District of New Jersey
Press releases recorded for this federal judicial district.
Staten Island Man Gets 30 Months in Prison for Trafficking over $2.5 Million in Counterfeit Footwear Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 30 months in prison for attempting to distribute more than $2.5 million of counterfeit UGG-brand boots that were shipped into the Port of Newark, U.S. Attorney Craig Carpenito announced.
Shi Wei Zheng, 42, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of trafficking in counterfeit goods. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From September 2016 through February 2017, Zheng received certain shipping container numbers from an individual overseas that identified at least three containers containing counterfeit UGG boots. Cheng asked individuals working at the Port of Newark to remove the containers from the port before they could be examined by U.S. Customs and Border Protection. Once the containers were removed, Zheng directed that they be delivered to other individuals working for him, who would then distribute the boots in New Jersey and elsewhere.
However, before Zheng could distribute the goods, law enforcement intercepted the containers, examined their contents, and determined the boots were counterfeit. At no time was Zheng authorized to import authentic or counterfeit UGG merchandise.
In total, Zheng trafficked in over 15,000 pairs of counterfeit UGG boots, with a total estimated retail value of over $2.5 million. Zheng also paid individuals over $50,000 in exchange for the delivery of the containers.
In addition to the prison sentence, Judge Vazquez sentenced Zheng to two years of supervised release.
U.S. Attorney Carpenito credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy, and U.S. Customs and Border Protection (CBP), under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, with the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Scott B Tulman Esq., New York
U.S. Attorney’s Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Craig Carpenito announced.
The event included local law enforcement agencies, legal aid offices, fair housing organizations, shelters and transitional housing providers. Each organization was invited because they often work with New Jersey’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“Sexual harassment in housing situations might not be as visible as harassment in the workplace, but can be just as egregious,” U.S. Attorney Carpenito said. “Landlords and superintendents using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. We’re extremely proud that New Jersey is holding one of the first community discussions about how to combat the problem.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The Civil Rights Division launched a pilot of the initiative in two jurisdictions—Washington, DC and western Virginia—where it is working with legal service providers and local law enforcement to raise awareness about this issue.
As part of the pilot, the Civil Rights Division and the United States Attorney’s Office for the District of Columbia hosted a summit on November 9, 2017. The summit convened representatives from the Executive Office of the Mayor of the District of Columbia, Metropolitan Police Department, Office of Human Rights (Washington, D.C.), Office of the Tenant Advocate (Washington, D.C.), Office of the Attorney General for the District of Columbia, Office of Congresswoman Eleanor Holmes Norton, and U.S. Department of Housing and Urban Development.
The U.S. Attorney’s Office for the District of New Jersey is the first office outside of the Sexual Harassment Initiative’s pilot program to host a roundtable on these issues. The office is collaborating with the Civil Rights Division to spread the word about options to help victims experiencing sexual harassment. Our community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
In 2017, the Justice Department recovered for harassment victims more than $1 million in damages. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In remarks this week at the “Conversation with the Women of America” event in Washington, D.C., Associate Attorney General Rachel Brand addressed the issue:
“We want women – and men – to know that if this happens to them, there is someone they can call,” Associate Attorney General Brand said. “No one should have to choose between sexual abuse and losing the roof over her head.”
Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but people or organizations they may tell about the sexual harassment should also be aware where to refer them to report the misconduct. Local police departments or legal aid offices may be able to help survivors, if the behavior is a crime or if there is an imminent eviction. Therefore, organizations should also recommend that the victim report the harassment to the Civil Rights Division and the U.S. Attorney’s Office.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among victims and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling (844) 380-6178 or emailing: [email protected] .
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
U.S. Attorney’s Office Hosts Roundtable on Sexual Harassment in HousingRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Craig Carpenito announced.
The event included local law enforcement agencies, legal aid offices, fair housing organizations, shelters and transitional housing providers. Each organization was invited because they often work with New Jersey’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“Sexual harassment in housing situations might not be as visible as harassment in the workplace, but can be just as egregious,” U.S. Attorney Carpenito said. “Landlords and superintendents using the power they have over tenants to extort sexual favors, or even commit assaults, is intolerable. We’re extremely proud that New Jersey is holding one of the first community discussions about how to combat the problem.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The Civil Rights Division launched a pilot of the initiative in two jurisdictions—Washington, DC and western Virginia—where it is working with legal service providers and local law enforcement to raise awareness about this issue.
As part of the pilot, the Civil Rights Division and the United States Attorney’s Office for the District of Columbia hosted a summit on November 9, 2017. The summit convened representatives from the Executive Office of the Mayor of the District of Columbia, Metropolitan Police Department, Office of Human Rights (Washington, D.C.), Office of the Tenant Advocate (Washington, D.C.), Office of the Attorney General for the District of Columbia, Office of Congresswoman Eleanor Holmes Norton, and U.S. Department of Housing and Urban Development.
The U.S. Attorney’s Office for the District of New Jersey is the first office outside of the Sexual Harassment Initiative’s pilot program to host a roundtable on these issues. The office is collaborating with the Civil Rights Division to spread the word about options to help victims experiencing sexual harassment. Our community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
In 2017, the Justice Department recovered for harassment victims more than $1 million in damages. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
In remarks this week at the “Conversation with the Women of America” event in Washington, D.C., Associate Attorney General Rachel Brand addressed the issue:
“We want women – and men – to know that if this happens to them, there is someone they can call,” Associate Attorney General Brand said. “No one should have to choose between sexual abuse and losing the roof over her head.”
Not only should victims of sexual harassment be aware of the Justice Department’s enforcement efforts, but people or organizations they may tell about the sexual harassment should also be aware where to refer them to report the misconduct. Local police departments or legal aid offices may be able to help survivors, if the behavior is a crime or if there is an imminent eviction. Therefore, organizations should also recommend that the victim report the harassment to the Civil Rights Division and the U.S. Attorney’s Office.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among victims and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling (844) 380-6178 or emailing: [email protected] .
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
U.S. Attorney’s Office Collects $51.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2017Read the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito announced today that the District of New Jersey collected $51.6 million in criminal and civil actions in Fiscal Year 2017. Of this amount, $19.7 million was collected in criminal actions and $31.8 million was collected in civil actions.
The District of New Jersey also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $737.7 million in cases pursued jointly with these offices. Of this amount, $155,000 was collected in criminal actions and $737.5 million was collected in civil actions.
Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
During the 2017 fiscal year, significant recoveries in the District of New Jersey included:
- $7.485 million as part of a civil settlement with Omnicare Inc. to resolve allegations that Omnicare, in an effort to increase business efficiency and profit, designed and implemented an automated label verification system that resulted in the submission by Omnicare of claims for generic drugs different from those actually dispensed to Medicare and Medicaid beneficiaries. It also resulted in the dispensing of drugs with patient-specific labels displaying the incorrect manufacturer or NDC.
- $4.47 million in cash and proceeds from the sale of real property in a large-scale home health care aide fraud case. Eight other real properties are in the process of being sold.
- $1.22 million from bank accounts of individuals associated with a New Jersey company that alleged laundered millions in street cash for narcotics traffickers from Mexico and elsewhere. A total of approximately $2.7 million has been forfeited in the case to date.
In addition, $6.34 million in funds forfeited in 2017 and prior fiscal years was returned to victims of the criminal offenses upon which the forfeitures were based. This included $4.8 million forfeited from a husband and wife who owned a mobile diagnostic testing company that received insurance reimbursements for diagnostic testing and reports that were never interpreted by a licensed physician. The forfeited funds were used to compensate Medicare and private insurance companies in full for their losses.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the District of New Jersey, working with partner agencies and divisions, collected $18.8 million in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Michael “the Situation” Sorrentino and His Brother, Marc Sorrentino, Plead Guilty to Tax CrimesRead the Press Release
Reality television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, pleaded guilty today to violating federal tax laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Craig Carpenito for the District of New Jersey and Internal Revenue Service Criminal Investigation (IRS CI) Special Agent in Charge Jonathan D. Larsen.
According to documents and information provided to the court, Michael Sorrentino, 36, pleaded guilty to one count of tax evasion and Marc Sorrentino, 38, pleaded guilty to one count of aiding in the preparation of a fraudulent tax return.
“Today’s pleas are a reminder to all individuals to comply with the tax laws, file honest and accurate returns and pay their fair share,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division is committed to continuing to work with the IRS to prosecute those who seek to cheat the system, while honest hardworking taxpayers play by the rules.”
“What the defendants admitted to today, quite simply, is tantamount to stealing money from their fellow taxpayers,” said U.S. Attorney Carpenito. “All of us are required by law to pay our fair share of taxes. Celebrity status does not provide a free pass from this obligation.”
“As we approach this year’s filing season, today’s guilty pleas should serve as a stark reminder to those who would attempt to defraud our nation’s tax system,” stated Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “No matter what your stature is in our society, everyone is expected to play by the rules, and those who do not will be held accountable and brought to justice.”
Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network. According to documents and information provided to the court, he and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.
Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he concealed a portion of his income to evade paying the full amount of taxes he owed. He also made cash deposits into bank accounts in amounts less than $10,000, in an effort to ensure that these deposits would not come to the attention of the IRS.
Marc Sorrentino admitted that for tax year 2010, he earned taxable income and that he assisted his accountants in preparing his personal tax return by willfully providing them with false information and fraudulently underreporting his income.
U.S. District Judge Susan D. Wigenton scheduled sentencing for April 25. Michael Sorrentino faces a statutory maximum sentence of five years in prison for tax evasion. Marc Sorrentino faces a statutory maximum sentence of three years in prison for aiding in the preparation of a fraudulent tax return. Both also face a period of supervised release, restitution and monetary penalties. Gregg Mark, the accountant for the Sorrentino brothers, previously pleaded guilty in 2015 to conspiring to defraud the United States with respect to their tax liabilities.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito praised special agents of IRS CI, who conducted the investigation, and Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice and Assistant U.S. Attorney Jonathan W. Romankow, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Admit Tax ChargesRead the Press Release
NEWARK, N.J. – Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, both admitted today to violating federal tax laws, U.S. Attorney Craig Carpenito, District of New Jersey; Principal Deputy Assistant Attorney General Richard E. Zuckerman of the U.S. Department of Justice, Tax Division; and IRS Special Agent in Charge Jonathan D. Larsen announced.
Michael Sorrentino, 36, pleaded guilty to Count 13 of the superseding indictment, which charges him with tax evasion. Marc Sorrentino, 38, pleaded guilty to Count 5, which charges him with aiding in the preparation of a false and fraudulent tax return. The brothers entered their guilty pleas before U.S. District Judge Susan D. Wigenton in Newark federal court.
“What the defendants admitted to today, quite simply, is tantamount to stealing money from their fellow taxpayers,” U.S. Attorney Carpenito said. “All of us are required by law to pay our fair share of taxes. Celebrity status does not provide a free pass from this obligation.”
“As we approach this year’s filing season, today’s guilty pleas should serve as a stark reminder to those who would attempt to defraud our nation’s tax system,” Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office, said. “No matter what your stature is in our society, everyone is expected to play by the rules, and those who do not will be held accountable and brought to justice.”
According to documents filed in this case and statements made in court:
Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network. He and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.
Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he took certain actions to conceal some of his income to avoid paying the full amount of taxes he owed. He made cash deposits into bank accounts in amounts less than $10,000 each so that these deposits would not come to the attention of the IRS.
Marc Sorrentino admitted that during tax years 2010, 2011 and 2012, he earned taxable income and that he assisted his accountants in preparing his personal tax return for those years, willfully providing them with false information. His personal tax returns under-reported his total income and taxable income.
The tax evasion charge to which Michael Sorrentino pleaded guilty carries a maximum penalty of five years in prison. The charge of aiding in the preparation of false and fraudulent tax return to which Marc Sorrentino pleaded guilty carries a maximum penalty of three years in prison. Both charges are punishable by a potential $250,000 fine. Sentencing is scheduled for April 25, 2018.
U.S. Attorney Carpenito and Principal Deputy Attorney General Zuckerman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark; Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice.
District Court Awards $5 Million in Civil Penalties and Enters Permanent Injunction to Prevent Dr. Reddy’s Laboratories Inc. from Distributing Prescription Drugs Not in Child-Resistant PackagingRead the Press Release
The Department of Justice announced today that a federal court in New Jersey imposed a $5 million civil penalty and entered a consent decree of permanent injunction against Dr. Reddy’s Laboratories Inc. Dr. Reddy’s is the North American subsidiary of Dr. Reddy’s Laboratories Limited, a pharmaceutical company headquartered in India. The case involves allegations that Dr. Reddy’s failed to comply with the Poison Prevention Packaging Act (PPPA) and the Consumer Product Safety Act (CPSA). Under the terms of the consent decree, Dr. Reddy’s will implement a compliance program designed to ensure compliance with the PPPA and the CPSA.
The Department filed a complaint in the District of New Jersey on Dec. 18, 2017 on behalf of the Consumer Product Safety Commission (CPSC). As alleged in the complaint, Dr. Reddy’s knowingly violated the CPSA with respect to household oral prescription drugs in blister packs that were not child resistant as required by the PPPA. As set forth in the complaint, Dr. Reddy’s distributed such prescription drugs until 2012, despite being previously warned by its own employees that the blister packs had not been tested for PPPA compliance and that certain blister packs were expected to fail the PPPA’s child test protocol.
In addition, the complaint charges that Dr. Reddy’s failed to notify the CPSC “immediately,” as required by law, that its products were not compliant with the PPPA, that the products contained a defect presenting a substantial product hazard, and that the products created an unreasonable risk of serious injury or death. The complaint further asserts that Dr. Reddy’s failed to certify that its products were in conformance with the PPPA.
“Dr. Reddy’s failed to ensure that children were protected from potentially harmful prescription drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The government will continue to take seriously alleged violations of laws meant to protect consumer safety.”
“Child-resistant packaging is a critical safety measure put in place to protect our country’s children,” said CPSC Acting Chairman Ann Marie Buerkle. “I appreciate and value the support from and collaboration with the Department of Justice.”
In addition to the $5 million civil penalty, the consent decree generally enjoins Dr. Reddy’s from distributing household oral prescription drugs in violation of the PPPA and CPSA and requires Dr. Reddy’s to implement a compliance program. The injunction further requires Dr. Reddy’s to maintain internal controls and procedures designed to ensure timely, truthful, complete, and accurate reporting to the CPSC as required by law.
In agreeing to settle this matter, Dr. Reddy’s has not admitted that it violated the law.
The matter is being jointly handled by Trial Attorneys Claude Scott and Shannon Pedersen, from the Civil Division’s Consumer Production Branch. Assistant U.S. Attorney in the Eastern District of Pennsylvania Judith Amorosa, Assistant U.S. Attorney in the District of New Jersey Charles Graybow, and Patricia Vieira with the CPSC’s Office of the General Counsel, provided significant assistance.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Camden County, New Jersey, Woman Gets 12 Years in Prison for Conspiring to Produce Sexually Explicit Images of Two ChildrenRead the Press Release
CAMDEN, N.J. – An Audubon, New Jersey, woman was sentenced today to 144 months in prison for conspiring with her former boyfriend to produce sexually explicit images of two children, U.S. Attorney Craig Carpenito announced.
Janine Kelley, 36, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiring with Alexander Capasso, 44, of Collingswood, New Jersey, to engage in the sexual exploitation of two children. Judge Simandle imposed the sentence today in Camden federal court.According to documents filed in this case and statements made in court:
Kelley, a registered nurse, entered into a sexual relationship with Capasso in or about 2011, during which Capasso expressed an interest in engaging in sexual conduct with children. From November 2011 through October 2012 Kelley took, and allowed Capasso to take, recorded images of her engaged in sexually explicit conduct with two children. Kelley also took, or allowed Capasso to take, images of Capasso engaged in sexually explicit conduct with one of the children.
In addition to the prison term, Judge Simandle sentenced Kelly to 10 years of supervised release.
Capasso previously pleaded guilty to his role in the conspiracy and was sentenced Jan. 17, 2018 to 20 years in prison.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the FBI Washington D.C., Field Office, under the direction of Assistant Director in Charge Andrew Vale, with the investigation.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Sara Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Morris County, New Jersey, Doctor Admits Illegally Prescribing Oxycodone and Defrauding Medicare, Medicaid Out of $30,000Read the Press Release
NEWARK, N.J. – A Long Valley, New Jersey, man today admitted writing illegal prescriptions for oxycodone and conspiring to bill Medicare and Medicaid for certain allergy tests without performing the required patient examinations, U.S. Attorney Craig Carpenito announced.
Jose Leyson, 71, of Long Valley, New Jersey, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of illegally distributing oxycodone and one count of conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Leyson was a physician specializing in urology who owned and served as the medical director of a clinic in Newark. The medical clinic purportedly provided various services to patients, including pain management and allergy testing.
On four occasions between Nov. 11, 2013 and Jan. 6, 2014, Leyson illegally sold prescriptions for oxycodone to a confidential source acting at law enforcement’s direction. In each instance, Leyson wrote these prescriptions without performing any medical treatment or patient examination and in exchange for cash payments or access to welfare benefits. In total, Leyson provided the confidential source with oxycodone 30 mg prescriptions for at least 420 pills.
In addition, from April 2010 to January 2013, Leyson and others at the medical clinic conspired to submit phony bills to Medicare and Medicaid for certain allergy tests that Leyson prescribed without examining the patients to determine if the tests were medically necessary. As a result, Leyson and the other conspirators were able to fraudulently obtain at least $30,000 from Medicare and Medicaid.
The unlawful distribution of oxycodone charge carries a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. The healthcare fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Leyson’s sentencing is scheduled for April 26, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and 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.The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: John Roberts Esq., Chatham, New Jersey.
Four Women Charged in Conspiracy to Distribute Thousands of Oxycodone Pills in Hunterdon County, New JerseyRead the Press Release
NEWARK, N.J. – Four women appeared in federal court today to face charges of running an oxycodone distribution conspiracy in Flemington, New Jersey, and elsewhere, U.S. Attorney Craig Carpenito announced.
Alicia Balaban, 35, of Wellington, Florida, Michele Call, 63, of Flemington, Nelida Rios, 55, of Flemington, and Marie DeJulia, 42, of Lodi, New Jersey, are each charged by criminal complaint with one count of conspiracy to distribute oxycodone.
Balaban was arrested this morning in Wellington and appeared before U.S. Magistrate Judge James J. Hopkins in West Palm Beach federal court. Call, DeJulia, and Rios were taken into custody this morning in New Jersey and appeared this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court. All four defendants were released on bail.
According to the complaint:
Balaban, who is Calls’s daughter and DeJulia’s friend, is the alleged leader of the drug trafficking conspiracy. From April 2016 through January 2018, Balaban, Call, and Rios allegedly worked together to secure prescriptions for oxycodone, fill them at pharmacies in Flemington, and then distribute the pills to DeJulia from Call and Rios’s Flemington residences. The conspirators allegedly distributed thousands of 30 mg oxycodone pills.
The drug distribution conspiracy charge carries a a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Carpenito credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie Nickerson in Newark, with the investigation leading to the charges.
The charge and allegations in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
Defense counsel:
DeJulia: Steven Lember Esq., Flemington
Balaban: Michael Caruso Esq., Federal Public Defender, Southern District of Florida
Call: Linda Foster Esq., Assistant Federal Public Defender, Newark
Rios: Linwood A. Jones Esq., East Orange, New Jersey
Florida Investor who Made More Than $250,000 from Insider Trading Scheme Sentenced to One Year in PrisonRead the Press Release
TRENTON, N.J. B A Florida man who admitted trading on material, nonpublic information concerning Gilead Sciences Inc.’s $11 billion acquisition of New Jersey-based Pharmasset Inc. was sentenced today to 12 months and one day in prison, U.S. Attorney Craig Carpenito announced.
Jay Fung of Delray Beach, Florida, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with conspiracy to commit securities fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2011, a conspirator who worked at a global wealth management firm learned that Pharmasset was going to be sold for a significant profit per share. On Nov. 18, 2011, the conspirator passed the inside information to Fung, who then purchased call options and shares of Pharmasset.
On Nov. 21, 2011, Gilead publicly announced that it had entered into an agreement to acquire Pharmasset for approximately $11 billion, or $137 per share in cash. The purchase price represented an approximately 89 percent premium over Pharmasset’s closing price of $72.67 on Nov. 18, 2011.
Following the public announcement of Gilead’s acquisition of Pharmasset, Fung sold the Pharmasset shares and options he had purchased on Nov. 18, 2011, for total illegal profits of more than $250,000.
In addition to the prison term, Judge Thompson sentenced Fung to three years of supervised release. He has already forfeited $345,245.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone and Robert Cohen, and its Philadelphia Regional Office, under the direction of Sharon Binger.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Today’s sentencing is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed more than18, 000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov
Camden County, New Jersey, Man Sentenced to 20 Years in Prison for Conspiracy to Sexually Exploit ChildrenRead the Press Release
CAMDEN, N.J. – A Collingswood, New Jersey, man was sentenced today to 240 months in prison for conspiring with his former girlfriend to produce sexually explicit images of two children, U.S. Attorney Craig Carpenito announced.
Alexander Capasso, 44, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of an indictment charging him with conspiring with Janine Kelley, 36, of Audubon, New Jersey, to engage in the sexual exploitation of children. Judge Simandle imposed the sentence today in Camden federal court. Capasso has been in federal custody since his July 20, 2015 arrest.
According to documents filed in this case and statements made in court:
Capasso began a sexual relationship with Kelley in 2010. During that relationship, Capasso took, or allowed Kelley to take, recorded images of Capasso engaged in sexually explicit conduct with a child. Capasso also took, or allowed Kelley to take, recorded images of Kelley engaged in sexually explicit conduct with two children.
In addition to the prison term, Judge Simandle sentenced Capasso to a lifetime of supervised release.
Kelley has also pleaded guilty to her role in the conspiracy and is scheduled to be sentenced Jan. 19, 2018.
U.S. Attorney Carpenito credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the FBI Washington D.C., Field Office, under the direction of Assistant Director in Charge Andrew Vale, with the investigation.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Sara Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Terri Lodge Esq., Cinnaminson, New JerseyUnion County, New Jersey, Man Admits Robbing Four BanksRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man today admitted robbing four banks in January 2017, including a TD Bank in Bergen County, New Jersey, U.S. Attorney Craig Carpenito announced today.
Israel Cosme, 36, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with four counts of bank robbery. Cosme was originally arrested Jan. 24, 2017 in connection with two of the bank robberies committed in Maryland.According to documents filed in this case and statements made in court:
Cosme admitted that on Jan. 15, 2017, he robbed a TD Bank in Little Ferry, New Jersey. During the robbery, Cosme verbally demanded money and told a teller that he would shoot her if she didn’t comply.
Cosme also admitted robbing a TD Bank in New York on Jan. 12, 2017; a TD Bank in Essex, Maryland, on Jan. 22, 2017; and a TD Bank in Baltimore, Maryland, on Jan. 23, 2017. During all three of these robberies, Cosme handed tellers a note demanding money and stating that he had a gun.
Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 7, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the Little Ferry Police Department, under the direction of Chief Ralph Verdi, for its assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Former EMT and Volunteer Firefighter Admits Enticing Child to Produce Sexually Explicit ImagesRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man who worked as an emergency medical technician and volunteer firefighter today admitted enticing a child to produce sexually explicit images, U.S. Attorney Craig Carpenito announced.
Zachary Motta, 23, of Iselin, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of online enticement of a minor to engage in criminal sexual activity.
According to documents filed in this case and statements made in court:
Beginning in October 2016, Motta communicated with an underage boy who told Motta he was 12 years old. Motta used a computer and internet connection to ask the victim to send a picture of himself nude, which he did.
The count to which Motta pleaded guilty carries a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense. Sentencing is scheduled for May 10, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Newark Special Agent in Charge Timothy Gallagher, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Suspended New Jersey Attorney Sentenced to Three Years’ Probation for Failing to Pay TaxesRead the Press Release
NEWARK, N.J. – A suspended Essex County, New Jersey, lawyer was sentenced today to three years’ probation, including 10 months of home confinement, for failing to pay personal and employment payroll taxes, U.S. Attorney Craig Carpenito announced.
Richard Roberts, 80, of Bloomfield, New Jersey, previously pleaded guilty before U.S. District Judge U.S. District Judge Esther Salas to an information charging him with one count of failing to pay payroll taxes and one count of failing to pay personal income taxes. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in Court:
Roberts was the sole owner of legal practice he operated out of a law office in Newark. He maintained at least one employee, besides himself, and managed all aspects of the law office. Roberts was required to deduct and withhold federal income and insurance taxes from his employees’ wages. He was required to prepare and file quarterly forms that reported to the IRS the total amount of wages paid by an employer to all employees (Forms 941). Roberts was required to pay the employer’s portion of the payroll tax to the IRS. For the 12 quarters of the tax years 2009 through 2011, Roberts failed to make any payroll tax payment to the IRS. In each quarter, Roberts either failed to file a Form 941 or failed to pay the payroll tax reflected on the form.
Roberts has not paid personal income taxes since at least 2000. On June 24, 2012, Roberts filed a tax return for the tax years 2007 through 2010, listing the amount of tax due on each return. For example, on the 2010 tax return, Roberts listed a tax due of $20,361, but he has to date failed to pay the tax for tax years 2007 through 2010.
In addition to the probationary term, Judge Salas sentenced Roberts to 100 hours of community service and ordered him to pay $224,962 in restitution.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and investigators of the U.S. Attorney’s Office with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Two Men Sentenced Today to Prison Terms for Their Roles in Trenton Drug Trafficking OperationRead the Press Release
TRENTON, N.J. – Two Trenton men were sentenced today to prison terms for their respective roles in a drug trafficking organization that distributed hundreds of grams of heroin in the Trenton area, U.S. Attorney Craig Carpenito announced.
Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi,” 27, pleaded guilty on Aug. 16, 2017, before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and one count of unlawful possession of a firearm by a convicted felon. He was sentenced to 176 months in prison.
Prince Sarnoe, 30, pleaded guilty on Sept. 8, 2017, before Judge Wolfson to an information charging him with one count of being a felon in possession of a firearm. He was sentenced to 120 months in prison.
In December 2016, Abdullah and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO” after the organization’s leader.
According to documents filed in this case and statements made in court:
From May 2015 through December 2016, Abdullah and others participated in a drug trafficking organization that operated in the area of Spring and Passaic streets in the Trenton. Multiple members of the organization, including Sarnoe – a previously convicted felon – possessed and maintained access to firearms.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Abdullah was a leader of the organization and was responsible for obtaining significant quantities of heroin from multiple suppliers. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement.
Abdullah admitted that he conspired with others to distribute at least 400 grams of heroin. Abdullah, who is a previously convicted felon, also admitted knowingly possessing a SCCY Industries CPX-2 firearm.In addition to the prison term, Judge Wolfson sentenced Abdullah to five years of supervised release and Sarnoe to three years of supervised release.
U.S. Attorney Carpenito credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s sentencings.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel:
Abdullah: David E. Schafer Esq., Trenton
Sarnoe: John S. Furlong Esq., West Trenton, New JerseyMiddlesex County, New Jersey, Man Pleads Guilty to Stealing $184,936 in Social Security Benefits Paid to Deceased RelativeRead the Press Release
TRENTON, N.J. – A Perth Amboy, New Jersey, man today admitted stealing Social Security benefits that were mistakenly paid to his deceased great aunt, U.S. Attorney Craig Carpenito announced.
Lance D. Nelson, 56, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count 1 of an indictment charging him with theft of government funds.
According to documents filed in this case and statements made in court:
Nelson’s great aunt received Social Security retirement benefits that were sent to a joint bank account that she shared with Nelson. The Social Security Administration, unaware of her death in February 1998, continued to issue her monthly retirement benefits.
Nelson admitted that he intentionally failed to notify the Social Security Administration of her death so that he could continue to receive her benefits, which he withdrew from their joint account and used for his personal benefit. In total, Nelson, who was employed as an assistant zoning officer for the City of Perth Amboy through the end of 2017, admitted today that he took $184,936 in Social Security benefits to which he was not entitled.
The charge to which Nelson pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. As part of his plea agreement, Nelson must forfeit the $184,936 he stole from the Social Security Administration. Sentencing is scheduled for April 17, 2018.
U.S. Attorney Carpenito credited special agents with the Social Security Administration - Office of the Inspector General, under the direction of Special Agent in Charge John F. Grasso of the New York Field Division, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
California Man Sentenced to 30 Months in Prison for Role in Heroin Distribution SchemeRead the Press Release
NEWARK, N.J. – A California man who swallowed plastic bags containing approximately 600 grams of heroin and later admitted that he possessed the drug with intent to distribute it was sentenced today to 30 months in prison, U.S. Attorney Craig Carpenito announced.
Omar Vasques, 24, of Bakersfield, California, previously pleaded guilty before U.S. District Court Judge John Michael Vazquez to an information charging him with one count of possession of heroin with intent to distribute and distribution of heroin. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 15, 2016, Vasques landed at Newark Liberty International Airport on a commercial flight after having swallowed 81 “pellets” of heroin wrapped in plastic baggies. He intended to distribute the heroin after his arrival but was apprehended by law enforcement authorities, who escorted Vasques to a hospital. Vasques underwent emergency surgery after hospital staff discovered that one of the baggies had ruptured.
In addition to the prison term, Judge Vazquez sentenced Vasques to three years of supervised release.U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie Nickerson, in Newark for the investigation that led to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit.Defense Counsel: Anthony C. Mack Esq., Newark
U.S. Attorney Carpenito Voices Strong Support for DEA Opioid Abuse ProgramRead the Press Release
NEWARK, N.J. – U.S. Attorney Craig Carpenito pledged the office’s strong support for a Drug Enforcement Administration (DEA) initiative announced in Camden today to address the problem of opioid and heroin abuse in New Jersey.
“The misuse of prescription opioid painkillers, heroin and the synthetic drug fentanyl are wreaking havoc in our communities and destroying thousands of lives,” U.S. Attorney Carpenito said. “The program announced by DEA Special Agent in Charge Valerie Nickerson attacks the epidemic on three fronts: coordinated targeting of drug organizations and gangs, encouraging smarter prescribing practices and use of painkillers, and outreach to affected communities. We will work closely with DEA and all of the ‘DEA 360 Strategy’ partners in this important battle.”
As part of this effort, the District of New Jersey – like all other U.S. Attorney’s Offices in the country – has designated an Opioid Coordinator, who is responsible for facilitating intake of cases involving prescription opioids, heroin, and fentanyl. The coordinator – Assistant U.S. Attorney Erica Liu – is also responsible for convening a task force of federal, state, and local law enforcement to identify opioid cases for federal prosecution, facilitating interdiction efforts, and tailoring the district’s response to the needs of the community. To enhance our efforts and capabilities, Assistant U.S. Attorney Liu is providing legal advice and training to other AUSAs regarding the prosecution of opioid offenses; maintaining a close watch on the advancement of opioid prosecutions in the district; and developing and continually evaluating the effectiveness of the office’s strategy to combat the opioid epidemic.
“Erica was specifically chosen for this assignment because of her unique experience,” U.S. Attorney Carpenito said. “With a Bachelor of Science in Pharmacy and experience as a county and federal prosecutor, she has the bonafides for this job. Erica is passionate about this issue and well-suited for the task.”
In September 2016, the Department of Justice directed each U.S. Attorney to consult with local stakeholders and draft a district-specific strategy to combat the opioid epidemic. The office’s role in the DEA 360 Strategy will be part of that effort.
Essex County, New Jersey, Man Pleads Guilty to Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing a TD bank in Newark in May 2017, U.S. Attorney Craig Carpenito announced.
Tyrone Anderson, 46, of Newark, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of bank robbery.
According to the documents filed in this case and statements made in court:
Anderson admitted that during the May 26, 2017 bank robbery, he handed a teller a hand-written note demanding cash and threatening the teller to “make it quick.” Anderson then took cash from the teller and fled. Fingerprints recovered from the scene of the robbery led to Anderson’s arrest several days later.
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. Anderson’s sentencing is scheduled for April 16, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, and the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, with the investigation.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark
Manager of Camden, New Jersey, Drug Trafficking Organization Sentenced to Five Years in Prison for Drug and Firearm ChargesRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 60 months in prison for conspiring to sell crack cocaine and possess a firearm in furtherance of a drug conspiracy operating in Camden, U.S. Attorney Craig Carpenito announced.
Preston J. Thomas, a/k/a “Boo,” 31, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Thomas admitted that he sold, and directed others to sell, crack cocaine on and around the 1100 block of Lansdowne Avenue in Camden. Thomas also admitted that he provided crack cocaine to other members of the conspiracy, collected proceeds from the sales, and conspired with members of the conspiracy to possess a firearm in furtherance of its drug trafficking activities.
Thomas, Jason Boyd, Joseph Boyd, Tony Wilson, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson were originally charged by complaint on Sept. 9, 2016 following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered several firearms that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by members of the conspiracy.
In addition to the prison term, Judge Simandle sentenced Thomas to four years of supervised release.
Jason Boyd, Joseph Boyd, Wilson, Stallworth, Nafeez Griffin, and Julian Dickerson pleaded guilty to related drug and firearm offenses and have been sentenced to prison. Whitaker is charged in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. The charges against Whitaker are still pending.
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 Acting Superintendent Col. Patrick J. Callahan, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie F. Moy Esq., Assistant Federal Public Defender
Man Sentenced to 90 Days in Prison for Assaulting Sleeping Girl on AirplaneRead the Press Release
NEWARK, N.J. – An Indian national who admitted that he assaulted a girl on a flight from Seattle, Washington, to Newark Liberty International Airport, was sentenced today to 90 days in prison, U.S. Attorney Craig Carpenito announced.
Vijaykumar Krishnappa, 29, pleaded guilty Nov. 8, 2017, before U.S. Magistrate Judge James B. Clark in Newark federal court to a superseding information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, while on a United Airlines flight from Seattle to Newark on July 23, 2017, Krishnappa intentionally assaulted a girl who was unknown to him and seated next to him on the flight. Krishnappa admitted that while the victim was asleep, he intentionally touched her near her groin over her leggings without her consent.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Port Authority of New York-New Jersey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Criminal Division in Newark.
Leader and Two Members of Notorious Newark Heroin Distribution Ring Plead Guilty to Drug Conspiracy ChargesRead the Press Release
NEWARK, N.J. – Three Essex County, New Jersey, men today admitted their roles in a massive drug distribution ring responsible for dealing millions of dollars’ worth of heroin out of a residential building near a high school in Newark, U.S. Attorney Craig Carpenito announced.
Quawee Jones, a/k/a “Hatman,” 34, of Newark, Shaahid Cureton, a/k/a “Dills,” 33, of Newark, and Rashard Johnson, a/k/a “Drama,” 39 of East Orange, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to separate superseding informations charging them each with conspiracy to distribute heroin.
According to documents filed in the case and statements made in court:
The defendants operated a heroin distribution marketplace out of the first floor hallway of a residential building at 25 Johnson Ave in Newark. The building is just a few doors away from the Malcolm X. Shabazz High School and the Terrell James Park playground. The conspiracy was led by Quawee Jones and Almalik Anderson, who, along with other heroin dealers that worked with them – including Cureton and Johnson – took advantage of the building’s location on a dead-end street, making it difficult for law enforcement to infiltrate the distribution network despite a constant stream of buyers entering the building at all hours of the day.
“Lookouts” were paid by the defendants to alert them to any police activity coming onto the block from the only access point on Clinton Avenue. Police could not infiltrate the building without lookouts detecting their presence and signaling the sellers. Members of the drug trafficking organization also set up an escape route whereby residents were paid to keep their doors unlocked. The dealers in the hallways would run through the building and exit via fire escapes at the rear of the building or simply hide within the apartments before police could apprehend them.
The drug conspiracy operated nearly 24 hours a day and was well-known among heroin users, who came from several different counties across New Jersey. The defendants allegedly worked in carefully planned “shifts” in order to handle the constant flow of heroin buyers. The heroin was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin, allowing buyers to identify and purchase the brands that they preferred.
The defendants sold on average one to two kilograms of heroin per week between January 2013 and November 2015. Based upon the quantities sold, information from court-authorized wiretaps, and other evidence, the profit from the heroin distribution at 25 Johnson Avenue was estimated to be between $4 million and $7 million a year.The drug conspiracy charge to which Jones pleaded guilty carries a statutory minimum prison term of 10 years in prison and a maximum potential penalty of life in prison. The drug conspiracy charges that Cureton and Johnson pleaded guilty to carry a maximum potential sentence of 20 years in prison.
With today’s pleas, all 16 defendants indicted for their roles in the heroin distribution conspiracy, including Anderson, have been convicted.
U.S. Attorney Carpenito credited special agents of the FBI and task force officers assigned to the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked officers of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, the Essex County Sheriff’s Office under the direction of Armando B. Fontoura; the N.J. State Parole Board, under the direction of Chairman James T. Plousi; and the Orange Police Department, under Director Todd Warren, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and David E. Malagold, and Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Jones: Stacy Ann Biancamano Esq., Cranford
Cureton: Ruth M. Liebesman Esq., Paramus
Johnson: Henry Klingeman Esq., and Kristen Santillo Esq., Newark
Former Jersey City Chief of Police Admits Fraud Involving Off-Duty Work AssignmentsRead the Press Release
TRENTON, N.J. – The former Jersey City Chief of Police today admitted defrauding the Jersey City Housing Authority (JCHA) by obtaining compensation for off-duty work that he did not perform, U.S. Attorney Craig Carpenito announced.
Philip D. Zacche, 61, of Manalapan, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of embezzling, stealing, obtaining by fraud, misapplying, and without authority knowingly converting money belonging to the JCHA.
According to documents filed in this case and statements made in court:
Zacche was a member of the Jersey City Police Department who was available to perform off-duty work. The JCHA was responsible for the administration of certain housing units in Jersey City. Between 2010 and 2014, the JCHA hired and paid Jersey City police officers to provide security at some of their housing sites.
Zacche admitted defrauding the JCHA by filling out and submitting time sheets representing that he completed certain security shifts even though he was not present at the JCHA site. As such, Zacche was paid a total of $31,713 for work that he did not perform.
Zacche faces a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Zacche is required to forfeit $24,700. His sentencing is scheduled for April 9, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.
The Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna, Deputy Chief of the Health Care and Government Fraud Unit.
Defense counsel: Anthony J. Iacullo Esq., Nutley, New Jersey
Bergen County, New Jersey, Man Pleads Guilty to Violent North Jersey CarjackingRead the Press Release
NEWARK, N.J. – A Waldwick, New Jersey, man today admitted carjacking a taxi and striking the victim on the head with a beer bottle, Acting U.S. Attorney William E. Fitzpatrick announced.
Arlyn Jowany Carrasco Cruz, 27, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of carjacking.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.
The carjacking charge carries a maximum potential penalty of 25 years in prison. Cruz’s sentencing is scheduled for April 11, 2018.
Four other men have pleaded guilty to their respective roles in the carjacking, subsequent kidnapping, and an earlier bar robbery in Hawthorne, New Jersey. Guillermo Carrillo-Iraheta, 20, and Juan Chiliseo-Vega, 21, both of Suffern, New York, were sentenced to 150 and 168 months in prison, respectively. Wilbur Jonathon Barahona, 22, or Ridgewood, New Jersey, and Jostin Reyes, 22, also of Walwick, New Jersey, await sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, investigators from the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments with the investigation leading to today’s guilty plea.
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
Attorney General Jeff Sessions Appoints Craig Carpenito as Interim United States Attorney, District of New JerseyRead the Press Release
NEWARK, N.J. – Attorney General Jeff Sessions today announced the appointment of Craig Carpenito as Interim United States Attorney pursuant to 28 U.S.C. § 546, which provides that “the Attorney General may appoint a United States Attorney for the district in which the office of United States Attorney is vacant.” This appointment will take effect Jan. 5, 2018.
“Craig Carpenito has experience in private practice, with the Securities and Exchange Commission, and as an Assistant United States Attorney,” Attorney General Sessions said. “He has successfully prosecuted white collar criminals and fraudsters, and as Interim United States Attorney for New Jersey, he will continue to put criminals out of business—and behind bars.”
Mr. Carpenito is currently a partner at Alston & Bird LLP, where he is a co-chair of the firm’s Litigation and Trial Practice Group and its Government and Internal Investigations Team. He served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of New Jersey from 2005 to 2008.
Between August 2000 and September 2005, Mr. Carpenito was Senior Counsel in the Securities and Exchange Commission’s Division of Enforcement, New York Regional Office. He received his B.A. from Rider University in Lawrenceville, New Jersey, and his J.D. from Seton Hall University School of Law in Newark.
Upon the appointment of Mr. Carpenito as Interim United States Attorney, Acting United States Attorney William E. Fitzpatrick will resume his role as First Assistant United States Attorney.
Atlantic County, New Jersey, Man Sentenced to 235 Months in Prison for His Role in Crack Cocaine TraffickingRead the Press Release
CAMDEN, N.J. – An Atlantic County man was sentenced today to 235 months in prison for distribution and possession with the intent to distribute cocaine in the Atlantic County, New Jersey area, Acting U.S. Attorney William E. Fitzpatrick announced.
Tozine Tiller, 43, of Galloway, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court for his distribution and possession with intent to distribute crack cocaine on June 11, 2013.
According to documents filed in this case and statements made in court:
Tozine Tiller was responsible for distributing in excess of 840 grams of crack cocaine from February 2010 through Dec. 10, 2014. The conspiracy that Tiller participated in was extensive and involved the trafficking of cocaine, crack cocaine and heroin. Tiller and others used residences in Pleasantville and Absecon to store and package cocaine and crack cocaine.
Twelve individuals have been charged for their participation in this drug trafficking conspiracy and all but one of those charged have been convicted. One defendant remains a fugitive.
The following individuals have been sentenced:Francisco Rascon-Muracami –70 months in prison;
John Wellman –130 months in prison;
Ronald Douglas Byrd – 96 months in prison;
Talib Tiller – 57 months in prison;
Tejohn Cooper – 96 months in prison; and
Kabaka Atiba – 120 months in prison.The other defendants are awaiting sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the Drug Enforcement Administration’s Newark Division, under the direction of Special Agent in Charge Valerie Nickerson; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to these convictions.
He also thanked the N.J. State Police; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Gilbert Scutti Esq. Somerdale, New Jersey
Hunterdon County, New Jersey, Man Pleads Guilty to Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A High Bridge, New Jersey, man today admitted distributing images of child sexual abuse over the Internet, Acting U.S. Attorney William E. Fitzpatrick announced.
Darrel Underhill, 73, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of distributing child pornography.
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 of 2017, agents located nearly 1000 videos and over 12,000 images of child sexual abuse on Underhill’s computers. Underhill admitted today that he was making videos available for others to download.
The distribution of child pornography charge to which Underhill pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Underhill will be required to register as a sex offender. Under the terms of the plea agreement, if accepted by the court, Underhill will be sentenced to 121 months in prison. He remains in custody pending his March 28, 2018 sentencing date.Acting U.S. Attorney Fitzpatrick 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 Michael McCarthy, with the investigation.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender
Two California Men Charged in Large-Scale Opioid Distribution RingRead the Press Release
NOTE: Charges against Stephan Durham were dismissed by court order on Jan. 29, 2018.
NEWARK, N.J. – Two California men were arrested today for their alleged roles in a large-scale opioid distribution conspiracy that involved the shipment of at least 500,000 fentanyl pills to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Andrew Tablack, 26, of Beverly Hills, California, and Stephan Durham, 43, of Altadena, California, were both charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of cyclopropyl fentanyl. Tablack is also charged with distribution of 400 grams or more of cyclopropyl fentanyl. Both defendants were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Patrick J. Walsh in Los Angeles federal court.
According to the complaint:
Beginning in August 2017, the Drug Enforcement Administration began an investigation into the distribution of fentanyl in the Monmouth County, New Jersey, area. Agents executed a search warrant at a Monmouth County residence that resulted in the seizure of a substantial quantity of controlled substances, including approximately 300,000 cyclopropyl fentanyl pills that allegedly had been shipped by Tablack to New Jersey. Tablack and his customers across the United States, including New Jersey, allegedly used the Dark Web – a part of the internet that is not accessible without specific software – to arrange shipments of quantities of cyclopropyl fentanyl to various places throughout the country. Tablack also used end-to-end encrypted communication applications to take orders for fentanyl from customers in New Jersey.
The New Jersey customers allegedly provided Tablack with residential addresses in Monmouth County to which the packages of fentanyl could be mailed and arranged to intercept the packages before they were delivered. Customers paid Tablack with Bitcoin, a form of cryptocurrency that is increasingly common in the narcotics trade due to its relative anonymity.
One such set of packages, mailed by Tablack in September 2017, was intercepted by law enforcement when it reached New Jersey. When the packages were opened, agents found that they contained 226,520 cyclopropyl fentanyl pills that weighed nearly 20 kilograms.
Tablack allegedly maintained a pill production facility in California. Shipping records revealed that Tablack had purchased at least nine pill press machines that were shipped to an industrial building in California. Records showed that a company ostensibly run by Durham was registered as the lessee of that industrial property.
Tablack allegedly purchased quantities of fentanyl from a laboratory in China that shipped the packages disguised as food and beauty products. Law enforcement officers in California were able to intercept several additional packages sent from various parts of Asia bound for properties controlled by Tablack and Durham, including fentanyl and dies used to mark illicitly manufactured pills.
The charges carry a mandatory minimum penalty of 10 years in prison, a potential maximum penalty of life in prison, and a $10 million fine.
The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the U.S. Attorney’s Office General Crimes Unit in Newark.
Acting U.S. Attorney Fitzpatrick credited the special agents of DEA in Newark, under the direction of Special Agent in Charge Valerie Nickerson; special agents of DEA in Los Angeles, under the direction of Special Agent in Charge David Downing; the U.S. Department of Homeland Security (DHS), Homeland Security Investigation’s (HSI) Newark Division, under the direction of Acting Special Agent in Charge Michael McCarthy; DHS-HSI, Los Angeles Division, under the direction of Special Agent in Charge Joseph Macias; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Acting Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office, with the investigation leading to the charges.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Paterson Man Pleads Guilty to Robbing Two Passaic County BanksRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man today admitted robbing a TD Bank in Paterson in June 2017 and an Investors Bank in Clifton, New Jersey, in July 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
James M. Chestnut, 62, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with two counts of bank robbery.
According to the documents filed in this case and statements made in court:
On June 30, 2017, Chestnut entered a TD Bank in Paterson and handed a teller a note stating “Put 100s and 50s in the envelope. No dye pack.”
On July 5, 2017, Chestnut entered an Investors Bank in Clifton and approached a teller, this time brandishing what appeared to be a firearm. He told the teller to “Open your drawer. Give me your money. All the 100s. Don’t call the cops or I’ll shoot you.”
During the plea, Chestnut also admitted attempting to rob a Chase Bank in Saddle Brook, New Jersey, on July 3, 2017.
Both bank robbery counts carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 21, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Paterson Police Department, under the direction of Director Jerry Speziale; the Saddle Brook Police Department, under the direction of Chief Robert Kugler; the Clifton Police Department, under the direction of Chief Mark Centurione; and the Passaic Police Department, under the direction of Chief Luis A. Guzman, for their assistance.
In addition, the investigation was aided by the FBI Violent Crime Task Force, which is comprised of law enforcement personnel from the Bergen County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Roxbury Police Department, the Paterson Police Department, and the N.J. State Police.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Former New York Investment Broker Admits Accepting Hundreds of Thousands of Dollars in Bribes in Exchange for StockRead the Press Release
TRENTON, N.J. - A former broker of two New York investment banking firms today admitted accepting hundreds of thousands of dollars in bribe payments in exchange for more favorable stock allocations, Acting U.S. Attorney William E. Fitzpatrick announced.
Brian M, Hirsch, 42, of Farmingdale, New York, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of violating the Travel Act by engaging in a commercial bribery scheme.According to documents filed in this case and statements made in court:
Hirsch was employed at the New York offices of two investment banking firms, identified as “Firm A” and “Firm B” in the information. Hirsch was responsible for allocating securities from initial and secondary public stock offerings to the firms’ clients.
Between January 2012 and November 2016, Hirsch accepted numerous cash kickbacks from three individuals – identified in the information as “CC#1,” “CC#2,” and “CC#3” – in exchange for securities from public stock offerings marketed by Firms A and B. The kickback payments were based on an agreed-upon percentage of the profits that CC#1, CC#2, and CC#3 would make from the stock offerings.
Hirsch did not disclose any of these payments to Firms A and B and took steps to conceal his corrupt arrangements with CC#1, CC#2, and CC#3. For instance, Hirsch signed periodic certifications to Firm A falsely representing that he had complied with the firm’s prohibition on “quid pro quo” arrangements or similar pre-determined agreements with investor clients in connection with stock allocations. Hirsch also falsely certified that he had complied with Firm A’s policies concerning conflicts of interest. Hirsch made similar misrepresentations and omissions to Firm B.
Over the course of the scheme, Hirsch accepted between $550,000 and $1.5 million in kickback payments from CC#1, CC#2, and CC#3.
Hirsch faces a maximum potential penalty of five years in prison and a $250,000 fine. Hirsch also agreed to pay a forfeiture money judgment in an amount to be determined prior to or at the time of sentencing, which is currently scheduled for Apr. 11, 2018.
In a separate civil action, the U.S. Securities and Exchange Commission (SEC) today filed a complaint against Hirsch in Trenton federal court.
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Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s guilty plea. He also thanked the SEC’s New York Regional Office for its assistance.The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit in Newark.
Defense counsel: Elliot G. Sagor Esq., New York
Cherry Hill Doctor and Son Sentenced to Prison for Defrauding MedicareRead the Press Release
CAMDEN, N.J. – A doctor and his chiropractor son were sentenced to prison today for conspiring to defraud Medicare by using unqualified people to give physical therapy to Medicare recipients, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Claude McGrath D.O., 66, and his son Robert Christopher McGrath, 48, both of Cherry Hill, New Jersey, were sentenced to 30 and 12 months in prison, respectively. Both defendants previously pleaded guilty before U.S. District Judge Robert B. Kugler to separate informations charging them each with conspiracy to commit health care fraud. Judge Kugler imposed both sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
The McGraths owned and operated Atlantic Spine & Joint Institute, a medical practice with offices in Westmont, New Jersey, and Wayne, Pennsylvania. Under Medicare rules, physical therapy had to be provided by Robert Claude McGrath or by a trained physical therapist under his supervision. However, from January 2011 through April 2016, the McGraths sought to defraud Medicare by employing unlicensed, untrained persons to give physical therapy to Medicare patients, at times when Robert Claude McGrath was not even in the office to supervise. They then submitted bills to Medicare fraudulently identifying Robert Claude McGrath as the provider of physical therapy.
In addition to the prison terms, Judge Kugler sentenced both defendants to three years of supervised release and ordered them to pay restitution of $890,000.
In a related civil settlement that was announced at the time of their guilty pleas, the McGraths and Atlantic Spine agreed to pay $1.78 million plus interest to the federal government to resolve allegations that the fraudulent bills submitted under the McGraths’ scheme caused false claims to be submitted to Medicare in violation of the False Claims Act.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and special agents from the Food and Drug Administration, Office of Criminal Investigations, under the direction of Special Agent in Charge Mark S. McCormack, with the investigation.
Assistant U.S. Attorneys R. David Walk Jr. and Andrew A. Caffrey III of the U.S. Attorney’s Office Health Care and Government Fraud Unit represented the government in the criminal case and the civil case, respectively.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-along 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 $1.33 billion in health care 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:
Robert Christopher McGrath and Atlantic Spine & Joint Institute: Riza I. Dagli Esq., Roseland, New Jersey.
Robert Claude McGrath: Perry Primavera Esq., Hackensack, New JersePennsylvania Man Admits Trading on Inside Information Related to Mercer County, New Jersey, Pharmaceutical CompanyRead the Press Release
NEWARK, N.J. – A Yardley, Pennsylvania, man today admitted his role in an insider trading conspiracy that profited from yet-to-be public information concerning a pharmaceutical company that developed a drug to treat cancer, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel Perez, 28, pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of securities fraud.
According to documents filed in the case and statements made in court:
Celator Pharmaceuticals Inc. (Celator) was a biopharmaceutical company headquartered in Ewing Township, New Jersey, that developed the drug Vyxeos to treat acute myeloid leukemia. In December 2012, Celator began Phase 3 clinical trials for Vyxeos, the results of which were highly confidential within the company. On March 14, 2016, Celator issued a press release announcing that the clinical trial results were positive.
Prior to the March 2016 announcement, Evan Kita, 27, of Yardley, who was a Celator employee from June 2013 through April 2016, learned that the Vyxeos clinical trials had produced positive results. Kita then shared that information with Perez and Richard Yu, 27, of Pennington, New Jersey, who both traded on the information.
On May 31, 2016, Celator and Jazz Pharmaceuticals PLC (Jazz) – a publicly-traded company headquartered in Dublin, Ireland – announced that they had entered an agreement for Jazz to purchase Celator in a transaction valued at approximately $1.5 billion. Jazz completed the acquisition of Celator in 2016, and now operates Celator as a wholly-owned subsidiary.
Kita learned of the potential acquisition prior to the public announcement from two close friends who still worked at Celator. Again, Kita shared the information with Perez and Richard Yu, who both traded on the information. Richard Yu, in turn, shared the information with his father, Chiang Yu, 55, of Pennington, who also traded on the information.
Perez admitted that the gain resulting from his insider trading scheme was more than $150,000, but less than $250,000.
The securities fraud charge carries a potential penalty of 20 years in prison and a $5 million fine. Kita, Richard Yu, and Chiang Yu pleaded guilty to their roles in the scheme on Aug. 31, 2017. Sentencing for all four defendants is currently set for April 18, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the SEC for the assistance provided by its Market Abuse Unit, under the direction of Joseph Sansone, and its Philadelphia Regional Office, under the direction of G. Jeffrey Boujoukos.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Louis R. Busico Esq., Newton, Pennsylvania
Middleman in Fraudulent Money Order Cashing Scheme Pleads GuiltyRead the Press Release
CAMDEN, N.J. – A Knoxville, Tennessee, resident today admitted recruiting individuals to cash fraudulent money orders that he received from a former South Jersey U.S. Postal Service (USPS) employee, Acting U.S. Attorney William E. Fitzpatrick announced.
Eugene Bowen, 35, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States.
According to the documents filed in this case and statements made in court:
Bowen admitted that Marc Saunders, 39, of Sicklerville, New Jersey, a former employee at the USPS branch in New Lisbon, New Jersey, provided him with stolen money orders and told him to recruit others to cash them. Bowen admitted that he recruited individuals to cash the money orders and paid them a small fee, while keeping the rest of the money for Saunders and himself.
The charge for transmitting and presenting unlawfully issued USPS money orders carries a maximum penalty of five years in prison and $250,000 fine. Bowen’s sentencing is scheduled for March 21, 2018.
On Dec. 12, 2017, Saunders pleaded guilty to his role in the scheme, including producing the money orders with a stolen imprinting machine and giving them to others to cash. His sentencing is set for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: John Brennan Esq., Marlton, New Jersey
Justice Department Announces Charges and Guilty Pleas in Three Computer Crime Cases Involving Significant Cyber AttacksRead the Press Release
Defendants Responsible for Rutgers University Hack, Creating Mirai and clickfraud Botnets, Infecting Hundreds of Thousands of Devices with Malicious Software
TRENTON, N.J. – The Justice Department announced today guilty pleas in three cybercrime cases. In the District of New Jersey, one defendant also pleaded guilty to launching a cyber attack on the Rutgers University computer network, and in the District of Alaska, that defendant and two others pleaded guilty to creating and operating two botnets, which targeted “Internet of Things” (IoT) devices.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division; U.S. Attorney Bryan D. Schroder of the District of Alaska; and Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage Division and made the announcement.
Paras Jha, 21, of Fanwood, New Jersey, pleaded guilty today before U.S. District Judge Michael Shipp in Trenton federal court in the District of New Jersey to violating the Computer Fraud & Abuse Act. Between November 2014 and September 2016, Jha executed a series of attacks on the networks of Rutgers University. Jha’s attacks effectively shut down Rutgers University’s central authentication server, which maintained, among other things, the gateway portal through which staff, faculty, and students delivered assignments and assessments. At times, Jha succeeded in taking the portal offline for multiple consecutive periods, causing damage to Rutgers University, its faculty, and its students. The count to which Jha pleaded guilty is punishable by a maximum of 10 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain or loss derived from the offense, whichever is greater. Sentencing is scheduled for March 13, 2018.
On Dec. 8, 2017, Jha, Josiah White, 20, of Washington, Pennsylvania, and Dalton Norman, 21, of Metairie, Louisiana, pleaded guilty to criminal informations in the District of Alaska charging them each with conspiracy to violate the Computer Fraud & Abuse Act in operating the Mirai Botnet. In the summer and fall of 2016, White, Jha, and Norman created a powerful botnet – a collection of computers infected with malicious software and controlled as a group without the knowledge or permission of the computers’ owners. The Mirai Botnet, targeted IoT devices – non-traditional computing devices that have been connected to the Internet, including wireless cameras, routers, and digital video recorders. The defendants attempted to discover both known and previously undisclosed vulnerabilities that allowed them to surreptitiously attain administrative or high-level access to victim devices for the purpose of forcing the devices to participate in the Mirai Botnet. At its peak, Mirai consisted of hundreds of thousands of compromised devices. The defendants used the botnet to conduct a number of powerful “distributed denial of service” (DDOS) attacks, which occur when multiple computers acting in unison flood the Internet connection of a targeted computer or computers. The defendants’ involvement with the original Mirai variant ended in the fall of 2016, when Jha posted the source code for Mirai on a criminal forum. Since then, other criminal actors have used Mirai variants in a variety of other attacks.
Jha and Norman also pleaded guilty to criminal informations in the District of Alaska charging each with conspiracy to violate the Computer Fraud & Abuse Act. From December 2016 to February 2017, the defendants successfully infected more than 100,000 primarily U.S.-based Internet-connected computing devices, such as home Internet routers, with malicious software. That malware caused the hijacked home Internet routers and other devices to form a powerful botnet. The defendants then used the compromised devices as a network of proxies through which they routed Internet traffic. The victim devices were used primarily in advertising fraud, including “clickfraud,” a type of Internet-based scheme that utilizes “clicks,” or the accessing of URLs and similar web content, for the purpose of artificially generating revenue.
“Paras Jha has admitted his responsibility for multiple hacks of the Rutgers University computer system,” Acting U.S. Attorney Fitzpatrick said. “These computer attacks shut down the server used for all communications among faculty, staff and students, including assignment of course work to students, and students’ submission of their work to professors to be graded. The defendant’s actions effectively paralyzed the system for days at a time and maliciously disrupted the educational process for tens of thousands of Rutgers’ students. Today, the defendant has admitted his role in this criminal offense and will face the legal consequences for it.”
“Today's guilty plea is a testament to the countless hours of hard work and dedication by law enforcement in the fight against cyber criminals,” FBI Newark Special Agent in Charge Timothy Gallagher said. “Cybercrime knows no boundaries. Dismantling these operations is possible only by working closely with our partners.”
“The Mirai and Clickfraud botnet schemes are powerful reminders that as we continue on a path of a more interconnected world, we must guard against the threats posed by cybercriminals that can quickly weaponize technological developments to cause vast and varied types of harm,” Acting Assistant Attorney General Cronan said. “The Criminal Division will remain constantly vigilant in combating these sophisticated schemes, prosecuting cybercriminals, and protecting the American people.”
For additional information on cybersecurity best practices for IoT devices, please visit: https://www.justice.gov/criminal-ccips/page/file/984001/download .
All three cases were investigated by the FBI. The Rutgers University case is being prosecuted by Assistant U.S. Attorney Shana Chen of the District of New Jersey. The Mirai Botnet and Clickfraud Botnet cases are being prosecuted by Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division. Additional assistance was provided by the FBI Newark Cyber Task Force, Rutgers University Police Department, N.J. State Police, the Federal Protective Service, FBI’s New Orleans and Pittsburgh Field Offices, the U.S. Attorney’s Office for the Eastern District of Louisiana, the United Kingdom’s National Crime Agency, the French General Directorate for Internal Security, the National Cyber-Forensics & Training Alliance, Palo Alto Networks Unit 42, Google, Cloudflare, Coinbase, Flashpoint, Yahoo and Akamai.
Defense counsel: Robert Stahl Esq., Westfield, New Jersey
California Man Sentenced to 46 Months in Prison for Laundering Proceeds from Heroin Trafficking OrganizationRead the Press Release
TRENTON, N.J. – An Anaheim, California, man was sentenced today to 46 months in prison for laundering money on behalf of an international drug trafficking organization, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Madrid, 26, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Count Two of an indictment charging him with conspiracy to launder money. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From June 2014 through November 2014, Madrid conspired with other members of an international drug trafficking organization, which included cells operating in New Jersey, to launder more than $150,000 in United States currency related to the distribution of heroin.
Several of Madrid’s co-defendants have also pleaded guilty before Judge Sheridan and await sentencing. Madrid’s brother, Wilson Madrid, pleaded guilty to conspiracy to launder money. Henry Zamora pleaded guilty to conspiring to distribute four kilograms of heroin that were recovered from a hidden compartment in his vehicle. Dany Francisco-Valerio pleaded guilty to conspiring to distribute 15 kilograms of heroin that were recovered from a hidden compartment in his vehicle when it was stopped in Warren County, New Jersey.
In addition to the prison term, Judge Sheridan sentenced Madrid to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Valerie Nickerson, officers of the N.J. State Police, under the direction of Acting Superintendent Col. Patrick J. Callahan, and officers from the DeKalb, Illinois, police department, under the direction of Chief Gene Lowrey, with the investigation.The government is represented by Assistant U.S. Attorney Thomas S. Kearney and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel: John Holliday Esq., Hamilton, New Jersey
Gloucester County, New Jersey, Man Who Secretly Filmed Girls in His Bathroom Gets 15 Years in PrisonRead the Press Release
CAMDEN, N.J. – A Williamstown, New Jersey, man was sentenced today to 180 months in prison for receiving images and videos of child sexual abuse and for producing child pornography using a hidden camera in his bathroom, Acting U.S. Attorney William E. Fitzpatrick announced.
Eric Ziegler, 39, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of receiving child pornography and one count of possessing child pornography. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Ziegler admitted that from February 2015 through Dec. 3, 2015, he received and possessed multiple images of child sexual abuse over the Internet which he saved to his computer, external hard drives, compact discs and other electronic media located inside his home. Among the content on Ziegler’s devices were images focusing on the genitalia of several girls, which Ziegler admitted producing using a camera hidden in a bathroom at his Williamstown residence.
In addition to the prison term, Judge Rodriguez ordered Ziegler to serve a lifetime of supervised release and pay $215,000 in restitution.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation. He also thanked the Monroe Township Police Department under the direction of Chief John McKeown for its assistance.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense Attorney: Bruce Warren Esq., Sewell, New Jersey
Former South Jersey Letter Carrier Admits Scheme to Steal and Cash Postal Money OrdersRead the Press Release
CAMDEN, N.J. – A Sicklerville, New Jersey, man today admitted his role in a scheme to steal and convert over 100 blank U.S. Postal Service (USPS) money orders, resulting in nearly $100,000 in losses, Acting U.S. Attorney William E. Fitzpatrick announced.
Marc Saunders, 39, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of transmitting and presenting unlawfully issued USPS money orders with intent to defraud the United States.
According to the documents filed in this case and statements made in court:
Saunders was employed as a letter carrier at the USPS branch in New Lisbon, New Jersey.
Saunders admitted that while working at the New Lisbon branch, he stole a money order imprinting machine and more than 100 USPS money orders. Saunders used the machine to produce completed money orders that appeared legitimate, which he then gave to middle men that he recruited. The middle men recruited individuals to cash the money orders for a small fee. The middle men and Saunders kept the rest of the money.
The charge for transmitting and presenting unlawfully issued USPS money orders carries a maximum penalty of five years in prison and $250,000 fine. Sentencing is scheduled for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the USPS, Office of the Inspector General, under the direction of Acting Special Agent in Charge Kenneth M. Cleevely of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Teri S. Lodge Esq., Marlton, New JerseyMember of Multimillion-Dollar, Cross-Country Insider Trading Ring Admits Using Inside InformationRead the Press Release
TRENTON, N.J. – A professional day-trader admitted today to repeatedly trading on inside information related to confidentially marketed stock offerings, personally netting hundreds of thousands of dollars in illicit profits, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Spera, 56, of Boca Raton, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
On numerous occasions between June 2010 and July 2013, Spera and his conspirators short-sold the securities of at least 13 public companies, based on inside information obtained by Spera’s conspirator, Steven Fishoff, and others.
For each of these offerings, Fishoff or other day-traders he employed – including his friend, Ronald Chernin, and his brother-in-law, Steven Costantin – entered into confidentiality or “wall-crossing” agreements as representatives of Fishoff’s trading entities. They agreed not to disclose or trade on inside information concerning the offerings, such as the name of the issuers and the timing and pricing of the transactions, and were “brought over the wall” for the narrow purpose of determining whether to purchase the offered securities. Spera himself entered into a confidentiality agreement and was brought over the wall in connection with one of the offerings.
Spera admitted that in breach of the wall-crossing agreements, Fishoff allegedly tipped Spera, directly or through his conspirator, Paul Petrello, with the inside information about the confidentially marketed offerings. Specifically, he allegedly advised Spera of the stock trading symbols of the companies, and the timing and sometimes the pricing of the upcoming offerings. Spera also received the inside information directly from the issuer for one of the offerings.
Based on this inside information, Spera shorted the stock of the public companies in anticipation of a drop in the stocks’ price when the offerings were disclosed to the public. Spera and his conspirators traded through the accounts of their respective trading entities or through related accounts that they controlled, shorting the securities and covering the short positions after the stocks offerings were publicly announced.
By trading on this valuable, nonpublic information in violation of the confidentiality agreements, Spera and his conspirators made more than $3.9 million in profits over the course of the three-year scheme, with Spera personally making more than $768,000. Spera allegedly split his profits with Fishoff, generally on a 50-50 basis, as compensation to Fishoff for the inside information that he provided.
Spera faces a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy count and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities fraud count. Spera also agreed to pay a forfeiture money judgment of $768,766. He is scheduled to be sentenced April 12, 2018.
In a separate civil action, the U.S. Securities and Exchange Commission (SEC) today filed a complaint against Spera in Trenton federal court.
Fishoff has been indicted, and his trial is scheduled for March 19, 2018. Chernin, Costantin and Petrello have pleaded guilty for their involvement in the scheme and await sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the SEC’s New York Regional Office for its assistance.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu, Chief of the Asset Recovery and Money Laundering Unit, Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Recovery and Money Laundering Unit.
Defense counsel: Alain Leibman Esq., Princeton, New Jersey
U.S. Army Employee at Picattiny Arsenal Indicted for Conspiring to Defraud the United States, Engaging in Kickback Scheme, Traveling to Promote Bribery and Obstructing JusticeRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged today in connection with his role in two conspiracies in connection with construction projects at Picattiny Arsenal (PICA) and at the Joint Base McGuire-Dix Lakehurst (Ft. Dix) and for endeavoring to obstruct justice, Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Joseph Leondi, 57, was indicted by a federal grand jury in Newark on a charge of conspiring to defraud the United States in connection with his acceptance of repeated bribes given by other conspirators to influence Leondi to take official action for the benefit of his conspirators and their companies and to violate his duties as an employee of the U.S. Army. He is also charged with causing another to travel across state lines to facilitate a portion of this bribery scheme and with conspiring to steer kickbacks from one conspirator to another in connection with the award and administration of a prime contractor’s subcontracts.
Leondi had been charged in March 2017 with conspiring to defraud the United States through bribes and contactor kickbacks in connection with the conduct that now is charged in the indictment. He currently remains free on bail.
According to documents filed in this case and statements made in court:
Leondi was employed by the U.S. Army’s Contracting Command in New Jersey and represented the Army with respect to renovation projects at PICA and Ft. Dix. There was a construction company referred to as Construction Company No. 1 in the indictment, which served as a Job Order Contractor, also known as a “prime contractor,” for construction projects at PICA and Ft. Dix. James Conway was employed by Construction Company No. 1 as a regional project manager of large-scale construction projects at PICA and Ft. Dix. George Grassie ran a construction, excavation and landscaping business in Pennsylvania that did subcontracting work at the bases.
From December 2010 through August 2015, Leondi allegedly conspired with Conway and Grassie to accept more than $125,000 in bribes from them in return for task orders and other favorable assistance at the bases and in not denying them future work. The bribes included direct cash payments to Leondi (in one instance Conway traveled from New Jersey to Pennsylvania to pay Leondi $5,000 in cash). In some instances, Leondi and the conspirators would disguise the bribes in the form of facially legitimate transactions, with Leondi buying vehicles and equipment from the conspirators at cut-rate prices or selling them equipment at inflated prices. In another instance, Leondi had Grassie absorb the costs that another contractor incurred in renovating Leondi’s property in East Stroudsburg, Pennsylvania.
Leondi also allegedly conspired to steer at least $46,000 in corporate kickbacks from Grassie to Conway to improperly obtain and reward Conway for his giving subcontracts and other favorable assistance to Grassie relating to Conway’s employer’s contracts with the federal government at PICA and Fort Dix.
As alleged in the indictment, Leondi also endeavored to obstruct the federal grand jury investigation by submitting a false document to federal authorities in response to a federal grand jury subpoena in order to conceal part of his bribe-taking involving Grassie.
Grassie pleaded guilty to one count of conspiracy and one count of providing unlawful kickbacks in February 2017 for his role in the bribery and kickback conspiracies. Conway pleaded guilty to accepting unlawful kickbacks and a wire fraud charge involving other fraudulent conduct in August 2016. Both cases are pending before U.S. District Judge Susan D. Wigenton.
The conspiracy charges and the travel in aid of bribery charge each carry a maximum penalty of five years in prison; the obstruction of justice charge carries a maximum penalty of 10 years in prison. Each charge carries a maximum $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction Special Agent in Charge Leigh-Alistair Barzey, Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Barbara Llanes, Chief of the General Crimes Unit, in Newark.
Passaic County, New Jersey, Man Sentenced to 37 Months in Prison for Taking Bribes for Referring Tests to New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor with a practice in West New York, New Jersey, was sentenced today to 37 months in prison for accepting bribes in exchange for test referrals as part of a long-running scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Jorge J. Figueroa, 59, of Wayne, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to accepting bribes. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Figueroa admitted that he had accepted checks, cash and other bribe payments totaling approximately $200,000 from BLS employees and associates between May 2007 and April 2013. In exchange, Figueroa generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 51 convictions – 37 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.
In addition to the prison term, Judge Chesler sentenced Figueroa to one year of supervised release and fined him $7,500. He must also forfeit $199,899.
U.S. Attorney Fitzpatrick credited special agents of the New Jersey FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph V. Cronin in Newark, with the ongoing investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, deputy chief of the asset forfeiture program.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud 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 $1.37 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.
Senior Member of Drug Trafficking Organization Sentenced to 12 Years in Prison for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A senior member of a large-scale drug trafficking organization was sentenced today to 12 years in prison for distributing heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Britt, a/k/a “True,” 45, of Asbury Park, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an indictment charging him with conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
Between March and May 2014, 21 other individuals, including numerous members of the drug trafficking organization, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after two of its leading members, Britt and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.”
According to documents filed in the case and statements made in court:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO. During his plea hearing, Britt admitted that he distributed between one and three kilograms of heroin in furtherance of the conspiracy and that he served as a manager or supervisor of the conspiracy.
In addition to the prison term, Judge Sheridan sentenced Britt to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Alyssa A. Cimino Esq., Fairfield, New Jersey
Bergen County, New Jersey, Man and Woman Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – An Oradell, New Jersey, man and a Hasbrouck Heights, New Jersey, woman, were charged today for their alleged roles in a Bergen County bank robbery, Acting U.S. Attorney William E. Fitzpatrick announced.
Joel Robbins, 47, and Wanda Soel, 52, were arrested Dec. 3, 2017, and are scheduled to make their initial appearances today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court. They are each charged by complaint with one count of bank robbery.According to documents filed in this case and statements made in court:
On Dec. 3, 2017, Robbins allegedly robbed the TD Bank in Mahwah, New Jersey. According to video surveillance and witness reports, Robbins walked into the bank wearing gray pants, a black jacket, sunglasses, a dark skull cap, and light-colored latex gloves. As he entered the bank, Robbins pulled a bandana over his face. Soel allegedly waited for Robbins in a Toyota Corolla parked outside the bank.
Robbins pulled a black handgun (later determined to be fake) from his waistband and pointed it at two bank tellers, who said Robbins demanded money from them and warned them not to “make me have to kill you.” The tellers complied and handed Robbins money. Robbins took the money and walked out of the bank, dropping several bills as he departed.
Robbins allegedly got into the passenger seat of the Corolla and Soel drove away. Nearby law enforcement officers, who had received a report of the bank robbery while it was in progress, pursued the Corolla. Soel drove into the parking lot of a nearby hotel, where she and Robbins tried to switch places so Robbins could drive. When Soel got out of the Corolla, she tripped and fell, and Robbins drove away without her. Law enforcement officers arrested Soel in the hotel parking lot.
Robbins drove out of the hotel parking lot but eventually hit a curb, blew a tire, and crashed. Law enforcement officers caught up to the Corolla and arrested Robbins. They recovered U.S. currency sticking out of Robbins’s pants and other cash bills strewn inside the Corolla, along with a fake black handgun. Officers also recovered sunglasses, a bandana, a dark knit cap, and latex gloves from the Corolla, resembling the items Robbins was seen wearing when he robbed the bank. Robbins was wearing a black jacket when he was arrested.
The count of bank robbery with which Robbins and Soel are charged carries a maximum punishment of 20 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charge. He also thanked the Mahwah Township Police Department for its contribution to the case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Commercial Construction Estimator Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A South Jersey man today admitted defrauding New Jersey state health benefits programs and other insurers of $800,000 by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and N.J. Attorney General Christopher S. Porrino announced.
Timothy Frazier, 42, a commercial construction estimator from Galloway, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
From January 2015 through April 2016, Frazier served as a recruiter in the conspiracy and persuaded 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.” The conspirators learned that certain compound medication prescriptions – 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 some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy 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 Pharmacy Benefits Administrator would pay prescription drug claims and then bill the State of New Jersey for the amounts paid.
Frazier and others recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy, which were not medically necessary. Frazier secured insurance information from the individuals and passed it along to a conspirator, who had a doctor sign prescriptions 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 Frazier’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Frazier and other members of the conspiracy. Frazier paid recruiters under him and paid individuals with insurance coverage to reward them for obtaining prescriptions.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy more than $50 million for compounded medications mailed to individuals in New Jersey. Frazier received $145,425 for his role in the scheme.
As part of the plea agreement, Frazier must forfeit $145,425 in criminal proceeds and pay restitution of at least $801,119.
The defendant faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 29, 2017.
Eleven other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, Richard Zappala, Michael Neopolitan, and Andrew Gerstel – have pleaded guilty from August through November 2017 and await sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher 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, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Porrino 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: Robert G. Stahl Esq., Westfield, New Jersey
New York Woman Admits Fraud in Investment SchemeRead the Press Release
NEWARK, N.J. – A New York woman today admitted running an investment scheme that defrauded victims of hundreds of thousands of dollars, Acting U.S. Attorney William E. Fitzpatrick announced.
Alisa Adler, 57, of New York, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with two counts of wire fraud.
According to documents filed Information:
From January 2009 through August 2014, Adler took loans and investments from multiple victims and told them that their money would be used for certain specified investments through her company, ASG Real Estate Services Group Inc. To induce potential victim investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time. Adler did not use the majority of invested funds for the specific real estate investments she had presented to the investors. Instead, she used it to, among other things, repay prior investors and pay her own personal expenses.
Each count of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of the loss caused by the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Jacob Laufer Esq., New York
Essex County, New Jersey, Man Sentenced to 79 Months in Prison for Fall 2016 Bank Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 79 months in prison for robbing five banks in October and November 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Jermaine Mason, a/k/a “Asim Harris,” 40, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with five counts of bank robbery. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court, Mason robbed the following banks on the dates set forth below:
Bank
Location
Date
Kearny Bank
Harrison
Oct. 21, 2016
PNC Bank
Jersey City
Nov. 3, 2016
Popular Community Bank
Newark
Nov. 17, 2016
Provident Bank
Jersey City
Nov. 18, 2016
Provident Bank
Kearny
Nov. 29, 2016
Mason admitted that during each of the above robberies, he either presented a note demanding cash from bank tellers or verbally demanded money.
In addition to the prison term, Judge Martini sentenced Mason to three years of supervised release and ordered him to pay $16,429 in restitution.
Mason was originally arrested by state authorities on Nov. 30, 2016 and has been in custody since that time. Prior to his arrest, he was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
New York Man Sentenced to 110 Months in Prison for Illegal Firearms PossessionRead the Press Release
TRENTON, N.J. – A Bronx, New York, man was sentenced today to 110 months in prison for knowingly possessing two handguns despite being a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Jamal Williams, 41, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with being a felon in possession of a firearm. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Nov. 11, 2014, law enforcement officers arrested Williams in Trenton. After searching his residence and a storage unit he rented, they found two 9mm Ruger pistols and 16 rounds of ammunition. Williams had previously been convicted of narcotics trafficking and unlawful weapons possession felonies in New Jersey and New York state courts.
Acting U.S. Attorney Fitzpatrick credited special agents with the DEA, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, and the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.Defense counsel: David R. Oakley Esq., Princeton, New Jersey
Former Chief Financial Officer of New Jersey Orthopedic Care Provider Admits Embezzling over $1 MillionRead the Press Release
Newark, N.J. – The former chief financial officer of a New Jersey orthopedic care provider today admitted stealing over $1 million from the company for his personal use, Acting U.S. Attorney William E. Fitzpatrick announced.
Harry Wolfmuller, 70, formerly of Belmar, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi 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:
From 2007 through 2015, Wolfmuller was employed as the chief financial officer for “Company A,” an orthopedic care provider with offices in Ocean and Monmouth Counties. As such, Wolfmuller controlled Company A’s bank accounts and financial records.
Wolfmuller cashed checks from Company A’s business accounts to pay for unapproved personal expenses, including meals at restaurants, golf, gambling and lottery tickets. Wolfmuller then misrepresented the nature of these transactions in Company A’s accounting records to make them appear as legitimate business expenses. Altogether Company A lost approximately $1,175,720 as a result of Wolfmuller’s conduct.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of the plea agreement, Wolfmuller must pay $1,175,720 in restitution. Sentencing is scheduled for March 13, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit in Newark.
Defense Counsel: Salvatore T. Alfano Esq. and Louis Esposito Esq.
Former Jersey City, New Jersey, Official Admits Accepting BribeRead the Press Release
NEWARK, N.J. – A former employee at the Jersey City tax assessor’s office admitted accepting a cash bribe in exchange for changing the tax description for a Jersey City property, Acting U.S. Attorney William E. Fitzpatrick announced.
Bennie Anderson, 60, of Jersey City, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of attempting to obstruct, delay and affect interstate commerce by extortion under color of official right.
According to documents filed in this case and statements made in court:
Jersey City tax descriptions reference how many units a particular property can have. Owners who wanted to change a property’s tax description would have to seek approval from the Jersey City zoning board. The tax assessor's office would change the tax description only if the zoning board approved a zoning variance.
Anderson, by virtue of his position, had the ability to improperly change the tax description without going through the required process. In December 2012, Anderson changed the tax description of a particular property from two to three units in exchange for a cash bribe from the owner.
The extortion count to which Anderson pleaded guilty is punishable by up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 5, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Gerald Miller Esq., Jersey CityFairlawn, New Jersey, Tax Preparer Gets 13 Months in Prison for Tax FraudRead the Press Release
NEWARK, N.J. – A tax preparer was sentenced today to 13 months in prison for preparing fraudulent income tax returns on behalf of her clients, causing losses of over $130,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Shirley Arias, a/k/a “Shirley Zambrano,” 43, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of aiding and assisting others in the preparation of false and fraudulent tax returns. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Arias was an owner and operator of Santos & Associates in Union City, New Jersey. For the tax years 2012 through 2014, Arias assisted in the filing of income tax returns based on false information. She used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for her clients in amounts greater than those to which they were entitled. The bogus returns resulted in a tax loss to the government of approximately $130,279.
In addition to the prison term, Judge Salas sentenced Arias to one year of supervised release and ordered her to pay restitution of $130,279.Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin, with the investigation. He also thanked special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office in Newark.
Defense counsel: Katey Theurer Esq., Jersey City, New Jersey