District of New Jersey

NEWARK, N.J. – A Virginia woman who is an active-duty member of the U.S. Navy and a New Jersey couple have been charged with conspiring to illegally purchase five semi-automatic handguns bound for New Jersey, U.S. Attorney Craig Carpenito announced today.

Tesora Amanda Cortes Trejorojas, 23, of Norfolk, Virginia; Azia Sinclair, 28, of Newark; and Shyheim Tyson, a/k/a “Shy,” 22, of Newark, are charged by a superseding complaint with one count of conspiring to transport and receive in New Jersey firearms purchased and obtained outside the State of New Jersey. Sinclair had previously been charged by complaint filed in Newark federal court on March 12, 2018, for receiving a firearm, which had been shipped or transported in interstate commerce.

Trejorojas was arrested this morning and will appear this in Norfolk, Virginia, federal court. Sinclair and Tyson will appear on April 26, 2018, before U.S. Magistrate Judge Mark Falk in Newark federal court.

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

In November 2017, Trejorojas and Sinclair allegedly engaged in numerous text messages with each other planning for Trejorojas to purchase firearms in Virginia, which Sinclair and her boyfriend, Tyson, would then transport back to New Jersey.

On Nov. 11, 2017, Sinclair and Tyson drove from New Jersey to Trejorojas’ residence in Norfolk. The three of them then went to a gun store in Norfolk, where Trejorojas purchased five semiautomatic handguns, as well as 200 rounds of ammunition, with cash provided by Sinclair and Tyson. The next day, Sinclair and Tyson drove back to New Jersey with the five handguns and ammunition.

Approximately five hours after Sinclair and Tyson arrived back in New Jersey, an individual was arrested in Orange, New Jersey, after police officers responded to the sound of gunshots. During the arrest, police officers recovered one of the five handguns that Sinclair and Tyson had transported from Virginia to New Jersey.

In March 2018, law enforcement executed a search warrant on Sinclair’s residence in Newark, and found another of the guns that Sinclair and Tyson had transported from Virginia to New Jersey in November 2017.

The conspiracy to deal in firearms without a license carries a maximum potential penalty of five years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, Newark Field Division, and Special Agent in Charge Thomas L. Chittum III, Washington Field Division, with the investigation leading to today’s charges. He also thanked the N.J. State Police; the Newark Department of Public Safety: and Naval Criminal Investigative Service (NCIS) in Norfolk for their assistance.

The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the Violent Crimes Unit in Newark.

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

Defense counsel: Trejorojas: TBD
Sinclair: Linda Foster Esq., Assistant Federal Public Defender
Tyson: TBD

NEWARK, N.J. – A former U.S. Army major and his wife were sentenced today for their respective roles in abusing their adopted children, who all were less than 4 years old and developmentally delayed, through neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Craig Carpenito announced.

Carolyn Jackson, 40, was sentenced to 40 months in prison and her husband, John E. Jackson, 42, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, was sentenced to three years of probation. Both will get credit for time already served.

Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson had originally received 24 months in prison and John E. Jackson had received probation and 400 hours of community service when they were originally sentenced in December 2015. The government appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which ruled in July 2017 that the District Court had committed several errors in the process of imposing those sentences.

“Obviously, we are disappointed that the court did not agree with the sentences we sought,” U.S. Attorney Carpenito said. “This is a case where the victims were children, horribly abused by the foster parents to whom they were entrusted. A punishment that was severe – but fair – was warranted.”

The Jacksons were each found guilty following a four-month trial before U.S. District Judge Katharine S. Hayden in Newark federal court of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child. Judge Hayden imposed the sentences today in Newark federal court.

The case falls under federal jurisdiction because the crimes were committed on a military base. John Jackson was discharged from the Army in May 2015.

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

From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.

After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.

As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple. 

None of the children, adoptive and biological, remain in the custody of the defendants.

Judge Hayden also sentenced Carolyn Jackson 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 leading to today’s sentencings. He also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock, and the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp.

The government is represented by Deputy U.S. Attorney Thomas Eicher and Assistant U.S. Attorney John Romano of the U.S. Attorney’s Office in Newark.

TRENTON, N.J. – A Trenton man was sentenced today to 92 months in prison for his role in a conspiracy to distribute more than a kilogram of cocaine and crack cocaine in the Trenton area, U.S. Attorney Craig Carpenito announced.

Bobby Williams, 38, previously pleaded guilty before U.S. District Judge Michael A. Shipp to Count One of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base. Judge Shipp imposed the sentence today in Trenton federal court.

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

From September 2013 through his arrest on Jan. 13, 2016, Williams conspired with co-defendants Khalfini Richardson, William Enmond and Capitol T. Wellons to distribute cocaine and manufacture and distribute crack cocaine primarily from two adjacent residences in Trenton.

At his plea hearing, Williams admitted conspiring to distribute a total of 1.72 kilograms of cocaine and 82.9 grams of crack cocaine.

In addition to the prison term, Judge Shipp sentenced Williams to five years of supervised release.

Enmond entered a guilty plea and was sentenced on July 20, 2017, to 60 months in prison. Richardson and Wellons both pleaded guilty and were sentenced February 21, 2018, to 156 months and 84 months, respectively, in prison.

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

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

Defense counsel: John S. Furlong Esq., Ewing, New Jersey

NEWARK, N.J. – A corrections officer was arrested for allegedly accepting cash bribes in exchange for delivering contraband to inmates at Federal Correctional Institution Fort Dix (FCI Fort Dix), U.S. Attorney Craig Carpenito and Special Agent in Charge Ronald G. Gardella of the U.S. Department of Justice Office of the Inspector General, New York Field Division, announced today.  

Paul Anton Wright, 32, of Berlin, New Jersey, was arrested by federal agents this morning and charged by complaint with agreeing to accept and accepting bribes. Wright appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond. 

According to the complaint:

In 2015, Wright, a corrections officer at FCI Fort Dix, allegedly smuggled contraband, including K2 synthetic marijuana and suboxone, a Schedule III narcotic used to treat opioid addiction, to inmates inside FCI Fort Dix. Wright received the contraband and cash bribes from two individuals outside of FCI Fort Dix.

For instance, between February and September 2015, Wright received thousands of dollars in cash payments from the relative of an FCI Fort Dix inmate and subsequently delivered contraband, including K2, to the inmate. According to bank records, on Feb. 19, 2015, there was a $2,500 cash withdrawal from the relative’s bank account and a $2,500 deposit into Wright’s bank account the following day. There were also three phone calls between Wright and the relative during this two-day period. On other occasions, the cash payments were deposited into Wright’s bank accounts or used by Wright for cash buy-ins at the Borgata casino in Atlantic City, New Jersey.

In addition, between October and December 2015, Wright received thousands of dollars in cash payments from the relative of an inmate’s girlfriend. Wright met with this relative in Bronx, New York, on multiple occasions, and on each occasion, Wright accepted contraband and cash. He subsequently delivered the contraband to an inmate at FCI Fort Dix.  

The bribery count with which Wright is charged carries a maximum potential penalty of 15 years in prison and a $250,000 fine.

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

U.S. Attorney Carpenito credited special agents of the U.S. Department of Justice Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Gardella, with the investigation leading to today’s arrest.  

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

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Defense counsel: Linda Foster Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – A Medford, New Jersey, pharmacist was sentenced today to 180 months in prison for illegally distributing and dispensing oxycodone from two pharmacies located in Medford, U.S. Attorney Craig Carpenito announced.

Michael Ludwikowski, 46, the owner of Olde Medford Pharmacy and Medford Family Pharmacy, was previously convicted 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 convicted following a five-week trial before U.S. District Judge Jerome B. Simandle, who imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court: From March 2008 through August 2013, Ludwikowski, the pharmacist-in-charge of Olde Medford Pharmacy, and his employee, David M. Goldfield, 60, of Medford Lakes, New Jersey, knowingly distributed and dispensed oxycodone and other controlled substances to individuals, including addicts, who presented phony prescriptions.

Ludwikowski ordered large quantities of oxycodone from a national distributor. The distributor established thresholds for the quantity of controlled substances that it supplied to certain pharmacies. Ludwikowski and his pharmacies received large quantities of 30mg oxycodone pills, even though he knew the painkiller was not going to be used for legitimate medical reasons.

In some instances, the customers presented fraudulent prescriptions for a non-narcotic substance that had been “washed,” or “bleached,” through a chemical process that removed the original writing. The customers then rewrote the prescriptions for their drug of choice, oxycodone. Ludwikowski and Goldfield also ignored concerns raised by an employee who pointed out an obviously altered prescription.

Customers who used the fraudulent prescriptions generally paid in cash and provided gifts to Ludwikowski and Goldfield. In some instances, these customers filled fraudulent prescriptions for oxycodone multiple times a week.

In furtherance of the scheme, Ludwikowski and another pharmacist he employed – referred to in the indictment as “Pharmacist 3” – reached an agreement with a physician –referred to in the indictment as “Doctor 1” – to “steer” Doctor 1’s patients to Ludwikowski’s pharmacies. In a text message from Pharmacist 3 to Ludwikowski on Jan. 11, 2013, Pharmacist 3 wrote: “I talked to [Doctor 1] and he is going to direct all of his patients to us he is the pain doc in Cherry Hill.”

In addition to the prison term, Judge Simandle sentenced Ludwikowski to five years of supervised released, 1,000 hours of community service and ordered him to pay a fine of $12,000.

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: Edwin J. Jacobs Jr. Esq., Atlantic City, New Jersey

NEWARK, N.J. – Two Passaic County, New Jersey, men were arrested today for allegedly violating the civil rights of two individuals during a motor vehicle stop in Paterson, New Jersey, with one officer also being charged with extortion for personally accepting a firearm in exchange for reducing the charges on an arrestee, U.S. Attorney Craig Carpenito announced.

Jonathan Bustios, 28, and Eudy Ramos, 31, both of Paterson, New Jersey, were arrested by federal agents this morning and charged by complaint with conspiring to deprive individuals of civil rights under color of law. Bustios was also charged with one count of extortion under color of official right. Both defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to the complaint:

The investigation uncovered instances in which Bustios and Ramos, both officers of the Paterson Police Department, allegedly stopped motor vehicles, detained the occupants, and searched those vehicles without any justification. On certain occasions, Bustios and Ramos also took cash and other items without justification before releasing the detained occupants.

For example, on Feb. 20, 2018, while on duty, Bustios pulled over a BMW and stopped behind the vehicle, while Ramos stopped his police car in front of the vehicle. Bustios and Ramos exited their police cars and proceeded to search the front and back of the BMW and the trunk. Bustios and Ramos also detained and searched the two occupants of the BMW and put them into the backseat of Ramos’ police car.

After searching the BMW, Bustios left the scene, drove for ten minutes, then stopped his police car and took out a white plastic bag that was filled with cash. Bustios also took out a firearm. He then called Ramos, after which Ramos released the two detained occupants of the BMW and drove to meet Bustios. Bustios passed a portion of the recovered cash to Ramos through the window of Bustios’ police car.

Later that day, Bustios and Ramos turned in the firearm that they had recovered. In the offense report pertaining to the firearm, they told a false story about having recovered the firearm due to a tip by a concerned citizen. In fact, there was no tip by a concerned citizen. They did not report to the Paterson Police Department that they had stopped and searched the BMW, detained and searched its occupants, and taken cash, all without any warrants.

Bustios was also charged with extortion under color of official right for an incident that allegedly occurred on March 14, 2018. Bustios arrested and detained an individual and placed the individual in the backseat of his police car. Bustios then told the individual that Bustios would not charge the individual with resisting arrest and would allow the individual to keep the cash that the individual had on him, in exchange for the individual helping Bustios acquire a firearm. Specifically, Bustios said, “I ain’t gonna charge you with resisting, and I’m letting you keep your money bro.” Bustios then told the individual, “If you don’t wanna make the deal, you don’t have to make the deal.”

The individual ultimately agreed and directed Bustios to the location of a firearm, which Bustios allegedly recovered and kept without turning it over to the Paterson Police Department. According to Paterson Police Department records, as he had promised, Bustios did not charge the individual with resisting arrest. Bustios also submitted an arrest report in which he failed to mention any details about recovering a firearm.

The conspiracy to violate civil rights count with which Bustios and Ramos are charged carries a maximum penalty of 10 years in prison. The extortion under color of official right count with which Bustios is charged carries a maximum penalty of 20 years in prison.

The charges and allegations in the complaint 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 Acting Special Agent in Charge Bradley W. Cohen in Newark, with the ongoing investigation leading to today’s arrest. He also thanked the Paterson Police Department, under the direction of Paterson Police Director Jerry Speziale and Police Chief Troy Oswald, as well as the Paterson Police Department Office of Internal Affairs, for their assistance in the investigation.

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

NEWARK, N.J. – A South Carolina man will appear in federal court today on charges of distributing images of child sexual abuse, U.S. Attorney Craig Carpenito announced.

Rashad Russell, 28, was indicted by a federal grand jury on April 6, 2018, on one count of distribution of child pornography. He is scheduled to make his initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Between December 2017 and March 2018, Russell allegedly contacted a law enforcement officer working in an undercover capacity through Facebook messenger stating that he was willing to travel from South Carolina to New Jersey to meet the undercover agent’s purported 8-year-old child for the purpose of engaging in sexual acts with the child. On Jan. 8, 2018, Russell sent two images and one video to the undercover officer, including images of prepubescent children being sexually abused.

The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.

U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation leading to the indictment.

The government is represented by Special Assistant U.S. Attorney Leah Gould of the U.S. Attorney’s Office Public Protection Unit in Newark.

CAMDEN, N.J. – A Salem County, New Jersey, man was indicted by a federal grand jury today for illegally selling firearms without a license and unlawfully possessing firearms after having been previously convicted of a felony, U.S. Attorney Craig Carpenito announced.

Corey Moore, 32, of Salem, New Jersey, was charged by indictment with 12 counts of dealing in firearms without a federal firearms license and 12 counts of possession of firearms by a convicted felon.

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

From July 2016 through December 2016, Moore sold 15 firearms to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives in 12 separate transactions. Moore conducted each sale in a similar manner, texting the informant photographs of various firearms that Moore had for sale and negotiating a price. He made each of the sales at a convenience store in Gloucester County, and sold all but one of the firearms with ammunition.

The counts of unlawfully dealing in firearms without a license each carry a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of firearms by a convicted felon each carry a maximum penalty of 10 years in prison and a maximum fine of $250,000.

U.S. Attorney Carpenito credited special agents of the ATF, under the direction of Special Agent in Charge John B. Devito, Newark Field Division; Logan Township Police Department, under the direction of Chief Robert T. Leash, and the Salem County Prosecutor’s Office, under the direction of John T. Lenahan, with the investigation leading to today’s indictment.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney's Office in Camden.

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

Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender, Camden

NEWARK, N.J. – A Newark man was sentenced today to 18 months in prison for filing false tax returns and structuring cash payments to avoid reporting requirements, U.S. Attorney Craig Carpenito announced.

Okoro Ifeanyi, 56, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to a two-count information charging him with filing false tax returns with respect to his 2010 through 2013 personal tax returns and with structuring financial transactions in 2007 and 2008 to avoid reporting requirements. Judge Chesler imposed the sentence today in Newark federal court.

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

Ifeanyi was the owner and operator of Amiri Mbubu Auto Sales. His primary business was buying used cars in and around New Jersey, often at auto auctions, and exporting the cars to Nigeria.

Ifeanyi admitted to substantially underreporting his income on his 2010, 2011, 2012, and 2013 U.S. individual income tax returns, specifically, failing to report additional taxable income that he earned through his business. According to the information, by failing to report his true income, Ifeanyi avoided paying approximately $461,085 in taxes.

Ifeanyi also admitted to structuring a series of transactions in 2007 and 2008. He made 17 different deposits into his Bank of America account, each less than $10,000, in order to avoid currency reporting requirements.

In addition to the prison term, Judge Chesler sentenced Ifeanyi 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, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney's Office Economic Crimes Unit in Newark.

Defense counsel: Patrick O’keke Esq., New York

TRENTON, N.J. – A Farmingdale, New Jersey, man today admitted perpetrating a long-running scheme to defraud investment clients out of millions of dollars, forging an attorney’s signature without authorization in connection with that scheme, and preparing false tax returns for his clients, U.S. Attorney Craig Carpenito announced.

Scott Newsholme, 43, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a three-count information charging him with wire fraud, aggravated identity theft, and preparing fraudulent tax returns.  

In September 2017, Newsholme was charged by criminal complaint with mail fraud, wire fraud, and securities fraud, and was released on bail. In October 2017, after law enforcement discovered that Newsholme continued his fraudulent scheme while out on bail, he was charged in an amended criminal complaint with mail fraud, wire fraud, securities fraud, and aggravated identity theft. Newsholme’s bail was revoked and he was detained pending trial.   

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

Since 2002, Newsholme owned and operated at least three different financial advisory and tax return preparation businesses. Between 2007 and 2017, Newsholme recommended to multiple clients that they invest their money with him, which he would use on their behalf to invest in various securities and other investments, including bond instruments issued by a private New Jersey country club, a bond investment in a video-game production company, and investments in the production of a movie. 

Newsholme also represented to clients that he would invest their money in more traditional securities, including mutual funds, annuities, life insurance policies, college education accounts, money market funds, and an escrow account for the purchase of a house. Newsholme directed his investment clients to write checks to him or one of his companies so that he could execute the investments on their behalf. 

However, rather than invest the money as he represented, Newsome cashed or deposited the checks and used the funds for personal expenses, including multiple vehicles, bedroom furniture, debits at casinos, bank transfers to Newsholme’s personal bank accounts, and ATM withdrawals. 

Newsholme concealed his scheme by diverting incoming investment funds to pay other clients who had requested to withdraw funds from their investment portfolios. Newsholme also provided his clients phony account statements, security instruments, and other documentation that falsely represented to the clients the status of their investments. 

In October 2017, in furtherance of the scheme, Newsholme provided a letter to one of his investment clients from whom he had misappropriated approximately $62,000. The letter, which Newsholme represented had been prepared by an attorney, stated that the client’s funds were held safely in an escrow account established by the attorney. However, as he admitted today, Newsholme fabricated the letter and forged the attorney’s signature without the attorney’s authorization in order to conceal his misappropriation of the funds.

During the scheme, Newsholme misappropriated more than $3.1 million from his investment clients, resulting in net investment losses of more than $1.8 million.

In addition to the wire fraud and aggravated identity theft charges, Newsholme also admitted preparing fraudulent tax returns on behalf of his clients. The fraudulent returns that Newsholme prepared claimed inflated deductions for unreimbursed employee business expenses, charitable donations, and medical expenses to which his clients were not entitled.

The wire fraud charge to which Newsholme pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge to which Newsholme pleaded guilty carries a mandatory sentence of two years in prison, which must run consecutive to the sentences on the other two counts. The false tax return charge carries a maximum potential sentence of three years in prison and a $250,000 fine. Sentencing is scheduled for July 19, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation. He also thanked the SEC’s New York Regional Office, under the direction of Director Mark P. Berger, and the N.J. Bureau of Securities, under the direction of Bureau Chief Christopher Gerold, for their assistance.

The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

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

Jordan T. Allen, 31, 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:

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

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

At sentencing, Allen faces a mandatory minimum term of 10 years in prison and a lifetime of supervised release. Sentencing is scheduled for July 17, 2018.

Charges remain pending against Brian J. McKay, 47, of Brookhaven, Pennsylvania; 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.

Two other inmates – Erik M. Smith, 36, of Iron Mountain, Michigan, and Anthony C. Jeffries, 32, of Orange, Virginia – have since pleaded guilty to informations charging them each with one count of possession of child pornography. Smith’s sentencing is scheduled for May 7, 2018. Jeffries’ sentencing is scheduled for July 10, 2018.

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 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: Justin T. Lougry Esq., Camden

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 216 months in prison for robbing a Newark jewelry store and then stealing a car at gunpoint immediately afterwards, U.S. Attorney Craig Carpenito announced.

Orlando Nieves-Velez, 30, of Newark, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with one count of Hobbs Act robbery, one count of carjacking, and one count of using a firearm in furtherance of a crime of violence. Judge Cecchi imposed the sentence today in Newark federal court.

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

On Dec. 1, 2016, Nieves-Velez robbed a jewelry store in Newark while brandishing a firearm. During the robbery, Nieves-Velez pressed a gun to the back of an employee’s neck and threatened to shoot him if the other employees didn’t give him jewelry.

After leaving the store with more than $20,000 in jewelry, Nieves-Velez stepped in front of a 2006 Nissan Altima. Nieves-Velez pointed his gun at the driver and ordered the driver out of the car. Nieves-Velez fired his gun into the air before fleeing in the Altima.

In addition to the prison term, Judge Cecchi sentenced Nieves-Velez to five years of supervised release and ordered him to pay restitution of $95,000.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, and the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation leading to today’s sentencing.

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

Defense Counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. - A Camden man was arraigned in federal court today for his alleged role in a drug trafficking ring responsible for selling crack, heroin, and furanyl fentanyl in and around Camden, U.S. Attorney Craig Carpenito announced.

Davon Leak, 19, is charged in a second superseding indictment with one count of conspiracy to distribute 280 grams or more of cocaine base as well as quantities of heroin and furanyl fentanyl. He was arraigned this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and was remanded to the custody of Camden County, where he is being held on other charges. Leak was charged in the federal indictment following the arrests of 10 other members of the drug ring in June 2017.

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

John Gunther, 34, of Blackwood, New Jersey, and Taleaf Gunther, 32, of Camden, obtained bulk supplies of narcotics, prepared and packaged those controlled substances for street level sale, provided crack cocaine, furanyl fentanyl, and heroin to other members for resale to customers, collected drug proceeds, and oversaw the daily sales and operation of the organization. Taleaf Gunther also allegedly possessed a firearm in furtherance of the drug trafficking conspiracy.

Other members of the organization – including William Roland, 36, Daron Suiter, 23, Karim Johnson, 39, Latoya Whealton, 33, and Malcolm McCoy, 27, all of Camden – assisted in the distribution and sale of the drugs. George Williams, 43, of Oaklyn, supplied heroin and furanyl fentanyl to the organization. Leak and Rajai Gaines, 36, of Camden, assisted with the preparation of drugs for resale. Mark Campbell, 28, of Sicklerville, New Jersey, supplied bulk quantities of crack cocaine to members of the organization.

The FBI-led investigation used surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, record checks, a GPS vehicle tracker, and multiple telephone wiretaps and search warrants to uncover the operations of the drug trafficking organization. The investigation ultimately led to the seizure of over 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia.

The drug conspiracy charge with which Leak is charged carries a mandatory minimum term of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine.

On March 26, 2018, Johnson and Suiter pleaded guilty to conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base. As part of their pleas, Johnson and Suiter also accepted responsibility for distributing furanyl fentanyl to customers in Camden. Both defendants face a mandatory minimum term of 60 months in prison when they are sentenced on July 10, 2018.

On March 12, 2018, Williams pleaded guilty to conspiracy to distribute and to possess with intent to distribute furanyl fentanyl. His sentencing is scheduled for June 18, 2018.

On March 5, 2018, Whealton pleaded guilty to conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base. As part of her plea, Whealton also accepted responsibility for distributing furanyl fentanyl and heroin to customers in Camden. She faces a mandatory minimum term of 60 months in prison at her sentencing on June 11, 2018.

The charges against John Gunther, Taleaf Gunther, Roland, Campbell, McCoy, Leak, and Gaines are still pending and they are presumed innocent unless and until proven guilty.

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 in Philadelphia; 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 Superintendent Col. Patrick 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: Teri Lodge Esq., Marlton, New Jersey

NEWARK, N.J. – A Waldwick, New Jersey, man was sentenced today to 36 months in prison for carjacking a taxi and striking the victim on the head with a beer bottle, U.S. Attorney Craig Carpenito announced.

Arlyn Jowany Carrasco Cruz, 28, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with one count of carjacking. Judge Linares imposed the sentence today in Newark federal court.

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

In the early morning hours of Dec. 26, 2016, Cruz and at least five others forcibly took a 2008 Dodge Caravan from a taxicab driver. Cruz and the others forced the taxicab driver into the back of the vehicle and took over driving. As they drove toward Waldwick, Cruz struck the victim in the head with a beer bottle before being let out of the cab.

After dropping Cruz off, the others continued driving the cab to New York, and one individual caused further serious bodily injury to the victim by slicing his throat with a knife before leaving him on the side of the New York State Thruway near Woodbury, New York. The taxicab driver survived.

In addition to the prison term, Judge Linares sentenced Cruz 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, investigators from the Bergen County Prosecutor’s Office, under the direction of Acting Prosecutor Dennis Calo, and the Ridgewood and Hawthorne Police Departments with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.

Defense counsel: Susan C. Cassell Esq., Ridgewood, New Jersey

NEWARK, N.J. – Two individuals who allegedly forced a child into commercial sex acts at multiple hotels throughout Middlesex, Bergen, and Essex counties, will appear in court today with one of their customers to face federal sex trafficking charges, U.S. Attorney Craig Carpenito announced.

Richard Ortiz, 22, and Gabriella Colon, 18, both of Bronx, New York, are charged by complaint with two counts of sex trafficking of a child and one count of transporting a minor in interstate commerce for the purpose of prostitution. Aryeh Goodman, 35, of East Brunswick, New Jersey, is charged in a separate complaint with one count of sex trafficking of a child.

All three defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Ortiz, Colon, and Goodman were originally arrested on related state charges in February 2018.

According to the complaints:

From January 2018 through February 2, 2018 Ortiz and Colon forced a child identified in the complaint as “Victim-1” to engage in commercial sex acts with various individuals at multiple hotels scattered throughout Middlesex, Bergen, and Essex counties.

In January 2018, Colon used her friendship with Victim-1 to convince Victim-1 to visit Colon in New York. After Victim-1 arrived in New York, Victim-1 learned that Colon was prostituting herself to support herself and her boyfriend, Ortiz.

Shortly thereafter, Colon and Ortiz transported Victim-1 to a hotel in New Jersey, where they allegedly took sexually explicit photographs of Victim-1. Colon and Ortiz then posted those images and advertised the sexual services of Victim-1 on Backpage.com.

When customers responded to the online advertisements, Colon or Ortiz would set up “dates” with Victim-1, where they allegedly forced Victim-1 to engage in commercial sex acts with those customers. Colon or Ortiz collected all of the proceeds and purchased a Jaguar, which they then used to transport Victim-1 between New York and New Jersey to engage in additional sex acts.

Goodman, a registered sex offender, was one of the individuals who responded to the advertisements that Colon and Ortiz posted. After Goodman allegedly had sex with Victim-1, Goodman offered to pay for additional time with Victim-1 and later invited Victim-1 to travel to New York to meet him.

The sex trafficking charge carries a mandatory minimum penalty of 10 years in prison and a maximum term of life imprisonment. The conspiracy to transport a minor to engage in prostitution charge is punishable by a maximum potential penalty of life imprisonment. Both charges carry a potential $250,000 fine.

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

The government is represented by Assistant U.S. Attorney and the District of New Jersey Human Trafficking Coordinator Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, and the East Brunswick Police Department, under the direction of Chief James Conroy, with the investigation.

NEWARK, N.J. – A New York man will appear in federal court today to face allegations that he assaulted and kidnapped an individual who had a protection order against him, U.S. Attorney Craig Carpenito announced.

Rudolf Szoradi, 50, is charged by four-count criminal complaint with kidnapping, transporting a stolen vehicle across state lines, interstate domestic violence and interstate violation of a protection order. He is expected to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Szoradi was originally arrested in December 2017 and was in state custody.

According to the complaint:

In 2017, a state court issued a protection order requiring Szoradi to stay away from the victim, an individual with whom Szoradi previously had a romantic relationship. In violation of that order, Szoradi took the victim to his relative’s residence in Essex County, New Jersey, in December 2017.

On Dec. 15, 2017, in the basement of that residence, Szoradi allegedly assaulted the victim, including choking, punching, and kicking the victim while the victim was on the ground. Szoradi also attacked the victim with a knife. The victim made numerous attempts to escape, but each time Szoradi allegedly placed himself on top of the victim and continued the assault, accusing the victim of cheating on him and threatening to kill the victim.

Later that day, Szoradi allegedly put the victim into the back seat of a vehicle that belonged to another relative of Szoradi. Using a string of Christmas tree lights, Szoradi allegedly tied up the victim’s arms and feet so that the victim could not escape. Szoradi did not have permission to take the vehicle, and the owner reported it stolen. With the victim restrained in the back seat, Szoradi drove the vehicle toward Florida.

While driving through North Carolina, the victim convinced Szoradi to take the victim to a hospital. Szoradi drove the victim to a hotel in Garner, North Carolina, allegedly to conceal the extent of the victim’s injuries before visiting the hospital.

On Dec. 16, 2017, Szoradi drove the victim to a hospital in Clayton, North Carolina. Surveillance video allegedly shows him drop an object into a trash can near the entrance of the emergency room, where law enforcement later recovered a knife. The victim was treated for serious injuries, including multiple knife punctures and hand lacerations, facial and neck trauma, multiple contusions, and blackened eyes. Szoradi was arrested at the hospital.

The kidnapping charge carries a maximum potential penalty of life in prison. The transportation of a stolen vehicle, interstate domestic violence, and interstate violation of a protective order charges are each punishable by 10 years in prison.

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

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation. He also thanked the Newark Police Division and Clayton police departments for their assistance.

The government is represented by Assistant U.S. Attorney Matt Feldman of the U.S. Attorney’s Office Public Protection Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted failing to deliver goods his business sold to customers, stealing his customers’ credit card information and falsely claiming that purchases on his own account were fraudulent, U.S. Attorney Craig Carpenito announced.

Scott Spina Jr., 20, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud.

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

Spina was in the business of selling high-end items, including sneakers, to customers that included professional athletes. Spina contracted with parties to provide high-end goods and collected payment for them, but failed to deliver the goods. He also made personal purchases using credit card information provided by his customers and others without their authorization. Spina also contacted his credit card company and falsely claimed that numerous purchases on his account were fraudulent. He admitted he obtained or sought to obtain more than $550,000 in money or goods.

The wire fraud charge carries a maximum penalty of 20 years in prison, and a fine of $250,000, or twice the gross gain to the defendant or twice the gross loss to others, whichever is greater. Sentencing is scheduled for July 23, 2018.

U.S. Attorney Carpenito credited special agents 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. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the East Hanover Police Department, under the direction of Chief Christopher F. Cannizzo; and the West Orange Police Department, under the direction of Chief James P. Abbott, for their assistance with the case.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Vincent Scoca Esq., Bloomfield, New Jersey

CAMDEN, N.J. – A Brigantine, New Jersey, man appeared in federal court today to face allegations that he robbed a PNC Bank in Marlton, New Jersey, on Dec. 8, 2017, U.S. Attorney Craig Carpenito announced.

Matthew Burney, 43, is charged by complaint with one count of bank robbery. He appeared this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and was detained.

According to the complaint:

On Dec 8, 2017, Burney, while wearing a mask that covered the lower part of his face, allegedly entered the PNC Bank in Marlton and threatened to shoot the occupants if they activated the alarm. He pointed what appeared to be semi-automatic handgun at one of the tellers, threatened to shoot her, and demanded all the money from her teller drawer. The teller gave Burney some cash. Burney then approached a second teller, demanded money from her, and then fled the bank after she gave him more cash. Burney was arrested on Dec. 15, 2017 and has been in state custody since that time.

The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI Trenton Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, the Evesham, New Jersey, police department, under the direction of Chief Christopher Chew; the Bristol Township, Pennsylvania, police department, under the direction of Chief Robert Coulton, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Cofina, with the investigation.

The government is represented by Senior Litigation Counsel Norman Gross of the U.S. Attorney’s Office in Camden.

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

Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Trenton

TRENTON, N.J. – A Toms River, New Jersey, man was arrested this morning on charges that he distributed images of child sexual abuse over a social media application, U.S. Attorney Craig Carpenito announced.

David Nelson, 43, is charged by complaint with one count of distributing child pornography. Nelson appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained.

According to the complaint:

As a result of an investigation conducted by the FBI Louisville, Kentucky, field office, law enforcement officers arrested an individual after he offered to broadcast the sexual abuse of his daughter over Kik Messenger to an undercover officer. A search of his cell phone revealed chat group communications between that individual and another Kik user operating under the user name “candicesloan1995.”

Law enforcement agents recovered more than two dozen images depicting child sexual abuse that “candicesloan1995” – later revealed to be Nelson – had disseminated over a Kik chat group between Oct. 24, 2017 and Oct. 26, 2017. Nelson allegedly used his personal cell phone to access Kik and disseminate images of child pornography to others over Kik chat groups.

The distribution charge carries a minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Carpenito credited FBI special agents of the Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, FBI special agents under the direction of Special Agent in Charge Amy S. Hess in Louisville, and FBI special agents under the direction of Special Agent in Charge David P. Gelios in Detroit, with the investigation. He also thanked the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for its assistance.

The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.

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

Defense counsel: Andrea D. Bergman, Assistant Federal Public Defender, Trenton 

TRENTON, N.J. - A former official for a union headquartered in Edison, New Jersey, today admitted embezzling funds from the union’s employee benefit plan, U.S. Attorney Craig Carpenito announced.

Sergio Acosta, 65, of Utuado, Puerto Rico, formerly of Passaic, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to a superseding information charging him with one count of theft, embezzlement and conversion to his own use, or to the use of another, money and funds of an employee welfare benefit fund.

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

Acosta was the former president and a representative of United Auto Workers Local 2326, as well as a trustee of its health and welfare fund. Lawrence Ackerman, 53, of Old Tappan, New Jersey, allegedly formed Atlantic Business Associates (ABA) and other shell companies in 2001 in order use the Local 2326 welfare fund to provide medical insurance coverage to individuals who were not employees of ABA and therefore ineligible to participate in the union’s welfare fund. These individuals were willing to pay excessive monthly premiums to obtain medical coverage provided by Local 2326 welfare fund because they were unable to get similar coverage elsewhere.

Local 2326 was also obligated to pay contributions for its own staff employees to the welfare fund, which would in turn pay premiums to Blue Cross Blue Shield. However, based on the hundreds of ineligible enrollees that were recruited by Ackerman and permitted to use the Local 2326 fund, Acosta failed to pay premiums for his own staff employees that were still due to the fund from July 2011 through October 2012.

Acosta faces a maximum potential penalty of five years in prison and a $250,000 fine. Restitution will be determined at his sentencing, which is scheduled for Sept. 21, 2018.

Acosta and Ackerman were originally charged by indictment with conspiracy to defraud Horizon Blue Cross Blue Shield and the Local 2326 health and welfare fund with fraudulent health care claims. Those charges against Acosta will be dismissed at sentencing.

The charges and allegations against Ackerman are still pending, and he is considered innocent unless and until proven guilty. Ackerman is scheduled for trial on Oct. 22, 2018.

U.S. Attorney Craig Carpenito credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York; and the Office of Employee Benefit Security Act (EBSA), under the direction of Acting Regional Director Thomas Licetti in New York, with the investigation.

The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Organized Crime\Gangs Unit.

Defense counsel: Alan Silber Esq., Hackensack, New Jersey.

NEWARK, N.J. – The U.S. Attorney’s Office today reached an Americans with Disabilities Act (ADA) settlement with a Hammonton-based gymnastics program to ensure equal access for individuals with disabilities in its classes, U.S. Attorney Craig Carpenito announced.

The agreement resolves an ADA complaint filed by parents of a six year-old child with medical disabilities, including one that requires the use of a gastrointestinal feeding tube. The child’s parents alleged that Youth Fitness and Fun LLC d/b/a Flyers’ Team, Flyers’ Academy and Flyers Gymnastics Academy (“Flyers”) refused to make reasonable modifications to its program for the child and then excluded the child because of her disabilities. The child was active in other physically-demanding, age-appropriate sports, and was allowed by her physician to participate in Flyers’ program.

After conducting an investigation, the U.S. Attorney’s Office determined that Flyers excluded the child from its program in violation of the ADA. Flyers cooperated with the investigation and has agreed to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations. Flyers has also agreed to pay $1,000 in damages to the child.

The Justice Department, including the nation’s U.S. Attorneys, plays a critical role in enforcing the ADA. Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public, including gymnasiums and other places of exercise and recreation. The law requires that these places of public accommodation make reasonable modifications to their policies, practices, and procedures when necessary to avoid discrimination on the basis of disability, unless the entity can show that making the modifications would fundamentally alter the nature of the service, program, or activity.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

Additional information about the ADA can be found at www.ada.gov or by calling the Department of Justice’s toll-free information line at 800-514-0301 and 800-514-0383.

This government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office Civil Division.

CAMDEN, N.J. – Three people were arrested today for their alleged roles in an extensive scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Craig Carpenito announced.

Jorge Gutierrez, 39, of Merchantville, New Jersey; Alberto Sanchez, 34, of Camden; and Roque Bisono, 29, of Maple Shade, New Jersey, were indicted by a grand jury for conspiring to defraud the United States, theft of government funds, and aggravated identity theft. Sanchez was additionally indicted on witness tampering charges, and Bisono was indicted for making false statements to federal law enforcement officials in connection with the investigation. They appeared before U.S. Magistrate Judge Joel Schneider in Camden federal court.

A fourth defendant, Awilda Henriquez, 32, of Camden, remains at large.     

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

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.

For the 2013 tax year, in excess of 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico, where the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver's licenses, fake Social Security cards, and fake Department of Homeland Security Permanent Resident Identification cards.

Gutierrez, Bisono, Sanchez, and their conspirators allegedly obtained stolen identities of residents of Puerto Rico and used them to file fraudulent income tax returns seeking refunds to which they were not entitled. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden, New Jersey. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.

The counts of conspiracy to steal government funds are punishable by up to five years in prison. The counts of theft of government funds are punishable by a maximum potential penalty of 10 years in prison. The count of false statements is punishable by imprisonment of up to five years. The witness tampering count is punishable by up to 20 years in prison. The count of aggravated identity theft is punishable a statutory mandatory prison sentence of two years that must be served consecutively to any term of imprisonment imposed for the violation of any other count. All the counts are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense. 

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark and Special Agent in Charge Vicki S. Duane in Philadelphia, and special agents of the U.S. Postal Service Office of Inspector General, with assistance from the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, Philadelphia Division, with the investigation leading to today’s charges and arrests. 

The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Christina O. Hud of the Criminal Division, Camden.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, woman who admitted her role in a more than $200,000 mortgage fraud conspiracy involving a property she purchased in Mays Landing, New Jersey, was sentenced today to 18 months in prison, U.S. Attorney Craig Carpenito announced.

Betsy Borges, 38, of Mays Landing, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiracy to commit bank fraud. Judge Simandle imposed the sentence today in Camden federal court.

Borges was originally charged by complaint in May 2017 with Iraida Fuentes, 35, of Pleasantville, New Jersey.

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

In December 2002, Borges purchased a property in Mays Landing. Despite failing to make mortgage payments to Wachovia and its successor, Wells Fargo, Borges collected rental income from tenants living in the property and concealed that income from the banks. Borges also falsely represented to Wells Fargo, on multiple occasions, that she could not make the mortgage payments for the property.

Borges subsequently arranged with Wells Fargo for Fuentez to purchase the property through a short sale. Not only did Borges and Fuentez conceal their familial relationship from Wells Fargo, they also concealed the fact that Borges and another conspirator provided Fuentez the funds to purchase the property.

On Sept. 20, 2012, Fuentez purchased the property at a price well below its actual value. On Nov. 22, 2016, B&B Properties – a company owned in part by Borges – purchased the property from Fuentez for $25,000. On Feb. 3, 2017, Borges then individually purchased the property from B&B Properties for one dollar. 

In addition to the prison term, Judge Simandle sentenced Borges to three years of supervised release and ordered her to pay restitution of $206,405.

Fuentes pleaded guilty on Nov. 6, 2017 and was sentenced Feb. 9, 2018 to two years of probation. 

U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation leading to today’s sentencing.    
            
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Louis M. Barbone Esq., Atlantic City, New Jersey.

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

Anthony C. Jeffries, 32, 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:

Jeffries admitted that he possessed a micro SD Card containing 40 videos of children being sexually abused, including videos of sadistic and masochistic sexual conduct involving infants and toddlers. In connection with his plea, Jeffries also admitted that he was an organizer of criminal activity in the case and that he distributed child pornography to another inmate which had been obtained from the internet.

Jeffries 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 Jeffries and other inmates utilized contraband cellphones, micro SD cards, and access to the internet to obtain, view, and distribute child pornography within the prison. Jeffries organized and helped facilitate this criminal activity by maintaining cloud accounts that were used as repositories for obtaining child pornography.

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

Charges remain pending against Brian J. McKay, 47, of Brookhaven, Pennsylvania; Christopher D. Roffler, 30, of Virginia Beach, Virginia; Jordan T. Allen, 31, of Plain City, Ohio; 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.

An eighth inmate, Erik M. Smith, 36, of Iron Mountain, Michigan, has since pleaded guilty to possession of child pornography. His sentencing is scheduled for May 7, 2018.

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 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: Christopher O’Malley Esq., Camden

CAMDEN, N.J. – A Linwood, New Jersey, woman today admitted using phony claims for medically unnecessary prescriptions to defraud New Jersey state health benefits programs, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced.

Tara Lamonaca, 43, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with conspiracy to commit health care fraud.

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

From January 2015 through April 2016, Lamonaca recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” Certain compound medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.

The conspirators knew that these medications were covered by an entity referred to in the informations as the “Pharmacy Benefits Administrator.” The Pharmacy Benefits Administrator provided benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents.

Lamonaca and others recruited individuals covered by the Pharmacy Benefits Administrator, including public employees, to fraudulently obtain unnecessary compounded medications from the Compounding Pharmacy. Lamonaca obtained insurance information from those individuals and gave it to another conspirator, who completed the prescriptions and had a doctor sign them without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.

The pharmacy then paid one of their conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Lamonaca and other members of the conspiracy.

According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey, including $530,527.01 for prescriptions submitted by Lamonaca and her cohorts. Lamonaca received approximately $89,855.13 for her role in the scheme.

Lamonaca faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. As part of her plea agreement, Lamonaca must forfeit her criminal proceeds and pay restitution in an amount to be determined at sentencing. Sentencing is scheduled for July 19, 2018.

Eighteen other conspirators have pleaded guilty from August through March 2018 and await sentencing.

U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, 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 in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to the guilty pleas. He also thanked the Pensions and Financial Transactions Section of the Division of Law, within the Attorney General’s Office, under the direction of Attorney General Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.

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

Defense counsel: Barry Gross Esq., Philadelphia

NEWARK, N.J. – A Monroe, New York, man today admitted accepting bribes in exchange for his assistance in securing a contract between a metallurgical technology company (the “technology company”) and his employer, a medical device company in New Jersey (the “medical device company”), U.S. Attorney Craig Carpenito announced.

Daniel Lawrynowicz, 48, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of violating the Federal Travel Act.

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

In 2012, Lawrynowicz was an employee of the medical device company in New Jersey. Eugene Ostrovsky and two other individuals were principals of the technology company. Ostrovsky, along with the other individuals, sought a contract worth $5.5 million with the medical device company. Lawrynowicz could make recommendations to others at the medical device company related to the goods that the technology company sought to supply under the contract.

Ostrovsky and the other individuals made illicit bribe payments to Lawrynowicz in exchange for his assistance in helping the technology company secure the contract with the medical device company. These payments included a cash payment of approximately $75,000 to Lawrynowicz after the contract between the two companies was signed.

The count of violating the Federal Travel Act carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Lawrynowicz must also forfeit $75,000 as part of today’s guilty plea. Sentencing is scheduled for July 23, 2018.

On Feb. 27, 2017, Ostrovsky pleaded guilty to an information charging him with violating the Federal Travel Act for his role in the bribery scheme. He was sentenced March 9, 2018, to six months in prison, six months of home confinement and two 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 leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

Defense counsel: Peter Till Esq., Springfield, New Jersey

NEWARK, N.J. – A New York woman today pleaded guilty to her role in a Dominican drug trafficking ring responsible for distributing multi-kilogram quantities of heroin in New Jersey, U.S. Attorney Craig Carpenito announced.

Maria Peterson, a/k/a “Chabela” 47, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with one count of conspiracy to distribute more than a kilogram of heroin and one substantive count of distributing more than a kilogram of heroin.

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

During the course of an investigation into a drug trafficking organization operating in New Jersey, the Dominican Republic, Mexico, and elsewhere, law enforcement learned that Yasmil Minaya, Martin Baez Garcia, Amauri Pimental Hogando, Peterson and others served as local distributors for the organization in New Jersey and New York. 

The narcotics, which were usually transported to New Jersey and New York via truck, were received and paid for by the defendants before they were distributed on the street. This drug trafficking organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015 in New York, a seizure of approximately four kilograms of heroin in November 2015 in New Jersey, and a seizure of approximately 10 kilograms of heroin in New Jersey in January 2017.

Peterson admitted that on March 25, 2015, she receiving a package of nearly two kilograms of heroin at her New York address, which she gave to Hogando. She also admitted providing money to a conspirator in order to pay for some or all of the four-kilogram heroin shipment that was sent to New Jersey on Nov. 28, 2015.

Both charges in the information are punishable by a mandatory minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, and a $10 million fine. Sentencing is scheduled for July 11, 2018.

Garcia pleaded guilty in February 2018 and awaits sentencing. The charges against Minaya and Hogando are still pending, and they are considered innocent unless and until proven guilty.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.

U.S. Attorney Carpenito credited special agents and task force officers with the Drug enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, and officers of the N.J. State Police, Trafficking North Unit, under the direction of Superintendent Col. Patrick Callahan, with the investigation.

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

Defense Counsel: Scott D. Finckenauer Esq., Fairview, New Jersey                       

NEWARK, N.J. - A federal grand jury in Newark has returned a 29-count second superseding indictment adding charges alleging that a former Bergen County, New Jersey, tax return preparer filed false federal income tax returns, stole client refunds, and committed identity theft in connection with refunds stolen from a deceased taxpayer, U.S. Attorney Craig Carpenito announced today.

Wayne Dunich-Kolb, 53, of Montvale, New Jersey, was originally charged by indictment in March 2014 with five counts of aiding and assisting in the filing of false federal income tax returns and four counts of subscribing to false tax returns. In December 2016, Dunich-Kolb was charged by superseding indictment. Today’s second superseding indictment adds five counts of aiding and assisting in the filing of false tax returns, 12 counts of mail fraud, and two counts of aggravated identity theft, all of which were allegedly committed while the defendant was on pretrial release.

Dunich-Kolb was arrested this morning. The initial appearance on the new charges is scheduled for Monday, April 2, 2018, before U.S. Magistrate Judge Steven C. Mannion.

According to the second superseding indictment:

Dunich-Kolb prepared and filed, through the U.S. mail, fraudulent returns through various tax preparation entities, including Dunich-Kolb LLC, Jadran Services Corp., Adriatica Payroll Corp., Adriatica Tax Planning LLC, and Adriatic Tax Planning LLC (collectively, the “tax preparation entities”), which he ran from his former residence in Saddle River and then from his current residence in Montvale. Dunich-Kolb also maintained a U.S. Post Office box in Las Vegas, Nevada, that he used in connection with his tax preparation business.

Dunich-Kolb caused many of his clients to form fictitious partnerships or corporations that existed in name only and had no business purpose other than to falsely reduce the clients’ tax liability. He prepared false and fraudulent business returns for clients’ fictitious businesses by fabricating and inflating business expenses, such as advertising, travel and other miscellaneous expenses, in order to generate fraudulent business and partnership losses, which he then used to substantially reduce taxpayers’ taxable income on their individual federal income tax returns.

Dunich-Kolb falsified clients’ 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, and 2016 individual federal income tax returns (original and amended), partnership returns, and corporation returns by fabricating and inflating: (1) business and partnership Schedule K-1 losses; (2) deductions for unreimbursed employee business expenses, including home office, vehicle mileage and fuel expenses; and (3) expenses and cost basis of rental properties, including vehicle mileage and travel expenses for rentals located within or a short distance from the primary residence.

Dunich-Kolb also falsified his own personal federal income tax returns by substantially underreporting income from his tax preparation and accounting business for tax years 2006, 2007, and 2008. For these tax years, Dunich-Kolb received gross income totaling approximately $500,000 to $657,000 per year. Dunich-Kolb falsely claimed income of only $400 for 2006, $526 for 2007, and $489 for 2008.

Dunich-Kolb also stole certain clients’ federal tax refunds, including the refunds of a deceased client, by causing the IRS to mail the refund checks to Dunich-Kolb’s Las Vegas Post Office box, from where they were mail-forwarded to Dunich-Kolb’s residence in Montvale. Dunich-Kolb, without authorization, used the Social Security numbers of the deceased client and another client on IRS forms claiming that the latter client was entitled to the deceased client’s refunds for tax years 2013 and 2014 and causing the IRS to mail the deceased client’s refunds to his Las Vegas Post Office box. Once in receipt of the clients’ tax refund checks that had been mail-forwarded to his residence, Dunich-Kolb deposited the checks into accounts that he controlled and converted the funds to his own personal use.

Each of the aiding and assisting in the filing of false federal income tax returns and subscribing to false tax returns counts carries a maximum potential penalty of three years in prison and a $250,000 fine. Each of the mail fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft counts each carry a maximum potential penalty of two years in prison that each must run consecutive to the sentence imposed on the underlying mail fraud counts. For committing a felony offense while on pretrial release, the maximum potential penalty is 10 years in prison that must run consecutive to the sentence for the underlying felony offense.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, and the Montvale Police Department, under the direction of Chief Jeremy Abrams, with the investigation leading to today’s charges.

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

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

Defense counsel: Jeffrey G. Garrigan Esq., Summit, New Jersey

PHILADELPHIA – A Feasterville, Pennsylvania, man was sentenced today to 18 months in prison for bribing former Philadelphia District Attorney Rufus Seth Williams and evading taxes, U.S. Attorney Craig Carpenito announced.

Mohammad N. Ali, 41, previously pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of making and subscribing to a false federal tax return. Judge Diamond imposed the sentence today in Philadelphia federal court.

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

From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.

For example, Ali provided Williams with a $7,000 check, an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, $2,679 in dinners at high-end Philadelphia restaurants, approximately $2,000 in cash, a $842 Burberry watch, a Louis Vuitton tie worth $205, an iPad worth approximately $300, and a Burberry purse for Williams’ girlfriend.

In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.

Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”

In addition, Ali used his business earnings to pay for over $490,000 in personal expenses, including $112,635 toward the purchase of a dental practice, $15,000 toward the purchase of a Porsche, purchases at clothing stores, meals at high-end restaurants, and domestic and international travel – including $6,300 for airfare and lodging for Williams and Williams’s girlfriend to stay at the Punta Cana resort. Ali fraudulently deducted these personal expenses on corporate income tax returns and did not report this income on his personal tax returns. In all, Ali caused a total tax loss of $163,498.

In addition to the prison term, Judge Diamond sentenced Ali to three years of supervised release, fined him $100,000 and ordered him to pay restitution of $63,498. Ali was immediately remanded to the custody of the Federal Bureau of Prisons to serve his sentence.

Ali testified in June 2017 at Williams’ trial. On the ninth day of that trial, Williams entered a guilty plea to a charge of bribery and admitted that he committed all of the bribery and fraud offenses alleged in a 29-count indictment against him. Williams resigned as District Attorney at that time. He was sentenced to 60 months in prison on Oct. 24, 2017.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Edward Wirth, and special agents of Homeland Security Investigations (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.

The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.

The government is represented by Eric W. Moran, Chief of the Criminal Division for the southern vicinages in 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 in Philadelphia.

Defense counsel: Mark E. Cedrone Esq., Philadelphia

NEWARK, N.J. – A Newark man was charged today with committing two armed carjackings in Newark and North Bergen, New Jersey, U.S. Attorney Craig Carpenito announced.

Nifees Ingram, 32, was charged in two complaints with the carjackings and with using a firearm in furtherance of a crime of violence. He made his initial appearance this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.

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

On March 4, 2018, Ingram contacted the owners of a 2005 Ford Mustang who had advertised the car for sale on Facebook. Ingram lured the sellers to a location in Newark, ostensibly to purchase the car. When the victims arrived at the location to sell the car, Ingram got into the driver’s seat and began to drive away with one of the victims still in the car. After he drove some distance away, Ingram showed the victim a handgun, and ordered the victim to get out of the car. Ingram then drove away in the car, which was later recovered in Newark.

On March 12, 2018, Ingram went to a residence in North Bergen, New Jersey, under the pretense of being a potential buyer for a 2007 Audi Q7 that the victim had posted for sale on Facebook. Ingram lured the victim from the home and asked the victim if he could take the vehicle for a test drive. Once in the car with the victim, Ingram displayed a handgun and refused to let the victim leave the car. Ingram then drove the victim from North Bergen to Newark and forced the victim to leave behind his cell phone and get out of the car. Ingram then fled with the car, which was later recovered in Newark.

The carjacking charges each carry a maximum of 15 years in prison, and the firearms charge carries a statutory mandatory minimum of 5 years in prison, consecutive to any other sentence imposed, and a statutory maximum term of life in prison.

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; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; the North Bergen Police Department, under the direction of Chief William Dowd, and the Newark Department of Public Safety, under the direction of Anthony Ambrose, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 21 months in prison for owning and operating an unlicensed money transmitting business, U.S. Attorney Craig Carpenito announced.

Yisroel Malamud, 54, of Lakewood, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with running an unlicensed money transmitting business. Judge Thompson imposed the sentence today in Trenton federal court.

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

Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money – determined to be more than $6 million – from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.

New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.

In addition to the prison term, Judge Thompson sentenced Malamud to three years of supervised release. Forfeiture will be determined at a later date.

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

The government is represented by Eric W. Moran, Chief of the Criminal Division for the southern vicinages in the District of New Jersey.

Defense Counsel: Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey

New Jersey Woman Admits Shipping Designer Drugs from Farmingdale Post Office

NEWARK, N.J. – A New York man and a New Jersey woman today pleaded guilty to their roles in a cross-country conspiracy to distribute dangerous designer drugs over the internet, including a synthetic opioid that is several times more potent than morphine, U.S. Attorney Craig Carpenito announced.

Brian Parker, 34, of Long Island City, New York, and Victoria Koleski, 30, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge William H. Walls to separate informations charging them each with one count of conspiring to distribute controlled substance analogues, and one count of distributing and possessing with intent to distribute controlled substance analogues.

Controlled substance analogues are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances.

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

Parker admitted that from May 16, 2016 through Aug. 3, 2017, he conspired with others to distribute the controlled substance analogues U-47700, a synthetic opioid several times more potent than morphine, and A-PHP and 3-MEO-PCP, which have chemical structures and hallucinogenic properties similar to A-PVP and PCP, respectively.

Parker manufactured and distributed these drugs and other illegal chemicals through two internet-based companies he controlled, Unbeatablechems and RC Powders. Parker admitted that on May 16, 2016, he distributed U-47700 to a customer in Madison, Wisconsin, which resulted in the death of that individual on May 22, 2016.

Parker used other conspirators, such as Koleski, to send and receive packages for his narcotics distribution business. Those conspirators received raw materials from China or elsewhere through the mail, repackaged and sent them to Parker, who then manufactured those materials into the chemicals that he sold online. Afterwards, Parker transported the finished products back to his conspirators, who then shipped them to Parker's customers.

Koleski admitted that from December 2016 through August 2017, she conspired with Parker to distribute controlled substance analogues. She also admitted that from June 30, 2017 through July 5, 2017, she shipped multiple parcels from a Farmingdale post office that contained controlled substance analogues A-PHP and 3-MEO-PCP.

Both charges in the informations carry a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Parker and Koleski is scheduled for July 2, 2018 and July 3, 2018, respectively.

U.S. Attorney Carpenito credited special agents and task force officers with the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.

Defense counsel: Parker: Candace Hom Esq., Assistant Federal Public Defender, Newark
Koleski: Michael Koribanics Esq., Clifton, New Jersey

NEWARK, N.J. – A High Bridge, New Jersey, man was sentenced today to 121 months in prison for distributing images of child sexual abuse over the internet, U.S. Attorney Craig Carpenito announced.

Darrel Underhill, 74, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of distributing child pornography. Judge McNulty imposed the sentence today in Newark federal court.

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

Underhill used a peer-to-peer file sharing program on his computer to download videos and images of child sexual abuse. In October 2016, law enforcement downloaded over three dozen such videos from Underhill’s computer. After executing a search warrant at Underhill’s home in March 2017, agents located nearly 1000 videos and over 12,000 images of child sexual abuse on Underhill’s computers. Underhill admitted that he was making videos available for others to download.

In addition to the prison term, Judge McNulty sentenced Underhill to five years of supervised release.

U.S. Attorney Carpenito credited special agents with the U.S. Department of Homeland Security (DHS), Homeland Security Investigation’s (HSI) Newark Division, under the direction of Acting Special Agent in Charge Brian Michael, with the investigation.

The government is represented by Senior Litigation Counsel Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender

NEWARK N.J. – A Bergen County, New Jersey, man was charged today with offering a bribe to an employee of the U.S. Department of State, U.S. Attorney Craig Carpenito, announced.

Luis Santos, 27, of Teaneck, New Jersey, was arrested this morning and charged by complaint with one count of bribery of a public official. Santos is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.

According to the complaint:

Santos offered to pay a United States Consular Adjudicator approximately $2,500 to favorably handle and review non-immigrant visas, which allowed individuals from the Dominican Republic to apply for entry into the United States.

Santos faces a maximum potential penalty of 15 years in prison and a fine of up to $250,000.

U.S. Attorney Carpenito credited special agents of the State Department’s Diplomatic Security Service, under the direction of Aaron Codispoti, Acting Director of the Office of Investigations and Counterintelligence, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office, Special Prosecutions Division in Newark.

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

NEWARK, N.J. – A Bergen County, New Jersey, doctor was sentenced today to 18 months in prison for his role in a test-referral bribe scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Craig Carpenito announced.

Basel Batarseh, 57, of Franklin Lakes, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes in violation of the Federal Travel Act. Judge Chesler imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court: Batarseh, an internal medicine doctor with a practice in West New York, New Jersey, accepted bribes totaling more than $104,000 from BLS employees and associates between November 2007 and August 2010. In exchange, Batarseh generated more than $1.3 million in lab business for BLS.

In addition to the prison term, Judge Chesler sentenced Batarseh to one year of supervised release, fined him $7,500 and ordered forfeiture of $104,611.

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 Acting Special Agent in Charge Bradley W. Cohen 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 Special Agent in Charge Jonathan D. Larsen; 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.

Defense counsel: Curtis LaForge Esq., Saddle Brook, New Jersey

NEWARK, N.J. – A Park Ridge, New Jersey, man today admitted using shell companies and phony invoices to scam both his and his wife’s employers out of millions of dollars, U.S. Attorney Craig Carpenito announced. 

Philip Charles de Gruchy, 64, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count One and Counts 10 through 15 of a superseding indictment charging him with conspiracy to commit mail fraud and subscribing to false individual and corporate tax returns.    

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

From August 2007 through April 2, 2010, de Gruchy’s then-wife Barbara Brown was employed by “Company A,” a toy and juvenile products retailer headquartered in Wayne, New Jersey, first as director of customer relationship management and then as director of global customer relations management. She had authority to hire and pay contractors. Brown caused Company A to enter into a business relationship with CEM Inc., an entity that she and de Gruchy secretly controlled. From Nov. 5, 2007, through March 4, 2010, CEM submitted approximately 170 invoices to Company A totalling more than $3 million for alleged marketing consulting work that was ultimately unnecessary, worthless, or never completed. 

Although the checks that Company A issued to CEM were mailed to various Canadian addresses, the checks were ultimately deposited by de Gruchy into a CEM account at bank branches located in Park Ridge. De Gruchy wrote checks out of the CEM account payable directly to either de Gruchy, Brown or two companies affiliated with de Gruchy: Silk Farm Inc. and Ontario LLC. De Gruchy and Brown then used the money for personal purposes, including home renovations, mortgage payments on the Park Ridge residence that Brown and de Gruchy shared, and credit card expenses.   
    
From July 2010 through Nov. 11, 2011, de Gruchy was employed as the director of global relations management by “Company B,” an international manufacturer and retailer of luxury suitcases and accessories, headquartered in South Plainfield, New Jersey. He was responsible for a data migration project designed to assist Company B with identifying customer purchasing patterns. De Gruchy obtained verbal approval from Company B to hire Brown to assist him on the migration project. At no time did de Gruchy reveal his personal and financial relationship with Brown. 
  
From November 2010 until November 2011, Brown submitted invoices in her own name or the name of her company, BI Insights, totaling more than $300,000 for purported work related to the data migration project. De Gruchy approved all of the invoices submitted by Brown and BI Insights. The work was ultimately unnecessary, worthless, or never completed. Checks from Company B totaling $216,825 were sent to one of the Canadian addresses used to receive checks from Company A and deposited into a Canadian bank account. Certain funds from the Canadian bank account were thereafter transferred to de Gruchy and Brown’s joint personal bank accounts in the United States. 

De Gruchy also admitted that he filed false federal tax returns, Forms 1040, for the calendar years 2009 and 2010, in which he knowingly overstated expenses and understated gross receipts, including receipts from the fraudulent conduct involving Company A and Company B.  De Gruchy further admitted that he filed false federal corporate income tax returns, Forms 1120, for the calendar years 2009 and 2010 for CEM Inc. and Silk Farm Inc., in which he falsely claimed certain payments as business expenses. De Gruchy acknowledged at the plea hearing that he owes the IRS approximately $882,844 in additional taxes for 2009 and 2010.   

Brown, who was charged with de Gruchy in the superseding indictment, passed away in May 2017. As such, the charges against her were dismissed in June 2017.  

The mail fraud conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The false tax return counts each carry a maximum potential penalty of three years in prison and a $250,000 fine, or twice gross gain or loss from the offense. Sentencing is scheduled for July 9, 2018.

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

The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Special Prosecutions Division in Newark. 

Defense counsel: Wanda Akin Esq., Newark

NEWARK, N.J. – A Georgia man today admitted devising a scheme in which he and others fraudulently collected unemployment benefits and tax refunds by pretending to have worked for several phony companies that he created, U.S. Attorney Craig Carpenito announced.

Lashawn Porcher, 32, of Lawrenceville, Georgia, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit mail fraud and one count of aiding and assisting in the filing of a false tax return.

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

Porcher incorporated numerous fictitious businesses in New Jersey, including Computer Tyme Corporation, Cleaning Experience Corporation, Cleaning Time, and The Dream Team, all of which did not conduct any actual business and had no offices, employees, or officers.

From February 2010 through June 2014, Porcher used Computer Tyme Corporation and Cleaning Experience Corporation to seek unemployment insurance benefits for himself and other conspirators based on false claims that they had received compensation as employees of these companies.

To carry out the scheme, Porcher submitted fraudulent wage reports to the N.J. Department of Labor and Workforce Development for himself and others. He also supplied his conspirators with false wage records so that they could submit false claims as well. As a result, Porcher and others were able to fraudulently receive $436,982 in unemployment benefits.

In addition, Porcher used Cleaning Time and The Dream Team to prepare false federal tax returns for himself and other purported employees of these fictitious companies. Porcher admitted falsifying information on W2 forms concerning their wages in order to obtain inflated tax refunds for tax years 2009 through 2012. As a result, he and other conspirators fraudulently collected approximately $103,276 in tax refunds.

The mail fraud conspiracy charge carries a maximum potential penalty of 20 years in prison. The filing of a false tax return charge carries a maximum potential penalty of three years in prison. Both charges carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 11, 2018.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Labor Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and postal 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 plea.

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

Defense counsel: Leticia M. Olivera Esq., Office of the Federal Public Defender, Newark

CAMDEN, N.J. – Two men today admitted defrauding New Jersey state health benefits programs and other insurers out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Craig Carpenito and New Jersey Attorney General Gurbir S. Grewal announced.

William Hunter, 43, a salesman from Sewell, New Jersey, and Richard McAllister, 42, a Pleasantville school teacher from Ocean City, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.

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

From January 2015 through April 2016, Hunter and McAllister recruited individuals to obtain very expensive and unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” The conspirators knew that certain compound medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply.

The conspirators also learned that these medications would be covered by an entity referred to in the informations as the “Pharmacy Benefits Administrator.” The Pharmacy Benefits Administrator provided benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents. The amounts paid for the prescription drug claims were billed to the State of New Jersey.

Hunter, McAllister, and others recruited individuals covered by the Pharmacy Benefits Administrator, including public employees, to fraudulently obtain unnecessary compounded medications from the Compounding Pharmacy. Hunter and McAllister obtained insurance information from those individuals and gave it to another conspirator, who completed the prescriptions and had a doctor sign them without examining the individuals. The prescriptions were faxed to the Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.

The pharmacy then paid one of their conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Hunter, McAllister, and other members of the conspiracy. Hunter and McAllister paid individuals with insurance coverage to reward them for obtaining prescriptions. McAllister himself received compounded medications based on a prescription signed by a doctor he did not see.

According to the informations, the Pharmacy Benefits Administrator paid the Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.

Both defendants face a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Hunter must forfeit $245,020.08 in criminal proceeds and pay restitution of at least $1,323,930.57. McAllister must forfeit $456,806.23 and pay restitution of at least $3,428,222.97. Sentencing for both defendants is scheduled for July 18, 2018.

Sixteen other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, Andrew Gerstel, Timothy Frazier, Michael Pilate, Shawn Sypherd, Nicholas Tedesco, and Michael Sher – pleaded guilty from August through March 2018 and await sentencing.

U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, 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 in Newark, and the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to the guilty pleas. He also thanked the Pensions and Financial Transactions Section of the Division of Law, within the Attorney General’s Office, under the direction of Attorney General Grewal and Division Chief Eileen Schlindwein Den Bleyker, for its assistance in the investigation.

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

Defense counsel: Hunter: Jill Cohen Esq., Westmont, New Jersey
McAllister: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey 

NEWARK, N.J. – A member of the International Longshoremen’s Association (ILA) and general foreman for a Port Elizabeth terminal operator was sentenced today to 24 months in prison for fraudulently collecting a nearly $500,000 annual salary, much of which was for work he never performed, U.S. Attorney Craig Carpenito announced.

Paul Moe Sr., 66, of Atlantic Highlands, New Jersey, was convicted at trial in October 2017 on all 14 counts of an indictment charging him with one count of wire fraud conspiracy and 13 substantive counts of wire fraud. He was convicted following a 10-day trial before U.S. District Court Judge Katharine S. Hayden, who imposed the sentence today in Newark federal court.

According to statements made in court and the evidence at trial:

From September 2015 through March 2017, Moe fraudulently collected a compensation package that paid him almost $500,000 annually while showing up at his job site for as little as eight hours per week. In order for Moe to collect his $9,300 weekly paycheck, other conspirators submitted false timesheets each day on his behalf and even credited him for up to 16 hours of overtime a day. The 13 substantive wire fraud counts consist of one-week increments in which Moe – having either failed to appear at the job site or while being out of state or out of the country – was paid as if he had been on the job for a minimum of 40 hours a week.

In addition to the prison term, Judge Hayden sentenced Moe to three years of supervised release and ordered him to pay restitution of $749,000.

U.S. Attorney Carpenito credited special agents and investigators with the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; the U.S. Department of Labor, Office of Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York; the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Jonathan Kay; and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel V. Grady O’Malley, Assistant U.S. Attorney Anthony Moscato, Chief of the National Security Unit, and Special Assistant U.S. Attorney Tracey Agnew.

Defense counsel: Gerald McMahon Esq., New York

NEWARK, N.J. – A doctor with offices in Paterson, Passaic, and Elizabeth was sentenced today to 36 months in prison for defrauding Medicare and private insurance companies out of $3 million by billing them for over 150,000 physical therapy sessions that were performed by unlicensed and unqualified personnel, U.S. Attorney Craig Carpenito announced.

Anthony J. Enrico, 60, of North Haledon, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of health care fraud. Judge McNulty imposed the sentence today in Newark federal court.

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

From January 2007 through May 2016, Enrico billed Medicare and other health insurance providers for physical therapy services that he supposedly provided to his patients. In order for them to be reimbursable, Medicare and private insurers required that physical therapy services be performed only by individuals like Enrico who met certain criteria based on training and certifications.

Enrico admitted that on more than 150,000 occasions, those services were performed at his direction by individuals who lacked the necessary training and certifications, resulting in him fraudulently obtaining approximately $3 million from Medicare and private insurers.

In addition to the prison term, Judge McNulty sentenced Enrico to three years of supervised release and ordered him to pay restitution of $3 million.

U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, with the investigation.

The government is represented by Senior Litigation Counsel Joseph N. Minish of the U.S. Attorney’s Health Care and Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office Criminal Division in Newark.

The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.38 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey

NEWARK, N.J. – A federal grand jury returned an indictment today against an alleged member of a heroin distribution conspiracy that reached from the Bronx, New York, to Paterson and suburban communities in New York and New Jersey, U.S. Attorney Craig Carpenito announced.

Reinaldo Rodriguez, a/k/a “Money,” a/k/a “Mimo,” 29, of Paterson, is charged in a four-count indictment with conspiracy to distribute a kilogram or more of heroin, possession with intent to distribute heroin and marijuana, felony possession a firearm, and possession of a firearm in furtherance of a drug trafficking crime. He was arrested in May 2016 and has been in custody since that time.

Reinaldo Rodriguez was originally charged by complaint with Juan Pablo Goris-Castellano, 27, of the Bronx; Edwin Lopez, 32, of Elmwood Park, New Jersey; Carolina Almonte, 30, of the Bronx; Charlie Rodriguez, 34, of Paterson; Victor Alfonso Alvarez Martinez, 28, of the Bronx; Edward M. Stanel, 27, of Parsippany, New Jersey; and Joseph Trimarco, 30, of Stony Point, New York.

According to documents filed in this case:

From June 2015 through May 2016, the defendants participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations in and around the Bronx and used couriers to deliver large quantities of that heroin to mid-level drug dealers operating in and around Paterson. The heroin was either sold in the Paterson area or re-distributed to street-level drug dealers in suburban areas, including but not limited to, Morris County, New Jersey, and Rockland County, New York.

Goris-Castellano, who was based out of the Bronx, packaged and distributed large quantities of heroin to Lopez, who operated out of Paterson. Goris-Castellano worked with his associates, Almonte and Alvarez Martinez, who brought the heroin to Lopez and returned to Goris-Castellano with Lopez’s payment for the drugs. Lopez then sold portions of that heroin to Charlie Rodriguez, who, working closely with Reinaldo Rodriguez, resold portions of that heroin to street-level drug dealers in Paterson and suburban areas, including Stanel and Trimarco, who operated in Morris County and Rockland County, respectively.

At the time of his arrest, Reinaldo Rodriguez was in a bedroom in which distribution quantities of heroin and marijuana were found on the floor and a gun was found on top of a box of drug paraphernalia in the closet.

Due to his prior felony drug distribution conviction, the drug distribution conspiracy charge in the indictment carries a mandatory minimum penalty of 20 years in prison, a maximum potential penalty of life in prison, and a $20 million fine. The possession with intent to distribute charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison. The possession of a firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum penalty of five years in prison to run consecutively to any term imposed on the drug possession charge.

Almonte, Alvarez Martinez, Goris-Castellano, Lopez, Charlie Rodriguez, Stanel, and Trimarco have all pleaded guilty to their roles in the conspiracy. Almonte was sentenced to 46 months in prison in May 2017. Lopez was sentenced to 162 months in prison in July 2017.

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 Nickerson in Newark, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge John B. Devito, with the investigation.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies dedicated to identifying and dismantling the most serious drug trafficking, weapons trafficking and money laundering organizations.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.

The charges and allegations against Reinaldo Rodriguez are merely accusations, and he is considered innocent unless and until proven guilty.

Defense counsel: Elizabeth Smith Esq., Mendham, New Jersey

TRENTON, N.J. – A Monmouth County, New Jersey, couple was arrested this morning by federal agents on charges of conspiracy to defraud the United States by evading the payment of personal and employment taxes, U.S. Attorney Craig Carpenito announced.

Tito Viteri, 39, and, Maria Yepez, 38, of Cream Ridge, New Jersey, are charged by complaint with one count of conspiracy to defraud the IRS of taxes from 2008 through 2016. Viteri and Yepez made their initial appearances today before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and were released on $300,000 each unsecured bonds.

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

Since 2002, Viteri was the owner and operator of numerous commercial trucking companies that performed delivery services, all of but one of which operated in New Jersey. Yepez was the nominal owner of three of the companies.

Viteri and Yepez allegedly conspired to evade paying personal and business-related taxes by engaging in the following acts: (1) “pyramiding” companies and using nominees as the purported owners of several of the companies in order to shield business assets while incurring employment tax liabilities; (2) failing to file timely and accurate quarterly federal tax returns by falsely categorizing employees as independent contractors, for whom employment taxes did not have to be paid; (3) receiving unreported kickback income from an employee; and (4) concealing personal income and assets by using nominees and depositing money into their child’s bank account.

In 2008, an IRS audit determined that Viteri owed approximately $785,000 in unpaid taxes for one of his companies, and he himself owed approximately $315,000 in unpaid personal taxes. Although Viteri began making payments to the IRS in August 2011, he stopped making those payments in December 2013, claiming he was not “bringing enough money home.” Despite his claims, at around the same time (February 2013 to February 2016) Viteri and Yepez made approximately $111,000 in rental payments (approximately $3,000 per month) for a property in Chesterfield where they lived.

Although Viteri and Yepez still had substantial outstanding tax liabilities, in 2016, Viteri and Yepez purchased a home in Cream Ridge for $929,653. To conceal the purchase of the home from the IRS, Viteri and Yepez purchased the home in the name of Viteri’s mother.

As of March 2018, Viteri owed approximately $1.3 million in personal income taxes, and Viteri and Yepez owed an additional approximately $1.3 million in unpaid business-related taxes.

The conspiracy charge carries a maximum potential penalty of five years in prison and a statutory maximum fine equal to the greatest of: (1) $250,000; (2) twice the gross amount of any pecuniary gain that any persons derived from the offense; or (3) twice the gross amount of any pecuniary loss sustained by any victims.

U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the FBI, Newark Division, under the direction of Acting Special Agent in Charge Bradley W. Cohen; and the U.S. Department of Labor, Office of the Inspector General, under the direction of Acting Special Agent in Charge Peter Nozka in New York, with the investigation leading to today’s arrests.

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.

Defense counsel: Tito Viteri: Darren Gelber Esq., Woodbridge, New Jersey
Maria Yepez: Jerome A. Ballarotto Esq., Hamilton, New Jersey

NEWARK, N.J. – A fugitive wanted by the FBI for nearly 15 years was arrested this morning and appeared in court for his role in orchestrating a wire fraud and bank fraud scheme, U.S. Attorney Craig Carpenito announced.

In July 2003, Steven Nacim, 49, a/k/a “Fouad,” a Moroccan national, was indicted by a federal grand jury sitting in Newark for conspiring to commit wire fraud and bank fraud, and for substantive counts of wire fraud and bank fraud. Nacim returned to the United States from Morocco earlier this week and was taken into custody today in Newark. He appeared before U.S. Magistrate Judge Cathy L. Waldor and was placed under house arrest with GPS location monitoring.

According to the indictment 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 fraudulent check drawn on insufficient funds, and the wire transfer of the proceeds through multiple accounts controlled by the conspirators. Through Computer 3000, they purchased computers and related merchandise using company checks drawn on insufficient funds, and then shipped the merchandise to Morocco. Nacim’s two co-defendants remain fugitives.

The conspiracy charge carries a maximum sentence of five years in prison. The wire fraud charges each carry a maximum sentence of 20 years in prison and the bank fraud charge carries a maximum sentence of 30 years in prison and a $1 million fine. The defendant also faces a maximum fine of $250,000 or twice his gain, or twice the loss sustained by the victims of the offense, for the conspiracy and wire fraud charges.

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 the charges.

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

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

Defense counsel: Joseph B. Shumofsky Esq., Newark

NEWARK, N.J. – The business manager of a Morristown, New Jersey, assisted living facility has been charged with exploiting her position to steal approximately $237,000 from an elderly victim under her care, U.S. Attorney Craig Carpenito announced today.

Marcella Drakeford, 45, of Jensen Beach, Florida, is charged with six counts of mail fraud. Drakeford was arrested today and appeared before U.S. Magistrate Judge Shaniek M. Maynard in federal court in Fort Pierce, Florida. She was indicted March 16, 2018, by a federal grand jury sitting in New Jersey and is scheduled to be arraigned April 4, 2018, before U.S. District Judge Katharine S. Hayden in Newark federal court.

According to the indictment:

Beginning in December 2016, Drakeford allegedly agreed to help manage her victim’s financial affairs and pay for her care. She was granted limited access to the victim’s checking account. Unbeknownst to victim or the victim’s guardian, Drakeford already had fraudulently gained access to the victim’s credit card account and had several cards issued in her name. Drakeford then used the credit cards for personal expenditures, including clothing, jewelry, and automobiles, dental work, rent, and utilities. Drakeford paid off the credit card bills with checks drawn on the victim’s checking account, all without permission. Drakeford allegedly defrauded the victim of approximately $237,000. 

Each count of mail fraud with which Drakeford is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the scheme.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Ruth M. Mendonca, for the investigation leading to the arrests. He also thanked the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp, and the Morristown Police Department, under the direction of Chief Peter Demnitz, for their respective roles in the investigation.

The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office’s Cyber Unit.

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

NEWARK, N.J. – An Elizabeth, New Jersey, man today admitted operating a scheme to fraudulently obtain hundreds of thousands of dollars in commercial and residential merchandise from various companies, U.S. Attorney Craig Carpenito announced.

Roy Depack, a/k/a “Ray Depack,” a/k/a “Roy Soriano,” a/k/a “John Soriano,” 43, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of conspiracy to commit mail and wire fraud.

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

Beginning in 2014, Depack and others conspired to fraudulently obtain merchandise – including Apple computers, digital scales, a walk-in freezer, a snow blower, a gas backpack blower, Samsung televisions, and Milwaukie tools kits – from at least six different victim companies. In total, Depack fraudulently obtained and attempted to obtain over $900,000 in merchandise.

As part of the scheme, Depack called the victim companies and falsely claimed to be a representative of companies that had preexisting business relationships, lines of credit, or accounts with the victim companies. Depack would then direct the victim companies to ship the products to various addresses in New York, Newark, Elizabeth, and Union, New Jersey, while the victims billed the companies that Depack was pretending to represent. Depack and others sold the goods to pawn stores and other individuals.

For example, on April 10, 2017, Depack, using the name "Mike Clarke" and falsely claiming to be a representative of a food distribution company, ordered one digital scale, valued at approximately $3,614, from a victim identified in the information as “Company Six” and directed that it be delivered to Elizabeth. After the scale was delivered on April 11, 2017, Depack and another individual sold it at a pawn store in Newark for approximately $700.

The charge of conspiracy to commit mail and wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 26, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Ruth M. Mendonca, with the investigation.

The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s Office National Security Unit in Newark.

Defense Counsel: Dennis S. Cleary Esq., West Orange, New Jersey

NEWARK, N.J. – A New Jersey auto dealer today admitted laundering hundreds of thousands of dollars generated by a scheme to defraud Russian citizen of monies, paid in advance, for the purchase of luxury automobiles shipped from the United States, U.S. Attorney Craig Carpenito announced.

Sergey Kapustin, 49, of Warminster, Pennsylvania, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of money laundering.

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

Kapustin was the owner and president of Global Auto Group, Effect Auto Sales and G Auto Sales, located in Elizabeth, New Jersey. Global bought and sold used cars, typically high-end vehicles that were routinely classified as “salvaged.”

From January 2008 through December 2014, Kapustin defrauded customers, who usually lived in Russia, Ukraine or members of the former Soviet Union. He had at least one Russian language website that offered for sale luxury vehicles that were normally priced below market value and that could be shipped to Finland for easy delivery to Russian citizens, but only if they agreed to pay full price in advance for the vehicle. He admitted that his customers routinely either did not receive the vehicles for which they had wired payment or, alternatively, were shipped vehicles that were either not operable or in poor condition

Once the funds were deposited into one the several bank accounts Kapustin controlled, he would move those funds to other accounts from which he withdrew funds to continue the scheme, as well as for his own personal use. Kapustin admitted laundering as much as $550,000 of customer down payments.

The count to which Kapustin pleaded guilty carries a maximum penalty of 10 years and $250,000 fine. Sentencing is scheduled for July 10, 2018.

U.S. Attorney Carpenito credited the special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit.

Defense: Carol Gillen Esq., Assistant Federal Public Defender, Newark

TRENTON, N.J. – A Monmouth Beach, New Jersey, man today admitted robbing an Investors Bank branch in Navesink, New Jersey, U.S. Attorney Craig Carpenito announced.

Martin Racioppi, 52, pleaded guilty before U.S. District Court Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of bank robbery.

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

On July 20, 2017, Racioppi entered an Investors Bank in Navesink and approached a bank teller. He told the teller, “Give me all of your money.” When the teller said, “Excuse me?” Racioppi again demanded all the teller’s money and told the teller to “make it quick.” The bank teller handed Racioppi cash, and Racioppi left the bank. The FBI arrested Racioppi in Middletown one day later.

The bank robbery charge carries a maximum potential penalty of 20 years in prison and a fine of either $250,000 or twice gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for July 10, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Enterprise Task Force (which includes representatives from Bradley Beach Police Department, Brick Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, and Toms River Police Department), under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Middletown Township Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Christopher J. Gramiccioni; the Monmouth Beach Police Department, under the direction of Chief Thomas C. Walsh; the Atlantic Highlands Police Department, under the direction of Chief Jerry Vasto; and the Eatontown Police Department, under the direction of Chief Michael D. Goldfarb with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. - Five individuals were arrested this morning and charged with using phony money orders, cashier’s checks, receipts and other fabricated documents to fraudulently discharge mortgages, student loans, and other financial obligations, U.S. Attorney Craig Carpenito announced.

Melissa Reynolds, 42, of Elizabeth, New Jersey, is charged by complaint with three counts of conspiracy to commit bank and mail fraud, two counts of bank fraud, one count of mail fraud, one count of conspiracy to commit mail fraud, and one count of making false statements to the United States. Germaine King, 40, also of Elizabeth, is charged with one count of conspiracy to commit mail fraud, one count of mail fraud and one count of making false statements to the United States.

Henry Grady James IV, 43, of Hillside, New Jersey, and Arthur N. Martin III of West Orange, New Jersey, are both charged with one count of conspiracy to commit bank and mail fraud. Daniel K. Dxrams, 39, of Maplewood, New Jersey, is charged with one count of conspiracy to commit mail fraud. All five defendants are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to the complaint:

Reynolds, King, James, Martin, Dxrams, and others used fraudulent money orders, cashier’s checks, and other fictitious documents to fraudulently discharge their debts or other obligations. In total, Reynolds and other conspirators caused and attempted to cause over $3 million in losses.

For example, in March 2013, Reynolds obtained a $417,276 mortgage from an entity referred to in the complaint as “Financial Institution One,” for the purchase of her Elizabeth residence. In May 2014, Reynolds mailed a fraudulent money order in the amount of $432,000 to Financial Institution One as a payoff on the mortgage. The money order falsely claimed to have been issued or processed by the IRS.

Financial Institution One’s mortgage business erroneously accepted the fraudulent payment and credited it as a payoff for her mortgage. Financial Institution One also mailed Reynolds an overpayment refund of $9,789. When Financial Institution One’s mortgage business filed a suit seeking to reinstate the fraudulently discharged mortgage, Reynolds and King continued to allege in court that the mortgage had been paid and even submitted a phony receipt for the bogus money order.

Reynolds and others unsuccessfully used the same scheme to seek the discharge of other mortgages, including Reynolds’ second residence in Newark, the residence of an individual in Bowie, Maryland, James’ residence in Hillside, New Jersey, and Martin’s residence in West Orange, New Jersey.

Reynolds also sought to fraudulently discharge over $52,000 in student loans with fraudulent money orders and cashier’s checks. For example, on March 20, 2017, Reynolds sent a fraudulent cashier’s check in the amount $67,000 to the Department of Education’s processing company. The payment was rejected.

Reynolds, King, and Dxrams conspired to fraudulently obtain luxury cars in a similar fashion. For instance, Reynolds sent a bogus $101,000 cashier’s check to a finance company that enabled Dxrams to obtain a 2012 Bentley. Dxrams sold the car to a third party for approximately $85,000 and then issued a bank check to King for approximately $25,000. The defendants also used this scheme in an effort to fraudulently obtain two Mercedes-Benz cars.

The bank fraud and bank fraud conspiracy charges are punishable by a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The mail fraud and mail fraud conspiracy charges are punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The false statement charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Carpenito credited special agents of the FBI and the Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; the N.J. Office of Homeland Security and Preparedness, under the direction of Director Jared Maples; the U.S. Department of Education, Office of Inspector General Eastern Regional Office, under the direction of Assistant Special Agent in Charge Debbi Mayer; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi.

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

The government is represented by Assistant U.S. Attorney Anthony Moscato, Chief of the U.S. Attorney’s National Security Unit in Newark.

NEWARK, N.J. – Two Sussex County, New Jersey, women, one a defense contractor employee and the other a civilian employee at Picatinny Arsenal, today admitted their roles in a scheme that traded bribes and other gratuities for favorable treatment on government contracts, U.S. Attorney Craig Carpenito announced.

Irene Pombo, 68, of Hamburg, New Jersey, and her daughter, Nicole Pier, 38, of Byram Township, New Jersey, pleaded guilty before U.S. District Judge John Vazquez in Newark federal court to separate informations charging them with conspiracy to give or accept anything of value in return for favorable assistance with government contracts and with making false claims against the United States.

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

Pombo was an employee of an entity referred to in the information as “Company A,” a defense contracting firm that works with the Department of Defense at Picatinny Arsenal, a U.S. Army installation in Morris County, New Jersey. Pier was a civilian employee at Picatinny Arsenal.

From January 2006 through December 2017, Company A, Pombo, and other Company A employees conspired to offer a variety of valuable gifts, including Apple products, luxury handbags, Beats headphones, and tickets to a luxury sky box at professional sporting events, valued at least $150,000 to $250,000, to numerous individuals employed at Picatinny Arsenal, including Pier, in order to obtain and retain contracts and other favorable assistance. 

Pombo admitted that she and other Company A employees filed false bills to the United States writing off the cost of the bribes as “materials” needed on government contracts. 

The conspiracy charge to which Pombo and Pier pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for June 19, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen in Newark; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge L. Scott Moreland, with the ongoing investigation.   

The government is represented by Senior Litigation Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office’s National Security Unit in Newark.     

Defense counsel: Pier: Robert Galantucci Esq., Hackensack 
Pombo: Edward Cillick Esq., Hackensack

NEWARK, N.J. – A Union County, New Jersey, man today admitted robbing seven banks – and attempting to rob an eighth bank while brandishing a firearm – committing one carjacking and attempting to commit three additional carjackings, and taking a hostage at gunpoint while fleeing, U.S. Attorney Craig Carpenito announced.

Marlon Peek, 41, of Plainfield, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to Counts One through 11, 13, 15, and 17 of an indictment. The counts include: seven counts of bank robbery, one count of carjacking, one count of attempted bank robbery with a dangerous weapon, one count of use and brandishing of a firearm during a crime of violence, three counts of attempted carjacking, and one count of forced accompaniment in attempting to avoid apprehension for the attempted armed bank robbery.

“This defendant cut a swath of violent crime through central New Jersey for two months, brandishing guns to terrify innocent victims as he robbed banks and carjacked vehicles,” U.S. Attorney Carpenito said. “The excellent work of local and federal law enforcement officers have taken a violent criminal with no regard for the lives and safety of others off the streets. The crimes to which the defendant pleaded guilty justifiably expose him to significant prison time.”

Peek robbed or attempted to rob the following New Jersey banks:

Bank

Location

Date

TD Bank

Edison, New Jersey

March 17, 2015

Magyar Bank

Edison, New Jersey

March 31, 2015

Investors Bank

Dunellen, New Jersey

April 9, 2015

Wells Fargo Bank (aiding and abetting)

South Plainfield, New Jersey

April 14, 2015

Unity Bank

Middlesex Borough, New Jersey

April 15, 2015

PNC Bank

South Plainfield, New Jersey

April 21, 2015

TD Bank

Springfield, New Jersey

April 21, 2015

Bank of America (armed attempt)

Linden, New Jersey

May 6, 2015

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

From March 2015 to May 2015, Peek and others committed a string of crimes. At each bank, Peek presented a note demanding cash from bank tellers, including, on at least six occasions, statements that he had a gun and would shoot. During the robbery of the TD Bank in Edison, New Jersey, on March 17, 2015, Peek handed a teller a note that read, in part, “I have gun will shoot to kill you have 3 seconds.” In the course of the attempted robbery of the Bank of America, Peek pointed a loaded firearm directly at a bank teller.

Peek admitted that he committed a carjacking in Plainfield, New Jersey, on April 21, 2015, between robbing the PNC Bank and the TD Bank that day, and that he committed three attempted carjackings using a loaded firearm directly after attempting to rob the Bank of America in Linden on May 6, 2015. He also admitted that in attempting to flee from the attempted robbery of the Bank of America, he entered a warehouse, took a hostage, held a loaded gun to the hostage’s head, and forced the hostage to accompany him. Law enforcement officers arrived on the scene and ordered Peek to drop his gun. Peek then surrendered his weapon and was arrested.

The seven bank robbery charges to which Peek pleaded guilty each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000. The four carjacking or attempted carjacking charges to which Peek pleaded guilty each carry a maximum penalty of 15 years in prison and a maximum fine of $250,000. The charge of armed attempted bank robbery to which Peek pleaded guilty carries a maximum penalty of 25 years in prison and a maximum fine of $250,000.

The charge of using and carrying a firearm during and in relation to a crime of violence, while brandishing the firearm, carries a mandatory minimum sentence of seven years in prison and a maximum penalty of life imprisonment. The sentence imposed for this charge must be consecutive to the sentence for any other count. This charge also carries a maximum fine of $250,000.

The charge of forced accompaniment in attempting to avoid apprehension for the attempted robbery of the Bank of America carries a mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment. Sentencing is scheduled for June 11.

Peek’s co-defendant, Nathaniel Brown, pleaded guilty to Count Four of the indictment and is scheduled to be sentenced May 30, 2018.

U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley Cohen in Newark; and officers of the Linden Police Department, under the direction of Chief David Hart; the Edison Police Department, under the direction of Chief Thomas Bryan; the Dunellen Police Department, under the direction of Chief Jeffrey E. Nelson; the South Plainfield Police Department, under the direction of Chief James Parker; the Middlesex Police Department, under the direction of Chief Matthew P. Geist; the Plainfield Police Department, under the direction of Director Carl Riley; and the Springfield Police Department, under the direction of Chief John Cook with the investigation leading to today’s guilty plea. U.S. Attorney Carpenito also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Michael A. Monahan, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their assistance.

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

Defense counsel: Alyssa A. Cimino Esq., Fairfield, New Jersey