the people of New Jersey are made safe from this violence.”

According to the superseding indictment, the defendants and other Hudson County MS-13 members and/or associates engaged in various forms of illegal racketeering activity on behalf of the gang between late-2014 and late-2015.  The alleged illegal conduct included: a July 1, 2015 execution of a suspected rival gang member in West New York, New Jersey (the “July 1, 2015 Murder”); a May 2015 plot to stab to death a member of a rival 18th Street gang who was lured into a vehicle but managed to escape (the “May 2015 Murder Plot”); a plot “green lighted” by Salvadoran MS-13 leaders to kill a member of the Hudson Locotes clique who disobeyed an order to kill a rival gang member and was suspected of assisting the authorities (the “Suspected Informant Murder Plot”); an extortion scheme targeting the proprietor of a North Bergen, New Jersey restaurant entailing threats of violence if the proprietor did not pay money to the gang; and a conspiracy to sell cocaine on behalf of the gang.

The murder and murder conspiracies charged in the superseding indictment are described below:

The July 1, 2015 Murder

As alleged in the superseding indictment, on July 1, 2015, Garcia-Gomez shot and killed a suspected rival gang member identified as Victim-3 at Victim-3’s residence in West New York.  Garcia-Gomez approached Victim-3 and fatally shot him with a revolver handgun, while Rivera-Robles and Sanchez-Aguilar watched nearby. 

The indictment alleges that Garcia-Gomez shot and killed Victim-3 so that he could become a full-member of MS-13.  The indictment further alleges that Escalante-Melgar – one of the highest-ranking Hudson County MS-13 members at the time – directed Garcia-Gomez to carry out the execution, with Linares-Rodriguez’s approval from El Salvador.  Escalante-Melgar also ordered Sanchez-Aguilar and Rivera-Robles to accompany Garcia-Gomez and serve as lookouts.  Prior to the murder, Sanchez-Aguilar had been surveilling the victim, while Rivera-Robles and others had test-fired the murder weapon, which belonged to Escalante-Melgar.

The May 2015 Murder Plot

According to the superseding indictment, around May 2015, Hudson County MS-13 members and/or associates engaged in a plot to kill a member of the rival 18th Street gang from the Maryland/Virginia area, identified as Victim-2.  The plot involved a female associate of MS-13, identified in the superseding indictment as Co-Conspirator-3, befriending Victim-2, and then luring Victim-2 to the New Jersey area so that MS-13 members could execute Victim-2.

The indictment alleges that Victim-2 arrived in Hudson County around May 25, 2015 to visit Co-Conspirator-3.  Upon Victim-2’s arrival, Escalante-Melgar ordered three MS-13 members to carry out the murder.  The three MS-13 members allegedly offered to transport Victim-2 from a motel back to the Maryland/Virginia area and, at Escalante-Melgar’s direction, agreed to stab the victim to death at some point during the trip.

According to the indictment, the murder was foiled when Victim-2 – sensing that the MS-13 members intended harm – jumped from the backseat of the vehicle and escaped.

The Suspected Informant Murder Plot

As alleged in the superseding indictment, Salvadoran MS-13 leaders, including Linares-Rodriguez, issued a green light to kill a member of the Hudson Locotes clique suspected of assisting the authorities, identified as Victim-1.  Linares-Rodriguez allegedly issued one green light after Victim-1 refused to carry out instructions to kill a member of the rival 18th Street gang in September 2014, and then issued a second green light when Victim-1 was suspected of assisting law enforcement in early 2015. Escalante-Melgar, Cruz-Diaz, and others discussed the kill order on Victim-1, as well as plans to carry out the kill order, which included assigning MS-13 members and/or associates to surveil Victim-1 in preparation for the murder. 

Count one charges all six defendants with racketeering conspiracy.  Count two charges Escalante-Melgar and Linares-Rodriguez with conspiracy to commit murder in aid of racketeering based on the May 2015 murder plot.  Count three charges Escalante-Melgar, Cruz-Diaz, Sanchez-Aguilar, Rivera-Robles, and Garcia-Gomez with murder in aid of racketeering based on the July 1, 2015 murder.  Count four charges all six defendants with conspiracy to commit murder in aid of racketeering based on the July 1, 2015 murder.  Count five charges all six defendants with discharging a firearm during a crime of violence, and aiding and abetting that crime.  Count six charges Escalante-Melgar, Cruz-Diaz, Sanchez-Aguilar, Rivera-Robles, and Garcia-Gomez with causing death through the use of a firearm based on the July 1, 2015 murder.  Count seven charges Escalante-Melgar, Cruz-Diaz, and Linares-Rodriguez with conspiracy to commit murder in aid of racketeering based on the Suspected Informant Murder Plot. The arraignment has not been scheduled.

The investigation was conducted by the FBI, ICE Enforcement and Removal Operations, FBI-led Transnational Anti-Gang Unit, Hudson County Prosecutor’s Office and ICE’s Homeland Security Investigations.  The Justice Department’s Office of International Affairs, the Justice Department’s Office of Prosecutorial Development Assistance and Training, the Union City Police Department, the West New York Police Department, and North Bergen Police Department also assisted in this investigation.

The case is being prosecuted by Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office for the District of New Jersey.

PHILADELPHIA – A Philadelphia-area political consultant today admitted evading taxes on $393,359 in income from his consulting business, U.S. Attorney Craig Carpenito announced.

William R. Miller V, 44, of Glenside, Pennsylvania, pleaded guilty before U.S. District Judge Joel H. Slomsky to an information charging him with one count of federal tax evasion.
According to documents filed in this case and statements made in court:

Miller sought to evade federal income taxes by failing to file tax returns as required under federal law, and by concealing income when he finally did file returns, for tax years 2010 through 2014. During that time, Miller cashed numerous checks issued to him for his Philadelphia-area political consulting work and deposited only a portion of the proceeds into bank accounts. After learning of the IRS investigation, Miller tried to conceal his income in March 2016 by filing federal tax returns for 2010 through 2014, which themselves were false. In all, Miller attempted to evade taxes on $393,359 in personal income, resulting in a $94,233 tax loss to the IRS for tax years 2010 through 2014.

The tax evasion charge is punishable by a maximum potential penalty of five years in prison and a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 13, 2018.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, Philadelphia Field Office, under the direction of Acting Special Agent in Charge Guy Ficco; special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster; and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation leading to today’s guilty plea.

The U.S. Attorney in the Eastern District of Pennsylvania previously recused his office from an investigation involving former Philadelphia District Attorney Rufus Seth Williams, and supervision of that matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. During that separate investigation, Miller’s tax evasion was discovered, and his prosecution is also being supervised by the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania are assigned to the case, subject to the supervision of the District of New Jersey.

The government is represented by Eric W. Moran, Chief of the Criminal Division-South of the U.S. Attorney’s Office for the District of New Jersey, and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

Defense counsel: Angie Halim Esq., Philadelphia

NEWARK, N.J. - A Morristown, New Jersey, woman appeared in federal court today to face charges for her alleged role in an international procurement network that smuggled over $2 million worth of aircraft components from the United States to Iran in violation of export control laws, U.S. Attorney Craig Carpenito announced.

Joyce Eliabachus, a/k/a “Joyce Marie Gundran Manangan,” 55, a naturalized U.S. citizen born in the Philippines, was arrested at her home on April 24, 2018, following a joint investigation by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) and the U.S. Department of Commerce, Office of Export Enforcement.

Eliabachus is charged in a three-count criminal complaint with conspiracy to violate the Iranian Transactions and Sanctions Regulations (ITSR), conspiracy to commit money laundering, and conspiracy to smuggle goods from the United States. She made her initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $100,000 unsecured bond with home confinement.

According to the complaint:

Eliabachus – the principal officer and operator of Edsun Equipments LLC, a purported New Jersey-based aviation parts trading company run out of her Morristown residence – is allegedly part of a sophisticated procurement network that has secretly acquired large quantities of license-controlled aircraft components from U.S. manufacturers and vendors, and exported those parts to Iran through freight-forwarding companies located in the United Arab Emirates (UAE) and Turkey, in violation of U.S. export control laws.

From May 2015 through October 2017, Eliabachus and her conspirators facilitated at least 49 shipments containing a total of approximately 23,554 license-controlled aircraft parts from the U.S. to Iran, all of which were exported without the required licenses.

Eliabachus conspired with the owner of an Iranian-based procurement firm, identified in the complaint as “CC-1,” whose international network helped initiate the purchase of U.S.-origin aircraft components on behalf of CC-1’s clients in Iran. The network’s client list was comprised of Iranian airline companies, several of which have been officially designated by the U.S. government as posing a threat to the country’s national security, foreign policy, or economic interests, including Mahan Air Co., Caspian Airlines, and Kish Air, among others.

Using Edsun Equipment in New Jersey, Eliabachus finalized the purchase and acquisition of the requested components from the various U.S.-based distributors. She then re-packaged and shipped the components to shipping companies in the UAE and Turkey, including Parthia Cargo and Reibel Tasimacilik Ve Tic A.S., where her Iranian conspirators directed trans-shipment of the components to locations in Iran.

In order to obscure the extent of the network’s procurement activities, Eliabachus routinely falsified the true destination and end-user of the aircraft components she acquired. She also falsified the true value of the components being exported in order to evade the necessity of filing export control forms, which further obscured the network’s illegal activities from law enforcement.

The funds for the illicit transactions were obtained from the various Iranian purchasers, funneled through Turkish bank accounts held in the names of various shell companies controlled by the Iranian conspirators, and ultimately transferred into one of Edsun Equipments’ U.S.-based accounts. The network’s creation and use of multiple bank accounts and shell companies abroad was intended to conceal the true sources of funds in Iran, as well as the identities of the various Iranian entities who were receiving U.S. aircraft components.

“Eliabachus and others allegedly ran an international smuggling ring that shipped $2 million in aircraft parts to multiple Iranian airlines, including an airline that has provided financial, material, and technological support to the Islamic Revolutionary Guard Corps,” U.S. Attorney Carpenito said. “This arrest, which was made possible by a close collaboration between our office and its partners at Homeland Security Investigations and the Office of Export Enforcement, has snuffed out another source of funds and goods to overseas entities that may endanger our national and economic security.”

“Today’s action is the result of outstanding collaborative efforts by the Office of Export Enforcement, the Justice Department, and Homeland Security Investigations,” Special Agent in Charge Jonathan Carson of the Office of Export Enforcement said. “This arrest will cut-off a key supplier to a proliferation network which illegally sold U.S. origin items to Iran. Violations such as these jeopardize national security and undermine U.S. foreign policy. We will continue to vigorously pursue violators wherever they may be.”

“HSI is committed to leveraging its broad jurisdiction to prevent the illegal exportation of controlled items,” said Brian Michael, Acting Special Agent in Charge for HSI Newark. “This investigation is a culmination of an extensive joint law enforcement effort to dismantle a criminal enterprise. HSI will continue to pursue complex criminal investigations while using our unique statutory authorities to prevent smuggling operations like this that threaten national security.”

The charge of conspiracy to violate the ITSR carries a maximum penalty of 20 years in prison and a $1 million fine. The charge of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. The charge of conspiracy to smuggle goods carries a maximum penalty of five 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 Michael in Newark, and the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, under the direction of Special Agent in Charge Carson in New York, with the investigation. He also thanked officers of the Morristown Police Department, under the direction of Chief Peter Demnitz, for their assistance.

The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit and Sarah Devlin of the office’s Asset Recovery and Money Laundering Unit, with assistance from the Department of Justice’s National Security Division, Counterterrorism Section.

Defense counsel: John Yauch Esq., Federal Public Defender, Newark 

TRENTON, N.J. – A DeKalb, Illinois, man was sentenced today to 84 months in prison for his role in an international drug trafficking organization, U.S. Attorney Craig Carpenito announced.

Henry Zamora, 38, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to the first count of an indictment 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:

From June 2014 through December 2014, Zamora engaged in a conspiracy with members of a drug trafficking organization, with cells operating in New Jersey, to transport and distribute bulk quantities of heroin. On Nov. 21, 2014, Zamora was arrested while transporting four kilograms of heroin contained in a hidden compartment in his vehicle. Following the arrest, officers recovered an additional two kilograms of heroin from his home. 

In December 2014, co-defendants Dany Francisco-Valerio, 44, and Vionel Rondon-Cortorreal, 29, both of Bronx, New York, conspired with members of the drug trafficking organization to transport and distribute kilogram quantities of heroin. On Dec. 24, 2014, Francisco-Valerio and Rondon-Cortorreal were arrested in Warren County, New Jersey, while transporting 15 kilograms contained in a hidden compartment in a vehicle they were operating.  Francisco-Valerio and Rondon-Cortorreal both pleaded guilty before Judge Sheridan to informations charging them with conspiracy to distribute heroin. Francisco-Valerio has been sentenced to 51 months in prison by Judge Sheridan while Rondon-Cortorreal is awaiting sentencing. 

Two other members of the conspiracy, Harry Madrid, 26, of Anaheim, California, and his brother, Wilson Madrid, 32, of Norcross, Georgia, previously entered guilty pleas for their roles in conspiring to launder drug proceeds on behalf of the organization. Harry Madrid has been sentenced to 46 months in prison and Wilson Madrid has been sentenced to seven years in prison by Judge Sheridan.

In addition to the prison term, Judge Sheridan sentenced Zamora to five 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: Andrea Bergman Esq., Trenton                                                                                                                 

NEWARK, N.J. – A Union, New Jersey, woman today admitted preparing fraudulent income tax returns on behalf of her clients, causing losses of over $320,000, U.S. Attorney Craig Carpenito announced.

Toni Ciullo, 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging her with one count of aiding and assisting others in the preparation of false and fraudulent tax returns.

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

Ciullo was an owner and operator of Full Spectrum Consulting LLC in Union. For tax years 2010 through 2014, Ciullo used a number of fraudulent practices, including increasing claimed losses and credits for certain businesses, increasing her clients’ unreimbursed employee expenses and medical and dental costs, and creating fictitious businesses, all so her clients would receive higher refunds than those to which they were actually entitled. Ciullo admitted that the bogus returns resulted in a tax loss to the government of approximately $322,537.

The charge to which Ciullo pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 2018.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation. He also thanked special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, for their assistance.

The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office in Newark.

Defense counsel: David Holman Esq., Office of the Federal Public Defender, Newark

CAMDEN, N.J. – A Brookhaven, Pennsylvania, man today admitted possessing hundreds of images and videos of child sexual abuse while imprisoned at Federal Correctional Institution Fort Dix for previous offenses involving the distribution and possession of child pornography, U.S. Attorney Craig Carpenito announced.

Brian J. McKay, 47, pleaded guilty 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.

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

McKay admitted that he possessed two micro SD Cards which together contained a total of approximately 593 images and 645 videos of child pornography, some of which depicted children being sexually abused and sadistic and masochistic sexual conduct involving infants and toddlers. In connection with his plea, McKay also admitted that he distributed child pornography to another inmate.

McKay and seven other inmates were arrested in April 2017 and February 2018 following an FBI investigation involving multiple covert recordings and several cooperating inmates. The investigation revealed that McKay 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.

At sentencing, McKay faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for Aug. 6, 2018.

Three other inmates – Erik M. Smith, 36, of Iron Mountain, Michigan, Anthony C. Jeffries, 32, of Orange, Virginia, and Jordan T. Allen, 31, of Plain City, Ohio – have also pleaded guilty to possession of child pornography and await sentencing.

Charges remain pending against Christopher D. Roffler, 30, of Virginia Beach, Virginia; Jacob S. Good, 26, of Fredericksburg, Virginia; William H. Noble, 52, of Lowell, Massachusetts; and Charles Wesley Bush, 38, of Knoxville, Tennessee, all of whom were serving sentences for prior child pornography offenses while committing the alleged crimes in this case. The pending charges and allegations are merely accusations, and these defendants are presumed innocent unless and until proven guilty.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation. He also thanked officials of the Bureau of Prisons at Federal Correctional Institution Fort Dix for their assistance.

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alyson M. Oswald of the U.S. Attorney’s Office’s Criminal Division in Camden.

Defense counsel: John B. Brennan Esq., Camden

NEWARK, N.J. – An officer with the Paterson Police Department was arrested today for allegedly dealing heroin, crack cocaine, powder cocaine, and marijuana on multiple occasions between October 2017 and April 2018, U.S. Attorney Craig Carpenito announced.

Ruben McAusland, 26, of Paterson, was arrested by federal agents this morning and charged by complaint with distributing and possessing with intent to distribute narcotics. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to the complaint:

Between October 2017 and April 2018, McAusland allegedly sold various types and quantities of narcotics to an individual who was cooperating with law enforcement.

In October 2017, McAusland allegedly sold the individual approximately 35 grams of marijuana, 48 grams of heroin, 31 grams of cocaine, and 31 grams of crack cocaine for $50. In addition, he sold a pound of marijuana to the individual on two separate occasions between November 2017 and January 2018, charging $2,500 for the first sale and $2,400 for the second.

In February 2018, McAusland offered to sell the individual one kilogram of cocaine. Then, on multiple occasions between February 2018 and April 2018, McAusland allegedly sold the individual pills that were made to resemble Percocet doses but were actually made of heroin. McAusland sold the pills to the individual for approximately $7 per pill.

On Feb. 11, 2018, McAusland met the individual in his police vehicle at a supermarket parking lot near the Paterson Police Department headquarters. McAusland handed the individual approximately four sample heroin pills. Afterwards, on various dates in 2018, McAusland sold heroin pills to the individual, including a sale of 1,010 pills on April 1, 2018 for $7,000.

Narcotics distribution carries the following penalties: a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine for possessing with intent to distribute 100 grams or more of heroin or 28 grams or more of crack cocaine; a maximum sentence of 20 years in prison and a $1 million fine for possessing with intent to distribute cocaine; and a maximum sentence of five years in prison and a $250,000 fine for possessing with intent to distribute marijuana.

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 the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen 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.

The government is represented by Assistant U.S. Attorney Rahul Agarwal, Deputy Chief of the U.S. Attorney’s Office Criminal Division.

Defense counsel: John C. Whipple Esq., Chatham, New Jersey 

CAMDEN, N.J. – A Locust Grove, Virginia, man was convicted today of conspiring to traffic 35 guns from Virginia into New Jersey, U.S. Attorney Craig Carpenito announced.

Shawn K. Harvey, 52, was convicted of all four counts in an indictment charging him with one count of conspiracy to traffic firearms and three counts of trafficking firearms. He was convicted following a two-week trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury deliberated for approximately four hours before returning the verdict.

Shawn K. Harvey and his son, Shawn M. Harvey, a/k/a “Munchy,” 28, also of Locust Grove, were originally arrested in August 2016.

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

Bureau of Alcohol, Tobacco and Firearms (ATF) agents directed and supervised a sting operation using a confidential informant who purchased firearms from the Harveys on multiple occasions at a parking lot in Pennsauken, New Jersey. The operation yielded 35 firearms –including assault-style rifles, revolvers, shotguns and semi-automatic handguns – over the course of 11 separate transactions spanning several weeks. One of the firearms was reported stolen in Virginia and many of the guns were brand new and came with ammunition. 

The trafficking and conspiracy charges are each punishable by a maximum potential penalty of five years in prison. Sentencing is scheduled for Aug. 17, 2018. Shawn M. Harvey pleaded guilty prior to trial and awaits sentencing.  
      
U.S. Attorney Carpenito credited ATF special agents, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, with the investigation. 

The government is represented by Assistant U.S. Attorneys Jacqueline Carle and Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
                                        
Defense counsel: Megan J. Davies Esq., Cherry Hill, New Jersey

NEWARK, N.J. – A Bronx, New York, man today admitted engaging in a violent, multi-state crime spree in which he kidnapped his former girlfriend, assaulted a federal employee, and set fire to a used car dealership, U.S. Attorney Craig Carpenito announced.

Luis Figueroa, 37, pleaded guilty before Senior U.S. District Judge Stanley R. Chesler in Newark federal court to Counts One, Three, Five and Six of an indictment charging him with kidnapping, possession of a firearm by a convicted felon, assaulting an employee of the United States, and arson.

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

On the morning of June 6, 2014, Figueroa – armed with a shotgun – waited outside the Hazleton, Pennsylvania apartment of his former girlfriend, identified as “Victim 1” in the indictment. When Victim 1 emerged from the apartment, Figueroa physically assaulted Victim 1, including striking Victim 1 in the head with the shotgun.

Afterwards, Figueroa led Victim 1 to a red SUV, where he forced Victim 1 into the backseat. Figueroa then drove Victim 1 across state lines to New Jersey, eventually stopping at rest stop area near the Kittatinny Point Visitor’s Center, on federal property. After Figueroa left the red SUV to dispose of the shotgun in a nearby wooded area, Victim 1 climbed into the driver’s seat of the red SUV and drove away to safety.

After returning and discovering both Victim 1 and the red SUV were missing, Figueroa approached a National Park Service employee – identified in the indictment as “Victim 2” – who was blowing leaves. Figueroa led Victim 2 to a nearby storage room, where he slammed Victim 2’s head against a door and threatened to harm Victim 2 further if Victim 2 did not hand over Victim 2’s car keys. Victim 2 complied, and Figueroa fled the scene in Victim 2’s red minivan.

Figueroa drove Victim 2’s red minivan to Paterson, New Jersey, where Figueroa entered a used car dealership operated by a person with whom Figueroa had a business relationship. Figueroa asked an employee for a portable gas canister, which he filled shortly thereafter at a nearby gas station.

Figueroa then returned to the dealership, went to a small office building on the dealership property, and doused the structure with gasoline. After a brief struggle with a dealership employee, Figueroa ignited a match and set the building on fire, engulfing the structure in flames. Figueroa set himself on fire in the process, as well. Figueroa extinguished himself with a nearby garden hose, and then fled the scene in a white SUV.

Law enforcement officers searched for Figueroa and the white SUV, eventually locating it on the George Washington Bridge heading into New York. Figueroa ignored officers’ commands to stop, leading to a high-speed chase in which Figueroa rammed the white SUV into multiple police vehicles. At one point, Figueroa got out of the white SUV and fled on foot. Officers placed Figueroa under arrest shortly thereafter.

According to the terms of the plea agreement, if accepted by the court, Figueroa will receive a term of 26 years in prison. Sentencing is scheduled for July 19, 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 B. Devito in Newark Field Division, with the investigation leading to today’s plea. He also thanked the Hazelton City Police Department, the Luzerne County, Pennsylvania, District Attorney’s Office, the N.J. State Police, the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office for their assistance.

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

Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey 

NEWARK, N.J. – A former Jersey City police officer was sentenced today to 18 months in prison for fraudulently collecting income for off-duty work he never performed, U.S. Attorney Craig Carpenito announced.  

Ehab Abdelaziz, 38, of Clifton, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit bribery. Judge Vazquez imposed the sentence today in Newark federal court.

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

Private contractors and utility companies sometimes needed the services of off-duty police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Abdelaziz was a Jersey City police officer who was eligible to perform off-duty work. 

From December 2015 through June 2016, Abdelaziz engaged in a conspiracy in which he made a total of $11,825 in bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that Abdelaziz had completed certain off-duty assignments. As a result, Abdelaziz was compensated for work he never performed.

In addition to the prison term, Judge Vazquez sentenced Abdelaziz to two years of supervised release and ordered him to pay restitution of $33,955 and forfeiture of $22,449.
 
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.   

The Jersey City Police Department is cooperating with the investigation.    

The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
    
Defense counsel: Anthony J. Iacullo Esq., Nutley, New Jersey
 

NEWARK, N.J. – The former executive director of a Newark-based childcare and community program and a partner in a political fundraising and consulting company was sentenced today to 38 months in prison for wire fraud and tax evasion, U.S. Attorney Craig Carpenito announced.  

Kiburi D. Tucker, 43, of Newark, previously pleaded guilty before Chief U.S. District Judge Jose L. Linares to an information charging him with one count of wire fraud and four counts of tax evasion. Judge Linares imposed the sentence today in Newark federal court.

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

As the executive director of The Centre Inc., Tucker embezzled its funds through ATM, debit card and bank withdrawal transactions to fund personal expenditures, including gambling, travel, and furnishing his home. Tucker defrauded The Centre of $332,116 from 2012 through 2015.  

 In addition, Tucker, who was also receiving an annual salary from his employment at the Passaic Valley Sewerage Commission, filed false personal income tax returns in which he intentionally under-reported both the proceeds that he embezzled from The Centre and income from his partnership in Elite Strategies, a political fundraising and consulting company. Tucker admitted that he was responsible for underreporting $177,040 in income from these sources for the 2015 tax year, resulting in a tax loss of $56,509.

In addition to the prison term, Judge Linares sentenced Tucker to three years of supervised release and ordered him to pay restitution of $133,624 to the IRS and forfeit $334,116.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation.  

The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division in Newark. 

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Defense counsel: Timothy M. Donohue Esq., West Orange, New Jersey and Alfred C. Decotis Esq., Teaneck, New Jersey

TRENTON, N.J. – Four women appeared in federal court this week to admit their respective roles in an oxycodone distribution conspiracy in Flemington, New Jersey, and elsewhere, U.S. Attorney Craig Carpenito announced.

Alicia Balaban, 35, of Wellington, Florida; Marie DeJulia, 42, of Lodi, New Jersey; and Michele Call, 63, and Nelida Rios, 55, both of Flemington, were previously charged by complaint. They entered their guilty pleas – to informations charging them each with one count of conspiracy to distribute and possess with intent to distribute oxycodone – before U.S. District Judge Freda Wolfson in Trenton federal court.

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

Balaban, is Call’s daughter and DeJulia’s friend. From April 2016 through December 2017, Balaban, Call, and Rios worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to DeJulia from Call’s and Rios’ Flemington residences for resale. The conspirators distributed thousands of 30 mg oxycodone pills.

Each defendant faces a maximum penalty of 20 years in prison and a fine of up to $1 million or twice the gross gain or loss caused by the offense. Sentencing for Rios and Balaban is scheduled for July 20, 2018, and for Call and DeJulia, July 24, 2018.

U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office Public Protection Unit in Newark.

Defense counsel: DeJulia: John Azzarello Esq., Morristown, New Jersey
Balaban: Clifford Lazzaro Esq., Elizabeth, New Jersey
Call: Jason LeBoeuf Esq., Newark
Rios: Michael Pedicini Esq., Chatham, New Jersey

TRENTON, N.J. – The fifth defendant to plead guilty in a multi-state dog fighting case was sentenced today to 24 months in prison for his role in dog fighting activities that took place in New Jersey and Virginia, U.S. Attorney Craig Carpenito of the District of New Jersey and Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division announced.

Mario Atkinson, 42, of Asbury Park, New Jersey, previously pleaded guilty June 15, 2017, before U.S. District Judge Peter G. Sheridan an information charging him with one count of sponsoring and exhibiting a dog in a dog fight, and one count of unlawful possession of a dog intended to be used for the purpose of dog fighting. Judge Sheridan imposed the sentence today in Trenton federal court.

According to documents in this and other cases and statements made in court:

Atkinson admitted that in 2016, he had fought his dog in a dog fight in Virginia for a $1,000 wager. The investigation revealed that Atkinson’s dog perished after the dog fight while Atkinson was driving home, and that Atkinson placed the dog’s body in a trash receptacle. On June 1, 2016, agents seized 18 pit bull-type dogs from Atkinson. Some of these dogs had scarring and injuries consistent with fighting and were found near dog fighting equipment, including an electric treadmill specially outfitted with side panels and a leash clip to force dogs to run on the treadmill. Agents also found blood splatters in three areas of Atkinson’s basement that tested positive for canine blood.

Four other defendants in this case previously pleaded guilty and were sentenced to a total of 111 months. The court set a trial date of Oct. 8, 2018, for the four remaining defendants in the case.

“Federal and local law enforcement agencies in New Jersey have ramped up their efforts recently to track down animal fighters and bring them to justice,” U.S. Attorney Carpenito said. “We will continue to root out dog fighting in New Jersey and to work with our local and state partners to bring the offenders to justice.”

“Animal cruelty like the conduct in this case has no place in a civilized society,” said Acting Assistant Attorney General Wood. “Today’s sentencing sends a strong message that we are bringing to justice those who engage in illegal dog fighting and that anyone who engages in this conduct does so at the risk of significant jail time.”

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General said “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”

In addition to the prison term, Judge Sheridan sentenced Atkinson to three years of supervised release and fined him $1,000.

The case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.

The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the FBI.

The government is represented by Assistant U.S. Attorney Kathleen O’Leary of the District of New Jersey and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section.

The fifth defendant to plead guilty in a multi-state dog fighting case was sentenced today in federal court in Trenton, New Jersey, for his role in dog fighting activities that took place in New Jersey and Virginia. Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Craig Carpenito of the District of New Jersey made the announcement.

U.S. District Judge Peter G. Sheridan sentenced Mario Atkinson, 42, of Asbury Park, New Jersey, to serve 24 months in prison to be followed by three years supervised release, and a $1000 fine. Atkinson pleaded guilty on June 15, 2017, to one felony count of sponsoring and exhibiting a dog in a dog fight, and one felony count of unlawful possession of dogs intended to be used for the purpose of dog fighting. 

Atkinson admitted that, in 2016, he had fought his dog in a dog fight in Virginia for a $1,000 wager. The investigation revealed that Atkinson’s dog perished after the dog fight while Atkinson was driving home, and that Atkinson placed the dog’s body in a trash receptacle. On June 1, 2016, agents seized 18 pit bull-type dogs from Atkinson. Some of these dogs had scarring and injuries consistent with fighting and were found near dog fighting equipment, including an electric human treadmill specially outfitted with side panels and a leash clip to force dogs to run on the treadmill. Agents also found blood splatters in three areas of Atkinson’s basement that tested positive for canine blood.

Four other defendants in this case previously pleaded guilty and were sentenced to a total of 111 months in prison. Trial for the remaining four defendants in the case is set for October 8, 2018.

“Animal cruelty like the conduct in this case has no place in a civilized society,” said Acting Assistant Attorney General Wood. “Today’s sentencing sends a strong message that we are bringing to justice those who engage in illegal dog fighting and that anyone who engages in this conduct does so at the risk of significant jail time.”

“Federal and local law enforcement agencies in New Jersey have ramped up their efforts recently to track down animal fighters and bring them to justice,” U.S. Attorney Carpenito said. “We will continue to root out dog fighting in New Jersey and to work with our local and state partners to bring the offenders to justice.”

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms and gambling,” said Special Agent in Charge Bethanne M. Dinkins for U.S. Department of Agriculture’s Office of Inspector General. “Together with the Department of Justice, animal fighting is an investigative priority for USDA OIG, and we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.” 

This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog fighting “victories.” To date, 98 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement. The government is represented by Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Kathleen O’Leary. The case is being investigated by the U.S. Department of Agriculture – Office of Inspector General, the U.S. Department of Homeland Security – Homeland Security Investigations, and the Federal Bureau of Investigation.

NEWARK, N.J. – Two men were arraigned today for their alleged roles in a phony check scheme that stole over $2 million in merchandise from multiple home-improvement stores throughout the country, U.S. Attorney Craig Carpenito announced.

Lessie Dickerson III, 33, of Union, New Jersey, and John Muyeka, 42, of Sayreville, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and two counts each of wire fraud. Muyeka is also charged with one count of producing false identification documents.

Both defendants were arraigned this afternoon before U.S. District Judge Katharine S. Hayden in Newark federal Court and pleaded not guilty.

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

Starting in December 2013 and continuing through February 2017, several individuals, including Dickerson and Muyeka, conspired to obtain merchandise or store credit from home-improvement stores in locations along the eastern United States, including New Jersey, by purchasing items with fraudulent checks.

Muyeka allegedly produced false driver’s licenses from New Jersey and other states using photographs of his conspirators, along with fictitious names, addresses, and dates of birth. Muyeka provided the fraudulent identification documents to his conspirators.

Dickerson and others entered home-improvement and other retail stores and gathered several high-value items like air conditioners or hardwood flooring. Dickerson and others then typically “purchased” the items either by handing a cashier a fraudulent check with a phony name but authentic account and routing numbers, or by pretending to be an authorized signatory on a store credit account that Dickerson and others had previously opened with a phony check.

During some of the transactions, Dickerson and others allegedly displayed the fake driver’s licenses that had been created by Muyeka, which either duplicated the phony name imprinted on the fraudulent check they presented for payment or matched the name of an authorized signatory on a store credit account that they had previously opened.

In total, Dickerson, Muyeka, and others allegedly stole over $2 million in merchandise from various retailers in New Jersey, New York, Pennsylvania, Delaware, North Carolina, Georgia, Virginia, Connecticut, Massachusetts, South Carolina, and Texas.

Dickerson and Muyeka each face 20 years in prison and a $250,000 fine for the wire fraud charges. Muyeka faces 15 years imprisonment and a $250,000 fine for the producing false identification documents charge.

U.S. Attorney Carpenito credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and special agents of the U.S. Attorney’s Office, District of New Jersey, with the investigation. He also thanked the Union Township Police Department, the Holmdel Police Department, the Passaic County Prosecutor's Office, the Totowa Police Department, and the Monroe Township Police Department 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.

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

Defense counsel: Dickerson: Wanda M. Akin Esq., Newark
Muyeka: Ruth M. Liebesman Esq., Paramus, New Jersey

CAMDEN, N.J. – A Burlington County, New Jersey, pharmacist was sentenced today to 27 months in prison for his role in a long-running conspiracy to illegally distribute and dispense large quantities of oxycodone and other controlled substances from two pharmacies located in Medford, New Jersey, U.S. Attorney Craig Carpenito announced.

David Goldfield, 60, of Medford Lakes, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count 1 of an indictment, charging him with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, and Counts 10 through 15, which charge him with multiple substantive counts of illegal distribution and dispensing of oxycodone. Judge Simandle imposed the sentence in Camden federal court.

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

Goldfield was employed by Michael Ludwikowski, 46, of Medford, at Olde Medford Pharmacy and Medford Family Pharmacy. Goldfield admitted that from January 2010 through August 2013, he conspired with Ludwikowski to distribute and dispense oxycodone for individuals they knew were obtaining the pain killers for resale or for non-medical use.

Goldfield admitted, based upon his training and experience, as well as the “red flags” he observed, it was obvious that many of the oxycodone prescriptions that Goldfield and Ludwikowski filled were fraudulent. These red flags included prescriptions for oxycodone that appeared to have been “washed” or “bleached.” According to the indictment, this was achieved through a chemical process that removed the original writing for a non-narcotic substance. The customers then rewrote the prescriptions for their drug of choice, including oxycodone.

Other red flags included customers who were believed to be drug addicts, or believed to be selling or abusing the oxycodone; customers seeking oxycodone with residential addresses far from the Medford area, including for example, Camden, New Jersey; the same customer presenting oxycodone prescriptions in numerous different names, including the names of both men and women; and customers presenting oxycodone prescriptions for a 30-day supply multiple times a week.

On occasions that Goldfield had suspicions about the legitimacy of particular prescriptions, Ludwikowski allegedly told Goldfield to fill some of those prescriptions anyway. In addition, Goldfield admitted that he and Ludwikowski stored bottles of oxycodone in a pull-out drawer to which pharmacy employees working at the front counter would have easy access, rather than in a locked safe.

When Ludwikowski became concerned with the high number of oxycodone prescriptions that were being filled, Ludwikowski and Goldfield – in an attempt to evade law enforcement – turned away customers who were bringing in fraudulent prescriptions by telling them that the Drug Enforcement Administration (DEA) had reduced their supply of oxycodone.
In addition to the prison term, Judge Simandle sentenced Goldfield to three years of supervised release and fined him $4,900.

Ludwikowski was convicted at trial of six counts in an indictment charging him with illegally distributing and dispensing oxycodone, a Schedule II controlled substance, and maintaining a drug-involved premises. He was sentenced April 12, 2018, to 15 years in prison.

U.S. Attorney Carpenito credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Valerie A. Nickerson; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to today’s sentencing.

The government is represented Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Gilbert J. Scutti Esq., Voorhees, New Jersey

TRENTON, N.J. – A Miami man was sentenced today to 120 months in prison for his role in a conspiracy to distribute over 45 kilograms of narcotics, including heroin, fentanyl, cocaine, and morphine, U.S. Attorney Craig Carpenito announced.

Sauro D. Estevez Figueredo, 50, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count One of an indictment charging him with conspiracy to possess with intent to distribute more than one kilogram of heroin, five kilograms or more of cocaine, 400 grams or more of fentanyl, and morphine. Judge Sheridan imposed the sentence today in Trenton federal court.

Figueredo was originally arrested with Edwin Alamo Jr., 23, Emmanuel Gonzalez, 33, both of Bronx, New York, Alberto Mora, 54, of Morriston, Florida, and Porfirio Peralta-Nunez, 39, of Jersey City, New Jersey, in February 2016. All five defendants have since pleaded guilty to their roles in the drug distribution conspiracy.

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

On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Figueredo and Mora, parked at an intersection near a store in Clifton, New Jersey. That afternoon, Gonzalez and Alamo drove to the tractor trailer and left with a suitcase given to them by Mora. Later, Peralta-Nunez arrived at the tractor trailer with two empty bags and left shortly afterwards with the bags filled.

Figueredo admitted that he collected narcotics and transported them via tractor trailer to New Jersey. He also admitted that Mora handed out a suitcase with 22 kilograms of heroin and afterwards, another conspirator took two bags containing fentanyl, morphine and heroin from the tractor trailer. He further admitted that there were two additional bags on the tractor trailer – one that contained 10 kilograms of fentanyl and one that contained 10 kilograms of cocaine – that would have been provided to other conspirators if not for law enforcement’s intervention.

In addition to the prison term, Judge Sheridan sentenced Figueredo to five years of supervised release.

The government is represented by Assistant U.S. Attorneys Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit and Elaine Lou of the Organized Crime/Gangs Unit in Newark.

U.S. Attorney Carpenito credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation.

Defense Counsel: Michael D’Alessio Esq., West Orange, New Jersey 

NEWARK, N.J. – A fugitive wanted by the FBI for almost 15 years admitted today to defrauding a financial institution to obtain hundreds of thousands of dollars for himself, his computer retail business, and his associates, U.S. Attorney Craig Carpenito announced.

Steven Nacim, 49, a/k/a “Fouad,” a Moroccan national, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a superseding information charging him with one count of conspiracy to commit bank fraud.

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

In March and April of 2002, Nacim and others owned and operated a business known as Computer 3000, based in East Rutherford, New Jersey, and Casablanca, Morocco. Nacim and his conspirators executed a fraudulent check scheme involving the negotiation of a $289,326 check drawn on insufficient funds, and the wire transfer of the proceeds through multiple accounts controlled by the conspirators. Nacim used the majority of the funds for his own benefit and for the benefit of his computer business.

The conspiracy charge carries a maximum penalty of five years in prison and a fine of $250,000 or twice his gain, or twice the loss sustained by the victim of the offense. Nacim agreed to pay $240,580 in restitution to the victim bank, and to forfeit $240,580. He is scheduled to be sentenced on July 26, 2018, at 10:00 a.m.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery Money Laundering Unit.

Defense counsel: Joseph B. Shumofksy Esq., Newark, New Jersey

NEWARK, N.J. – A Newark, New Jersey, resident today admitted conspiring to obtain marijuana from California to sell in New Jersey, and paying cash bribes to two U.S. Postal Service (USPS) mail carriers to intercept and deliver parcels to him, U.S. Attorney Craig Carpenito announced.

Glenn Blackstone, 48, pleaded guilty before U.S. District Judge Esther D. Salas in Newark federal court to an information charging him with one count of giving bribes and one count of conspiracy to distribute marijuana. He was released on $100,000 unsecured bond.

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

From October 2014 to September 2017, Blackstone purchased marijuana from a conspirator, who produced the marijuana in California and oversaw shipping it in parcels from California and Nevada. Blackstone then sold the marijuana to others in Newark. Blackstone provided the then-USPS mail carrier, Leonard Gresham, 50, of Rahway, New Jersey, and another then-USPS mail carrier approximately $12,400 in cash payments to deliver the parcels to him. These parcels had fictitious names and addresses on them and were not addressed directly to Blackstone.

On multiple occasions, Blackstone asked the mail carriers to remove the parcels from the normal delivery stream and deliver them instead to him at various locations in Newark. Blackstone paid the letter carriers approximately $50 to $100 in cash for each delivery.

On Feb. 13, 2018, Gresham pleaded guilty before Judge Salas to an information charging him with one count of accepting bribes. He is scheduled to be sentenced May 30, 2018.

The drug conspiracy count with which Blackstone is charged is punishable by a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a fine of up to $5 million, or twice the gross gain from the offense. The bribery count is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 24, 2018.

U.S. Attorney Carpenito credited special agents with the USPS-Office of Inspector General, under the direction of Special Agent in Charge Eileen Neff, Northeast Area Field Office, and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Defense counsel: Ray Hamlin Esq., Newark

TRENTON, N.J. – A Los Angeles man was sentenced today to 120 months in prison for his role in a conspiracy to traffic five kilograms of cocaine and four kilograms of heroin that were hidden inside large pieces of hydraulic machinery, U.S. Attorney Craig Carpenito announced.

Eduardo Barragan Zuninga, 31, previously pleaded guilty before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of conspiring to distribute heroin and cocaine. Judge Sheridan imposed the sentence today in Trenton federal court.

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

From March 2015 through March 2016, Zuninga, Fermin Nunez, 46, also of Los Angeles, and others plotted to hide cocaine and heroin, and the proceeds from narcotics transactions, inside large pieces of hydraulic machinery and ship them across the country.

Nunez arranged for the drugs to be shipped from California to the east coast for distribution by Zuninga and others in the New York metropolitan area. Nunez, with Zuninga’s assistance, similarly arranged for the shipment of the distribution proceeds back to California.

Execution of two search warrants at the conclusion of an investigation conducted by the FBI, in cooperation with local law enforcement partners in Los Angeles, resulted in the seizure of approximately five kilograms of cocaine and four kilograms of heroin from a warehouse in Pennsylvania, and over $260,000 in suspected narcotics proceeds from a piece of hydraulic machinery in a California storage facility.

In addition to the prison term, Judge Sheridan sentenced Zuninga to five years of supervised release. Nunez previously pleaded guilty to his role in the conspiracy and awaits sentencing.

U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT) and the Los Angeles Police Department, under the direction of Chief Charlie Beck, with the investigation.

The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.

Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – A member of MS-13 today admitted trafficking methamphetamine, heroin, and cocaine to New Jersey from inside a California state prison, U.S. Attorney Craig Carpenito announced.

Luis Calderon, 32, a/k/a “Lagrima,” of Los Angeles, pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an indictment charging him with conspiracy to distribute, and to possess with intent to distribute, methamphetamine, heroin, and cocaine.

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

Between August 2015 and November 2015, Calderon was incarcerated at the Calipatria State Prison in California. However, Calderon had access to multiple contraband cellular telephones, which he used to communicate with conspirators outside the prison.

Law enforcement officers lawfully-recorded numerous telephone conversations between Calderon and an MS-13 member based in New Jersey, identified in the indictment as “Individual-1.” Among other topics, Calderon and Individual-1 discussed plans to distribute crystal methamphetamine, heroin, and cocaine in the New Jersey area. Calderon and Individual-1 ultimately settled on that plan that involved Calderon and others outside the prison sending a package containing controlled substances to a business center in Edison, New Jersey.

Shortly before the package arrived, Calderon informed Individual-1 by telephone that he was sending Individual-1 a package containing four ounces each of heroin and cocaine. Calderon stated that the package would also likely contain two ounces or more of crystal methamphetamine. Calderon told Individual-1 that the total cost for the heroin, cocaine, and crystal methamphetamine was $9,000, and stated that Individual-1 could keep the proceeds made from selling the drugs once Individual-1 paid Calderon for the shipment. Calderon subsequently gave Individual-1 the names that would appear on the package and the tracking number.

On Nov. 4, 2015, federal agents lawfully intercepted and searched the package. The search revealed approximately 95.5 grams of heroin, 54.7 grams of cocaine, and 52.4 grams of methamphetamine hidden inside a box of Little Debbie Swiss Rolls.

Calderon faces a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $10 million fine. Sentencing is scheduled for June 25, 2018.

U.S. Attorney Carpenito credited special agents of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian Michael, with the investigation. He also thanked Immigration and Customs Enforcement (ICE) Enforcement Removal Operations (ERO), the Calipatria State Prison, the Plainfield Police Department, the Union County Prosecutor’s Office, and the U.S. Attorney’s Office for the Central District of California for their assistance.
The government is represented by Assistant U.S. Attorneys Jamari Buxton of the U.S. Attorney’s Office Criminal Division and James Donnelly, Chief of the U.S. Attorney’s Office Violent Crimes Unit.

Defense counsel: Stacy Ann Biancamano Esq., Chatham, New Jersey

NEWARK, N.J. –Three men from New Jersey and another from Nevada were indicted today on additional charges stemming from their alleged advance-fee scheme that defrauded four victims of over $1 million, U.S. Attorney Craig Carpenito announced.

James Adkins, 65, of Hillside, New Jersey, Jerrid Douglas, 44, of Freehold, New Jersey, Roy Gillar, 45, of Las Vegas, Nevada, and Harold Mignott, 55, of Voorhees, New Jersey, were originally charged by indictment in December 2017 with one count of conspiracy to commit wire fraud and four counts of wire fraud, with Douglas and Gillar also being charged with one count of transacting in criminal proceeds. Today’s superseding indictment adds three counts of wire fraud against Adkins, two counts of wire fraud against Douglas, and one count of wire fraud against Mignott.

All four defendants are currently out on bail and will be arraigned at a later date before U.S. District Court Judge John Michael Vazquez in Newark federal court.

According to the superseding indictment:

From March 2016 through June 2016, Mignott, Adkins, Douglas, and Gillar allegedly agreed to defraud an entity identified in the superseding indictment as “Victim Company A” out of approximately $1 million.

As part of the scheme, the defendants convinced two individuals who ran Victim Company A to enter a joint-venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide Victim Company A with a “standby letter of credit” backed by Mexican gold bonds. A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.

Victim Company A wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint-venture agreement, Victim Company A agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.

In order to cover up the scheme and acquire Victim Company A’s funds, the defendants made numerous verbal and written misrepresentations, including providing a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion standby letter of credit to the defendants’ shell company.

However, after Victim Company A transmitted $800,000 to the defendants, they failed to provide Victim Company A with a standby letter of credit or anything of value. Instead, the defendants misappropriated Victim Company A’s money for their personal use on items like luxury cars, expensive watches, mortgage payments on their personal residences, and large cash withdrawals.

In addition, Adkins and Mignott allegedly defrauded a farmer from Iowa – identified in the superseding indictment as “Individual Victim 3” — out of $90,000 in 2013. As part of the scheme, Adkins and Mignott induced Individual Victim 3 to enter into a joint-venture agreement with their shell company and told the victim that if he provided them $90,000, they would provide him with a standby letter of credit so he could access financing for his pork business.

In order to persuade Individual Victim 3 to transfer the money, Adkins and Mignott told him that their company was going to complete lucrative oil and gas transactions that would yield significant revenues. However, after Individual Victim 3 transmitted $90,000, Adkins and Mignott did not provide him with money, a standby letter of credit, or anything of value.

Lastly, Adkins and Douglas allegedly defrauded an entity identified in the superseding indictment as “Victim Company B” out of approximately $250,000 in 2015. Adkins and Douglas induced the founder and owner of Victim Company B to enter a joint-venture agreement with their shell company. Adkins and Douglas falsely represented that their company could acquire and provide Victim Company B with a standby letter of credit, which would provide financing for Victim Company B’s biotech business operations.

Victim Company B wanted to obtain the standby letter of credit so it could fund business operations for cancer research as part of its biotech business. As part of the joint-venture agreement, Victim Company B agreed to pay Adkins and Douglas $1 million for the bank fee associated with the standby letter of credit.

However, after Victim Company B transmitted $250,000 of the $1 million to Adkins and Douglas’s shell company, Adkins and Douglas failed to provide Victim Company B with a standby letter of credit or anything of value. Instead, Adkins, Douglas, and others misappropriated the money for their personal use.

The conspiracy to commit wire fraud charge and the wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering charges each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Craig Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, 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.

The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:

Adkins: Kevin Buchan Esq., Holmdel, New Jersey

Douglas: Joseph Corazza Esq., Sparta, New Jersey

Gillar: Thomas Ashley Esq., Newark

Mignott: Eric Breslin Esq., Newark

NEWARK – Two Union County, New Jersey, tax preparers were arrested today on charges of filing scores of fraudulent tax returns, U.S. Attorney Craig Carpenito announced.

Samuel Davis Jr., 52, and Kyna Felder-Ruiz, 35, both of Plainfield, New Jersey, were indicted by a federal grand jury on April 11, 2018. Davis is charged with conspiring to aid and abet the filing of more than 70 false tax returns, seven counts of aiding and abetting in the filing of false tax returns, and three counts of filing his own false tax returns. Felder-Ruiz is charged with conspiring to aid and abet the filing of more than 70 false tax returns and four counts of aiding and abetting in the filing of false tax returns. They are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to the indictment:

Davis is the owner and operator of Get Organized Tax & Accounting (GOTA), a tax preparation business in Plainfield. He retired as a detective sergeant from the N.J. State Police in 2016 after 28 years. Felder-Ruiz, who worked for the N.J. State Police as a public safety dispatcher for approximately two years and is currently a firefighter for the City of Plainfield, New Jersey, works as a tax preparer at GOTA. For the tax years 2011 to 2016, Davis and Felder-Ruiz prepared false individual income tax returns for various clients. They used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for their clients in amounts greater than those to which they were entitled.

For the tax years 2012 through 2014, Davis filed false individual income tax returns by falsely reporting the gross business income to GOTA. By doing so, Davis defrauded the IRS of tens of thousands of dollars in taxes.

The false filing charges with which Davis and Felder-Ruiz are charged each carry a maximum potential penalty of three years in prison and a $100,000 fine or twice the gross pecuniary gain or loss from the fraud. The maximum penalty for the conspiracy offense is five years in prison and a fine of $250,000, or twice the gross loss or gain caused by the offense.

U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Shana W. Chen of the Criminal Division in Newark.

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

Defense Counsel:

Davis: Thomas Ashley Esq., Newark
Felder-Ruiz: TBD

CAMDEN, N.J. – A Honduran national was sentenced today to 288 months in prison for kidnapping his former girlfriend in Kansas City, Missouri, and raping her while they traveled to New Jersey, U.S. Attorney Craig Carpenito announced.

José Amaya-Vasquez, 33, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment, charging him with kidnapping, and Count Two, charging him with engaging in interstate domestic violence. Amaya-Vasquez previously pleaded guilty to Count Four which charged him with illegally re-entering the U.S. after having been deported. Judge Hillman imposed the sentence today in Camden federal court.

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

Amaya-Vasquez is a citizen of Honduras. On Feb. 14, 2005, he attempted to enter the United States illegally in Texas, at which time the U.S. Customs and Border Protection (CBP) arrested him, gave him a Notice to Appear in Immigration Court and released him from custody. On July 13, 2005, he failed to appear as ordered, at which time an Immigration Judge entered an Order of Removal.

On June 7, 2014, the Kansas City, Missouri, Police Department arrested Amaya-Vasquez and charged him with domestic assault after he threw a comb at the victim and pushed her into a table. The police turned the defendant over to Immigration and Customs Enforcement (ICE), which removed him from the United States on July 4, 2014.

On Sept. 9, 2014, CBP officers arrested Amaya-Vasquez after he illegally entered the United States from Mexico near Eagle Pass, Texas. On Sept. 16, 2014, the defendant pleaded guilty to a count of illegal entry before a U.S. Magistrate Judge for the Western District of Texas and was sentenced to 30 days’ incarceration. On Oct. 22, 2014, ICE again removed the defendant from the United States and he was barred from re-entering the United States for 20 years. He admitted that he illegally re-entered the country in January 2015.

On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez entered the victim’s vehicle, threatened her with a knife, duct-taped the victim and then took her and the victim’s 2-year old child to an abandoned house in Kansas City, where he sexually assaulted the victim at knifepoint.

From May 24, 2015, through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.

On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody since his arrest.

In addition to the prison term, Judge Hillman sentenced Amaya to five years of supervised release, ordered him to pay $6,100 in restitution to the victim and ordered him to have no contact with the victim.

U.S. Attorney Carpenito credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to today’s sentencing. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.

The government is represented by Senior Litigation Counsel Jason M. Richardson and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Jose Luis Ongay Esq., Camden

NEWARK, N.J. – An Elizabeth, New Jersey, man was sentenced today to 115 months in prison for robbing four banks in January 2017, including a TD Bank in Bergen County, New Jersey, U.S. Attorney Craig Carpenito announced.

Israel Cosme, 36, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with four counts of bank robbery. Judge Salas imposed the sentence today in Newark federal court. Cosme was originally arrested Jan. 24, 2017 in connection with two of the bank robberies committed in Maryland.

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

Cosme admitted that on Jan. 15, 2017, he robbed a TD Bank in Little Ferry, New Jersey. During the robbery, Cosme verbally demanded money and told a teller that he would shoot her if she didn’t comply.

Cosme also admitted robbing a TD Bank in New York on Jan. 12, 2017; a TD Bank in Essex, Maryland, on Jan. 22, 2017; and a TD Bank in Baltimore, Maryland, on Jan. 23, 2017. During all three of these robberies, Cosme handed tellers a note demanding money and stating that he had a gun.

In addition to the prison term, Judge Salas sentenced Cosme to three years of supervised release.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation. He also thanked the Little Ferry Police Department, under the direction of Chief Ralph Verdi, for its 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: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark