District of New Jersey
Press releases recorded for this federal judicial district.
New York Man Sentenced to 43 Months in Prison for Robbing Bergen County, New Jersey, BankRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 43 months in prison for robbing a bank in Fort Lee, New Jersey, in January 2017, Acting U.S. Attorney William E. Fitzpatrick announced.
Isaac Nesbit, 30, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of bank robbery. Judge Salas imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Nesbit admitted that on Jan. 20, 2017, he robbed a Bank of New Jersey branch in Fort Lee. Nesbit admitted that he handed a teller a hand-written note demanding cash and threatening to shoot everyone in the bank if the teller did not comply.
In addition to the prison term, Judge Salas sentenced Nesbit to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Former Postal Supervisor Admits Theft of Government PropertyRead the Press Release
CAMDEN, N.J. – A Delran, New Jersey, man who worked for the U.S. Postal Service (USPS) today admitted to stealing postal service funds, Acting U.S. Attorney William E. Fitzpatrick announced.
Amar D. Patel, 36, pleaded guilty before U.S. District Noel L. Hillman in Camden federal court to an information charging him with one count of embezzling, stealing, purloining, and knowingly converting to his own use USPS funds in excess of $1,000.
According to documents filed in this case and statements made in court:
In July 2016, the U.S. Postal Service Office of Inspector General started investigating shortages in cash deposits reported by the Riverside, New Jersey, Delanco, New Jersey, and Delran post offices. Patel – who was a supervisor at those three offices – had access to deposit bags containing cash acquired during retail operations.
Agents installed covert surveillance cameras inside the Riverside post office. On Jan. 14, 2017, one of the surveillance cameras captured images of Patel tearing open a sealed deposit bag, removing cash deposits, and placing the funds into his pocket. According to U.S. Postal Service financial records and bank deposit records, the Riverside office’s deposit was short $1,650 on Jan. 14, 2017.
As part of his plea, Patel admitted stealing a total of $15,700 in U.S. Postal Service funds on 12 separate occasions from Feb. 20, 2016, through Jan. 14, 2017.
The count to which Patel pleaded guilty is punishable by a maximum of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Postal Service Office of Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Doctor Admits Billing Medicare, Other Insurers $3 Million for Therapy Services Performed by Unqualified PersonnelRead the Press Release
NEWARK, N.J. – A doctor with offices in Paterson, New Jersey, Passaic, New Jersey, and Elizabeth, New Jersey, today admitted defrauding Medicare and private insurance companies out of $3 million by billing for more than 150,000 physical therapy sessions that were performed by unlicensed and unqualified personnel, Acting U.S. Attorney William Fitzpatrick announced.
Anthony J. Enrico, 60, of North Haledon, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of health care fraud.
According to the documents filed in the case and statements made in court:
From January 2007 through May 2016, Enrico billed Medicare and other health insurance providers for physical therapy services that he supposedly provided to his patients. In order for them to be reimbursable, Medicare and private insurers required that physical therapy services be performed only by individuals like Enrico who met certain criteria based on training and certifications.
Enrico admitted that on more than 150,000 occasions, those services were performed at his direction by individuals who lacked the necessary training and certifications, resulting in him fraudulently obtaining approximately $3 million from Medicare and private insurers.
Enrico faces a maximum potential penalty of 10 years in prison and a fine of up to twice the loss caused by the offense. As part of his plea agreement, Enrico must also pay restitution of $3 million. Sentencing is scheduled for Jan. 25, 2018.Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott Lampert, and the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Senior Litigation Counsel Joseph N. Minish of the U.S. Attorney’s Health Care and Government Fraud Unit and Assistant U.S. Attorney Elaine Lou of the U.S. Attorney’s Office Criminal Division.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 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: Christopher D. Adams Esq., Holmdel, New JerseyTwo Women Charged with Robbing Bergen County BankRead the Press Release
NEWARK, N.J. – Two women appeared in federal court today to face allegations that they robbed a Spencer Savings Bank in Garfield, New Jersey, at gunpoint, Acting U.S. Attorney William E. Fitzpatrick announced.
Swahilys Pedraza-Rodriguez, 19, of New Haven, Connecticut, and Melisa Aquino Arias, 23, of Passaic, New Jersey, are charged by complaint with one count of bank robbery. Both defendants made their initial appearances this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and were detained.
According to the complaint:
On Sept. 27, 2017, Pedraza-Rodriguez and Arias allegedly entered a Spencer Savings Bank in Garfield and asked a bank teller for information about opening a bank account. Soon after, Arias, who was wearing a blue hijab, took out a black handgun and demanded money, while Pedraza-Rodriguez stood guard by the bank manager. After a bank teller handed them some cash, the defendants left the bank, and employees immediately alerted the police. Law enforcement officers responded to the scene, but did not immediately locate the robbers.
On Oct 15, 2017, Pedraza-Rodriguez and Arias allegedly entered an NVE Bank in Teaneck, New Jersey. Arias wore an orange hijab and Pedraza-Rodriguez wore a black head covering. They approached a bank employee and requested information about opening a bank account. The employee recognized the women as the alleged perpetrators of the Garfield bank robbery. As the employee went to alert the police, the women left the bank. Pedraza-Rodriguez and Arias were apprehended soon after by law enforcement officers.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from 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; the Garfield Police Department, under the direction of Chief Raymond Kovach; the Teaneck Police Department, under the direction of Chief Glenn M. O'Reilly; and the Leonia police department, under the direction of Chief Thomas P. Rowe, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Pedraza-Rodriguez: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Arias: Julian Wilsey Esq., Livingston, New Jersey
Three New York Doctors Sentenced to Prison for Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – Three doctors were each sentenced today to over two years in prison for taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
George Roussis, 45, and Nicholas Roussis, 49, both of Staten Island, New York, were sentenced to 37 and 24 months in prison, respectively. Ricky J. Sayegh, 45, of Scarsdale, New York, was sentenced to 30 months in prison. All three defendants previously pleaded guilty before U.S. District Judge Stanley R. Chesler to separate informations charging them with accepting bribes in violation of the Federal Travel Act. Judge Chesler imposed the sentences today in Newark federal court.
According to documents filed in these cases and statements made in court:
George Roussis, a pediatrician, and his brother, Nicholas Roussis, an obstetrician-gynecologist, both with practices in Staten Island, accepted cash payments totaling approximately $175,000 from BLS employees and associates between October 2010 and April 2013. In addition, at the request of the Roussis brothers, BLS paid for strip club trips, including paying women to perform lap dances and engage in sex acts with George and Nicholas Roussis. In exchange, George and Nicholas Roussis referred their patients’ blood specimens to BLS, generating more than $1,450,000 and $250,000 of lab business for BLS, respectively.
Sayegh, an internal medicine doctor practicing in Yonkers, New York, accepted cash bribes in return for referring blood specimens to BLS. From February 2010 through April 2013, Sayegh received bribes totaling approximately $400,000 from BLS employees and associates. Sayegh’s referrals generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 50 convictions – 36 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 terms, Judge Chesler sentenced each defendant to a year of supervised release. He also ordered that George Roussis, Nicholas Roussis, and Sayegh pay fines of $7,500, $5,000, and $10,000, respectively.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Joseph W. Cronin; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman, Senior Litigation Counsel Joseph N. Minish and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
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 $1.34 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel:
George Roussis: Peter Bennett Esq., Red Bank, New Jersey
Nicholas Roussis: Joseph R. Corozzo Esq., New York, New York
Sayegh: Michael Bachner Esq., New York
Trenton Man Admits Role in Conspiracy to Distribute and Possess with Intent to Distribute CocaineRead the Press Release
TRENTON, N.J. – A Trenton man today admitted his role in a conspiracy to distribute and possess with intent to distribute more than 1.5 kilograms of cocaine and more than 122 grams of cocaine base, Acting U.S. Attorney William E. Fitzpatrick announced.
Khalfini Richardson, 33, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of an indictment charging him with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.
According to the documents filed in this case and statements made in court:
From September of 2013 through Jan. 13, 2016, Richardson conspired with co-defendants Bobby Williams, William Enmond and Capitol T. Wellons to distribute cocaine, and to manufacture and distribute cocaine base, primarily from two adjacent residences in Trenton. On May 8, 2015, Richardson cooked powder cocaine into cocaine base inside one of the Trenton residences and sold approximately 40 grams of it to a confidential government source for $1,800. Richardson admitted to conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and to conspiring to manufacture as well as distribute, and possess with intent to distribute, 122.6 grams of cocaine base.
The count to which Richardson pleaded guilty is punishable by a maximum penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 17, 2018.
Enmond previously pleaded guilty before Judge Ship and was sentenced July 21, 2017, to five years in prison. The charges and allegations against Williams and Wellons are merely accusations, and they are considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Molly Lorber and Senior Litigation Counsel Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brynn Giannullo Esq., New Brunswick, New Jersey
Former Settlement Agent Convicted of Mortgage Fraud and Tax EvasionRead the Press Release
NEWARK, N.J. – A former settlement agent from Wyckoff, New Jersey, was convicted at trial today on charges related to the refinancing of properties in Bergen and Morris Counties, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Andreotti, 46, was found guilty on all six counts of an indictment charging him with bank fraud, conspiracy to commit bank fraud, tax evasion, and failure to file tax returns. He was convicted following a two-week trial before U.S. District Judge Susan D. Wigenton in Newark federal court. The jury deliberated one and a half hours before returning its verdict.
According to documents filed in this case and the evidence at trial:
In January 2010, Andreotti submitted a loan application to a bank requesting $625,000 to refinance the mortgage on his house in Wyckoff. Andreotti, who owned and operated Metropolitan Title and Abstract (Metropolitan), used Metropolitan as the settlement agent on the transaction. After the bank transferred the $625,000 for the refinance to Metropolitan’s escrow account, Andreotti spent the money on personal expenses instead of paying off the first mortgage on the house.
In April 2011, Andreotti conspired with another individual who worked as a real estate attorney to obtain $480,000 by claiming that the money would be used to refinance the mortgage on the attorney’s house in Montville, New Jersey. After the bank transferred the money for the refinance to Metropolitan’s escrow account, Andreotti kept $110,000 for himself before transferring the remaining funds to the other conspirator.
In 2010, the IRS initiated collection actions against Andreotti for unpaid personal income taxes. Despite numerous liens and levies and having five rental income properties in addition to his primary residence, Andreotti continued to evade his taxes. He also failed to file tax returns for the tax years 2010 and 2011.
The bank fraud counts are each punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The tax evasion count is punishable by a maximum potential penalty of five years in prison and a $100,000 fine. The counts of failure to file tax returns are each punishable by a maximum potential penalty of one year in prison and a $25,000 fine. Sentencing is scheduled for Jan. 23, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited special agents of the Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Steven Perez in Newark; special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; and investigators with the U.S. Attorney’s Office, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Shana Chen in Newark and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing and Finance Agency – Office of Inspector General.Defense counsel: John P. McGovern Esq. and Christopher Dunn Esq., of Newark.
Atlantic County, New Jersey, Man Sentenced to 10 Years in Prison for Trafficking CocaineRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 120 months in prison for his role in a cocaine distribution conspiracy operating in the Atlantic County, Acting U.S. Attorney William E. Fitzpatrick announced.
Kabaka Atiba, a/k/a “Clarence Nixon,” 47, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to Count 2 of a second superseding indictment charging him with distribution and possession with intent to distribute cocaine. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
The conspiracy that Atiba participated in involved the trafficking of more than 100 kilograms of cocaine. Atiba and other members of the conspiracy used residences in Pleasantville, New Jersey, and Absecon, New Jersey, to store and package cocaine and crack cocaine.
Atiba was supplied with cocaine by his half-brother, Tozine Tiller, 43, of Absecon, and others, and was personally responsible for distributing in excess of 840 grams of crack cocaine from February 2010 through Dec. 10, 2014.
In addition to the prison time, Judge Simandle sentenced Atiba to three years of supervised release.
To date, 12 individuals have been charged for their roles in the drug trafficking conspiracy. All of those charged, with the exception of one defendant who remains a fugitive, have been convicted. Five defendants have been sentenced, including Talib Tiller, 45, of Pleasantville, New Jersey, and Tejohn Cooper, 44, of Galloway Township, New Jersey, who were recently sentenced in September 2017 to 57 and 96 months in prison, respectively.
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 in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski in Newark; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation.
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: David Rudenstein Esq., Philadelphia
Two People Charged with Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – Two people were charged in connection with a drug distribution conspiracy after U. S. Customs and Border Protection (CBP) officers found more than six kilograms of cocaine in neck pillows following their arrival at Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Rafael Francisco Bautista Perdomo, 20, and Brenda Alyssa Mancebo, 20, are each charged by complaint with one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Both appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court and were detained without bail.
According to documents filed in this case and statements made in court:
On Oct. 11, 2017, Perdomo and Mancebo arrived at Newark Liberty on an inbound flight from Las Americas International Airport in Santo Domingo, Dominican Republic. Each brought a neck pillow with them onto the flight as carry-on items.
During a routine baggage screening, CBP officers discovered approximately three kilograms of cocaine sewn inside each of the neck pillows that the defendants were carrying.
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.
Acting U.S. Attorney Fitzpatrick credited officers of CBP, under the direction of Leon Hayward, Acting Director, New York Field Operations, and special agents U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), New Jersey Field Office, under the direction of Acting Special Agent in Charge Debra Parker, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
South Jersey Man Sentenced to 41 Months in Prison for Crack Distribution ConspiracyRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 41 months in prison for his role in a crack cocaine distribution conspiracy operating in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Julian Dickerson, a/k/a “Juelz,” 30, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Dickerson admitted that he was a member of an organization that controlled the distribution of drugs, including crack cocaine, in and around the 1100 block of Lansdowne Avenue in Camden. Dickerson admitted that he was supplied crack cocaine by other members of the conspiracy, which he sold to customers in the area and to an undercover officer on several occasions.
In addition to the prison term, Judge Simandle sentenced Dickerson to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, 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: Michael E. Riley Esq., Mount Holly, New Jersey
Former Employee of Commercial Supply Company Gets A Year in Prison for Fraud, False Testimony Before Grand JuryRead the Press Release
TRENTON, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products to numerous public and private entities, was sentenced today to 12 months in prison for conspiring to defraud customers and lying to a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 44, of South River, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to Counts 1 and 6 of an indictment charging him with conspiracy to commit wire fraud and making false declarations before a grand jury. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Martignetti admitted that from 2011 through 2013, he conspired with others to defraud certain Bayway Lumber customers by providing free items to the customers’ employees and then recouping the cost of the items – plus additional revenue for Bayway Lumber – by overbilling the customers. Martignetti also admitted supplying lower-quality, less expensive plywood to a customer while still charging it for the more expensive, higher-quality plywood that it had ordered.
Martignetti gave a variety of personal items to employees of Bayway Lumber’s customers, including Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, president and partial owner of Bayway Lumber, Martignetti then overbilled those customers. Dattilo kept a running tally of how much Martignetti and others fraudulently billed customers, which many at Bayway Lumber referred to as the “Bank,” to ensure that Bayway Lumber recovered the full cost of the free items.
Martignetti also conspired to provide one Bayway Lumber customer, Consolidated Edison Co. of New York Inc. (Con Edison), with lower-quality wood than it ordered and paid for. When Con Edison ordered plywood that had been graded to meet a certain set of specifications, Martignetti, at Dattilo’s instruction, routinely sent plywood that was of a lower grade or not graded at all, including “reject” plywood, all while still charging Con Edison for the higher-quality plywood.
Martignetti also admitted giving false testimony before a federal grand jury while appearing as a witness under oath in March 2013, including stating that he had never given Bayway Lumber items to City of Elizabeth employees for free, and that Elizabeth was never charged for items that were for Elizabeth employees’ personal use.
In addition to the prison term, Judge Sheridan sentenced Martignetti to three years of supervised release.
Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced in July 2016 to 48 months in prison and ordered to pay $708,386 in restitution.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Michael Waters; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Assistant U.S. Attorney Barbara R. Llanes, Chief of the General Crimes Unit in Newark.
Defense Counsel: Michael Armstrong Esq., Willingboro, New Jersey
Deputy Leader of Violent Grape Street Crips Gang Admits Murder, Attempted Murders, Plot to Kill Witness, as Part of Racketeering ConspiracyRead the Press Release
Plea Calls for Prison Sentence of 39 to 45 Years
NEWARK, N.J. – The second-in-command of the New Jersey set of the Grape Street Crips street gang today admitted his role in committing a murder, participating in numerous attempted murders, plots to kill a state witness and to kidnap a heroin trafficker, and conspiring to distribute heroin, all as part of a racketeering conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Kwasi Mack, a/k/a “Welches,” 28, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to eight counts of the sixth superseding indictment, which charged him with murder and attempted murders as part of a RICO conspiracy, assaults with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon, and conspiracy to distribute one kilogram or more of heroin.
According to documents filed in this case and statements made in court:
Mack admitted that as the second-in-command of the NJ Grape Street Crips he committed the following violent acts in furtherance of the RICO conspiracy:
- In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.
- On Oct. 10, 2011, during an outdoor cookout, Mack used an assault rifle to attempt to kill a gang-member who had previously cooperated in a murder investigation and whose loyalty to the gang was in question. Mack shot eight individuals, at least two of whom suffered permanent or life-threatening injuries.
- After being charged by the Essex County Prosecutor’s Office with the Oct. 10, 2011, attempted murder, Mack was provided during the discovery process with the identity of the only witness against him. Mack ordered fellow gang-members to kill that witness. Gang-members took substantial steps to carry out Mack’s orders, but the murder never took place.
- In 2013, Mack and others planned to kidnap a major heroin-trafficker in order to rob him.
- On Oct. 5, 2013, Mack ordered the murder of a person identified in the indictment as “Victim-1.” On Oct. 27, 2013, following Mack’s orders, several gang-members repeatedly shot Victim-1 and Victim-4.
- On Oct. 7, 2013, Mack and others participated in the attempted murder of rival gang-members in retaliation for the murder of a fellow gang-member.
Mack also admitted to participating in a conspiracy to distribute one kilogram or more of heroin, possessing firearms in furtherance of the RICO and narcotics conspiracies, using minors to commit these offenses, and engaging in these offenses as a pattern of criminal conduct engaged in as a livelihood.
Under the terms of the plea agreement, Mack will be sentenced to 39 to 45 years in prison five years of supervised release. Sentencing is scheduled for March 20, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s guilty plea. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the Criminal Division, and Richard J. Ramsay of the Office’s Appeals Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Robert J. Fettweis, Esq., Moonachie, New Jersey
- In August 2006, Mack used two firearms simultaneously to kill a rival gang-member and, in the process, severely injured an individual who was with the rival.
Camden, New Jersey, Woman Sentenced to Six Years in Prison for Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – A Camden, New Jersey, woman was sentenced today to 72 months in prison for sex trafficking of a minor, Acting U.S. Attorney William E. Fitzpatrick announced.
Aja M. Easley, 24, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging her with one count of sex trafficking of a minor. Judge Sheridan imposed the sentence today in Trenton federal court.
Easley, Aaron J. Gray, 30, of Camden, and Kenneth A. Mertz, 36, of Collingswood, were previously charged in a criminal complaint with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. Gray was also charged in the complaint with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Easley admitted that on March 2, 2015, she communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts and drove the minor to a motel in Cherry Hill for that purpose.
At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts. After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley also told the victim that if any trouble arose, Gray was outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.
The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim.
On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
In addition to the prison term, Judge Sheridan sentenced Easley to five years of supervised release.
Gray previously pleaded guilty to an information charging him with one count of sex trafficking of a minor and was sentenced March 16, 2017, to 151 months in prison. Mertz previously pleaded guilty to an information charging him with one count of violation of the Travel Act. He is scheduled to be sentenced Nov. 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Michael Morell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Office’s Criminal Division in Trenton.
Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey
Pennsylvania Man Admits Kickback Conspiracy Involving Military Parts for the U.S. NavyRead the Press Release
NEWARK, N.J. – The assistant purchasing manager for a company that manufactured military parts for the U.S. Navy today admitted soliciting and receiving kickbacks in return for providing subcontract work to a Cherry Hill, New Jersey, company, Acting U.S. Attorney William E. Fitzpatrick announced.
Christopher Sanchirico, 55, of King of Prussia, Pennsylvania, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with conspiracy to violate the federal anti-kickback act. He was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Sanchirico was the assistant purchasing manager for an entity identified in the information as “Subcontractor 1,” which was located in Philadelphia and manufactured shock-hardened circuit breakers and switchgears for installation on U.S. Navy surface ships, submarines, and aircraft carriers. Subcontractor 1 performed work on multiple U.S. Navy and Defense Logistics Agency maritime contracts as a first-tier subcontractor to a prime contractor working for the United States.
In July 2013, Sanchirico made an agreement with an entity identified in the information as “Subcontractor 2,” a machine shop in Cherry Hill, through Subcontractor 2’s president, identified in the information as “Individual 1.” In return for his assistance in securing a manufacturing contract between Subcontractor 1 and Subcontractor 2, Sanchirico received between five and 10 percent of the gross revenue from circuit breaker and switchgear components that Subcontractor 2 provided to Subcontractor 1. Subcontractor 2’s secretary, identified in the information as “Individual 2,” maintained records of the payments and sometimes made bank withdrawals for the kickbacks when Individual 1 was unable to do so.
From 2013 to 2016, Sanchirico received approximately $150,000 in cash kickbacks from Subcontractor 2.
Sanchirico faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 23, 2018.
Acting U.S. Attorney Fitzpatrick credited agents of the Naval Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont in Newport, Rhode Island, and agents of the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the investigation leading to the guilty plea. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, under the direction of Acting U.S. Attorney Louis D. Lappen, for its assistance.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.
Defense counsel: Michael Drossner Esq., Philadelphia
Member of Camden, New Jersey, Drug Trafficking Organization Sentenced to Eight Years in Prison for Drug DistributionRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 96 months in prison for selling crack cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Nafeez Griffin, a/k/a “Feez,” 31, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of distribution and possession with intent to distribute cocaine base. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Griffin admitted that on Nov. 30, 2015, he sold crack cocaine to an undercover officer on the 1100 block of Lansdowne Avenue, which was then under the control of a drug distribution organization of which he was a member. Griffin also admitted that other members of the organization supplied drugs to him, and that he made sales of crack cocaine on other occasions. Griffin and others 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 two handguns 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 several members of the conspiracy.
In addition to the prison term, Judge Simandle sentenced Griffin to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentencing.
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.
Pharmaceutical Employee Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Montgomery County, Pennsylvania, man today admitted defrauding New Jersey state health benefits programs and other insurers out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Michael Neopolitan, 49, of Willow Grove, Pennsylvania, a pharmaceutical sales representative, 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:
From January 2015 through April 2016, Neopolitan recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” 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 informations 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.
Neopolitan and conspirators working under him recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Neopolitan’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Neopolitan and other members of the conspiracy.
Once he had recruited an employee covered by the Pharmacy Benefits Administrator, Neopolitan would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. He would select the compounded medications that paid the most without regard to their medical necessity.
Neopolitan would then get the prescriptions signed by doctors who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of his plea agreement, Neopolitan must forfeit $198,617.14 in criminal proceeds he received for his role in the scheme and pay restitution of at least $762,519.74.
Neopolitan 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 Jan. 12, 2018.
Nine other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, George Gavras, and Richard Zappala – have pleaded guilty to their roles in the scheme 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, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to the 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 A. Weir Esq., Philadelphia, Pennsylvania
Member of Grape Street Crips Gang Admits Murder, Attempted Murder as Part of Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A high-ranking member of the New Jersey set of the Grape Street Crips today admitted his role in orchestrating a murder, participating in a separate attempted murder, and conspiring to distribute crack-cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Rashan Washington a/k/a “Shoota,” 30, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to five counts of a sixth superseding indictment charging him with murder and attempted murder as part of a racketeering conspiracy, conspiracy to commit aggravated assault in aid of racketeering, conspiracy to possess a firearm, conspiracy to distribute 280 grams or more of crack-cocaine, and participating in a continuing criminal enterprise.
According to documents filed in this case and statements made in court:
Washington admitted that he orchestrated the murder of person identified as “Victim-5” in the indictment. On Nov. 12, 2013, Washington purposely left Victim-5 alone inside of a blue Jeep Cherokee knowing that another gang member intended to shoot and kill Victim-5. Washington admitted that, after he set up Victim-5 in the Jeep Cherokee, another gang member shot Victim-5 once in the head, killing him. Afterwards, Washington was promoted to the rank of “G,” of “Gangster,” within the N.J. Grape Street Crips.
As charged in the pending sixth superseding indictment, the gang’s leader, Corey Hamlet, a/k/a “C-Blaze,” 41, of Newark, ordered Victim-5’s murder. Hamlet and other gang members believed that Victim-5 had been disloyal by setting up a meeting at the Mall at Short Hills in Millburn, New Jersey, in an attempt to end a long-running feud between Hamlet and a person identified in the indictment as “Victim-1,” a rival.
After the Short Hills meeting, Hamlet used a social media account to post a report from the Essex County Prosecutor’s Office purportedly indicating that Victim-1 had provided a statement to law enforcement. Just three days after Hamlet’s social media post, gang members – acting on Hamlet’s orders – repeatedly shot and nearly killed Victim-1 and another individual identified in the indictment as “Victim-4,” a bystander who was inside Victim-1’s car. Following the attempted murder of Victim-1, Hamlet ordered Washington and another gang member to murder Victim-5.
Washington also admitted that on Oct. 7, 2013, he and other gang members sought to avenge the murder of a fellow gang member by individuals from a rival gang. Washington and others travelled to the area of Avon Avenue in Newark where one of Washington’s fellow gang members discharged 14 rounds in an attempt to shoot members of the rival gang. After returning to their staging area after the shooting, Washington fled law enforcement who attempted to arrest him and his fellow gang members.
Under the terms of the plea agreement, which has been accepted by the Court, Washington will be sentenced to 30 years in prison and 10 years of supervised release. Sentencing is scheduled for Feb. 2, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation. Acting U.S. Attorney Fitzpatrick also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Robert D. Laurino, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry Kamar of the District of New Jersey’s Criminal Division, as well as Richard J. Ramsay of the Office’s Appeals Division in Newark.This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense Counsel: Pasquale F. Giannetta, Esq., Newark, New Jersey
Middlesex County, New Jersey, Man Charged with Distributing Child PornographyRead the Press Release
NEWARK, N.J. – A North Brunswick, New Jersey, man who transmitted an image of child sexual abuse to an undercover agent was arrested today and charged with distributing child pornography, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard Scalea, 59, was arrested by agents of the FBI Child Exploitation Task Force and charged by criminal complaint with one count of distributing child pornography. He made his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On Aug. 31, 2017, Scalea communicated with an undercover law enforcement officer via an online incest chat room. In that chat, Scalea claimed to have sexually abused a minor child who was known to him. Scalea then distributed an image of child pornography to the undercover law enforcement officer. Today, law enforcement officers executed a search warrant at Scalea’s residence and seized computer devices containing multiple images of child sexual abuse.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark at 973-792-3000.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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 Catherine Murphy of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defenders, Newark
Insurance Broker Employee from Bergen County, New Jersey, Charged with Stealing $900,000 from EmployerRead the Press Release
NEWARK, N.J. – A former accounting specialist in the Ridgefield Park, New Jersey, office of an insurance broker was arrested today and charged with allegedly defrauding her employer of approximately $900,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Violeta McGough, 55, of Bergenfield, New Jersey, is charged by complaint with one count of wire fraud. U.S. Postal Inspectors and criminal investigators with the U.S. Attorney’s Office arrested McGough at her home this morning. She is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to documents filed in this case and statements made in court:
From 2008 through October 2015, McGough allegedly made numerous fraudulent accounting entries to steal funds that her employer – identified as “Victim-Company 1” in the complaint – collected as insurance premiums. The premiums were for policies underwritten and issued by Victim-Company 1 on behalf of a United Kingdom-based insurance syndicate that actually held the risk. As part of her employment duties, McGough tracked premiums collected by Victim-Company 1 and its monthly payments to the syndicate.
McGough repeatedly used her access to Victim-Company 1’s books to divert a portion of those payments to her personal use. McGough disguised the stolen funds as reimbursed premiums for cancelled policies. She caused Victim-Company 1 to generate checks payable to a person identified in the complaint as “Individual 1,” who suppossedly worked for a premium financing company, but did not actually work there. McGough personally deposited the checks into Individual 1’s bank account and the bulk of the funds were transmitted back to McGough’s bank account.
The single wire fraud count is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000.
Acting U.S. Attorney Fitzpatrick credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and criminal investigators from the U.S. Attorney’s Office, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Canadian Man Sentenced to 14 Years in Prison for Role in Cocaine Distribution SchemeRead the Press Release
CAMDEN, N.J. – A Canadian man was sentenced today to 168 months in prison for his role in a conspiracy to traffic 100 kilograms of cocaine from Chicago to New Jersey and then on to Canada, Acting U.S. Attorney William E. Fitzpatrick announced.
Sezayir Bulaman, 49, of Hemmingford, Canada, previously pleaded guilty before U.S. District Court Judge Robert Kugler to an indictment charging him with one count of conspiring to distribute more than five kilograms or more of cocaine. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between October 2012 and Nov. 29, 2012, Bulaman conspired with others to pick up 100 kilograms of cocaine in Chicago, Illinois, transport it to a warehouse in New Jersey and then transport it to Canada. He was indicted in 2012, but fought extradition to the United States. The FBI seized the cocaine as part of the operation.
In addition to the prison term, Judge Kugler sentenced Bulaman to five years of supervised release.
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 today’s sentencing.
The government is represented by Assistant U.S. Attorneys Sara F. Merin of the OCDETF/Narcotics Unit and Andrew J. Bruck of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
Defense counsel: Richard Sparaco Esq., Cherry Hill, New Jersey
Bergen County, New Jersey, Man Admits Purchasing Live Webcam Shows of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Wallington, New Jersey, man today admitted purchasing live child sex shows from individuals overseas, Acting U.S. Attorney William E. Fitzpatrick announced.
Stephen Hallett, 66, made his initial appearance and pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with receipt of child pornography. Hallett was released on $125,000 unsecured bond.
According to documents filed in the case and statements made in court.
Hallett purchased live child sex shows from individuals located in the Philippines. He admitted that on Feb. 4, 2015, he received a webcam transmission of a minor engaging in sexually explicit conduct. Hallett also admitted purchasing live webcam shows of children engaging in sexually explicit conduct on dozens of occasions between 2013 and 2015.
The receipt of child pornography charge to which Hallett pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Hallett will be required to register as a sex offender. Sentencing is scheduled for Jan. 11, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Debra Parker in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Michael A. Robbins Esq., West Orange, New Jersey
Pharmaceutical Employee Admits Scheme to Defraud Military Health Insurance ProgramRead the Press Release
NEWARK, N.J. – A Media, Pennsylvania, man today admitted defrauding TRICARE – a health insurance program for members of the military and their families – by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick announced.
Jason Cerge, 41, a pharmaceutical sales representative, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark 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:
Cerge admitted that from September 2014 through May 2015, he participated in a scheme to defraud TRICARE by knowingly submitting fraudulent claims for medically unnecessary prescription compounded medications – including scar creams, pain creams, and metabolic supplements – that were marketed by an entity referred to in the information as “Company A.” The conspirators knew that TRICARE reimbursed pharmacies between $2,500 and $18,800 for each of these compounded medications. The conspirators entered into agreements with certain compounding pharmacies nationwide to receive a percentage of the amount reimbursed for each prescription diverted to that pharmacy.
Cerge was recruited into the scheme by Peter Pappas, 45, of Drexel Hill, Pennsylvania. Cerge then recruited a former member of the U.S. military, a conspirator identified in the information as “CC-2,” to approach other members of the military and their families. CC-2 paid cash bribes to TRICARE beneficiaries in exchange for their TRICARE information and agreement to receive medically unnecessary prescription compounded medications.
Cerge placed these TRICARE beneficiaries’ information onto preprinted prescription forms and presented them to a New Jersey physician for a signature. Cerge knew that the physician would immediately sign the prescriptions without examining or speaking with the patients.
Afterwards, the prescriptions were faxed to certain compounding pharmacies associated with Company A who would bill TRICARE for the medication. These compounding pharmacies then paid Company A a percentage of each prescription paid by TRICARE, which was then distributed to Cerge and other members of the conspiracy.
As part of his plea agreement, Cerge must forfeit $12,816.24 in criminal proceeds he received for his role in the scheme and pay restitution of at least $204,198.11.
Cerge faces a statutory maximum term of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 30, 2018.
Three other defendants – Peter Pappas, Stephanie Naar, and Julie Andresen – have pleaded guilty to their roles 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; and the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey, with the ongoing investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office Health Care and Government Fraud Unit in Newark.
The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Scott Godshall Esq., Media, Pennsylvania
Two Police Officers Admit Schemes Involving Jersey City Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – Two Jersey City police officers today admitted fraudulently collecting income for off-duty work they never performed, Acting U.S. Attorney William E. Fitzpatrick announced.
Ehab Abdelaziz, 38, of Clifton, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit bribery. Andrea Fahrenholz, 38, of Clifton, pleaded guilty before Judge Vazquez to a separate information charging her with one count of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Abdelaziz and Fahrenholz were Jersey City police officers who were eligible to perform off-duty work.
From December 2015 through June 2016, Abdelaziz engaged in a conspiracy in which he made a total of $11,825 in bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that Abdelaziz had completed certain off-duty assignments. As a result, Abdelaziz was compensated for work he never performed.
From March 2014 through May 2016, Fahrenholz conspired with a Jersey City officer who was authorized to assign off-duty work. The officer – with Fahrenholz’s knowledge and consent – submitted phony vouchers to Jersey City indicating that Fahrenholz had completed certain off-duty assignments. As a result, Fahrenholz was compensated for work she never performed.
Both officers face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offenses. Pursuant to their plea agreements, Abdelaziz and Fahrenholz must forfeit $22,449 and $116,346, respectively.
Sentencing for Abdelaziz and Fahrenholz is set for Jan. 3, 2018 and Jan. 25, 2018, respectively.
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 Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Abdelaziz: Anthony J. Iacullo Esq., Nutley, New Jersey
Fahrenholz: Aidan P. O’Connor Esq., Hackensack, New Jersey
Essex County, New Jersey, Man Sentenced to 150 Months in Prison for Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was sentenced today to 150 months in prison his role in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Shaheed Blamahsah, a/k/a “Aboo,” 30, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
On Sept. 6, 2015, Blamahsah and at least two other conspirators agreed to rob a club in Passaic at gunpoint. During his plea hearing, Blamahsah admitted that he knowingly and willfully participated in the robbery and that he and another conspirator brandished a firearm and threatened to use violence against a club employee. He also admitted that he and the other conspirator took $26,084 in cash from the club before fleeing in a getaway car.
In addition to the prison term, Judge Arleo sentenced Blamahsah to five years of supervised release.
Blamahsah was originally charged in November 2016 with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 29, of South Orange, New Jersey. Lawrence pleaded guilty on Sept. 7, 2017 and awaits sentencing. The charges against Cooper are merely allegations, and he is presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Division of Public Safety for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Kevin Buchan Esq., Holmdel
Essex County, New Jersey, Consulting Company Owner Admits Tax EvasionRead the Press Release
NEWARK, N.J. – The owner of a consulting services company today admitted evading taxes while operating his business in 2009, Acting U.S. Attorney William E. Fitzpatrick announced.
Oscar N. James Sr., 60, of West Orange, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count Two of an information charging him with tax evasion.
According to documents filed in this case and statements made in court:
As the owner of The James Group, James intentionally under-reported the income that he received for tax years 2008 and 2009 by filing false federal personal income tax returns. James admitted that he was responsible for underreporting $173,796 in income for the 2009 tax year, resulting in a tax loss of $61,046.
The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Jan. 11, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen: the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the Special Prosecutions Division in Newark.
Defense counsel: Adalgiza Núñez Esq., Newark
Cumberland County, New Jersey, Resident Charged with Threatening A Member of CongressRead the Press Release
CAMDEN, N.J. – A Millville, New Jersey, man was charged today with threatening to assault and murder a congressman and the congressman’s staff, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Brodie, 38, is charged by federal criminal complaint with one count of threatening to assault a U.S. official. Brodie has been in state custody since he was arrested on Sept. 20, 2017 and will appear before U.S. Magistrate Judge Joel Schneider in Camden federal court at a later date.
According to documents filed in this case:
On Sept. 15, 2017 and Sept. 19, 2017, Brodie allegedly made various threats via telephone and email to murder and assault a New Jersey member of Congress and the congressman’s staff. Brodie was initially arrested by the N.J. State Police and charged by the Cumberland County Prosecutor’s Office with weapons charges.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of the U.S. Capitol Police, under the direction of Chief Matthew R. Verderosa; officers from the N.J. State Police, under the direction of Colonel Joseph R. Fuentes; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, with the investigation leading to today’s charges.
The count to which Brodie has been charged is punishable by a maximum potential penalty of six years in prison and a $250,000 fine.
The charge and allegations in the complaint are merely accusations, and Brodie is considered innocent unless and until proven guilty.
The government is represented by Assistant United States Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
Burlington County, New Jersey Man Sentenced to One Year in Prison for Sale of Counterfeit Computer ComponentsRead the Press Release
CAMDEN, N.J. -- A Burlington County, New Jersey, man was sentenced today to 12 months in prison for buying counterfeit computer components from a factory in China for sale in the United States, Acting U.S. Attorney William E. Fitzpatrick announced.
Ronald Graban, 58, of Columbus, N.J., previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with mail fraud and money laundering. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Beginning in 2000, Graban was in the business of buying and reselling computer parts. He operated his business using various entities that he had set up, including, RPR International LLC, Graham Enterprises International, Innovative Technology Group, MT Loveland Corp., Golden Eagle Property Management, Andy Lee Inc., and Andy Lee Electronics. From early 2006 to mid-2007, Graban purchased counterfeit Cisco and Nortel components from a factory in China and then resold them to an Internet retailer, who sold them to the public.
In December 2004, he began buying computer parts from a company in China named GigaLight Electronic (HK) Co. Ltd., a/k/a Eflow (GigaLight/Eflow). These parts were mostly network connecting parts, and appeared identical to parts manufactured by Cisco Systems Inc. and Nortel Networks, two large computer parts and services companies. Graban represented to certain persons at the Internet retailer that the parts were genuine Cisco and Nortel parts.
In early 2006, Graban became aware that GigaLight/Eflow was selling counterfeit computer parts to his companies after U.S. Customs and Border Protection (CBP) seized several shipments of computer parts from GigaLight/Eflow and notified the companies of the seizures and of the fact that the parts seized were counterfeit. Despite being on notice that the computer parts he had been buying were counterfeit, Graban continued to buy those parts and resell them to the Internet retailer.
In February 2006, Graban caused the Internet retailer to mail him a check, payable to one of Graban=s companies, for $163,000 in payment for counterfeit parts he sold to the retailer. He deposited that check into the bank account of another one of his companies. In August 2007, approximately $890,000 was seized from various bank accounts that Graban maintained in the name of his companies. Two properties in Florida were seized, but later went into foreclosure. Graban agreed to forfeit the funds seized and the proceeds from the two foreclosure sales, approximately $40,000.
In addition to the prison term, Judge Hillman sentenced Graban to one years of supervised release, fined him $60,000 and ordered him to pay restitution of $927,193.
Acting U.S. Attorney Fitzpatrick credited special agents of Immigration and Customs Enforcement - Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector In Charge Daniel B. Brubaker, Philadelphia Division; and CBP, under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Howard Wiener of the U.S. Attorney's Office Criminal Division in Camden.
Pharmaceutical Employee Admits Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A Northfield, New Jersey, man today admitted defrauding New Jersey state health benefits programs and other insurers out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Richard Zappala, 45, a pharmaceutical sales representative, 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:
From January 2015 through April 2016, Zappala recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the informations as the “Compounding Pharmacy.” 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 informations 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.
Zappala and conspirators working under him recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Zappala’s conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to Zappala and other members of the conspiracy.
Once he had recruited an employee covered by the Pharmacy Benefits Administrator, Zappala would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. He would select the compounded medications that paid the most without regard to their medical necessity.
Zappala would then get the prescriptions signed by doctors who never evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
Zappala paid money and other benefits to doctors to reward them for signing prescriptions. He also paid recruiters under him and paid individuals with insurance coverage to reward them for agreeing to obtain prescriptions.
According to the information, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of his plea agreement, Zappala must forfeit $1,492,918.19 in criminal proceeds he received for his role in the scheme and pay restitution of at least $4,310,232.76.
Zappala 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 Jan. 5, 2018.
Eight other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, John Gaffney, Judd Holt, and George Gavras – have pleaded guilty to their roles in the scheme 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, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to the 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.
Defense counsel: Kevin E. Raphael Esq., Philadelphia, Pennsylvania
Middlesex County, New Jersey, Man Charged in Hacking and Illegal Wiretapping SchemeRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man was arrested today for alleged computer hacking and wiretapping of his former company’s email server, Acting U.S. Attorney William E. Fitzpatrick announced.
Jian Yang Zhang, a/k/a “Kevin Zhang,” 37, of Edison, New Jersey, is charged complaint with one count of unauthorized access of a protected computer and one count of interception of electronic communications. He is scheduled to appear later today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to documents filed in this case and statements made in court:
Zhang and his family were part owners of a New Jersey-based company (Company 1) that imported and supplied products to dollar stores, discount stores, and wholesalers across the United States. After a dispute among the owners in 2015 Zhang and his family agreed to sell their interest in Company 1 to the other owners. While negotiating the buyout, Zhang, who served as the email administrator for the company, created a hidden sub-user account within the Company 1 email server account. When Zhang left Company 1 in February 2015, he provided the login credentials for the email server to the remaining owners, who then changed the password. However, Zhang did not disclose that he had created the hidden sub-user account. On numerous occasions over the next 14 months, Zhang accessed the Company 1 email server without authorization and set various employee email accounts to forward to outside email accounts that he controlled.
Both charges carry a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Division, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Adult Daycare Facility Agrees to $2.72 Million Settlement to Resolve Allegations of Violating False Claims ActRead the Press Release
NEWARK, N.J. – Edison Adult Medical Daycare (Edison), its former owner, Dinesh Patel, and current owners, Daxa Patel and Satish Mehtani, have agreed to pay the United States and the State of New Jersey $2.72 million to resolve allegations that Edison improperly billed and received payments from Medicaid despite Dinesh Patel having been excluded from participating in Medicaid following his 2012 conviction for accepting kickbacks, Acting U.S. Attorney William E. Fitzpatrick announced today.
On Sept. 19, 2012, Dinesh Patel pleaded guilty to accepting cash kickback payments from Orange Community MRI LLC in exchange for patient referrals. He was later sentenced to three months in jail and two years of supervised release.
On March 17, 2012, Dinesh Patel was excluded by the State of New Jersey from participating in any capacity in the Medicaid program. Later, on Feb. 20, 2014, Dinesh Patel was excluded by the U.S. Department of Health and Human Services from participating in Medicare, Medicaid, and all federal health care programs for a period of five years. Five days after Dinesh Patel’s Medicaid exclusion in 2012, he transferred his 50 percent ownership interest in Edison to his wife, Daxa Patel.Today’s settlement resolves federal and state government allegations that from March 17, 2012, through Aug. 4, 2015, Dinesh Patel violated his exclusion by not ceasing his involvement in the adult daycare facility, and that Edison violated the False Claims Act by submitting claims to and receiving payments from Medicaid while Dinesh Patel directed, managed and supervised activities at Edison. The settlement also resolves allegations that owners Daxa Patel and Satish Mehtani had full knowledge that Dinesh Patel was managing Edison while he was an excluded Medicaid provider.
Dinesh Patel, Daxa Patel, Satish Mehtani, and Edison have agreed to pay $2.72 million plus interest to be split equally between United States and State of New Jersey. Dinesh Patel has also agreed to another five-year exclusion precluding him from participating in all federal health care programs, including Medicaid and Medicare, until 2022.Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Health and Human Services - Office of the Inspector General (HHS-OIG), under the direction of Special Agent in Charge Scott J. Lampert, New York Region, and the N.J. Office of the State Comptroller, Medicaid Fraud Division, under the direction of State Comptroller Philip James Degnan, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark. David Fuchs of the HHS-OIG negotiated the additional period of exclusion.The New Jersey U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.37 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.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel:
Edison Adult Medical Daycare: Robert Fogg Esq., Princeton
Dinesh Patel: Steven D. Feldman Esq., New York, and Melissa L. Jampol Esq., New York
Daxa Patel: Nicholas C. Harbist Esq., Princeton
Satish Mehtani: Denis F. Driscoll Esq., Parsippany
Staten Island Man Admits Trafficking over $2.5 Million in Counterfeit Footwear Through Port of NewarkRead the Press Release
NEWARK, N.J. – A Staten Island, New York, man today admitted his plan to distribute more than $2.5 million of counterfeit UGG-brand boots that were shipped into the Port of Newark, Acting U.S. Attorney William E. Fitzpatrick announced.
Shi Wei Zheng, 42, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of trafficking in counterfeit goods. Zheng was originally arrested and charged by complaint on March 7, 2017.
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.
The trafficking in counterfeit goods charge carries a maximum potential penalty of 10 years in prison and a $2 million fine. Zheng will be sentenced on Jan. 23, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of
Acting Special Agent in Charge Debra Parker in Newark, with the investigation leading to Zheng’s guilty plea.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
Passaic County Man Arraigned in Heroin Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Passaic County man was arraigned today on charges that he conspired to distribute more than 16 kilograms of heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Yasmil Minaya, a/k/a “Animal, 31, is charged in an indictment with one count of conspiracy to distribute more than one kilogram of heroin, and one count of distribution and possession with intent to distribute more than one kilogram of heroin. The defendant was arraigned before U.S. District Judge Claire C. Cecchi in Newark federal court and remains detained without bail.
According to documents filed in this case and statements made in court:
Law enforcement learned that Minaya and his co-defendants were serving as New Jersey and New York area distributors for a drug trafficking organization operating in the Dominican Republic, Mexico and elsewhere. The organization’s narcotics were usually transported to this area via truck and were paid for by the defendants before they being sold on the street. The drug organization has been linked to several multiple-kilogram seizures of heroin, including a seizure of approximately two kilograms of heroin in March 2015, four kilograms in November 2015, and 10 kilograms in January 2017.
The counts with which Minaya is charged carry a mandatory minimum sentence of 10 years imprisonment, a maximum sentence of life imprisonment, and a maximum fine of $10 million per count.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Fitzpatrick credited special agents with the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and officers with the New Jersey State Police, Trafficking North Unit, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
New Jersey Receives $1.1 Million in Federal Grants to Fight Opioid AbuseRead the Press Release
NEWARK, N.J. – Three New Jersey-based opioid abuse programs are receiving a total of $1.1 million in federal grants, part of the $58.9 million the U.S. Department of Justice is awarding to address the nationwide epidemic, Acting U.S. Attorney William E. Fitzpatrick announced today.
In 2016, nearly 60,000 Americans lost their lives to drug overdoses, an increase from the 52,000 overdose deaths the year before. Opioids, including illicit fentanyl and its analogues, are responsible for most of these deaths.
“The epidemic of opioid abuse is a true national emergency, impacting families and communities throughout New Jersey,” Acting U.S. Attorney Fitzpatrick said. “The funding provided by the Department of Justice will be used to help prevent addiction while at the same time providing much needed resources for treatment and recovery.”
The New Jersey grants are as follows:
• $600,000, N.J. Department of Law and Public Safety. The department will collaborate with state agencies to develop a computerized, data-sharing Integrated Drug Awareness Dashboard (IDAD).
• $400,000, County of Camden. The county will implement the Camden County Opioid Abuse Diversion Program (CCOAD) to improve treatment and support services for individuals with a history of opioid misuse.
• $100,000, N.J. Department of Law and Public Safety. The department will use grant funds to create a coordinated plan, formulated with pertinent stakeholders, to assess how best to leverage various resources and funding streams to expand programs through the through the establishment of Opioid Response Teams to add another point of entry to treatment for opioid-addicted individuals.Descriptions of the grants are attached.
Member of Trenton Drug Trafficking Organization Sentenced to Six Years in Prison for Heroin Conspiracy, Unlawful Possession of FirearmRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced today to 72 months in prison for possessing a firearm as a previously convicted felon and participating in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in the Trenton area, Acting U.S. Attorney William E. Fitzpatrick announced today.
Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor,” 22, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and unlawful possession of a firearm by a convicted felon. Judge Wolfson imposed the sentence today in Trenton federal court.
In December 2016, Proctor and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah.
According to documents filed in this case and statements made in court:
From January 2016 through December 2016 Proctor participated in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Elijah Abdullah.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with the narcotics conspiracy, Elijah Abdullah and other members of the Abdullah DTO maintained joint access to multiple firearms.
In addition to receiving, possessing, and selling heroin as part of the conspiracy, Proctor – a previously convicted felon – was arrested on Aug. 23, 2016, by Trenton police officers in possession of a loaded Glock 27 semiautomatic handgun and multiple rounds of ammunition.
In addition to the prison term, Judge Wolfson sentenced Proctor to five years of supervised release.
Acting U.S. Attorney Fitzpatrick 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 of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.
He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the New Jersey 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.
The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Defense counsel: Aidan P. O’Connor Esq., Hackensack, New Jersey
District Court Enters Permanent Injunction Against Two New Jersey Companies and Two Individuals to Stop Distribution of Unapproved and Misbranded DrugsRead the Press Release
Two companies in New Jersey and two individuals have been enjoined from distributing their unapproved injectable skin whitening drugs and other drugs in violation of federal law, the Department of Justice announced today.
The U.S. District Court for the District of New Jersey entered a consent decree of permanent injunction against Flawless Beauty LLC of Ocean Township and Asbury Park, New Jersey; RDG Imports LLC of Asbury Park, New Jersey; and Jack H. Gindi and Susana B. Boleche. The injunction permanently enjoins the defendants from distributing unapproved and misbranded drugs in violation of the federal Food, Drug, and Cosmetic Act (FDCA). In addition, the injunction requires the defendants to recall and destroy all of their unapproved injectable skin whitening drugs.
The Department filed a complaint in the District of New Jersey on Sept. 14, at the request of the U.S. Food and Drug Administration (FDA). As detailed in the complaint, the defendants import, process, pack, label, hold, and/or distribute a variety of unapproved drugs, including unapproved prescription drugs, in violation of the FDCA. Specifically, the complaint alleged that the defendants sold a number of skin whitening drugs, including injectable drugs, despite the absence of FDA approval or a sufficient showing that these products were safe and effective.
“The Department of Justice is committed to enforcing federal consumer protection laws,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “We will continue to work diligently with the FDA to ensure that companies and individuals follow the laws designed to protect American consumers.”
As noted in the complaint, the vast majority of the defendants’ products are marketed with skin whitening claims. According to the complaint, some of defendants’ products contain unsubstantiated therapeutic claims. For example, some of the products were promoted with claims such as “contribute to good liver function” and “clinically treat degenerative brain & liver diseases including Parkinsons.” The complaint alleged that the defendants introduce new drugs, or cause them to be introduced, into interstate commerce in violation of the law.
The complaint alleged that defendants’ unapproved new and misbranded drugs present serious public health risks, especially defendants’ purportedly sterile injectable skin whitening drugs. Intravenous and intramuscular administration of drugs creates many risks, including nerve or blood vessel damage, blood-borne infection, superficial skin infection, cellulitis, abscess formation and toxic systemic reactions.
The complaint alleged that in addition to distributing unapproved drugs, some of the defendants’ drugs were misbranded because they contained labeling that is false or misleading. In particular, the complaint alleged that the labeling suggests or implies FDA approval or endorsement, when no such FDA approval for any of these products existed. The complaint further alleged that some of defendants’ unapproved drugs are misbranded because they bear inadequate directions for use, are unsafe prescription drugs, and are prescription drugs that fail to bear ‘Rx’ on their labels.
Products referenced in the complaint include Relumins Advanced Glutathione and New Relumins Advanced Glutathione 3500 mg; Tatiomax Glutathione Collagen Whitening; and Laennec Human Placenta Whitening; Relumins Advanced Oral Whitening & Antiaging Stack; Authentic Relumins Advanced White Stem Cell Therapy All In One Day Lotion; Authentic Relumins Advance Whitening Facial Cream With TA Stem Cell & Placenta; Relumins Medicated Professional Acne & Dark Spot Fighting Set; Natural Pearl Whitening Lotion; Authentic Kustie Beauty Slimming Activated Hot Cream; Authentic Mosbeau Placenta White Clarifying Toner; Gluta PowerPeel Soap; Relumins Advance White-Whitening Deodorant Roll-On and Sante Barley Fusion.
In conjunction with the filing of the complaint, the defendants agreed to settle the case and to be bound by a permanent injunction. The injunction requires defendants to stop importing, receiving, manufacturing, preparing, processing, packing, labeling, holding, and/or distributing any unapproved drugs, including their injectable skin whitening drugs, unless and until defendants comply with specific remedial measures set forth in the permanent injunction.
In addition, within 20 days after the district court’s order, the defendants are required to recall and destroy, under FDA supervision and to FDA’s satisfaction, all unapproved injectable skin whitening drugs.
“Distributing unapproved drugs and mislabeling them to give the impression that they have been approved by the FDA is a practice that cannot be tolerated,” said Acting U.S. Attorney William E. Fitzpatrick, District of New Jersey. “This decree ensures that these products will be removed from the marketplace and that the defendants will not be allowed to distribute them until they bring the products into compliance with the law.”
The government is represented by Trial Attorney Mary M. Englehart of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Anthony Labruna of the U.S. Attorney’s Office for the District of New Jersey, with the assistance of Associate Chief Counsel for Enforcement Sonia Nath of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at https://www.justice.gov/usao-nj.
Connecticut Man Charged with Defrauding Overseas Private Investment Corporation of over $1 MillionRead the Press Release
CAMDEN, N.J. – A Bridgeport, Connecticut, man was arrested this morning on charges that he and others defrauded the Overseas Private Investment Corporation (OPIC) of over $1 million and laundered most of the funds through various bank accounts in Liberia and the United States, Acting U.S. Attorney William E. Fitzpatrick announced.
William Garrison Jackson, 55, is charged by criminal complaint with one count of conspiracy to commit mail and wire fraud and one count of conspiracy to commit money laundering. Jackson appeared this morning before U.S. Magistrate Judge William I. Garfinkel in Bridgeport federal court and was released on $100,000 secured bond. He will make his initial appearance in New Jersey federal court on Oct. 4, 2017.
According to the complaint:
OPIC is a U.S. government agency that provides loans to U.S.-based companies in order to encourage investment in overseas business projects. To qualify for a loan, the U.S. business, also called the “U.S. Sponsor,” has to own at least 25 percent of the overseas project.
In 2010, Jackson, along with two other people identified in the complaint as “Individual 1” and “Individual 2,” formed a limited liability company in New Jersey called NuStrata Logistics LLC (NSL-US). NSL-US was the “parent company” of NuStrata Logistics Liberia Inc. (NSL-L), a licensed and registered Liberian company. For the purposes of the OPIC loan, NSL-US was the U.S. sponsor of NSL-L.
NSL-US and NSL-L were created to operate an urban public transportation bus service in Liberia, branded “The Lizard Bus.” In 2010, Jackson, Individual 1, and Individual 2 established a pilot program in order to measure The Lizard Bus’s potential in the Monrovia, Liberia, market.
To obtain a loan from OPIC, Jackson and Individual 1 submitted documents to OPIC with materially fraudulent representations, including false financial documents that over-inflated their assets and claimed that NSL-US’s investors, along with the principals, had a combined liquid net worth of over $2 million, and a fraudulent disbursement request advising OPIC that NSL-L would use $560,000 to pay for the purchase of buses and transshipping costs.
On Sept. 4, 2013, based on the false representations by Jackson and his conspirators, OPIC made a loan disbursement of $1,059,266 by international wire transfer to NSL-L’s Ecobank bank account in Liberia. However, on Sept. 6, 2013, Jackson and Individual 1 had $700,000 wired from NSL-L’s account to NSL-US’s Bank of America account in the United States. That money was then transferred to another bank account and ultimately dispersed to Jackson, Individual 1 and their families in violation of the OPIC loan agreement.
Meanwhile, NSL-L made one interest payment to OPIC in January 2014 and subsequently defaulted on the loan. The Lizard Bus ceased operations in April 2014 due, in part, to lack of funds.
The conspiracy to commit mail and wire fraud charge carries a maximum potential penalty of 20 years in prison and $250,000 fine. The money laundering conspiracy charge carries a maximum potential penalty of 20 years in prison and $500,000 fine.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Agency for International Development (USAID), Office of Inspector General, under the direction of Special Agent in Charge Jonathan Schofield, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Debra Parker in Newark, IRS- Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the Federal Deposit Insurance Corporation (FDIC), Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden.
Two Pharmaceutical Employees Admit Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two Burlington County, New Jersey, men today admitted defrauding New Jersey state health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
Judd Holt, 42, a pharmaceutical sales representative from Marlton, New Jersey, and George Gavras, 36, a pharmaceutical sales representative from Moorestown, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to separate informations charging them with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
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, Holt and Gavras served as recruiters 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 informations 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.
The conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from the Compounding Pharmacy without any evaluation by a medical professional that they were medically necessary. In return, the pharmacy paid one of Holt and Gavras’ conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to other members of the conspiracy.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Holt and Gavras would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They would select the compounded medications that paid the most without regard to their medical necessity.
Holt and Gavras would then get the prescriptions signed by doctors and other qualified health professionals who never saw the patients or evaluated whether the patients had a medical necessity for the compounded medication. The prescriptions were then faxed to Compounding Pharmacy, which filled the prescriptions and billed the Pharmacy Benefits Administrator.
According to the informations, the Pharmacy Benefits Administrator paid Compounding Pharmacy over $50 million for compounded medications mailed to individuals in New Jersey.
As part of the plea agreements, Holt must forfeit $95,574.49 in criminal proceeds he received for his role in the scheme and pay restitution of at least $769,762.53. Gavras agreed to forfeit $204,002.02 and pay restitution of at least $679,368.53.
Each 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 for both defendants is scheduled for Jan. 5, 2018.
Six other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, Steven Urbanski, and John Gaffney – pleaded guilty in August and September 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 Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to the guilty pleas. 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:
Holt: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Gavras: Robert N. Agre Esq., Haddonfield, New JerseySoldier of Violent Bloods Street Gang Sentenced to 22 Years in Prison for Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A soldier of the Sex Money Murder set of the Bloods street gang was sentenced today to 264 months in prison for his role in a racketeering conspiracy that involved attempted murder and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Laquan Reed, 28, a/k/a “Drama,” of Montclair, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups, called “sets,” that operate in specific geographic locations. Sex Money Murder is the set that operates primarily in Essex County, New Jersey. Reed, a ranking member in Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He admitted that he conspired with set members to murder a rival gang member on Aug. 3, 2011, identified in the indictment as “Victim 6.” Reed admitted he and others engaged in a shootout in an effort to kill the rival gang member in and around Newark. Reed also admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
In addition to the prison term, Judge Wigenton sentenced Reed to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Robert D. Laurino; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s sentencing. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge John B. Devito, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Mary Toscano, Chief, Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division, and Dara Govan of the Criminal Division in Newark.
Defense counsel: James Patton Esq., Livingston, New Jersey
Margate, New Jersey, Doctor Pleads Guilty in Healthcare Fraud Conspiracy Targeting New Jersey Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – A doctor with a medical practice in Margate, New Jersey, today admitted defrauding New Jersey state health benefits programs and other insurers by signing prescriptions for patients he never saw, Acting U.S. Attorney William E. Fitzpatrick and New Jersey Attorney General Christopher S. Porrino announced.
John Gaffney, 55, of Linwood, 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.
“Dr. Gaffney sold phony prescriptions for unnecessary medications to patients he never examined as part of a sophisticated scheme to defraud a prescription benefits program available to New Jersey state and municipal employees,” Acting U.S. Attorney Fitzpatrick said. “In an era when many Americans work hard to maintain affordable health insurance for their families, Dr. Gaffney and his conspirators criminally exploited the health care system and left New Jersey tax payers on the hook for approximately $25 million in losses.”
“New Jersey’s families are the ones who pay the cost for healthcare fraud,” said Attorney General Porrino. “In New Jersey, law enforcement partners are working together to fight back against those who use their positions to steal millions of dollars from our healthcare system for personal gain. I want to thank the United States Attorney's Office for the District of New Jersey, Acting U.S. Attorney Fitzpatrick and all of our federal partners for aggressively attacking incidents of insurance fraud and for successfully prosecuting these often complicated schemes.”
“This is another demonstration of the FBI’s commitment to aggressively pursue healthcare fraud, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” stated Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “We will not tolerate unscrupulous healthcare professionals who are entrusted with providing honest services to the citizens of New Jersey.”
“Doctors play a trusted and vital role in the American healthcare system. John Gaffney broke this trust when he wrote and accepted payment for prescriptions that were medically unnecessary. This fraudulent conduct creates risks for patients and undermines the system. The U.S. Department of Labor Office of Inspector General remains committed to combating illegal prescription drug schemes, like compounded medication fraud, particularly when they victimize programs administered by the Department of Labor. We will continue to work with our law enforcement partners to aggressively investigate allegations of this nature,” said Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor, Office of Inspector General.
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, Gaffney’s conspirators persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, identified in the information 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.
Once they had recruited an employee covered by the Pharmacy Benefits Administrator, Gaffney’s conspirators would obtain the employee’s insurance information and fill out a Compounding Pharmacy prescription form. They then had Gaffney sign prescriptions for compounded medications for numerous individuals, even though Gaffney never saw the individuals or evaluated whether they had a medical necessity for the compounded medication. Gaffney also signed a blank prescription form, which other conspirators copied and used to submit additional fraudulent prescriptions to the Compounding Pharmacy.
Other conspirators submitted fraudulent prescriptions bearing Gaffney’s signature for over 200 individuals, and the Pharmacy Benefits Administrator paid just under $25 million for those prescriptions. Gaffney received payments of thousands of dollars in cash and other benefits to reward him for his role in the scheme.
As part of his plea agreement, Gaffney must forfeit $25,000 in criminal proceeds and pay restitution of at least $24,956,435.08. He faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Jan. 5, 2018.
Five other conspirators – Matthew Tedesco, Robert Bessey, Michael Pepper, Thomas Hodnett, and Steven Urbanski – pleaded guilty in August 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 Gallagher in Newark, agents of the IRS – Criminal Investigation, under the direction of Jonathan D. Larsen in Newark, and agents of the Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Mikulka in New York, for their roles in the investigation leading to the 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: Michael Engle Esq., Philadelphia
Former Executive Director of Newark Watershed Conservation and Development Corp. Sentenced to 102 Months in Prison for Role in Nearly $1 Million Kickback and Fraud SchemeRead the Press Release
NEWARK, N.J. – The former executive director of the Newark Watershed Conservation and Development Corp. (NWCDC) was sentenced today to 102 months in prison for accepting nearly $1 million in kickback payments in exchange for her assistance in awarding work to various vendors and contractors of the agency, Acting U.S. Attorney William E. Fitzpatrick announced.
Linda Watkins Brashear, 57, of West Orange, New Jersey, previously pleaded guilty before U.S. District Judge José Linares to Counts 1 and 5 of a five-count information charging her with a wire fraud scheme to defraud the NWCDC by accepting bribes and kickback payments from contractors and an employee of the corporation, which were funded by payments from the NWCDC based on fraudulently inflated invoices or issued for work that was not performed by the contractors (Count 1), and subscribing a false tax return for the year 2012 (Count 5). Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Brashear served as the executive director for the NWCDC from 2007 to March 2013. During this time, she and others devised a scheme to defraud the NWCDC of her honest services in the affairs of the NWCDC and of the NWCDC’s money and property. The object of the scheme was for Brashear and others to accept a substantial stream of concealed and undisclosed kickbacks from NWCDC contractors and an employee of the NWCDC for her direct and indirect benefit in exchange for action and assistance in the affairs of the NWCDC, and for her violating her official duties and responsibilities.
Between 2008 and March 2013, Brashear accepted approximately $999,000, in kickbacks financed through the receipt of payments by contractors and an employee of the NWCDC that were fraudulently obtained from the NWCDC with Brashear’s assistance, through materially false pretenses, representations and promises. In particular, Brashear accepted kickbacks as summarized below:
Time Period
Approximate Amount of Kickbacks
Paid By
September 2012 - March 2013
$39,000
NWCDC “Employee 1”
January 2009 – December 2012
$260,000
James Porter (identified in Count 1 as “partner of the special projects manager”)
January 2008 – June 2012
$70,000
Printing contractor
January 2011 – January 2013
$33,000
Marketing contractor
September 2012 – April 2013
$90,000
Cleaning contractor
April 2009 – February 2013
$118,000
Homeland Security contractor
January 2009 – May 2012
$40,000
Interior designer
January 2008 – March 2013
$177,000
Internet research consultant
October 2011 – March 2013
$29,000
Political consultant
April 2011 – September 2012
$32,000
Media consultant
January 2008 – March 2013
$27,000
Giacomo “Jack” DeRosa
May 2011 – March 2013
$84,000
Security consultant
Brashear routinely accepted payments from some of these contractors through Donald Bernard Sr. Brashear and Bernard also used their email accounts to facilitate this kickback and fraud scheme. Bernard was previously charged in December 2014 in a 20-count indictment with various federal offenses involving a scheme to defraud the NWCDC of his honest services and the NWCDC’s money and property by accepting and agreeing to accept bribes and kickbacks from certain NWCDC contractors, which were financed at least in part through the contractors’ fraudulent padding of invoices to the NWCDC.
Brashear admitted taking payments from James Porter, a contractor who pleaded guilty in January 2015 to conspiracy to defraud the NWCDC of honest services, money and property through the use of interstate wire transmissions, as well as tax evasion for his role in the kickback scheme. The roofing contractor referred to in Count 1 of the information, Giacomo “Jack” DeRosa, was charged in a six-count fraud and money laundering indictment in December 2014 for his role in passing kickbacks to Bernard, which were shared, in part, with Brashear.
Brashear also admitted making and subscribing a U.S. Individual Income Tax Return, Form 1040, for tax year 2012, signed and filed with the IRS under penalty of perjury, which she did not believe to be true and correct, including approximately $316,000 in unreported income that she received through the kickback payments.
In addition to the prison term, Judge Linares sentenced Brashear to three years of supervised release and ordered her to pay $1.3 million in restitution.
On July 13, 2017, Judge Linares sentenced Bernard to eight years in prison for his role in the kickback scheme and for filing false tax returns. DeRosa was sentenced on Oct. 25, 2016, to six months in prison. On July 20, 2017, Porter was sentenced to two years in prison for his role in the scheme.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; IRS – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Newark office, under the direction of Special Agent in Charge Christina Scaringi, as well as criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing. Acting U.S. Attorney Fitzpatrick also thanked the N.J. Office of the State Comptroller, under the direction of State Comptroller Philip James Degnan, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Jacques Pierre and Leslie Schwartz of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Michael Baldassare Esq., Newark
Jersey City Police Officer Admits Fraud Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, police officer today admitted defrauding Jersey City by obtaining compensation for off-duty work that he did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
David Ortmann, 53, of Carlstadt, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. Ortmann was an officer who was eligible to perform off-duty work.
From July 2015 through May 2016, Ortmann conspired with a Jersey City officer who was authorized to assign off-duty work. The officer – with Ortmann’s knowledge and consent – submitted phony vouchers to Jersey City indicating that Ortmann had completed certain off-duty assignments. As a result, Ortmann was compensated for work he never performed.
Ortmann faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, Ortmann must forfeit the $12,617 he made as part of the conspiracy. Sentencing is set for Jan. 3, 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 Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey
Jersey City Police Officer Admits Bribery Conspiracy Involving Off-Duty Work AssignmentsRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, police officer today admitted paying bribes in order to obtain compensation for off-duty work he did not perform, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael O’Leary, 35, of Jersey City, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit bribery.
According to documents filed in this case and statements made in court:
Private contractors and utility companies sometimes needed the services of off-duty Jersey City police officers for certain projects, including work in Jersey City that could obstruct the flow of traffic. O’Leary was an officer who was eligible to perform off-duty work.
From November 2013 through April 2016, O’Leary engaged in a conspiracy in which he made bribe payments to another Jersey City officer who was authorized to assign off-duty work, in exchange for that officer’s official assistance in submitting phony vouchers to Jersey City indicating that O’Leary had completed certain off-duty assignments. As a result, O’Leary was compensated for work he never performed.
O’Leary faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Pursuant to the plea agreement, he must also forfeit $39,587 he made as part of the conspiracy. Sentencing is set for Jan. 3, 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 Jersey City Police Department is cooperating with the investigation.
The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John Lynch Esq., Union City, New Jersey
Fourth Defendant Admits Defrauding Clifton-Based Trucking Company of More Than $900,000Read the Press Release
NEWARK, N.J. – A Clifton, New Jersey, woman today admitted her role in a scheme to defraud a New Jersey-based trucking company of over $900,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Lisa Popewiny, 55, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count One of an indictment charging her with wire fraud. Brothers Miguel Vidal, Angel D. Vidal, and Angel Gabriel Vidal previously pleaded guilty to wire fraud charges for their roles in the scheme.
According to documents filed in the case and statements made in Court:
Popewiny was the payroll clerk at Clifford B. Finkle Jr. Inc., a Clifton company that provided transportation and freight services to various public and private entities located in New Jersey, New York, and elsewhere. From June 2012 to April 2015, Popewiny, and the Vidals, including Miguel Vidal – a former truck driver for the Company – engaged in a scheme to defraud the company of $920,380.
Popewiny falsified payroll records in order to generate fraudulent paychecks payable to non-existent employees, including the Vidal brothers. All of the Vidal brothers have admitted to allowing the use of their personal identifying information to generate the fraudulent paychecks. The three men then converted the fraudulent paychecks, many of which were deposited into their bank accounts and then funneled out of the accounts in cash. Miguel Vidal admitted to recruiting other individuals to provide their personal information so that Popewiny could falsely add them to the payroll. Popewiny input false hours for at least 12 different individuals. The scheme came to light when owners of the company, in an effort to investigate suspected fraud, distributed the payroll checks to employees – a task normally completed by Popewiny. After all of the payroll checks had been distributed, several paychecks remained unclaimed that turned out to be fraudulently issued.
The charge to which Popewiny pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 12, 2018.
Acting U.S. Attorney William E. Fitzpatrick credited criminal investigators in the U.S. Attorney’s Office and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais, of the Special Prosecution Division, and Lee M. Cortes Jr., Deputy Chief of the Special Prosecutions Division.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Pennsylvania Company to Pay $3.5 Million to Resolve Allegations It Caused Fire at FAA FacilityRead the Press Release
NEWARK, N.J. – A Pennsylvania company doing business in New Jersey will pay $3.5 million to resolve allegations that it caused a fire at the Federal Aviation Administration’s William J. Hughes Technical Center in Atlantic City, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
EDA Contractors Inc. (EDA), a corporation headquartered in Bensalem, Pennsylvania, received a government contract in March 2012 to perform roofing work at the FAA Technical Center and began work in May 2012. Part of the contract involved the replacement of a roof at Building 300 of the FAA Technical Center. On June 22, 2012, approximately half an hour after EDA’s workers finished work for the day, a fire engulfed the rooftop of Building 300, causing extensive damage.
The consent judgment agreed to by the United States and EDA and entered by the court resolves allegations that the negligence of EDA’s employees was the proximate cause of the fire.
Acting U.S. Attorney Fitzpatrick credited the Legal Office of the FAA Technical Center, under the direction of Diane Cherinchak Loughrin, and Senior Attorney William Sheehan and Program Analyst Brenda Martello, for their support in gathering information and providing substantial assistance during the litigation and settlement negotiations.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Civil Division in Newark.
Defense counsel: Floyd Cottrell Esq., Newark
New York Man Sentenced to Two Years in Prison in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 24 months in prison for his role in one of the largest credit card fraud schemes ever charged by the Justice Department, Acting U.S. Attorney William E. Fitzpatrick announced.
Raghbir Singh, 61, of Hicksville, New York, previously pleaded guilty before U.S. Magistrate Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit bank fraud. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Singh was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; finally, run up large loans.
The scope of the criminal fraud enterprise required the defendants and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Singh admitted he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.
In addition to the prison terms, Judge Arleo sentenced Singh to three years of supervised release and fined him $1,000.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencings. He also thanked postal inspectors, under the direction of Postal Inspector in Charge James V. Buthorn, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
This case was brought in coordination with 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. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: David E. Levine Esq., Brooklyn, New York
Monmouth County, New Jersey, Man Admits Trying to Sell Employer’s ‘As Seen on TV’ Trade Secrets to CompetitionRead the Press Release
TRENTON, N.J. – A former employee of a New York company that invests in, imports and distributes “As Seen On TV” products today admitted trying to sell trade secrets to one of the company’s competitors, Acting U.S. Attorney William E. Fitzpatrick announced.
Ralph Mandil, 38, of West Long Branch, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton 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:
The products sold by Mandil’s employer, identified in the information as “Victim Company 1,” included electrical and non-electrical appliances, beauty and personal care, pet care, fitness, auto and outdoor products that are frequently marketed via television ads and are commonly sold at large retailers such as Walmart.
From August 2016 through October 2016, Mandil communicated and met with people he believed were representatives of a New Jersey-based competitor of Victim Company 1. These individuals were actually government agents outfitted with audio and video recording devices.
Mandil offered to provide the agents with information belonging to Victim Company 1, in addition to providing them with access to Victim Company 1’s “drop box,” or cloud storage account, in exchange for money. Mandil also provided the government agents with samples of the merchandise he could steal from Victim Company 1.
The wire fraud count to which Mandil pleaded guilty carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for Jan. 22, 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 Zach Intrater, Deputy Chief of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Justin Walder Esq. and Aidan O’Connor Esq., Hackensack, New Jersey.
Children’s Singer/Songwriter Charged with Receipt and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A music teacher and singer/songwriter who performs for children at synagogues, Jewish community centers, camps and conventions nationwide was arrested and charged today with receiving and distributing images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Eric S. Komar, 46, of Hillsborough, New Jersey, was arrested by special agents of the FBI Child Exploitation Task Force. He is charged by complaint with one count of receiving and distributing child pornography. Komar made his initial appearance today before U.S. Magistrate Court Judge James B. Clark III in Newark federal court and was remanded without bail.
According to documents filed in this case and statements made in court:
Komar used a peer-to-peer file-sharing program to obtain and distribute images and videos that including images of prepubescent children being sexually abused.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark at 973-792-3000.
The count with which Komar is charged carries a mandatory minimum sentence of five years in prison, a maximum potential penalty 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; members of the Somerset County Prosecutor’s Office, under the direction of Somerset County Prosecutor Michael H. Robertson and County Chief of Detectives John W. Fodor; the Hillsborough Township Police Department, under the direction of Chief Darren Powell, and the N.J. Regional Computer Forensics Laboratory, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Leticia Vandehaar of the U.S. Attorney’s Office Criminal Division in Newark.
Union County, New Jersey, Man Admits Distributing Sexually Explicit Images and Videos of ChildrenRead the Press Release
TRENTON, N.J. – A Union County, New Jersey, man today admitted he used his home computer to distribute sexually explicit videos and images of children, Acting U.S. Attorney William E. Fitzpatrick announced.
Thomas J. Leonard, 35, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of distributing child pornography.
According to documents filed in this case and statements made in court:
Leonard used a file-sharing program to obtain and distribute over the Internet images and videos of children engaged in sexual acts.
The count to which Leonard pleaded guilty carries a statutory mandatory minimum term of five years in prison, a maximum of 20 years in prison, and a fine of up to $250,000. Sentencing is scheduled for Jan. 29, 2018.
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 today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the N.J. State Police, and the N.J. Regional Computer Forensics Laboratory, for their assistance.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Anyone with information regarding possible victims of this activity is urged to contact the FBI in Newark: 973-792-3000.
Defense counsel: Rubin M. Sinins Esq., Springfield, New Jersey
Man Charged in Massive Tax Scheme That Stole the Identities of over 10,000 Victims, Sought over $10 Million in Fraudulent RefundsRead the Press Release
NEWARK, N.J. – A resident of Nigeria was indicted today for participating in a sophisticated business email scheme that sought millions of dollars from the U.S. Treasury and a separate conspiracy to possess counterfeit and unauthorized credit cards, Acting U.S. Attorney William E. Fitzpatrick announced.
Alade Qudus Badmus, 29, of Lagos, Nigeria, is charged with one count of wire fraud conspiracy, three counts of wire fraud, five counts of aggravated identity theft, and one count of conspiracy to commit access device fraud. He is currently at large.
According to documents filed in this case:
Badmus and his conspirators engaged in a business email compromise scheme in which they “spoofed,” or altered, the email header information of high-ranking corporate officers of numerous victim corporations, including Fortune 500, multinational, and publicly traded companies. Badmus and others then sent phishing emails with the spoofed headers to employees of the victim companies requesting W-2 forms containing the names, addresses, social security numbers, and other personally-identifying information (PII) of thousands of employees.
Tricked into thinking that the emails were legitimate, the victim company employees responded to the emails and sent the W-2 forms to Badmus and other conspirators. In total, Badmus and others obtained the PII of more than 10,000 employees.
Badmus and others used stolen PII to file thousands of fraudulent tax returns. To further facilitate the conspiracy, Badmus and others accessed the IRS’s “Get Transcript” system to obtain additional information on certain individuals. In total, Badmus and others sought more than $10.2 million in fraudulent tax refunds.
In addition, Badus also engaged in a separate conspiracy to possess with intent to defraud dozens of fraudulently-obtained credit cards, along with the PII for dozens of other individual victims.
Badmus faces a maximum potential penalty of 20 years in prison for the wire fraud conspiracy and wire fraud charges, 10 years in prison for the conspiracy to commit access device fraud charge, and 24-month consecutive sentences on each of the aggravated identity theft counts.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, and 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 Osmar Benvenuto of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Manager of Camden, New Jersey, Drug Trafficking Organization Admits Drug and Firearm ChargesRead the Press Release
CAMDEN, N.J. – A Camden man today admitted to conspiring with others to sell crack cocaine and possess a firearm in furtherance of a drug conspiracy in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Preston J. Thomas, a/k/a “Boo,” 31, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court 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.
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, along with brothers Jason and 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.
Six other co-defendants have also pleaded guilty to drug and firearm offenses, and three have been sentenced.
Tony Wilson, a/k/a “Tony Langston,” a/k/a “Tone,” and a/k/a “H,” 25, previously pleaded guilty before Judge Simandle to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. He was sentenced on June 16, 2017, to 96 months in prison followed by five years of supervised release.
On June 14, 2017, Jason Boyd, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” 37, was sentenced to 96 months in prison followed by five years of supervised release. Boyd had previously pleaded guilty to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.
On June 13, 2017, Derek Stallworth, a/k/a “AK” and a/k/a “A,” 21, of Camden, was sentenced to 96 months in prison followed by five years of supervised release. Stallworth had previously pleaded guilty to the same charges for his role in the conspiracy.
On April 3, 2017, Joseph Boyd, a/k/a “Breet,” 32, pleaded guilty to an information charging him with conspiracy to distribute and to possess with intent to distribute cocaine base and was sentenced Sept. 6, 2017, to 70 months in prison.
On June 7, 2017, Julian Dickerson, a/k/a “Juelz,” 30, pleaded guilty to an information also charging him with conspiracy to distribute and to possess with intent to distribute cocaine base. Dickerson’s sentencing is scheduled for Sept. 29, 2017.
On June 28, 2017, Nafeez Griffin, a/k/a “Feez,” 31, pleaded guilty to an information charging him with one count of distribution and possession with intent to distribute cocaine base. Griffin’s sentencing is scheduled for Oct. 6, 2017.
On February 8, 2017, a federal grand jury also charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, 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.
The drug distribution conspiracy charge to which Thomas pleaded guilty carries a statutory minimum penalty of five years in prison and maximum potential penalty of 40 years in prison and a $5 million fine. The firearm conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 5, 2018.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s guilty plea.
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