District of New Jersey

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

 

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 

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

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

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

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

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

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.
 

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.

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
 

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.

 

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

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

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.

 

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.

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

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.

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.

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 Jersey

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

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

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

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

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

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

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

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

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.

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.

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

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.

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

NEWARK, N.J. – Three Customs and Border Protection (CBP) officers were arrested this morning and charged with assaulting two fellow officers at Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.

Tito Catota, 38, of Lyndhurst, New Jersey, Parmenio I. Perez, 40, of Hawthorne, New Jersey, and Michael A. Papagni, 32, of Staten Island, New York, are charged by complaint with forcibly assaulting, impeding, intimidating, and interfering with two men identified in the complaint as “Victim One” and “Victim Two” while the victims were engaged in their duties as CBP officers. The three defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

 “The defendants, who were members of a unit responsible for identifying dangerous contraband and threats to national security, allegedly subjected their own colleagues to senseless physical abuse, all while on duty at Newark Liberty International Airport,” Acting U.S. Attorney Fitzpatrick said. “This behavior would be abhorrent in any environment, especially one serving a critical law enforcement function. The hard working men and women who protect our borders deserve better.”

“DHS employees pledge to maintain the highest standards of conduct and the OIG ensures those employees are held accountable when they violate that obligation,” Special Agent in Charge Mark Tasky of the U.S. Department of Homeland Security, Office of Inspector General, New York Resident Office, said. “DHS OIG takes very seriously allegations such as those in today’s complaint and works tirelessly to conduct a thorough and impartial investigation.”

According to the complaint:

Catota, Perez, and Papagni were employed as CBP officers at Newark Liberty International Airport and were assigned to the Passenger Enforcement Rover Team (PERT). PERT was a CBP specialized unit that was involved in the identification and interception of passengers attempting to bring contraband into the United States or who might be associated with terrorist activities. PERT maintained an office on the second floor of Terminal C at Newark Liberty International Airport.

Victim One was assigned to PERT in October 2016. Within the first two weeks that Victim One worked in PERT, Papagni allegedly advised Victim One that the PERT office table was known as the “rape table” and threatened the victim that he would get him on it.

On Jan. 10, 2017, Victim One was asked to retrieve and forward a document related to a prior drug seizure. While Victim One and an individual identified in the complaint as “CBPO 1” were trying to scan the document, Papagni allegedly warned Victim One that he had five minutes to get out of the office or Papagni would teach him “what this team is about.”

Moments later, an individual identified in the complaint as “CBPO 2” shut off the lights in the PERT office. Papagni, Catota, and another officer identified in the complaint as “CBPO 3” then allegedly grabbed Victim One’s arms and legs and threw him on top of the PERT office table. While Papagni, Catota, and CBPO 3 held him down, Perez got on top of Victim One’s mid-section and grinded his body up and down against Victim One’s genitals through the victim’s clothing in a motion simulating a sex act. Victim One unsuccessfully attempted to push Perez off his body. When Perez eventually got off of Victim One, Papagni, Catota, and CBPO 3 released him.         

On Nov. 30, 2016, Victim Two, who was assigned to the Port Director staff, went to the PERT office to speak to CBPO 1. A few minutes later, Victim Two saw an officer identified as “CBPO 4” lock one of the doors to the office. Victim Two started to walk towards the other door to the PERT office but it was closed. Catota, Papagni, and Perez then grabbed Victim Two and threw him on his side on the PERT office table. While two of the defendants held Victim Two down on top of the table, the other defendant got on top of Victim Two and moved his genitals up and down on Victim Two’s leg in simulation of a sex act. Victim Two struggled to get free until Catota, Papagni, and Perez eventually released him. 
     
Both counts in the complaint carry a maximum potential penalty of eight years in prison and a $250,000 fine.

Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Department of Homeland Security, Office of Inspector General, New York Resident Office, under the direction of Special Agent in Charge Mark Tasky and U.S. Customs and Border Protection, Office of Professional Responsibility, New York Resident Office, under the direction of Special Agent in Charge Vance Kuhner, with the investigation leading to today’s arrests.

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

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

Defense counsel:

Catota: Alan Zegas Esq., Chatham, New Jersey
Papagni: Chad Seigel Esq., New York
Perez: Lorraine Gauli-Rufo, Verona, New Jersey

NEWARK, N.J. – A Milford, Ohio, man was sentenced today to 33 months in prison for using an Essex County, New Jersey, medical company’s credit card without the company’s permission to fraudulently obtain more than $950,000, Acting U.S. Attorney William E. Fitzpatrick announced.

John Tekulve, 44, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with wire fraud. Judge Hayden imposed the sentence today in Newark federal court.

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

From January 2011 through October 2012, Tekulve owned a medical supply company that sold products to an Essex County medical company. He obtained the company’s credit card information, which he used to fraudulently bill the company nearly $1 million for products and services that neither Tekulve nor his medical supply company provided. Tekulve then used the proceeds of the scheme for his own purposes, including the purchase of high-end automobiles and jewelry.

In addition to the prison term, Judge Hayden sentenced Tekulve to three years of supervised release and ordered him to pay restitution of $977,418.75.

Acting U.S. Attorney Fitzpatrick credited special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.

Defense counsel: Peter Carter Esq., Newark

NEWARK, N.J. – A Hudson County, New Jersey, woman and an Essex County, New Jersey, man have admitted their respective roles in a conspiracy to illegally obtain and distribute oxycodone, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Rhonda Musallam, 41, of Fairview, New Jersey, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging her with one count of conspiracy to distribute oxycodone. On Aug. 15, 2017, Robert O’Brien, 60, of Bloomfield, New Jersey, pleaded guilty before Judge Salas to an indictment charging him with one count of conspiracy to distribute oxycodone.

 

Of the 16 people that were charged in this conspiracy, 15 have been convicted, including the leader, Victoria Horvath, who was sentenced Oct. 20, 2016, to 92 months in prison. Charges against the 16th defendant were dismissed after his death in April 2015.

 

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

 

Using confidential sources, surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug-trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified O’Brien and Musallam as members of the drug trafficking organization.

 

Musallam admitted that from June 10, 2014, to July 18, 2014, she supplied members of the conspiracy and others with oxycodone pills. She said that on a day in June 2014 she sold 70 oxycodone-containing pills conspirators in exchange for $1,000.

 

O’Brien admitted that from Feb. 5, 2014, to Aug. 13, 2014, he obtained and paid for filled prescriptions of oxycodone-containing pills on behalf of members of the conspiracy. He said that on a day in May 2014 he purchased a filled prescription for oxycodone-containing pills from a New Jersey pharmacy on behalf of a conspirator in exchange for 45 oxycodone-containing pills from another conspirator.

 

Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for

abuse, it is currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

 

The charges to which Musallam and O’Brien pleaded guilty carry a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Musallam is scheduled for Dec. 19, 2018, and for O’Brien is scheduled for Nov. 27, 2018.

 

Acting U.S. Attorney Fitzpatrick credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to the guilty pleas.

 

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

 

The principal mission of the OCDETF program, under which this investigation was conducted, 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.

School Officials Failed to Evacuate Students with Disabilities During School-Wide Evacuation

NEWARK, N.J. – The Watchung Hills Regional High School District Board of Education has agreed to settle allegations that it violated the Americans with Disabilities Act (ADA) when it failed to evacuate at least one student with a mobility disability during a school-wide evacuation and failed to have any policies addressing emergency evacuations of students with disabilities, Acting U.S. Attorney William E. Fitzpatrick announced today.

 

According to the agreement, on Oct. 7, 2014, the district failed to evacuate at least one student with a mobility disability during an unplanned emergency evacuation. Instead, the student was left on the second floor while students without disabilities were evacuated. The district also did not have a policy or practice that allowed students with mobility impairments to participate fully and equally during emergency evacuation drills.

The ADA prohibits a public entity from, among other things, excluding or denying individuals with disabilities from benefits the public services, programs, or activities. To comply with the ADA, the district must ensure that students with disabilities are afforded “meaningful access” to its services, benefits and activities, including emergency preparedness and emergency evacuations.

“Schools should provide a safe and inclusive environment for all students,” Acting U.S. Attorney Fitzpatrick said. “The ADA mandate is especially pronounced when it comes to programs involving student safety. Through this agreement, the district must enforce an emergency evacuation policy that ensures equal participation and the safety of students with mobility disabilities.”

The district has agreed to ensure that students with disabilities are able to participate meaningfully in emergency evacuations and evacuations drills. It has also agreed to provide ADA training to all of its employees who interact with students with disabilities. The district has adopted policies to ensure that students with disabilities will not be excluded from participation in or be denied the benefits of the district’s safety protocols and practices, including emergency evacuations and drills. The district has agreed to adopt and implement evacuation plans for students with disabilities who have mobility impairments so that all students have the opportunity to participate in evacuations – whether actual evacuations or drills.

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the Civil Rights Unit, of the U.S. Attorney’s Office Civil Division in Newark.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

 

NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 173 months in prison for robbing four banks in August and September 2016 and for violating his supervised release from a previous offense, Acting U.S. Attorney William E. Fitzpatrick announced.

James Lockwood, 39, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with four counts of bank robbery. He was sentenced to 125 months in prison on the bank robbery counts, as well as an additional 48 months for violating supervised release. He was originally arrested by state authorities on Sept. 23, 2016, and has been in custody since that time. Judge Salas imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court, Lockwood robbed the following banks:

Bank

Location

Date

M & T Bank

Lyndhurst, New Jersey

Aug. 16, 2016

Schuyler Bank

Kearney, New Jersey

Aug. 25, 2016

Schuyler Bank

Kearney, New Jersey

Sept. 8, 2016

Capital One Bank

Clifton, New Jersey

Sept. 16, 2016

Lockwood admitted that during each of the above robberies, he threatened to use force while demanding money from the bank employees. He also robbed the same Schuyler Bank on Aug. 25, 2016, and Sept. 8, 2016.

In addition to the prison term, Judge Salas sentenced Lockwood to three 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 in Newark, with the investigation leading to today’s sentencing. He also thanked the Hudson County Prosecutor’s Office, the Passaic County Prosecutor’s Office, and the Kearny and Clifton Police Departments for their assistance.

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

Defense counsel: Keith Hirschorn Esq., Hoboken, New Jersey

TRENTON, N.J. – Two individuals from Trenton, New Jersey, who were arrested in connection with a Trenton-area drug trafficking organization today pleaded guilty to separate charges of unlawful firearms possession and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.

Prince Sarnoe, 30, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with unlawful possession of a firearm by a convicted felon. India Daniels, 24, pleaded guilty before Judge Wolfson to a separate information charging her with conspiracy to distribute and possess with intent to distribute heroin.

In December 2016, Sarnoe, Daniels, and eight 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. Since then, eight of the 10 defendants, including Abdullah, Sarnoe and Daniels, have pleaded guilty.

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

From May 2015 through December 2016, Abdullah and others participated in a drug trafficking organization that operated in the area of Spring and Passaic Streets in the City of Trenton. Abdullah 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 others.

Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. Additionally, multiple members of the organization, including Sarnoe – a previously convicted felon – possessed and maintained access to firearms.

While Abdullah was detained at the Mercer County Correction Center on outstanding warrants, Daniels coordinated and obtained, on Abdullah’s behalf, additional supplies of heroin from Torres-Mezquita. In furtherance of the conspiracy, Daniels then provided that heroin to Hunter for distribution to other members of the conspiracy and their customers.

The firearms charge to which Sarnoe pleaded guilty carries a maximum potential sentence of 10 years in prison and a $250,000 fine. The conspiracy charge to which Daniels pleaded guilty carries a maximum potential sentence of 20 years in prison and a $1 million fine. Sentencing for both defendants is set for Jan. 5, 2018.

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, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge John B. Devito; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation.

He also thanked special agents of the FBI’s Philadelphia Field Office, under the direction of Special Agent in Charge Michael Harpster; special agents of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Debra Parker; officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes; and officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler, for their assistance in the case.

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

The charges and allegations against the remaining defendants are merely accusations, and those defendants are presumed innocent unless and until proven guilty.

Defense counsel:

Sarnoe: John S. Furlong Esq., Trenton

Daniels: Robert Rambadadt Esq., New York

NEWARK, N.J. – A Ringwood, New Jersey, man appeared in federal court today to face cocaine distribution, money laundering, and other conspiracy charges associated with his role in a scheme to import large quantities of cocaine from Guyana to New Jersey and New York, Acting U.S. Attorney William E. Fitzpatrick announced.

Khamraj Lall, 50, is charged by indictment with one count each of conspiracy to launder money, conspiracy to structure funds, conspiracy to import cocaine, and conspiracy to distribute cocaine. He was arraigned today before U.S. District Judge Michael A. Shipp in Trenton federal court and was detained. Lall was arrested July 22, 2015 and has been in custody since that time.

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

From April 2011 through November 2014, Lall, a private pilot, allegedly imported large quantities of cocaine from Guyana to New Jersey and elsewhere on his privately-owned jet aircraft and then laundered the proceeds into banks in New Jersey and New York. Afterwards, he allegedly smuggled hundreds of thousands of dollars in cash back to Guyana.

Lall performed, or had others perform, over 1,287 cash deposits totaling approximately $7,549,775 into more than 20 different bank accounts. All deposits were for amounts less than $10,000 in order to circumvent certain banking reporting laws.

The indictment seeks forfeiture of multiple properties as well as two private jets that Lall purchased with structured funds or were otherwise involved in the criminal conspiracies.

The conspiracy to import and distribute cocaine charges carry a minimum penalty of 10 years in prison, a maximum of life in prison, and a $10 million fine. The conspiracy to launder money charge carries a potential penalty of 20 years in prison and a $500,000 fine. The conspiracy to structure funds charge carries a potential penalty of five years in prison and a $500,000 fine.

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

Acting U.S. Attorney Fitzpatrick credited special agents and task force officers of the Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge James. J. Hunt, IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the Morristown, New Jersey, police department, under the direction of Chief Peter Demnitz, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jonathan M. Peck, Barry A. Kamar, and Melissa M. Wangenheim of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit, Assistant U.S. Attorneys Peter Gaeta and Sarah Devlin of the Asset Forfeiture-Money Laundering Unit, and Assistant U.S. Attorney Robert A. Marangola of the U.S. Attorney’s Office, Western District of New York.

Defense Counsel: Michael D’Alessio Jr. Esq.

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 480 months in prison for coercing a minor to engage in sexually explicit conduct while he photographed the abuse, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Felix Restitullo, 42, of Jersey City, New Jersey, was convicted in May 2017 of one count of production of child pornography and one count of possession of child pornography following a two-week trial before U.S. District Judge William H. Walls. The jury deliberated less than three hours before returning the guilty verdicts. Judge Walls imposed the sentence today in Newark federal court.

 

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

 

Restitullo resided with his mother, who acted as caregiver to children, including the victim, an underage girl. On March 13, 2014, as a result of an ongoing investigation into the sexual abuse of minor children, law enforcement officers interviewed the victim, who told the officers that Restitullo had sexually abused her and photographed it.

 

Restitullo was arrested and charged by the Hudson County Prosecutor’s Office with aggravated sexual assault and endangering the welfare of the girl. In connection with his arrest, officers searched Restitullo’s bedroom and recovered a camera and multiple electronic media devices belonging to Restitullo.

 

A forensic examination of the devices was performed, and law enforcement agents identified photographs that depicted the victim’s sexual abuse saved on a thumb drive found in Restitullo’s closet. Agents identified more than 3,000 images and more than 350 videos of child sexual abuse.

 

In addition to the prison term, Judge Walls sentenced Restitullo to lifetime supervised release.

 

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, Newark field office, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s sentencing.

 

The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Justin Herring of the Criminal Division in Newark.

 

Defense counsel: Mario Blanch Esq., West New York, New Jersey

CAMDEN, N.J. – A Deptford, New Jersey, man was sentenced today to 78 months in prison for using a fake Facebook profile to entice children to produce sexually explicit images, Acting U.S. Attorney William E. Fitzpatrick announced.

Michael J. Mostovlyan, 33, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct. Judge Bumb imposed the sentence today in Camden federal court.

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

Mostovlyan admitted that between Jan. 1, 2016 and June 2, 2016, he communicated with children online in order to obtain sexually explicit images of those children. Using a fake female persona on Facebook in the name of “Amber Zee,” which he created using actual images of a girl, Mostovlyan was able to persuade the victims to send him sexually explicit photographs or videos.

In addition to the prison term, Judge Bumb sentenced Mostovlyan to 15 years of supervised release.

U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction Special Agent in Charge Michael Harpster in Philadelphia; the Monroe Township Police Department under the direction of Chief John McKeown; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the Deptford Township Police Department, under the direction of Chief William Hanstein, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.

Galena Biopharma Inc. (Galena) will pay more than $7.55 million to resolve allegations under the civil False Claims Act that it paid kickbacks to doctors to induce them to prescribe its fentanyl-based drug Abstral, the Department of Justice announced today.

 

“Given the dangers associated with opioids such as Abstral, it is imperative that prescriptions be based on a patient’s medical need rather than a doctor’s financial interests,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice intends to vigorously pursue those who offer and receive illegal inducements that undermine the integrity of government health care programs.”

 

“The conduct alleged by the government and resolved by today’s settlement was egregious because it incentivized doctors to over-prescribe highly addictive opioids,” said Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey. “This settlement constitutes another example of the Department of Justice’s ongoing efforts to battle the opioid epidemic on every front.”

 

The United States contends that Galena paid multiple types of kickbacks to induce doctors to prescribe Abstral, including providing more than 85 free meals to doctors and staff from a single, high-prescribing practice; paying doctors $5,000, and speakers $6,000, plus expenses, to attend an “advisory board” that was partly planned, and attended, by Galena sales team members and paying approximately $92,000 to a physician-owned pharmacy under a performance-based rebate agreement to induce the owners to prescribe Abstral. The United States also contends that Galena paid doctors to refer patients to the company’s RELIEF patient registry study, which was nominally designed to collect data on patient experiences with Abstral, but acted as a means to induce the doctors to prescribe Abstral. Galena has not marketed any pharmaceutical drug since the end of 2015.

 

Two of the doctors who received remuneration from Galena were tried, convicted and later sentenced to prison in the U.S. District Court for the Southern District of Alabama following a jury trial of, among other counts, offenses relating to their prescriptions of Abstral. Galena cooperated in that prosecution.

 

The settlement resolves a lawsuit filed by relator Lynne Dougherty under the whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States and obtain a portion of the government’s recovery. As part of today’s resolution, Ms. Dougherty will receive more than $1.2 million. The matter remains under seal as to allegations against entities other than Galena.

 

The settlement is the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the Department of Health and Human Services Office of Counsel to the Inspector General, and the Food and Drug Administration Office of Criminal Investigations’ Metro Washington Field Office.

 

The claims settled by this agreement are allegations only; there have been no admissions of liability by Galena.

NEWARK, N.J. – Galena Biopharma Inc. will pay more than $7.55 million to resolve allegations that it paid kickbacks to doctors to induce them to prescribe its fentanyl-based drug Abstral, Acting U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division announced today. The allegations arose from a whistleblower suit filed under the False Claims Act.

“The conduct alleged by the government and resolved by today’s settlement was egregious because it incentivized doctors to over-prescribe highly addictive opioids,” Acting U.S. Attorney Fitzpatrick said. “This settlement constitutes another example of the Department of Justice’s ongoing efforts to battle the opioid epidemic on every front.”

“Given the dangers associated with opioids such as Abstral, it is imperative that prescriptions be based on a patient’s medical need rather than a doctor’s financial interests,” Acting Assistant Attorney General Readler said. “The Department of Justice intends to vigorously pursue those who offer and receive illegal inducements that undermine the integrity of government health care programs.”

The settlement follows an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division.

The United States contends that Galena Biopharma paid multiple types of kickbacks to induce doctors to prescribe Abstral, including providing more than 85 free meals to doctors and staff from a single, high-prescribing practice; paying doctors $5,000 honoraria, and speakers $6,000, plus expenses, to attend an “advisory board” that was partly planned, and was attended by, Galena sales team members; and paying approximately $92,000 to a physician-owned pharmacy under a performance-based rebate agreement to induce the owners to prescribe Abstral. The United States also contends that Galena paid doctors to refer patients to the company’s RELIEF patient registry study, which was nominally designed to collect data on patient experiences with Abstral, but acted as a means to induce the doctors to prescribe Abstral.

Galena Biopharma sold Abstral in November 2015 after booking net losses on Abstral in each year that it owned the drug, beginning in June 2013. During that period, Medicare, TRICARE, and the Federal Employees Health Benefits program paid $13.6 million for Abstral prescriptions; the settlement resolves Galena’s civil liability for causing false claims to be submitted to these programs. Galena Biopharma has not marketed any pharmaceutical drug since the end of 2015. It currently has a market capitalization of roughly $21 million. The company cooperated with the government’s investigation of certain individuals in connection with the conduct that is the subject of today’s settlement agreement; it also cooperated with the U.S. Attorney’s Office for the Southern District of Alabama’s investigation that led to the February 2017 conviction of two doctors, in the U.S. District Court for the Southern District of Alabama following a jury trial, of, among other counts, offenses relating to their prescriptions of Abstral.

The settlement resolves a lawsuit filed by relator Lynne Dougherty under the whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States and obtain a portion of the government’s recovery. As part of today’s resolution, Ms. Dougherty will receive more than $1.2 million. The matter remains under seal as to allegations against entities other than Galena.

Acting U.S. Attorney Fitzpatrick credited special agents from FDA-OIG, under the direction of Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations’ New York Field Office, as well as investigators from the U.S. Attorney’s Office for the District of New Jersey, for the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorneys Charles Graybow and Brian Urbano of the Health Care and Government Fraud Unit, and David Dauenheimer, Deputy Chief, Civil Division, of the U.S. Attorney’s Office for the District of New Jersey, and by Trial Attorney Natalie Priddy of the Department of Justice’s Civil Division.

The 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 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.

TRENTON, N.J. – A South Gate, California, man who was arrested with 29 kilograms of methamphetamine hidden in a tractor trailer was sentenced today to 63 months in prison, Acting U.S. Attorney William E. Fitzpatrick announced.

Tomas Lopez Beltran, 46, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of possession with intent to distribute more than 500 grams or more of methamphetamine. Judge Martinotti imposed the sentence today in Trenton federal court.

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

On Oct. 28, 2016, law enforcement lawfully searched a tractor trailer driven by Beltran and recovered approximately 29 kilograms of methamphetamine and $73,500 in cash from a concealed compartment located inside the cab of the trailer. Beltran admitted that he intended to distribute the methamphetamine and cash to an individual in Georgia.

In addition to the prison term, Judge Martinotti sentenced Beltran to three years of supervised release

Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation.

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

Defense counsel: Eric J. Marcy Esq., Woodbridge, New Jersey

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 97 months in prison for using his e-mail and instant messaging accounts to receive images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.

Matthew Kaminsky, 51, of Matawan, New Jersey, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of receiving child pornography. Judge Cooper imposed the sentence today in Trenton federal court.

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

Kaminsky allegedly met various underage girls through online chat applications and sent them naked pictures of himself. In late January of 2015, over the course of several days, he began corresponding with a 13-year-old girl over an online chat application and induced her to take nude pictures of herself and to send them to him. In March 2015 law enforcement officers recovered computer equipment belonging to Kaminsky containing images and videos appearing to be of child sexual abuse. Law enforcement officers located and interviewed the 13-year-old girl Kaminsky had chatted with online in January of 2015, and she confirmed that she had chatted online with Kaminsky and had sent him nude pictures of herself at his request.

In addition to the prison term, Judge Cooper sentenced Kaminsky to five years of supervised release.

Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Debra Parker, Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to today’s sentencing.

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

Defense counsel: Brian Reilly Esq., Assistant Federal Public Defender, Trenton

CAMDEN, N.J. – The former executive director of the Ocean City, New Jersey, Housing Authority (OCHA) was sentenced today to three years of probation for embezzling federal funds received by authority from the U.S. Department of Housing and Urban Development (HUD), Acting U.S. Attorney William E. Fitzpatrick announced.

Alesia Watson, 54, of Galloway Township, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Karen M. Williams to an information charging her with one count of embezzling federal funds received from HUD and administered by OCHA to which she was not entitled. Judge Williams imposed the sentence today in Camden federal court.

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

As executive director, Watson had access to two credit cards maintained by OCHA. From December 2013 through March 2015, Watson purchased 69 MasterCard gift cards using these two OCHA credit cards. She used the gift cards for personal expenses not associated with OCHA or provided them to friends and family members. Watson then used federal funds received from HUD and administered by OCHA to pay the credit card bills associated with the purchase of the gift cards. According to the plea agreement, the loss associated with the embezzlement was more than $6,500 but less than $15,000.

Watson was also ordered to pay restitution of $8,050.

Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation.

The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.

Defense counsel: John J. Zarych Esq., Northfield, New Jersey

NEWARK, N.J. – A South Orange, New Jersey, man today admitted his participation in the September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.

Keontrae Lawrence, a/k/a “Taz,” 29, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment 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 indictment and other documents filed in this case:

On Sept. 6, 2015, Lawrence and others agreed to rob a club in Passaic at gunpoint. During his plea hearing, Lawrence 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.

The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and that sentence must be consecutive to any other sentence imposed. Lawrence’s sentencing is set for Jan. 5, 2018.

Lawrence was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Shaheed Blamahsah, a/k/a “Aboo,” 30, of East Orange, New Jersey, in November 2016. Cooper and Lawrence were later indicted by a federal grand jury on March 24, 2017, for their roles in the robbery.

Blamahsah pleaded guilty to his role in the robbery and awaits sentencing. The charges against Cooper are still pending, 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 leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office, the Passaic Police Department, and the Newark Police Division 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: John A. Azzarello Esq., Morristown, New Jersey

 

NEWARK, N.J. – A California man who swallowed plastic bags containing approximately 600 grams of heroin admitted today that he possessed the drug with intent to distribute it, Acting U.S. Attorney William E. Fitzpatrick announced.

Omar Vazques, 24, of Bakersfield, California, pleaded guilty before U.S. District Court Judge John Michael Vazquez in Newark federal court to an information charging him with one count of possession of heroin with intent to distribute and distribution of heroin.

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

On Sept. 15, 2016, Vazques landed at Newark Liberty International Airport on a commercial flight after having swallowed approximately 81 “pellets” of heroin wrapped in plastic baggies. Vazques intended to distribute the heroin after his arrival but was apprehended by law enforcement authorities, who escorted Vazques to a hospital. Vazques underwent emergency surgery after hospital staff discovered that one of the baggies had ruptured. A co-defendant, Arturo Gonzales, who arrived on the same flight and had also swallowed heroin with the intent to distribute it, pleaded guilty before Judge Vazquez on June 26, 2017.

The drug distribution charge to which Vazques pleaded guilty carries a maximum prison sentence of 20 years and a maximum fine of $1 million. Sentencing is scheduled for Dec. 11, 2017.

U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, in Newark for the investigation that led to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Organized Crime/Drug Enforcement Task Force Unit.

TRENTON, N.J. – An Anaheim, California, man today admitted laundering money on behalf of an international drug trafficking organization, Acting U.S. Attorney William E. Fitzpatrick announced.

Harry Madrid, 26, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to Count Two of an indictment charging him with conspiracy to launder money. Madrid was previously arrested in November 2014 in Illinois.

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

From June 2014 through November 2014, Madrid conspired with other members of a international drug trafficking organization, which included cells operating in New Jersey, to launder more than $150,000 in United States currency related to the distribution of heroin.

One of Madrid’s co-defendants, Henry Zamora, pleaded guilty before Judge Sheridan on Aug. 31, 2017 to conspiring to distribute four kilograms of heroin that were recovered from a hidden compartment in his vehicle.

The money laundering charge to which Madrid pleaded guilty carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is set for Dec. 14, 2017.

Acting U.S. Attorney Fitzpatrick credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, officers of the N.J. State Police, under the direction of Superintendent Col. Joseph R. Fuentes, and officers from the DeKalb, Illinois, police department, under the direction of Chief Gene Lowrey, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Thomas S. Kearney and Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.

CAMDEN, N.J. - A Camden man was sentenced today to 70 months in prison for his role in a crack cocaine distribution conspiracy operating in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.

Joseph Boyd, a/k/a “Breet,” 32, 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:

Joseph Boyd admitted that he sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden and supplied crack cocaine to other members of the conspiracy to sell in the area.

Joseph Boyd – along with Jason Boyd, Tony Wilson, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson – were originally charged by complaint on Sept. 9, 2016, following an 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.

In addition to the prison term, Judge Simandle sentenced Joseph Boyd to three years of supervised release.

Jason Boyd, Stallworth, and Wilson, who each previously pleaded guilty to drug distribution conspiracy and firearms possession, were all sentenced to 96 months in prison. Dickerson and Griffin both pleaded guilty to their roles in the scheme and await sentencing.

Thomas and Whitaker remain charged by superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base. Thomas is also charged with one count of possession of a firearm in furtherance of a drug trafficking crime. The charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.

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: David Rudenstein Esq.