District of New Jersey
Press releases recorded for this federal judicial district.
Camden County, New Jersey, Man Admits Conspiracy to Sexually Exploit ChildrenRead the Press Release
CAMDEN, N.J. – A Collingswood, New Jersey, man today admitted conspiring with his former girlfriend to produce sexually explicit images of two children, Acting U.S. Attorney William E. Fitzpatrick announced.
Alexander Capasso, 43, pleaded guilty before U.S. District Judge Jerome B. Simandle to Count One of an indictment charging him with conspiring with Janine Kelley, 36, of Audubon, New Jersey, to engage in the sexual exploitation of children.
According to documents filed in this case and statements made in court:
Capasso began a sexual relationship with Kelley in 2010. During that relationship, Capasso took, or allowed Kelley to take, recorded images of Capasso engaged in sexually explicit conduct with a child. Capasso also took, or allowed Kelley to take, recorded images of Kelley engaged in sexually explicit conduct with two children.
According to the terms of the plea agreement, if accepted by the court, Capasso will receive a term of between 15 and 20 years in prison as well as a lifetime of supervised release. He also faces a potential $250,000 fine and must pay full restitution to the victims. Sentencing is scheduled for Sept. 20, 2017. Capasso has been in federal custody since his July 20, 2015 arrest.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Michael Harpster, and the FBI Washington D.C., Field Office, under the direction of Assistant Director in Charge Andrew Vale, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Diana Carrig and Sara Aliabadi of the U.S. Attorney’s Office in Camden.
Defense counsel: Terri Lodge Esq., Cinnaminson, New Jersey
Juvenile Corrections Officer Arrested for Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was arrested and charged today for allegedly distributing images and videos of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael A. Ruggiero, 35, of Forked River, New Jersey, a corrections officer at a juvenile detention facility, was arrested at work this morning by agents of the Department of Homeland Security, Homeland Security Investigations (HSI), on a complaint charging him with one count of distribution of child pornography. Ruggiero is expected 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:
From April 16, 2016, to April 19, 2016, Ruggiero used a mobile chat application to distribute and share over the internet images and videos of children engaged in sexual acts. Anyone with information regarding possible victims of this activity is urged to contact HSI in Newark: (973)-776-5500.
The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents HSI, under the direction of Acting Special Agent in Charge Brian A. Michael; inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Daniel Brubaker, Philadelphia Division; and members of the Ocean County Prosecutor’s Office, with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Criminal Division.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, Trenton
Skilled Nursing Facility to Pay $888,000 to Resolve Alleged False Claims Related to Materially Substandard CareRead the Press Release
NEWARK, N.J. – A skilled nursing facility in Sussex County, New Jersey, has agreed to pay to the United States and the State of New York $888,000 to resolve allegations that it provided materially substandard or worthless nursing services to some patients, Acting U.S. Attorney William E. Fitzpatrick announced today.
Andover Subacute and Rehab Center Services Two Inc. (Andover) is a skilled nursing facility located in Andover, New Jersey. The settlement announced today 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, with assistance from the Office of the Attorney General of the State of New York.
The United States and The State of New York contend that from July 1, 2010, to Dec. 31, 2012, Andover billed New York Medicaid for materially substandard or worthless nursing services provided to certain patients that failed to meet federal standards of care and federal statutory and regulatory requirements.
To resolve the federal and state civil claims, Andover has agreed to pay $395,508 to the United States and $492,492 to the State of New York. Andover will enter into a Corporate Integrity Agreement with the Office of Inspector General of the DHHS to enhance quality assurance, accountability and other aspects of its compliance operations.
Acting U.S. Attorney Fitzpatrick credited special agents from the DHHS, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Brett Elliott of the Department of Justice’s Civil Division. The government was assisted by Special Assistant Attorney General Sally G. Blinken of the Office of the Attorney General of the State of New York. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the DHHS also participated in the investigation and settlement.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Defense counsel: Craig Goodstadt Esq., Andover, New Jersey
Previously Convicted Felon from Essex County, New Jersey, Charged with Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – A Newark man appeared in federal court today to face allegations that he possessed a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard D. Williams, 39, is charged by indictment with one count of being a felon in possession of a firearm. Williams was detained after his arraigned this afternoon before U.S. District Judge John Michael Vazquez in Newark federal court.
According to the documents filed in this case:
On Feb. 18, 2017, law enforcement officers spotted a white Infiniti car that fit the same description of a vehicle that had been reported stolen. The police attempted to conduct a motor vehicle stop of the Infiniti but it sped away at a very high rate of speed. The police pursued the Infiniti through Newark and into East Orange, New Jersey. Several other police cars and a Newark police department helicopter joined the pursuit.
The police chased the Infiniti until it was traveling east on South Orange Avenue near Bergen Street in East Orange. At that point, the Infiniti crossed into oncoming traffic and collided head-on into an unmarked Newark police SUV, causing both the Infiniti and the SUV to catch fire. The three Newark police officers inside the SUV were able to exit the vehicle safely.
Williams, the alleged driver of the Infiniti, got out of the car and attempted to flee but was caught by a Newark police officer. A N.J. State Trooper who assisted with the arrest searched Williams and allegedly recovered from his waistband a black Amadeo & Rossi special .38 revolver loaded with four rounds of .38 caliber SPL&P Winchester hollow-point ammunition. At the time, Williams had at least one prior felony conviction in federal court.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited ATF special agents, under the direction of Acting Special Agent in Charge Marcus S. Watson in Newark, with the investigation. He also thanked the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, and the N.J. State Police, under the direction of Col. Rick Fuentes, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense Counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Bernards Township Settles Federal Civil Suit, Agrees to Allow Islamic Society to Build MosqueRead the Press Release
NEWARK, N.J. – Bernards Township, New Jersey, has agreed to settle a federal civil lawsuit to resolve allegations that the township violated federal law when it denied zoning approval to allow the Islamic Society of Basking Ridge (ISBR) to build a mosque on property where zoning permitted houses of worship, U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division announced today.
The settlement agreement also resolves allegations that at the time the ISBR’s application was pending, the township revised its zoning code to unreasonably limit any house of worship from building in the township. The settlement resolves a lawsuit the Justice Department filed in November 2016. A separate settlement resolving a similar lawsuit brought by the Islamic Society against the township has also been reached.
“Federal law requires towns to treat religious land use applications like any other land use application,” Acting U.S. Attorney Fitzpatrick said. “Bernards Township made decisions that treated the Islamic Society of Basking Ridge differently than other houses of worship. The settlement announced today corrects those decisions and ensures that members of this religious community have the same ability to practice their faith as all other religions.”
“Federal law protects people of all religious communities from discrimination and unlawful obstacles when they seek to build a place of worship,” Acting Assistant Attorney General Wheeler said. “Through this agreement, the Islamic Society of Basking Ridge and its members will be able to build a mosque and exercise the fundamental American right of freedom of worship.”
The United States’ complaint alleged that Bernards Township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it discriminated against the Islamic Society based on its religion and the religion of its members. The complaint alleged that the township denied the application to build a mosque, applying standards and procedures to the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; it imposed a substantial burden on the Islamic Society’s religious exercise; and it amended its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
As part of the settlement, Bernards Township has agreed to permit the Islamic Society to construct a mosque on its property. The township has also agreed that its leaders and other township employees will undergo training on the requirements of RLUIPA. It has also agreed to publicize its non-discrimination policies and periodically report to the Justice Department on its compliance with the settlement agreement. The township has also agreed to amend its zoning ordinance to limit the zoning restrictions placed on houses of worship. In a separate settlement agreement, the township agreed to pay the Islamic Society $3.25 million to resolve its claims for damages and attorney’s fees caused by the denial of the mosque application.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division; Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit, Civil Division; and Trial Attorney Beth Pepper, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
RLUIPA prohibits discrimination in land use and zoning decisions. People who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.
Member of the New Jersey Grape Street Crips Gets 112 Months in Prison for Crack-Cocaine DistributionRead the Press Release
NEWARK, N.J. – A gang member who sold crack-cocaine for the New Jersey set of the Grape Street Crips was sentenced today to 112 months in prison, Acting U.S. Attorney William E. Fitzpatrick announced.
Ernest Valentine, a/k/a “Bop,” 32, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with conspiracy to distribute 28 grams or more of crack-cocaine. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Valentine obtained crack-cocaine from more senior gang members and associates who used and shared a dedicated cell phone to accept orders for thousands of clips of crack-cocaine. These gang-members included Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” and Rashan Washington, a/k/a “Shoota.”
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison term, Judge Linares sentenced Valentine to five 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, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Stacy A. Biancamano Esq., Chatham, New Jersey
Essex County, New Jersey, Man Admits Fall 2016 Bank Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark man today admitted robbing five banks in October and November 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Jermaine Mason, a/k/a “Asim Harris,” 39, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with five counts of bank robbery.
According to documents filed in this case and statements made in court, Mason robbed the following banks on the dates set forth below:
Bank
Location
Date
Kearny Bank
Harrison
Oct. 21, 2016
PNC Bank
Jersey City
Nov. 3, 2016
Popular Community Bank
Newark
Nov. 17, 2016
Provident Bank
Jersey City
Nov. 18, 2016
Provident Bank
Kearny
Nov. 29, 2016
Mason admitted that during each of the above robberies, he either presented a note demanding cash from bank tellers or verbally demanded money.
The bank robbery charges each carry a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 29, 2017.
Mason was originally arrested by state authorities on Nov. 30, 2016 and has been in custody since that time. Prior to his arrest, he was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark
Bergen County Man Admits Robbery of New Jersey Bar, Carjacking, and Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted participating in the December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Wilbur Jonathon Barahona, 21, of Ridgewood, New Jersey, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.
According to documents filed in this case and statements made in court:
Barahona admitted that on Dec. 25, 2016, he and others forcibly robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Barahona and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Barahona admitted that he and others forced the driver into the back of the vehicle and took over driving. Barahona also admitted that during the carjacking, other conspirators caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for Aug. 16, 2017.
Balmore Carrillo-Iraheta, 19, of Suffern, New York, who previously was indicted for his role in the Hobbs Act Robbery of the Hawthorne bar, pleaded guilty before Judge Linares in Newark federal court on May 15, 2017, to one count of conspiracy to commit Hobbs Act Robbery. All six men originally charged by complaint for their respective roles in the Hobbs Act Robbery, carjacking, and kidnapping have pleaded guilty 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, investigators from the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Carol Gillen Esq., Assistant Federal Public Defender, Newark
New York Man Sentenced to 50 Months in Prison for Conspiracy to Distribute 10 Kilograms of Synthetic Designer DrugsRead the Press Release
NEWARK, N.J. – A Queens, New York, man was sentenced today to 50 months in prison for his role in a scheme to distribute controlled substance analogues, which are designer drugs that have chemical structures and hallucinogenic effects similar to Schedule I controlled substances, Acting U.S. Attorney William E. Fitzpatrick announced.
Elmostafa Charif, 37, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of conspiracy to distribute, and one count of possessing with intent to distribute, the controlled substance analogues NM2201 and 5F-AMB. NM2201 and 5F-AMB are most closely related to synthetic Tetrahydrocannabinol, or THC.
According to documents filed in this case and statements made in court:
Since February 2011, the Drug Enforcement Administration (DEA) has been investigating the importation, distribution, and use of designer drugs popularly known as synthetic cannabinoids. “K2” and “Spice” are common examples of synthetic cannabinoids.
Synthetic cannaboids are created when damiana leaves – an inert, plant-like substance – are sprayed with controlled substance analogues and treated with synthetic flavoring. The flavored and treated damiana leaves are then smoked by users.
Charif admitted that on April 13, 2015, he conspired with others to purchase and distribute approximately 10 kilograms of synthetic cannabinoids, including approximately five kilograms of NM2201 and approximately five kilograms of 5F-AMB. Charif also admitted that he purchased liquid flavoring and damiana leaves with the controlled substance analogues, knowing that they would be used to create a product that was smoked or otherwise consumed by users.
NM2201 and 5F-AMB are each controlled substance analogues as defined under the Analogue Act due to the fact that both NM2201 and 5F-AMB have chemical structures and hallucinogenic properties similar to the Schedule I controlled substances 5F-PB-22 and ADB-PINACA, respectively.
In addition to the prison term, Judge McNulty sentenced Charif to two years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Organized Crime Drug Enforcement Task Force Unit in Newark.
Hacker Sentenced to 30 Months in Prison for Role in Largest Known Computer Hacking and Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Ukrainian hacker was sentenced today to 30 months in prison for his role in an international scheme to hack into three business newswires, steal yet-to-be published press releases containing non-public financial information, and use that information to make trades that generated approximately $30 million in illegal profits, Acting U.S. Attorney William E. Fitzpatrick announced.
Vadym Iermolovych, 29, of Kiev, Ukraine, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to commit computer hacking, and aggravated identity theft. Judge Arleo imposed the sentence today in Newark federal court.According to documents filed in this case and statements made in court:
Iermolovych admitted that he was personally involved in the hacks into Marketwired L.P. (Marketwired), PR Newswire Association LLC (PRN), and Business Wire (collectively, the “Victim Newswires”). He admitted to hacking into PRN’s network between January 2013 and March 2013. He also admitted that he obtained a set of user credentials of PRN employees stolen from a computer hack into a social networking website and then used at least one of those credentials to ultimately gain access into PRN’s computer network. Iermolovych also admitted that he sold press releases stolen from the network intrusion into Marketwired, and purchased access into Business Wire’s network, all in furtherance of a larger conspiracy to profit from the stolen draft press releases.
Five other members of the conspiracy – two computer hackers and three securities traders – were charged by federal indictment brought by the District of New Jersey (DNJ). The related 23-count DNJ indictment charged Ivan Turchynov, 29, Oleksandr Ieremenko, 25, and Pavel Dubovoy, 34, all of Ukraine, as well as Arkadiy Dubovoy, 52, and Igor Dubovoy, 30, both of Alpharetta, Georgia. Arkadiy Dubovoy and Igor Dubovoy both pleaded guilty to the wire fraud conspiracy charged in Count One of the DNJ indictment on Feb. 18, 2016 and Jan. 20, 2016, respectively.
The Eastern District of New York (EDNY), in a related indictment, charged four securities traders: Vitaly Korchevsky, 51, of Glen Mills, Pennsylvania, Vladislav Khalupsky, 46, of Brooklyn, New York, and Odessa, Ukraine, Leonid Momotok, 48, of Suwanee, Georgia, and Alexander Garkusha, 49, of Cummings and Alpharetta, Georgia. Garkusha pleaded guilty to the wire fraud conspiracy charged in Count One of the EDNY indictment on Dec. 21, 2015. Momotok pleaded guilty to the same charge on Aug. 2, 2016.
As alleged in the indictments, between February 2010 and August 2015, computer hackers based in Ukraine gained unauthorized access into the computer networks of the Victim Newswires. They used a series of targeted cyber-attacks, including “phishing” attacks and SQL injection attacks, to gain access to the computer networks. The hackers moved through the computer networks and stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material information.
The hackers shared the stolen releases with the traders using overseas computer servers that they controlled. In a series of emails, the hackers even shared “instructions” on how to access and use the overseas server where they shared the stolen releases with the traders, and the access credentials and instructions were distributed amongst the traders. The traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases for publicly traded companies from Marketwired and PRN.
The traders generally traded ahead of the public distribution of the stolen releases, and their trading activities shadowed the hackers’ capabilities to exfiltrate stolen press releases. In order to execute their trades before the releases were made public, the traders sometimes had to execute trades in extremely short windows of time between when the hackers illegally accessed and shared the releases and when the press releases were disseminated to the public by the newswires, usually shortly after the close of the markets. Frequently, all of this activity occurred on the same day. Thus, the trading data often showed a flurry of trading activity around a stolen press release just prior to its public release.
The traders traded on stolen press releases containing material nonpublic information about hundreds of companies, including Align Technology Inc., Caterpillar Inc., Hewlett Packard, Home Depot, Panera Bread Co., and Verisign Inc.
The traders paid the hackers for access to the overseas servers based, in part, on a percentage of the money the traders made from their illegal trading activities. The hackers and traders used foreign shell companies to share in the illegal trading profits.
In addition to the prison term, Judge Arleo sentenced Iermolovych to three years of supervised release and ordered him to pay restitution of $3,004,685.06.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Randolph D. Alles, and special agents from the U.S. Secret Service Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation. He also thanked the U.S. Securities and Exchange Commission, for its significant cooperation and assistance in the investigation and the newswires, which cooperated with law enforcement over the course of the investigation.
The government is represented by Assistant U.S. Attorneys Daniel Shapiro, Justin Herring, and Svetlana Eisenberg of the Economic Crimes Unit, Computer Hacking & Intellectual Property Section, David M. Eskew, Chief of the General Crimes Unit, Trial Attorney Andrew S. Pak, of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
Defense counsel: Donna Newman Esq., New York
Essex County, New Jersey, Man Pleads Guilty to Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man today admitted 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,” 29, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a two-count 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.
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. 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. Blamahsah’s sentencing is scheduled for Sept. 11, 2017.
Blamahsah was originally charged with Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 28, of South Orange, New Jersey, in November 2016. Cooper and Lawrence were indicted by a federal grand jury on March 24, 2017 for their alleged roles in the robbery of the Passaic club. The charges against Cooper and Lawrence are merely allegations, and they are 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 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
Two Essex County, New Jersey, Men Charged for Their Roles in $500,000 Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were arrested this morning and charged in connection with a scheme that allegedly caused losses of approximately $500,000 by deceiving victim banks into crediting certain customer accounts that could be fraudulently accessed by members of the conspiracy, Acting U.S. Attorney William E. Fitzpatrick announced.
Yaseen Salih, 19, of East Orange, New Jersey, and Chad Brown, 21, of Orange, New Jersey, are charged by complaint with one count of conspiracy to commit bank fraud. They appeared today before U.S. Magistrate Judge Mark Falk in Newark federal court. Salih was released on $200,000 bond. Brown was detained.
According to the complaint:
From September 2015 through the present, Salih, Brown, and others conspired to fraudulently obtain money from two victim banks.
First, Salih, Brown and others obtained information pertaining to actual bank accounts belonging to customers of the two victim banks, including the customers’ bank account numbers and their personal identification numbers. In some instances, the conspirators obtained debit cards associated with the accounts or Salih and Brown personally requested access from the account owners.
Afterwards, a member of the conspiracy called a teller at the victim bank. After deceiving the teller into believing that the caller was an employee of the victim bank, the caller convinced the teller to credit funds into the above customer accounts.
Once the funds were credited into the customer accounts, members of the conspiracy used debit cards associated with the accounts to obtain the fraudulently credited funds, either by withdrawing the funds directly from ATM machines at branch locations of the victim banks, or by purchasing postal money orders.
To date, the losses associated with the conspiracy exceed approximately $500,000.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Ari Fontecchio of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Salih: Hassen Ibn Abdellah Esq.
Brown: Perry Primavera Esq.
Husband and Wife Indicted for Ponzi Scheme Relating to Hedge Fund Investments in Foreign CurrenciesRead the Press Release
NEWARK, N.J. – The owners and operators of a purported hedge fund were indicted by a federal grand jury yesterday for allegedly defrauding approximately 20 investors by making extraordinary guarantees about investment returns and then using the money for extravagant purchases or to pay off other victims, Acting U.S. Attorney William E. Fitzpatrick announced.
Alcibiades Cifuentes, 34, and his wife, Jennifer Wee Cifuentes, 36, both of West New York, New Jersey, are charged with four counts of wire fraud, one count of conspiring to commit wire fraud, and one count of stealing funds intended for investment in commodities. The arraignment is pending.
According to the indictment:
Alicbiades and Jennifer Wee Cifuentes allegedly engaged in an investment fraud scheme from 2012 through March 2015. They fraudulently induced victims to invest in the foreign currency and commodity markets through Cifuentes Fund Management (CFM), their hedge fund that purportedly invested in foreign currencies, and then almost immediately spent those investment funds on personal items, such as an Audi R8 and jewelry. The couple would then pay back a portion of the victims’ money with money received from newly duped victims. They allegedly defrauded approximately 20 victims of approximately $500,000.
Each count of wire fraud and wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The count of commodities theft carries a maximum potential penalty of 10 years in prison and a $1 million fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited inspectors of the U.S. Postal Inspection Services under the direction of Inspector in Charge James V. Buthorn, and criminal investigators with the U.S. Attorney’s Office, for the investigation. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Christopher Porrino and Bureau Chief Christopher W. Gerold, as well as the U.S. Commodity Futures Trading Commission’s Division of Enforcement, under the direction of Director James M. McDonald, for their respective roles in the investigation.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office’s Economic Crimes Unit.
Defense counsel:
Alcibiades Cifuentes: Joseph Rotella Esq.
Jennifer Wee Cifuentes: Aidan O'Connor Esq.Passaic County, New Jersey, Man Admits Robbing BankRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted robbing a TD Bank in Hawthorne, New Jersey, in February 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Robert Somers, 45, of Little Falls, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of bank robbery.
According to documents filed in this case and statements made in court:
On Feb.17, 2016, Somers robbed the TD Bank in Hawthorne, New Jersey, by handing a teller a note that read: “this is a hold up,” and demanding cash. The teller handed Somers cash. Somers demanded more money, and a second teller handed him additional cash. Somers fled the bank in a car driven by another individual.
The bank robbery charge carries a maximum penalty of 20 years in prison and a $250,000 fine or twice the gain to the defendant or loss to any victims. Sentencing is scheduled for Sept. 5, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hawthorne Police Department, under the direction of Chief Richard McAuliffe; the Pennsylvania State Police, under the direction of Col. Tyree C. Blocker; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jihee G. Suh and Karen D. Stringer of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Gary Cutler Esq., Newark
New York Doctor Pleads Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor practicing in Yonkers, New York, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Ricky J. Sayegh, 44, of Scarsdale, New York, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with accepting cash bribes in violation of the Federal Travel Act.
According to documents filed in this case and statements made in court:
Sayegh admitted accepting cash bribes in return for referring blood specimens to BLS. From February 2010 through April 2013, Sayegh received bribes totaling approximately $400,000 from BLS employees and associates. Sayegh’s referrals generated more than $1.4 million in lab business for BLS.
The investigation has thus far resulted in 45 convictions – 31 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The charge to which Sayegh pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sayegh’s sentencing is scheduled for Sept. 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.32 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: Michael Bachner Esq., New York
Monmouth County, New Jersey, Woman Admits Role in Fraud SchemeRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, woman today admitted her role in a scheme to defraud a bank and bank regulators, Acting U.S. Attorney William E. Fitzpatrick announced.
Donna Conroy, 57, of Middletown, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with one count of conspiring to make false entries to deceive a bank and bank regulators, and to influence those regulators, and one count of making false entries.
According to documents filed in this case and statements made in court:
The three-phase scheme took place from 2009 to 2010. The first phase was to fraudulently infuse $7 million of capital into FSB. In the second phase of the scheme, various conspirators caused FSB to make millions of dollars in loans based on material misrepresentations in order to cover up the fraudulent nature of the capital infusion and end inquiries from FSB’s auditors. The final phase involved lying to the FDIC and FSB, among others, about the fraudulent capital infusion and loans.
The conspiracy count to which Conroy pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross loss sustained by any victim. The count of making false entries carries a maximum potential penalty of 30 years in prison and a fine of $1 million or twice the gross pecuniary gain derived from the offense or twice the gross loss sustained by any victim. Sentencing is scheduled for Aug. 24, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FDIC, Office of Inspector General, under the direction of Special Agent in Charge Patti Tarasca, New York Region; the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark; and the Office of the Special Inspector General for Trouble Asset Relief Program, under the direction of Special Inspector General Christy Goldsmith Romero, with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney=s Office Economic Crimes Unit in Newark.
Previously Convicted Felon from Union County, New Jersey, Admits Illegally Possessing FirearmsRead the Press Release
TRENTON, N.J. – An Elizabeth, New Jersey, man today admitted possessing a shotgun, a rifle, and two handguns despite being a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Daniel Bigelow, 28, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with three counts of being a felon in possession of a firearm.
According to documents filed in this case and statements made in court:
Bigelow admitted that despite having prior felony convictions in Union County Superior Court and New York State Supreme Court, he knowingly possessed firearms on three separate occasions. Bigelow admitted that he possessed a Savage Arms Stevens Model 320 12-gauge shotgun on Dec. 29, 2015 and a Hi-Point Model C9 9mm pistol on March 31, 2016. Bigelow also admitted to having a Hi-Point Model 995 9mm rifle and a Smith and Wesson Model 686 .357 revolver in his possession on April 12, 2016.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21, 2017.
Acting U.S. Attorney Fitzpatrick credited ATF special agents, under the direction Acting Special Agent in Charge Marcus S. Watson in Newark, with the investigation. He also thanked the Elizabeth Police Department for its assistance.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Omnicare Inc. Agrees to $8 Million Settlement in False Claims Act CaseRead the Press Release
NEWARK, N.J. – The U.S. Attorney’s Office of the District of New Jersey, the U.S. Department of Justice and 28 states have reached an $8 million settlement with Omnicare Inc. resolving allegations arising from a whistle-blower suit filed under the False Claims Act. The agreement was announced today by Acting U.S. Attorney William E. Fitzpatrick.
The settlement follows an investigation by the U.S. Attorney’s Office of the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division. The United States alleged that Omnicare, in an effort to increase business efficiency and profit, designed and implemented an automated label verification system at certain locations that utilized a less specific drug code – known as “MEDID” – during its automated Stage II pharmacist verification process, instead of the more specific National Drug Code (NDC).
This system resulted in the submission by Omnicare of claims for generic drugs different from those actually dispensed to Medicare and Medicaid beneficiaries. It also resulted in the dispensing of drugs with patient-specific labels displaying the incorrect manufacturer or NDC. The government alleged that the false manufacturer and NDC information on the labels, and within Omnicare’s electronic dispensing information, affected Omnicare’s ability to properly track and, if necessary, conduct patient-level recalls of such drugs.
“Ensuring accuracy in the dispensing of and billing for medication in the Medicare Part D and Medicaid Programs, especially to long-term care patients, is vital to public safety,” Acting U.S. Attorney Fitzpatrick said.
The relators, or whistler-blowers, in the underlying qui tam will receive more than $2 million as their statutory share of the recovery and to resolve their employment based claims in accordance with the False Claims Act. The civil lawsuit was filed in the District of New Jersey and is captioned U.S. et al. ex rel. Elizabeth Corsi and Christopher Ezzie v. Omnicare Inc.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, for the investigation leading to the settlement.
The government is represented by the U.S. Attorney’s Office District of New Jersey, Deputy Chief, Civil Division, David Dauenheimer and Assistant U.S. Attorney Bernard Cooney of the Office’s Health Care and Government Fraud Unit, and the Department of Justice’s Civil Division, Senior Litigation Counsel Laurie A. Oberembt. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the Department of Health and Human Services also participated in the investigation and settlement.
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 $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at http://www.justice.gov/usao-nj.
Counsel for relators: Charles C. Goetsch Esq., New Haven, Connecticut.
Counsel for defendant: Michael Martinez Esq., New YorkPreviously Convicted Felon from Essex County, New Jersey, Charged with Illegally Possessing FirearmRead the Press Release
NEWARK, N.J. – An Irvington, New Jersey, man appeared in federal court today to face allegations that he possessed a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Tyshone T. Overstreet, a/k/a “Tata,” 21, is charged by complaint with one count of being a felon in possession of a firearm. Overstreet was arrested in the evening May 12, 2017. He made his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On March 3, 2017, law enforcement officers attempted to conduct a motor vehicle stop of a car in which Overstreet was a passenger. Before the car came to a complete stop, Overstreet jumped out of the vehicle and fled on foot. As Overstreet ran away from law enforcement, he threw an object that was later recovered and determined to be a .40 caliber Glock Model 22 handgun. Law enforcement also recovered an extended caliber magazine and 17 rounds of live .40 caliber ammunition. At the time, Overstreet had at least one prior felony conviction in Essex County Superior Court.
The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited FBI special agents, under the direction Special Agent in Charge Timothy Gallagher, with the investigation. He also thanked the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose and the Irvington Police Department, under the direction of Director Tracy Bowers, for their assistance.
The government is represented by Assistant U.S. Attorney Kelly Graves 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 considered innocent unless and until proven guilty.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark
Hudson County, New Jersey, Man Convicted of Producing and Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was convicted today of coercing a minor family member to engage in sexually explicit conduct while he photographed the abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Felix Restitullo, 41, Jersey City, New Jersey, was convicted 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 in Newark federal court. The jury deliberated less than three hours before returning the guilty verdicts.
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 who is a member of Restitullo’s family. 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.
The charge of production of child pornography carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. Because of Restitullo’s prior conviction for possession of child pornography, he is subject to an increased mandatory minimum sentence of 25 years and a maximum prison term of 50 years. With a qualifying prior conviction, the charge of possession of child pornography carries a mandatory minimum sentence of 10 years, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for June 20, 2017.
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 Special Agent in Charge Brian A. Michael, Newark Field office, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s guilty verdict.
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
Essex County, New Jersey, Man Convicted of Robbing Two Banks, Using Firearm in Connection with Crime of ViolenceRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted today of robbing the same Capital One Bank in Newark twice, including once in an armed robbery, Acting U.S. Attorney William E. Fitzpatrick announced.
Gregory A. Jones, 60, of Newark, was convicted of one count of bank robbery, one count of armed bank robbery and one count of using a firearm during a crime of violence. Jones was convicted following a one-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated less than six hours before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
On May 6, 2014, Jones entered the Capital One Bank wearing dark glasses and a scarf around his head and presented the teller a note demanding cash. After Jones left the bank with stolen money a hidden dye pack burst, and he left his glasses, scarf, and hat at the scene of the crime. Law enforcement recovered the glasses, hat and scarf near the bank next to currency, saturated with ink from the dye pack. DNA recovered from the glasses, hat and scarf matched a DNA sample that was lawfully obtained from Jones.
On Sept. 19, 2014, Jones entered the bank again, brandished a firearm from underneath his sweatshirt, and told a teller to give him money, stating that he had a gun and would shoot. Jones fired the weapon into the ceiling and left with several thousands of dollars. He was later identified using surveillance video and witness statements.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. The armed bank robbery count carries a maximum potential penalty of up to 25 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. The discharging a firearm during the bank robbery count carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, which must be served consecutive to the other counts. Sentencing will be scheduled at a later date.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; N.J. State Police, under the direction of Col. Rick Fuentes; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Division of Public Safety, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorneys Svetlana M. Eisenberg and Daniel Shapiro of the U.S. Attorney’s Office Criminal Division in Newark.
Bayonne Police Officer Charged with Filing False Report Related to Use of Excessive Force During ArrestRead the Press Release
NEWARK, N.J. – A Bayonne, New Jersey, police officer was charged today with falsifying records to conceal the use of excessive force during an arrest, Acting U.S. Attorney William E. Fitzpatrick announced.
Francis Styles, 36, of Bayonne, is charged by indictment with one count of falsifying records in a federal investigation and one count of misprision of a felony for his role in attempting to conceal actions taken by former Bayonne police officer Domenico Lillo during an arrest in which Styles, Lillo and others participated. Styles’ arraignment is pending.
According to the indictment:
In the late afternoon of Dec. 27, 2013, Styles, Lillo and another Bayonne police officer went to an address in Bayonne to execute a Sussex County arrest warrant. After the individual was handcuffed and no longer physically resisting arrest, Lillo struck the individual with a flashlight, which resulted in bodily injury requiring hospital treatment.
However, the incident report filed by Styles omitted that Lillo struck the individual in the face with the flashlight, falsely asserted that the individual continued to violently struggle as he was being led to the patrol vehicle, and falsely asserted that the individual sustained injuries as a result of hitting the wall and the ground.
The charge of falsifying records carries a maximum potential penalty of 20 years in prison. The charge of misprision of felony carries a potential penalty of three years in prison.
The charges and allegations in the indictment are merely accusations, and Styles is considered innocent unless and until proven guilty.
Lillo previously pleaded guilty to deprivation of civil rights under color of law, falsifying records to impede a civil rights investigation, and assisting in the filing of a false report to the U.S. Department of Housing and Urban Development. He awaits 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 special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation. He also thanked the Hudson County Prosecutor’s Office and the Bayonne Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Bruce P. Keller of the Appeals Division.
Defense counsel: John D. Arseneault Esq. Chatham, New Jersey
Williamstown Dry Cleaner Gets A Year in Prison for Hiring Illegal Immigrants, Failing to Collect Payroll TaxesRead the Press Release
CAMDEN, N.J. - A Williamstown, New Jersey, man was sentenced today to 12 months in prison for hiring illegal immigrants to work in his dry cleaning business and failing to collect and pay over payroll taxes on behalf of those employees, Acting U.S. Attorney William E. Fitzpatrick announced.
Bill Li, 50, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of failure to collect, account for, and pay over payroll taxes and one count of harboring illegal aliens. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Li owned Minuteman Cleaners located on North Black Horse Pike in Williamstown. At the time, Li and Kathy Lei, 36, also of Williamstown, owned a house on South Main Street in Williamstown. Lei and Phillip Hui, 39, of Washington Township, New Jersey, own New Eastern Cleaners in Voorhees Township, New Jersey.
Li was responsible for hiring employees, handling the books and supervising and paying the employees at Minuteman Cleaners. At various times in 2012 and 2013, Li, Lei and Hui hired individuals – generally from Mexico or Guatemala – that were in the United States illegally. The illegal immigrant employees were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Li paid their wages in cash.
While working at Minuteman Cleaners, Li allowed the illegal immigrant employees to stay at the South Main Street house. Li admitted that the rent was part of their employment compensation. Li or others working for Li would transport the illegal immigrant employees between the South Main Street house and Minuteman Cleaners.
Li admitted that prior 2012, he was aware that he was required to verify that all his employees were eligible to work in the United States. Li also admitted that between Jan. 1, 2012 and Oct. 29, 2013, he knowingly hired individuals that were in the United States illegally and did not report their wages to IRS for his own financial gain.
Li further admitted that as the owner or someone with authority over the employer financial affairs, he was responsible for collecting, accounting for and paying over to the IRS the employment taxes for his businesses’ employees. For tax quarters in 2012 and 2013, Li failed to report the wages and pay over employment taxes for at least eight illegal immigrant employees of Minuteman Cleaners. By filing the false quarterly payroll tax forms, Li failed to pay over to the IRS employment taxes of at least $79,000.
In addition to the prison term, Judge Kugler sentenced Li to three years of supervised release and ordered him to pay restitution of $79,000.
Hui and Lui previously pleaded guilty to one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens. Hui was sentenced Sept. 8, 2016 to 15 months in prison. Lei was sentenced on Feb. 17, 2017 to three years of probation.
Acting U.S. Attorney Fitzpatrick credited Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel: Robert Agre, Esq., Haddonfield, New Jersey
Head of Camden Nonprofit, Cherry Hill Therapist, Both Admit Defrauding MedicaidRead the Press Release
CAMDEN, N.J. – The executive director of a nonprofit provider of mental health services to Camden’s poorest residents and a former therapist who worked at the facility have admitted their respective roles in defrauding New Jersey Medicaid, Acting U.S. Attorney William E. Fitzpatrick announced today.
On May 11, 2017, Cesar Tavera, 53, of Cherry Hill, the executive director of Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with conspiracy to commit health care fraud and with embezzling from a health care benefit program. Andres Ayala, 62, of Cherry Hill, New Jersey, pleaded guilty today before Judge Hillman to an information charging him with conspiracy to commit health care fraud.
According to documents filed in these cases and statements made in court:
Most of Nueva Vida’s patients are on Medicaid, and Tavera controlled Nueva Vida’s billings to New Jersey Medicaid. He also supervised the people at Nueva Vida who treated Medicaid patients. New Jersey Medicaid rules require that people giving mental health therapy to Medicaid recipients must either be licensed or have a master’s degree in mental health. Tavera had several unlicensed, unqualified individuals treat Medicaid recipients and then billed Medicaid as if qualified therapists had treated the patients. Tavera himself treated Medicaid patients even though he was not qualified.
Under Tavera’s direction, Nueva Vida used several other fraudulent practices to obtain money from Medicaid. Nueva Vida billed Medicaid for therapy that never happened and billed group therapy as if each participant received individual therapy. If a mother received therapy without her child, Nueva Vida would bill Medicaid for a session with the mother and a separate session with the child. Nueva Vida billed Medicaid for short sessions as if they lasted for 45 minutes. To cover up his crimes, Tavera created false records to pass Medicaid audits.
He regularly embezzled money from the Nueva Vida bank account in addition to his salary and spent the money on himself and his family. He used the Nueva Vida bank account to pay for dental care, meals, travel in the United States and abroad, and the expenses of his daughter’s music career. Tavera paid no-show employees with cash and payroll checks from Nueva Vida’s bank account. He repeatedly withdrew cash at the Sugar House Casino in Philadelphia and used the money to gamble at the casino. Tavera embezzled more than $1.5 million from Nueva Vida.
Ayala worked for many years as a therapist at Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community. Ayala conspired with Tavera to submit false billings to New Jersey Medicaid. If patients did not show up for their appointments, Ayala would have Nueva Vida bill Medicaid, and he was paid for the phantom session. If a mother came for therapy, Ayala would bill for a therapy session with the child. If he saw a Medicaid patient for 10 to 15 minutes, he would bill Medicaid for 45 minutes of therapy. Ayala was responsible for $200,000 in losses to Medicaid.
The counts of health care fraud and embezzlement each carry a maximum penalty of 10 years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense. Sentencing for both defendants is scheduled for Aug. 18, 2017.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, for the investigation leading to the guilty pleas. He also thanked the Medicaid Fraud Division of the N.J. Office of the State Comptroller.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.
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 $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
Defense counsel:
Tavera: Michael Miller Esq., Haddon Heights, New Jersey
Ayala: Hope C. Lefeber Esq., Philadelphia
Owner of Day Trading Firm Admits Role in Worldwide Simulator Trading Account Scheme, Two Co-Conspirators IndictedRead the Press Release
Scheme Targeted Hundreds of Investors in More Than 30 Countries, Including United States
NEWARK, N.J. – A Thai man today admitted to orchestrating a scheme to defraud hundreds of investors worldwide of approximately $1.4 million through his operation of Nonko Trading, a purported online day trading firm, Acting U.S. Attorney William E. Fitzpatrick announced. Also, a federal grand jury has indicted two conspirators in connection with the scheme.
Naris Chamroonrat, 33, of Bangkok, Thailand, pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to commit securities fraud. On May 10, 2017, a federal grand jury returned an indictment against Yaniv Avnon, 36, of Tel Aviv, Israel, and Ran Armon, 45, of Toronto, Canada, who are each charged with one count of conspiracy to commit securities fraud and one count of wire fraud.According to documents filed in the case and statements made in court:
Between December 2013 and June 2015, Chamroonrat, Avnon, Armon and their conspirators solicited individual investors to open day trading accounts with Nonko and to wire thousands of dollars to Nonko to fund those accounts. Instead, the conspirators allegedly stole the victims’ money. To cover up the theft, they provided the victims with online trading simulator, or “demo,” accounts, and told the investors that they were real accounts to be used for trading securities. They allegedly misappropriated at least $1.4 million from more than 260 investors from 30 countries, including at least 180 investors from the United States, several of whom are in New Jersey.
The conspirators selected as victims only those customers who they believed would not be profitable day-traders and would be less likely to seek to withdraw funds from their accounts. They limited the scheme to inexperienced, unsophisticated “losing” traders because those customers would simply believe they lost their money trading in the open markets. If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts.
The conspirators discussed the scheme in detail in email and online chat communications. In one online chat communication between Chamroonrat and Avnon on Feb. 2, 2014, Avnon referred to the profits that the scheme had generated the prior month, noting, “It was a huge month, huge month means that a lot of traders got burned .... New blood, all the time, that’s what we need[.]” Although Nonko paid back a small percentage of customers, the majority of misappropriated funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions, including transferring proceeds of the scheme to Avnon and Armon.
The conspiracy count in the information and indictment carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count in the indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for Chamroonrat is scheduled for Sept. 20, 2017.
In a separate civil action, the Securities and Exchange Commission today filed an amended complaint in Newark federal court charging Avnon and Armon with, among other things, violating and aiding and abetting violations of the antifraud provisions of the securities laws. The amended complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties. Before amending the complaint, the SEC had asserted similar claims against Chamroonrat.
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 and yesterday’s indictment. He also thanked the SEC for its valuable assistance in the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Chamroonrat: Edward E. Alon Esq., Woodland Hills, CaliforniaBucks County, Pennsylvania, Businessman Pleads Guilty to Bribing Philadelphia District Attorney and Tax ChargeRead the Press Release
PHILADELPHIA – An associate of Philadelphia District Attorney Rufus Seth Williams today admitted providing bribes to Williams and making and subscribing a false federal tax return, Acting U.S. Attorney William E. Fitzpatrick announced.
Mohammad N. Ali, 40, of Feasterville, Pennsylvania, pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of federal tax evasion.
According to documents filed in this case and statements made in court:
From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.
For example, Ali provided Williams with an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately $2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately $300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.
Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”
Ali also admitted making and subscribing a false personal federal income tax return, which failed to report taxable income of approximately $246,504.
The bribery count is punishable by a maximum potential penalty of five years in prison. The false tax return count is punishable by a maximum potential penalty of three years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 24, 2017.
Williams is charged in a related superseding indictment. The charges and allegations against him are merely accusations, and he is considered 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 Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
Defense counsel: Mark E. Cedrone Esq., Philadelphia
Essex County, New Jersey, Man Sentenced to 46 Months in Prison for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 46 months in prison for possessing a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Brehon Widgeon, 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging him with possession of a firearm by a convicted felon. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In late June 2014 through July 10, 2014, Widgeon – who had been previously convicted of a felony in Monmouth County, New Jersey – sought to trade a handgun in his possession for either an AK-47 rifle or for a weapon that could be easily concealed on his person. On July 10, 2014, Widgeon was found in possession of a 9 mm handgun along with 18 rounds of 9 mm ammunition and five rounds of .380 caliber ammunition.
In addition to the prison term, Judge Arleo sentenced Widgeon 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.
The government is represented by Assistant U.S. Attorneys Margaret Mahoney and Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Christopher Adams Esq., Holmdel, New Jersey
Philadelphia District Attorney Rufus Seth Williams Indicted on Additional Fraud ChargesRead the Press Release
PHILADELPHIA – Philadelphia District Attorney Rufus Seth Williams was indicted today on additional fraud charges stemming from his alleged use of political action committee (PAC) funds and official government vehicles for his personal benefit, Acting New Jersey U.S. Attorney William E. Fitzpatrick announced.
Williams, 50, of Philadelphia, is now charged in a superseding indictment with 11 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law (the “Travel Act counts”), two counts of Hobbs Act extortion under color of official right, two counts of honest services wire fraud, 12 counts of wire fraud and two counts of mail fraud.
Williams was originally charged in a 23-count indictment on March 21, 2017. The superseding indictment now contains 29 counts, including Counts 22 to 29 regarding Williams’ use of PAC funds and official vehicles.
The Fraud Involving PAC Funds Friends of Seth Williams, a/k/a “The Committee to Elect Seth Williams,” was a political action committee that accepted contributions from individuals to support Williams’ campaigns for public office. Under applicable law, the PAC funds could only be used in relation to political campaigns.
According to the superseding indictment, from August 2010 through August 2016, Williams allegedly defrauded the PAC by using its funds for personal expenditures, which he concealed by providing false or incomplete reports to the Commonwealth of Pennsylvania and to the City of Philadelphia.
For instance, between August 2010 and September 2010, the PAC disbursed two checks to a political consultant totaling approximately $4,136.59. The memo line on these checks falsely stated, “Political Consulting.” Within days of the political consultant receiving the PAC checks, Williams obtained checks from the political consultant’s account and deposited them into his own bank account. In total, Williams received approximately $4,036.59 of the approximately $4,136.59 that the political consultant received from the PAC between August 2010 and September 2010. Williams used these funds for personal expenses.
In addition, from October 2011 through April 2015, Williams incurred expenses at a social club for his personal benefit, including dinner parties, lodging, and family events, none of which were incurred in connection with any election. Williams used the PAC’s debit card to pay for these expenses, including charges of $677.98 for a New Year’s Eve celebration at the social club on Dec. 31, 2013 for Williams and his girlfriend; $195.50 for a facial and massage in January 2014; $777.19 for an April 10, 2014 birthday dinner that Williams held for his girlfriend; $491.50 for a massage, facial, gift card, and fitness classes in January 2015; approximately $2,674.41 for an April 10, 2015 birthday dinner that Williams held for his girlfriend; and approximately $211.50 for massages in May 2015.
From January 2013 through May 2015, Williams incurred expenses at a health club for his own personal benefit, including massages, facials, and clothing, none of which were incurred in connection with any election. Williams also used the PAC’s debit card to pay for these expenses, including charges for massages of $222.50 in January 2013, $209 in July 2013, $251.50 in September 2013, and $90 in November 2013.
The Fraud Involving Official Government Vehicles Williams also allegedly engaged in a scheme to use official vehicles – which were provided by the City of Philadelphia and a federal narcotics law enforcement program – for his personal benefit.
Some of those vehicles were obtained through grants provided by the High Intensity Drug Trafficking Area (HIDTA) program. The purpose of the HIDTA program was to reduce illegal drug trafficking and drug production in the United States by, among other things, facilitating cooperation among federal, state, and local law enforcement agencies. The HIDTA program provided resources and funding to enhance and promote regional drug control strategies within defined geographic areas. Each geographic area designated as a HIDTA was governed by an Executive Board comprised of federal, state, and local law enforcement agencies.
Williams was a member of the Executive Board for the HIDTA of Philadelphia and Camden, New Jersey. The District Attorney’s Office (DAO) assigned HIDTA vehicles to detectives in its Dangerous Drug Offender Unit (DDOU), which often conducted narcotics investigations with federal and state HIDTA partners. Vehicles owned or leased by these agencies could not be used for personal purposes.According to the superseding indictment, Williams repeatedly used city and HIDTA vehicles for his personal use during non-working hours, including weeknights and weekends. Williams directed his security detail to leave a city or HIDTA vehicle at his home every weeknight, so that he would have access to it during all non-working hours. Williams used the vehicles to transport himself, family members, friends and other non-employees on non-DAO business, including personal trips outside of Philadelphia.
During the scheme, Williams had full-time access to city or HIDTA vehicles for nearly all of his personal vehicular needs and personally incurred almost no expenses related to the use of a personal vehicle for years, including costs of purchasing, leasing, or renting a vehicle, or paying for insurance, fuel, and maintenance.
In addition, Williams’ acquisition and use of the HIDTA vehicles, including a Nissan Armada SUV and two Chevrolet Tahoe SUVs, reduced the number of vehicles available to members of the DAO’s DDOU for undercover operations, surveillance, and other aspects of narcotics investigations.
Bribes Involving Business Owners and Fraud on a Nursing Home and Family Friends
Williams remains charged with the same three schemes that were detailed in the March 21, 2017 indictment:
• From July 2010 through May 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #1,” in which Williams, while serving as the Philadelphia District Attorney, accepted trips, money, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #1.
• From March 2012 through July 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #2,” in which Williams accepted airline tickets, money, an automobile, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #2.
• From February 2012 through November 2013, Williams allegedly diverted a relative’s pension and Social Security payments to pay for his own personal expenses instead of applying them to the relative’s nursing home costs. In addition, after accepting $10,000 from friends of his relative intended to cover expenses for the relative’s nursing home care, Williams spent the money on his personal expenses instead.
The 29-count superseding indictment presents some alterations to the original counts, without changing the substance of the above allegations. Williams was arraigned on March 22, 2017, and entered a plea of not guilty. The trial is presently set for May 31, 2017.
Each of the Travel Act counts is punishable by a maximum potential penalty of five years in prison. The Hobbs Act extortion under color of official right and the wire and mail fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. The indictment also seeks forfeiture of a total of approximately $64,878.22, representing the sum of approximately $33,765.52 worth of bribe proceeds and approximately $31,112.70 worth of fraud proceeds.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Thomas F. Burke Esq., Philadelphia.
Gloucester County, New Jersey, Man Sentenced to 106 Months in Prison for Overseeing Camden Drug Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - A Gloucester County man was sentenced today to 106 months in prison for his role in conspiring over 15 months to sell crack cocaine in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Harold Miller, 41, of Sewell, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with conspiracy to distribute and to possess with intent to distribute cocaine base.
According to documents filed in this case and statements made in court:Miller was arrested on Sept. 2, 2015, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force into an organization that controlled the distribution of crack cocaine on Pfeiffer Street in Camden.
Members of the drug organization sold crack cocaine to a confidential source and to customers who arrived in vehicles and on foot. Law enforcement officers intercepted conversations over multiple court-authorized wiretaps during which Miller and his conspirators discussed drug trafficking activities on Pfeiffer Street. Miller oversaw and managed the activities of this drug trafficking organization. Rasheed Wise, Rodney Wall, and David Wilkerson, all of Camden, previously pleaded guilty to their respective roles in the charged conspiracy. Wall was sentenced May 4, 2017, to 100 months in prison and Wilkerson was sentenced April 5, 2017, to 77 months in prison. Wise is awaiting sentencing.
In addition to the prison term, Judge Rodriguez sentenced Miller to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentencing.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.Defense counsel: Christopher H. O’Malley Esq., Assistant Federal Public Defender, Camden
Executive Director of Ocean City, New Jersey, Housing Authority Admits Embezzling Federal FundsRead the Press Release
CAMDEN, N.J. – The executive director of the Ocean City, New Jersey, Housing Authority (OCHA) today admitted 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, pleaded guilty before U.S. Magistrate Judge Karen M. Williams in Camden federal court 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.
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.
The embezzlement charge carries a maximum penalty of one year in prison and a $100,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Aug. 15, 2017.
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 leading to today’s guilty plea.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney=s Office in Camden.
Ocean County, New Jersey, Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
NEWARK, N.J. – A Point Pleasant, New Jersey, man will appear in federal court today to face allegations that he planned to construct and use a pressure cooker bomb in support of the Islamic State of Iraq and al-Sham (ISIS), Acting U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General for National Security Dana Boente announced.
Gregory Lepsky, 20, is charged by criminal complaint with one count of attempting to provide material support to a designated foreign terrorist organization, specifically ISIS. Lepsky is expected to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
According to the complaint:
On Feb. 21, 2017, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.
During searches of computers and other digital evidence linked to Lepsky, law enforcement found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS, and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.
Law enforcement also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery of the pressure cooker to Lepsky a short time before his arrest. In addition, law enforcement recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.
The material support charge carries a maximum potential penalty of up to 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited the FBI and the Joint Terrorism Task Force (JTTF), under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Attorney General’s Office under the direction of Attorney General Christopher Porrino; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph Coronato; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the N.J. Office of Homeland Security and Preparedness under the direction of Director Chris Rodriguez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office National Security Unit in Newark and Justin Sher and B. Celeste Corlett, Trial Attorneys of the Department of Justice, National Security Division-Counterterrorism Section.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Jersey Man Charged with Attempting to Provide Material Support to ISISRead the Press Release
Gregory Lepsky, 20, of Point Pleasant, New Jersey, will appear in federal court today to face allegations that he planned to construct and use a pressure cooker bomb in support of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Lepsky is charged by criminal complaint with one count of attempting to provide material support to ISIS.
The announcement was made by Acting Assistant Attorney General for National Security Dana Boente and Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey. Lepsky is expected to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark, New Jersey federal court.
According to the complaint:
On February 21, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.
During searches of computers and other digital evidence linked to Lepsky, law enforcement found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS, and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.
Law enforcement also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery to Lepsky of the pressure cooker a short time before his arrest. In addition, law enforcement recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.
The material support charge carries a maximum potential penalty of up to 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the New Jersey State Attorney General’s Office under the direction of Attorney General Christopher Porrino; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph Coronato; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the New Jersey Office of Homeland Security and Preparedness under the direction of Director Chris Rodriguez, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office National Security Unit in Newark and Trial Attorneys Justin Sher and B. Celeste Corlett of the National Security Division’s Counterterrorism Section.
17 05 05 Lepsky ComplaintNewark Man Sentenced to 79 Months in Prison for Posing as Law Enforcement Officer During Home Invasion of Paterson, New Jersey, ResidenceRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 79 months in prison for trying to rob a Paterson, New Jersey, residence while dressed in a Passaic County Sheriff’s uniform, Acting U.S. Attorney William E. Fitzpatrick announced.
Clemente R. Carlos, 30, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit Hobbs Act robbery. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Carlos admitted that on Aug. 12, 2015, he conspired with Jason Thompson, 34, of Paterson, to rob a Paterson home because they believed the resident kept cash proceeds from his distribution business at that location. At around 7:00 a.m. that day, Carlos and Thompson, both dressed in Passaic County Sherriff’s uniforms, accosted a female victim and her infant as the victim was leaving her residence in Paterson. The two men, posing as law enforcement officers, led the victim back into her apartment inside the residence.
Once inside, Thompson removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Thompson and Carlos left the residence.
In addition to the prison term, Judge Cecchi sentenced Carlos to three years of supervised release.
Thompson was indicted March 22, 2017, on one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. The allegations against him are merely accusations, and he is innocent unless and until proven guilty.
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 and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Gary Cutler Esq., Newark
New Jersey Business Owner Sentenced to 50 Months in Prison for Operating Corporate Ponzi SchemeRead the Press Release
NEWARK, N.J. – The owner of a group of freight payment, logistics, and shipping businesses headquartered in Branchburg, New Jersey, was sentenced today to 50 months in prison for wire fraud and money laundering, Acting U.S. Attorney William E. Fitzpatrick announced.
Shirley Sooy, 66, of Fort Smith, Arkansas, previously pleaded before U.S. District Judge William Walls to an information charging her with one count of wire fraud and one count of transacting in criminal proceeds. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2010 through April 2013, Sooy, through a collection of businesses operating under the umbrella of the “TransVantage Group,” entered contracts with corporate clients – referred to in a criminal complaint as the “victim companies.” TransVantage audited freight bills generated by common carriers and freight forwarders hired by the victim companies. TransVantage was obligated to pay the audited and approved freight bills to the carriers from funds provided by those companies, and the funds were supposed to be held in trust by TransVantage until paid over to the carriers. The victim companies also paid TransVantage for its purported auditing services, payments separate and apart from the carrier payment funds.
Sooy operated TransVantage as a Ponzi scheme, which resulted in substantial losses to the victim companies. Sooy and others comingled the funds from the victim companies – funds that were to have been paid to carriers – and then misused those funds in various ways. They paid unauthorized operating expenses and personal expenses.
In addition to the prison term, Judge Walls sentenced Sooy to two years of supervised release and ordered her to pay restitution of $1,185,404.
Acting U.S. Attorney Fitzpatrick credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Michael J. Rogers Esq., Somerville, New Jersey
Convicted Felon Admits Trafficking Guns in the Camden AreaRead the Press Release
CAMDEN, N.J. – A Carbon County, Pennsylvania, man today admitted conspiring to illegally traffic over 20 firearms – including assault rifles and other high-capacity weapons – in the South Jersey area, Acting U.S. Attorney William E. Fitzpatrick announced.
Darnel Johns, 49, of Albrightsville, Pennsylvania, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to deal in firearms without a federal firearms license and one count of possession of firearms by a convicted felon. Johns had previously turned himself into law enforcement in late 2016 after several months as a fugitive.
According to documents filed in this and related cases and statements made in court:
Johns admitted that in the Fall and Winter of 2014, he conspired with co-defendant David Potts, 45, of Camden, to illegally sell at least 22 guns. The firearms included a sawed-off shotgun, multiple high-capacity assault-style rifles, and a high-capacity assault-style pistol with a 30-round magazine. Several of the firearms were stolen and had obliterated serial numbers.
Potts previously pleaded guilty to his role in the conspiracy and was sentenced on April 10, 2017 to 121 months in prison.
The illegal firearms dealing count to which Johns pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The possession of firearms by a convicted felon count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 4, 2017.
This case was initiated as part of a wide-ranging set of gun trafficking arrests that took place on March 4, 2015. Acting U.S. Attorney Fitzpatrick credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, Newark Division, and Essam Rabadi, Special Agent in Charge of ATF’s Philadelphia Field Division, with the investigation. He additionally credited special agents of the Drug Enforcement Administration, Maple Shade Resident Office, under the direction of Special Agent in Charge Carl J. Kotowski; the ATF Charlotte Field Division under the direction of Special Agent in Charge C. J. Hyman; investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; detectives of the Camden County Police Department, under the direction of Chief Scott J. Thomson; the Newark Division of Public Safety’s Ballistics Laboratory; and the Bergen County Sheriff’s Office Ballistics Laboratory, with the investigation.
He additionally credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr.; investigators under the Camden High Intensity Drug Trafficking Area; the New Jersey State Police’s Metro South Unit, under the direction of Superintendent Col. Rick Fuentes; the New Jersey State Parole Board, under the direction of Chairman James T. Plousis; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert L. Wilson; and the Cherry Hill, Pennsauken and Maple Shade Police Departments.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
This investigation was coordinated through the Camden County Crime Collaboration (“C-4”). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute Camden’s most dangerous criminals.
Defense counsel: Thomas Young Esq., Assistant Federal Defender, Philadelphia
Member of Trenton Drug Trafficking Organization Pleads GuiltyRead the Press Release
TRENTON, N.J. – A Trenton, New Jersey, man today admitted his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding area, Acting U.S. Attorney William E. Fitzpatrick announced.
Bernadino Guervil, a/k/a “BG,” 29, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute heroin.
In December 2016, Guervil 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. Guervil is the fourth defendant to plead guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Guervil and others 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 Guervil. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement.
The conspiracy charge to which Guervil pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 27, 2017.
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 Acting Special Agent in Charge Scott C. Curley; 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 Brian A. Michael; 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: Anthony G. Simonetti Esq., Hightstown, New Jersey
Former Investment Advisor Who Stole Client’s Retirement Savings Guilty on All Counts of Wire Fraud and Investment Advisor FraudRead the Press Release
TRENTON, N.J. – A former financial advisor entrusted with advising clients on investments was convicted by a federal jury today for defrauding his client, a former factory worker, out of his retirement savings and using the funds for his own benefit, Acting U.S. Attorney William E. Fitzpatrick announced.
Jesse Holovacko, 39, of Sayreville, New Jersey, was convicted on all counts of an indictment charging him with six counts of wire fraud and one count of investment advisor fraud following a five-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The jury deliberated for approximately one hour before returning the guilty verdicts.
According to documents filed in this case and the evidence at trial:
Holovacko was an investment advisor at a financial institution located in New Jersey. In 2012, Holovacko went to the factory where the victim worked, met with the victim and some of his co-workers, and signed the victim on as a client, transferring the victim’s pension savings into an Individual Retirement Account (IRA). The victim entrusted Holovacko with managing the victim’s retirement savings.
From December 2013 through August 2014, Holovacko falsely told the victim that he would use retirement account funds to purchase bonds for him and advised the victim to transfer the retirement money to the victim’s bank account and then provide cashier’s checks made out directly to the financial advisor, telling the victim it would make it easier to purchase the bonds. Based on these false representations, Holovacko obtained 18 cashier’s checks totaling approximately $255,000.
Holovacko deposited all of the cashier’s checks into his own personal bank account and spent it for his car loan and mortgage payments, dining out, concerts and clubs, baseball game tickets, as well as taking out approximately $150,000 in cash. In order to continue deceiving the victim, Holovacko promised the victim documentation of the purported investments in bonds.
The wire fraud charges on which Holovacko was convicted each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The investment advisor fraud charge carries a maximum potential penalty of five years in prison and a maximum fine of $10,000. Sentencing is set for Aug. 8, 2017.
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 in Newark, and agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s verdict. He also thanked the Financial Industry Regulatory Authority (FINRA) and the N.J. Bureau of Securities of the New Jersey Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys Jihee G. Suh and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Paul Condon, Jersey City, New Jersey
Honduran National Admits to Kidnapping Woman in Kansas City, Missouri and Raping Her as They Traveled to New JerseyRead the Press Release
CAMDEN, N.J. – A Honduran national today admitted to kidnapping his former girlfriend in Kansas City, Missouri, and raping her while they traveled to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
José Amaya-Vasquez, 32, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to Count One of an indictment, charging him with kidnapping, and Count Two, charging him with engaging in interstate domestic violence. Amaya-Vasquez previously pleaded guilty to Count Four which charged him with illegally re-entering the U.S. after having been deported.
According to documents filed in this case and statements made in court:
Amaya-Vasquez is a citizen of Honduras. On Feb. 14, 2005, he attempted to enter the United States illegally in Texas, at which time the U.S. Customs and Border Protection (CBP) arrested him, gave him a Notice to Appear in Immigration Court and released him from custody. On July 13, 2005, he failed to appear as ordered, at which time an Immigration Judge entered an Order of Removal.
On June 7, 2014, the Kansas City, Missouri, Police Department arrested Amaya-Vasquez and charged him with domestic assault after he threw a comb at the Victim and pushed her into a table. The police turned the defendant over to Immigration and Customs Enforcement (ICE), which removed him from the United States on July 4, 2014.
On September 9, 2014, CBP officers arrested Amaya-Vasquez after he illegally entered the United States from Mexico near Eagle Pass, Texas. On Sept. 16, 2014, the defendant pleaded guilty to a count of illegal entry before a U.S. Magistrate Judge for the Western District of Texas and was sentenced to 30 days’ incarceration. On Oct. 22, 2014, ICE again removed the defendant from the United States and he was barred from reentering the United States for 20 years. He admitted that he illegally re-entered the country in January 2015.
On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez entered the victim’s vehicle, threatened her with a knife, duct-taped the victim and then took her and the victim’s 2-year old child to an abandoned house in Kansas City, where he sexually assaulted the victim at knifepoint.
From May 24, 2015, through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.
On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody since his arrest.
The kidnapping count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of life in prison and a $250,000 fine. The interstate domestic violence count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The illegal re-entry into the United States count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of two years in prison. Sentencing is scheduled for Sept. 8, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to the charges. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.
The government is represented by Senior Litigation Counsel Jason M. Richardson and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Getaway Driver Involved in North Jersey Bar Robbery Pleads GuiltyRead the Press Release
NEWARK, N.J. – A Rockland County, New York, man today admitted his role in a conspiracy to rob a Hawthorne, New Jersey, bar, Acting U.S. Attorney William E. Fitzpatrick announced.
Oscar Avalos-Cortez, 22, of New City, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a one-count information charging him with conspiracy to commit Hobbs Act Robbery.
According to documents filed in this case and statements made in court:
On Dec. 25, 2015, Avalos-Cortez drove at least six conspirators to a bar in Hawthorne, where they forcibly robbed the bar and subsequently fled with approximately $200 in cash in Avalos-Cortez’s car.
The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for Aug. 2, 2017.
Avalos-Cortez was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 19, of Suffern, New York, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016.
Chiliseo-Vega, Guillermo Carrillo-Iraheta, and Reyes previously pleaded guilty in Newark federal court to three-count informations in connection with their involvement in the conspiracy to commit Hobbs Act Robbery, as well as a carjacking and kidnapping in which Avalos-Cortez was not involved. They await sentencing.
Balmore Carrillo-Iraheta was indicted by a federal grand jury on April 18, 2017, for his role in the conspiracy to rob the bar. The charges against Barahona for his role in the robbery, carjacking, and kidnapping are still pending. Both men are 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, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel: Kevin Conway Esq., Spring Valley, New York
Owner of Newark, New Jersey, Automobile Export Business Admits Filing False Tax Returns and Structuring CrimesRead the Press Release
NEWARK, N.J. – A Newark man today admitted filing false tax returns and structuring cash payments to avoid reporting requirements, Acting U.S. Attorney William E. Fitzpatrick announced.
Okoro Ifeanyi, 55, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a two-count information charging him with filing false tax returns with respect to his 2010 through 2013 personal tax returns and with structuring financial transactions in 2007 and 2008 to avoid reporting requirements.
According to the documents filed in this case and statements made in court:
Ifeanyi was the owner and operator of Amiri Mbubu Auto Sales. His primary business was buying used cars in and around New Jersey, often at auto auctions, and exporting the cars to Nigeria.
Ifeanyi admitted to substantially underreporting his income on his 2010, 2011, 2012, and 2013 U.S. individual income tax returns, specifically, failing to report additional taxable income that he earned through his business. According to the information, by failing to report his true income, Ifeanyi avoided paying approximately $461,085 in taxes.
Ifeanyi also admitted to structuring a series of transactions in 2007 and 2008. He made 17 different deposits into his Bank of America account, each less than $10,000, in order to avoid currency reporting requirements.
The filing a false tax return count carries a maximum potential penalty of three years in prison. The structuring count carries a maximum potential penalty of 10 years in prison. Both counts carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 19, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney's Office Economic Crimes Unit in Newark.
Defense counsel: Patrick O’keke Esq., New York
Monmouth County, New Jersey, Man Sentenced to Six Years in Prison for Possessing, Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Long Branch, New Jersey, man was sentenced today to 72 months in prison for using his computer to possess and distribute images of child sexual abuse via a peer-to-peer file-sharing network, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Haring, 62, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with possession and distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Haring admitted that he knowingly used a computer from his home to share images and videos of child sexual abuse with other members of a publicly-available, peer-to-peer file-sharing network. Haring also admitted to possessing at least three videos and 600 images of child sexual abuse on his computer and other electronic devices.
In addition to the prison term, Judge Wolfson sentenced Haring to five years of 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 Brian A. Michael, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Charles M. Moriarty Esq.
Hudson County, New Jersey, Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. – A Jersey City, New Jersey, man who was arrested yesterday while robbing a Wells Fargo Bank made his initial appearance today in federal court, Acting U.S. Attorney William E. Fitzpatrick announced.
Billy Le, 25, is charged by complaint with one count of bank robbery. Le appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to the complaint:
On April 25, 2017, Le entered a Wells Fargo Bank in Jersey City wearing a black gas mask and holding a black duffle bag in one hand and a long metal rod with a red tip in the other hand. Waiving the metal rod, Le approached a teller and yelled, “Give me your money. Give me all your money.” A different bank employee immediately called the police.
Still wielding the metal rod, Le climbed onto the teller’s counter and threatened the teller with violence. A bank customer approached Le from behind, pulled him off the counter, and held him down until law enforcement officers arrived minutes later.
Law enforcement officers arrested Le at the scene and recovered the duffle bag and the metal rod, which appeared to be a pipe bomb. The officers evacuated the bank, after which Emergency Service Unit officers examined the device and determined that it was not an explosive. The duffle bag contained, among other things, a large knife.
The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hudson County Prosecutor’s Office, under Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Chief Philip D. Zacche, with the investigation.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Five Inmates Arrested at Federal Correctional Institution – Fort Dix for Distributing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. – Five men imprisoned on child pornography charges were arrested today at the Federal Correctional Institution-Fort Dix and charged with new counts of distributing images and videos of child sexual abuse within the prison, Acting U.S. Attorney William E. Fitzpatrick announced.
The inmates were charged with using contraband cellphones and micro SD cards to distribute the images, as well as selling and possessing with intent to sell the images and videos on federal property and conspiracy to commit these offenses. They are scheduled to appear later today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
“These five defendants, each having been previously convicted and imprisoned for trafficking in child pornography, have allegedly continued while in prison to trade and profit from the exploitation and sexual abuse of innocent children,” Acting U.S. Attorney Fitzpatrick said. “The federal law enforcement community is committed to protecting our nation’s children by exhaustively investigating and aggressively prosecuting those who seek to do them harm.”
“Anyone who sexually exploits children, whether incarcerated or not, will be relentlessly pursued and brought to stand trial for their heinous crimes,” stated Timothy Gallagher, Special Agent in Charge of the FBI's Newark Field Office. “The FBI and our law enforcement partners are resolute in this commitment and remain ever vigilant in protecting one of society’s most vulnerable members, our children.”
According to documents filed in this case and statements made in court:
Anthony C. Jeffries, 31, of Orange, Virginia, is serving a 168-month sentence, with a scheduled release date of Aug. 13, 2022, following his guilty plea in the Western District of Virginia to three counts of distribution of child pornography and one count of possession of child pornography. He is allegedly a leader of the Fort Dix child pornography network, and maintained a “cloud” account containing images and videos of child sexual abuse. Jeffries allegedly transferred a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016. The micro SD card included videos involving prepubescent children, including infants and toddlers and depictions of child sexual abuse.
Brian J. McKay, 46, of Brookhaven, Pennsylvania, is serving a 180-month sentence, with a scheduled release date of June 28, 2021, following his guilty plea in the Eastern District of Pennsylvania to one count of distribution of child pornography and one count of possession of child pornography. McKay is charged with allegedly transferring micro SD cards containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016, and on Feb. 15, 2017, on behalf of other inmates (conspirators Allen and Roffler, below). The first micro SD card included child sexual abuse videos involving prepubescent children as well as bestiality. The second micro SD card included hundreds of images and videos of child sexual abuse.
Jordan T. Allen, 30, of Plain City, Ohio, is serving a 102-month sentence, with a scheduled release date of Dec. 30, 2018, following his guilty plea in the Southern District of Ohio to one count of receipt of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Feb. 15, 2017, in exchange for the micro SD card that McKay transferred to the informant on that date. Allen told the informant that he utilized The Onion Router (also known by its acronym, “TOR”) to access images of child sexual abuse.
Christopher D. Roffler, 29, of Virginia Beach, Virginia, is serving a 100-month sentence, with a scheduled release date of Aug. 22, 2019, following his guilty plea in the Eastern District of Virginia to one count of transportation of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Nov. 1, 2016, in exchange for the micro SD card that McKay transferred to the informant on that date.
Erik M. Smith, 35, of Iron Mountain, Michigan, is serving a 235-month sentence, with a scheduled release date of March 26, 2027, following his guilty plea in the Western District of Michigan to one count of receipt of child pornography. He is charged with distribution of images of child sexual abuse and selling and possessing with intent to sell images of child sexual abuse on federal property. Smith allegedly sold a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Feb. 15, 2017. Smith stated that he had sufficient postage stamps – a form of illicit currency among inmates – in order to obtain a cellphone to access the cloud account.
The counts of distributing child pornography, selling and possessing with intent to sell child pornography, and conspiracy to commit these offenses – due to the prior convictions of each of the defendants – carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 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 in Newark, with the investigation leading to today’s arrests. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Gabriel Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Canadian Man Admits Role in Cocaine Distribution SchemeRead the Press Release
CAMDEN, N.J. – A Canadian man today admitted 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 Bulamun, 48, of Hemmingford, Canada, pleaded guilty before U.S. District Court Judge Robert Kugler in Camden federal court to an indictment charging him with one count of conspiring to distribute more than five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Between October 2012 and Nov. 29, 2012, Bulamun 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.
The conspiracy count to which Bulamun pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison. Sentencing is scheduled for Aug. 4, 2017.
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.
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.
Florida Man Sentenced to 53 Months in Prison for Defrauding Bergen County, New Jersey, Company Out $1.5 MillionRead the Press Release
TRENTON, N.J. – A Windermere, Florida, man was sentenced today to 53 months in prison for using phony invoices to fraudulently obtain more than $1.5 million from a factoring company in Bergen County, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Jerry Guidice, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company in which the trucking company would assign some of its accounts receivable in return for short-term financing. Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.
In addition to the prison term, Judge Thompson sentenced Guidice to three years of supervised release and ordered him to pay restitution of $1.6 million.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Christopher Atcachunas Esq., Orlando, Florida
Paterson, New Jersey, Man Charged with Armed Home Invasion While Posing as A Law Enforcement OfficerRead the Press Release
NEWARK, N.J. – A Paterson, New Jersey, man appeared in federal court today to face charges that he attempted to rob a Paterson residence while dressed in a Passaic County Sheriff’s uniform and wielding a firearm, Acting U.S. Attorney William E. Fitzpatrick announced.
Jason Thompson, 34, complaint in is charged by indictment with one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. Thompson was arraigned this morning before U.S. District Judge Claire C. Cecchi in Newark federal court.
According to documents filed in this case and statements made in court:
On Aug. 12, 2015 at around 7:00 a.m., Thompson and Clemente Carlos, 30, of Newark, New Jersey – while dressed in Passaic County Sherriff’s uniforms – accosted a female victim and her infant as the victim was leaving her residence in Paterson. The two men posed as law enforcement officers and led the victim back into her apartment inside the residence.
Once inside, Thompson allegedly removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Thompson and Carlos left the residence.
Law enforcement officers arrested Thompson outside his Paterson residence on Dec. 2, 2015. During a subsequent search of the residence, officers recovered a loaded revolver handgun from Thompson’s bedroom.
On Dec. 1, 2016, Carlos appeared before Judge Cecchi and pleaded guilty to a one-count information charging him with conspiracy to commit Hobbs Act robbery. Carlos is scheduled to be sentenced on May 2, 2017.
The Hobbs Act conspiracy charge and the attempted Hobbs Act robbery each carry a statutory maximum sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. The charge of being a felon in possession of a firearm carries a maximum sentence of 10 years in prison and a $250,000 fine.
The charges and allegations in the indictment are merely accusations, and Thompson 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 charges. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Jamari Buxton of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Michael Pedicini Esq., Chatham
Four Men Charged in $800,000 Advance Fee SchemeRead the Press Release
NEWARK, N.J. –Three men from New Jersey and another from Nevada have been arrested for allegedly defrauding two individual victims out of approximately $800,000 through an advance fee scheme, Acting U.S. Attorney William E. Fitzpatrick announced today.
Harold Mignott, 54, of Voorhees, New Jersey, James Adkins, 64, of Hillside, New Jersey, Jerrid Douglas, 43, of Freehold, New Jersey, and Roy Johannes Gillar, 44, of Las Vegas, are each charged by criminal complaint with one count of conspiracy to commit wire fraud.
Mignott, Adkins, and Douglas were arrested this morning and made their initial court appearances this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal Court. Gillar was arrested yesterday and appeared before U.S. Magistrate Judge Nancy J. Koppe in Las Vegas federal court. Gillar was detained. Mignott, Adkins, and Douglas were released on $200,000 unsecured bonds.
According to the complaint:
From March 2016 through June 2016, Mignott, Adkins, Douglas, and Gillar allegedly agreed to defraud an entity identified in the complaint as “Victim Company A” out of approximately $1 million.
As part of the scheme, the defendants fraudulently induced two individuals who ran Victim Company A to have Victim Company A enter a joint-venture agreement with their New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide Victim Company A with a “standby letter of credit” backed by Mexican gold bonds. A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.
Victim Company A wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint-venture agreement, Victim Company A agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.
In order to cover up the scheme and convince the victims to approve transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion standby letter of credit to the defendants’ shell company.
However, after Victim Company A transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide Victim Company A with a standby letter of credit or anything of value. Instead, the defendants misappropriated Victim Company A’s money for their personal use on items like luxury cars, expensive watches, mortgage payments on their personal residences, and large cash withdrawals.
At no time since March 2016 have the defendants or any company owned or operated by them provided anything of value to Victim Company A in exchange for Victim Company A’s $800,000. The defendants also have not returned any of the money to Victim Company A.
The conspiracy to commit wire fraud charge carries 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 in Newark, with the investigation leading to the arrests.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New York Doctor Pleads Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – An internal medicine doctor practicing in Staten Island, New York, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Ahmed El Soury, 44, of Monmouth Junction, New Jersey, pleaded guilty to Count One of an indictment charging him with conspiracy to violate the Anti-Kickback Statute, the Federal Travel Act, and the honest services wire fraud statute. El Soury pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
El Soury admitted accepting cash bribes in return for referring patient blood specimens to BLS. From March 2011 through April 2013, El Soury received bribes totaling more than $66,000 from BLS employees and associates. El Soury’s referrals generated approximately $650,000 in lab business for BLS.
The investigation has thus far resulted in 44 convictions – 30 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The conspiracy charge to which El Soury pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. El Soury’s sentencing is scheduled for July 19, 2017.
El Soury is one of five physicians who have been indicted in connection with the BLS bribery scheme. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Salvatore Conte was indicted on Jan. 10, 2017, pleaded guilty on Feb. 28, 2017, and will be sentenced June 6, 2017. Bernard Greenspan was indicted on March 14, 2016, convicted at trial before U.S. District Judge William H. Walls on March 6, 2017, and will be sentenced on June 20, 2017. Thomas Savino was indicted on Dec. 20, 2016 and is pending trial before Judge Chesler.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.32 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: Albert Dayan Esq., Kew Gardens, New York
Member of ATM Skimming Conspiracy Pleads Guilty for Targeting Multiple New Jersey Bank LocationsRead the Press Release
A member of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark, New Jersey, Office made the announcement.
Joel Abel Garcia, 35, a U.S. citizen from Bronx, New York, pleaded guilty before U.S. District Judge Esther Salas of the District of New Jersey to one count of conspiracy to commit bank fraud. Garcia is the third of 13 defendants charged in this matter to plead guilty. Victor A. Hanganu, 35, a Romanian citizen residing in Bayside, New York, pleaded guilty on April 10, 2017, to an information charging him with one count of conspiracy to commit bank fraud. Sentencing for Garcia and Hanganu is set for Aug. 2, 2017, and July 31, 2017, respectively.
According to admissions made in connection with the pleas, Garcia, Hanganu and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Garcia and Hanganu both admitted that between March 2015 and July 2016, they used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. As part of his plea, Hanganu also admitted that as part of the scheme, he installed “skimming” devices on the ATMs, including pinhole cameras that recorded password entries and card-reading devices capable of recording customer information encoded on magnetic strips.
Garcia, Hanganu and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, causing losses of $428,581. Of that sum, $132,805 was personally attributable to Garcia.
In addition to Garcia and Hunganu, Radu Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty on March 29, 2017, to an information charging him with one count of conspiracy to commit bank fraud.
The ICE-HSI’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kelly Graves of the District of New Jersey are prosecuting the case.
Member of ATM Skimming Conspiracy Targeting Multiple New Jersey Bank Locations Pleads GuiltyRead the Press Release
NEWARK, N.J. – A member of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.
Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Joel Abel Garcia, 35, a U.S. citizen from Bronx, New York, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud.
Garcia is the third of 13 defendants charged in this matter to plead guilty. Victor A. Hanganu, 35, a Romanian citizen residing in Bayside, New York, pleaded guilty on April 10, 2017 to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Garcia, Hanganu, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Garcia and Hanganu both admitted that between March 2015 and July 2016, they used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. Hanganu also admitted that as part of the scheme, he installed “skimming” devices on the ATMs, including pinhole cameras that recorded password entries and card-reading devices capable of recording customer information encoded on magnetic strips.
Garcia, Hanganu, and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, causing losses of $428,581, $132,805 of which was personally attributable to Garcia.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for Garcia and Hanganu is set for Aug. 2, 2017 and July 31, 2017, respectively.
In addition to Garcia and Hunganu, Radu Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty on March 29, 2017, to an information charging him with one count of conspiracy to commit bank fraud.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
Defense counsel:
Garcia: Lorraine Gauli-Rufo Esq., Verona, New Jersey
Hanganu: Michael N. Pedicini Esq., Chatham, New Jersey