District of New Jersey
Press releases recorded for this federal judicial district.
Fugitive Pleads Guilty in $200 Million Credit Card Fraud ScamRead the Press Release
TRENTON, N.J. – A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department, Acting U.S. Attorney William E. Fitzpatrick announced.
Habib Chaudhry, 49, of Valley Stream, New York, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count One of an indictment charging him with conspiracy to commit bank fraud.
Chaudhry was initially charged by complaint in February 2013 and then by indictment in September 2013. Chaudhry had been a fugitive for nearly four years prior to his arrest in January 2017.
According to documents filed in this case and statements made in court:
Chaudhry was indicted as part of a conspiracy – led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others – to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Including today’s plea, 20 people have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrow or spend as much as they could without repaying the debts. The scheme caused more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal fraud enterprise required the conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Chaudhry admitted that he worked with others to obtain fraudulent credit cards in the names of false identities, that he directed that these fraudulent credit cards be mailed to addresses he controlled, and that he and others made charges using these credit cards with no intention of paying back the debts.
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. Sentencing is scheduled for Sept. 20, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, Newark Division, special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S.
Attorney Sarah Devlin of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with the Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Jerome Ballarotto Esq., Trenton
Former City of Passaic Mayor Gets over Two Years in Prison for Taking $110,000 in Corrupt Payments from DevelopersRead the Press Release
NEWARK, N.J. – The former mayor of the City of Passaic, New Jersey, was sentenced today to 27 months in prison for taking $110,000 in corrupt payments from developers doing business in the city, Acting U.S. Attorney William E. Fitzpatrick announced.
Alex D. Blanco, 45, of Passaic, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of soliciting and accepting corrupt payments in connection with City of Passaic business. Judge Martini imposed the sentence today in Newark federal court.
“Mayor Blanco admitted to aggressively soliciting and accepting illegal payments from developers, taking for himself federal money that was intended to help provide housing for some of the city’s poorest residents,” Acting U.S. Attorney Fitzpatrick said. “This case demonstrates that public officials who exploit their office for personal gain can expect to be thoroughly investigated and aggressively prosecuted.”
“Public corruption is one of the FBI's top priorities,” Special Agent in Charge Timothy Gallagher of the FBI Newark Division said. “Today's sentencing of former Passaic Mayor Alex Blanco is indicative of how diligently the FBI and our law enforcement partners work corruption matters. We will continue to investigate allegations of public corruption thoroughly to ensure any person who misuses their public office for private gain is held accountable.”
“The mayor’s sentencing sends a message that no one is above the law. It is a testament to the hard work and dedication of our special agents and their law enforcement colleagues—job well done,” acting Special Agent in Charge Brian A. Michael, Homeland Security Investigations, Newark Field office, said.
According to documents filed in this case and statements made in court:
From 2010 through 2012, two developers were seeking to build eight low-income residential units on property they owned in Passaic. After the Passaic City Council and the Passaic Zoning Board of Adjustment granted approval, Blanco – who had been mayor since November 2008 – had an intermediary approach the developers in July 2011. The developers were told they were expected to provide a sizable payment to the mayor to ensure that the project would proceed.
A short time later, the Passaic City Council approved the release of $216,400 in Housing and Urban Development (HUD) funds to the developers, money that had been earmarked for the project. In early September 2011, Blanco arranged for a meeting with the developers at which he solicited and agreed to accept $75,000. The next day, he arranged for a meeting with one of the developers in Clifton, New Jersey, and asked for the corrupt payment in cash, but was told by the developer that the developer had brought signed, blank checks, which could be made out to payees of Blanco’s choosing. Blanco obtained those checks – totaling $65,000 – once the payee lines had been filled in, arranged for them to be cashed, and pocketed the cash proceeds.
About eight days later, Blanco arranged for another meeting in Passaic with one of the developers and solicited and accepted two additional checks totaling $40,000, proceeds of which were ultimately provided to Blanco in cash. In March 2012, Blanco accepted cash proceeds from an additional $5,000 check solicited on his behalf. Much of the $110,000 in corrupt payments was derived from the HUD monies that had been released to the developers in 2011.
In addition to the prison term, Judge Martini sentenced Blanco to three years of supervised release and ordered him to pay restitution of $110,000.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Michael, with the investigation leading to today’s sentencing. He also thanked special agents of the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office Special Prosecutions Division in Newark and Assistant U.S. Attorney James M. Donnelly of the Criminal Division in Newark.
Defense attorneys: Joseph A. Hayden Jr. Esq. and Aidan P. O’Connor Esq., Hackensack, New Jersey
Essex County, New Jersey, Man Sentenced to over Eight Years in Prison for Possessing Firearm as A Previously Convicted FelonRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 105 months in prison for possessing a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.
Lucas Sumler, 42, was convicted in October 2016 of felony possession of a firearm following a two-day trial before U.S. District Judge Esther Salas in Newark federal court.
According to documents filed in this case and the evidence presented at trial, on March 25, 2016, Sumler – who had been previously convicted in U.S. District Court in New Jersey – was found in possession of a .357 magnum revolver along with six rounds of ammunition.
In addition to the prison term, Judge Salas sentenced Sumler to three years of supervised release.
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, along with the Newark Police Division and the Essex County Prosecutor’s Office, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Jonathan W. Romankow and Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Michael N. Pedicini Esq., Chatham, New Jersey
Essex County, New Jersey, Man Admits Summer 2016 Bank Robbery SpreeRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man today admitted robbing four banks in August and September 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
James Lockwood, 39, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with four counts of bank robbery. He was originally arrested by state authorities on Sept. 23, 2016 and has been in custody since that time.
According to documents filed in this case and statements made in court, Lockwood robbed the following banks on the dates set forth below:
Bank
Location
Date
M & T Bank
Lyndhurst, New Jersey
Aug. 16, 2016
Schuyler Bank
Kearney, New Jersey
Aug. 25, 2016
Schuyler Bank
Kearney, New Jersey
Sept. 8, 2016
Capital One Bank
Clifton, New Jersey
Sept. 16, 2016
Lockwood admitted that during each of the above robberies, he threatened to use force while demanding money from the bank employees. He also robbed the same Schuyler Bank on Aug. 25, 2016 and Sept. 8, 2016.
The bank robbery charges each carry a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 2, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office, the Passaic County Prosecutor’s Office, and the Kearny and Clifton Police Departments for their assistance.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Keith Hirschorn, Esq.
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 man today admitted that he participated 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.
Jostin Reyes, 21, of Waldwick, 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:
Reyes admitted that on Dec. 25, 2015, 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, Reyes and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Reyes admitted that he and others forced the driver into the back of the vehicle and took over driving. Reyes also admitted that he and others 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. 2, 2017.
Reyes and five other defendants were originally charged by federal criminal complaint in November 2016. Reyes, Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 19, of Suffern, New York, and Juan Chiliseo-Vega, 20, of Suffern, are charged with the bar robbery, as well as the carjacking and kidnapping that took place afterwards. Balmore Carrillo-Iraheta, 19, of Suffern, and Oscar Avalos-Cortez, 23, of New City, New York, are only charged with the bar robbery.
Chiliseo-Vega and Guillermo Carrillo-Iraheta previously pleaded guilty in Newark federal court to separate informations in connection with their involvement in the conspiracy. They await sentencing.
The charges against Barahona, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, 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, 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: Michele Ann Adubato Esq., Bayonne, New Jersey
Atlantic City, New Jersey, Man Sentenced to Six Months in Prison, Six Months Home Confinement, for Conspiring to Defraud IRS of Nearly $120,000 in TaxesRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to six months in prison and six months home confinement for his role in a conspiracy to defraud the IRS of $119,880 in income taxes over three years, Acting U.S. Attorney William E. Fitzpatrick announced today.
John Schultz, 74, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to defraud the United States. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:Schultz, William Boland, and another conspirator were partners in Royal Rolling Chairs Inc., a business based in Atlantic City that provided rolling chair transportation services to patrons on the boardwalk. As owners, they were responsible for accurately reporting income received by the business to the IRS.
Schultz admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted that the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.
In addition to the prison term, Judge Rodriguez sentenced Schultz to one year of supervised release – which includes the six months of home confinement – fined him $3,000, and ordered him to pay $31,110 in restitution.
Boland previously pleaded guilty to the same conspiracy charge and is scheduled to be sentenced by Judge Rodriguez on May 4, 2017. Abdus Mian, the bookkeeper for Royal Rolling Chairs, pleaded guilty to making false statements to federal investigators and was sentenced on April 4, 2016, to one year of probation.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Field Office, 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: Edwin J. Jacobs Jr. Esq., Atlantic City
Ohio Man Charged with Armed Robbery of Essex County, New Jersey, Mobile Communications StoreRead the Press Release
NEWARK, N.J. – A Westerville, Ohio, man was indicted by a federal grand jury today for his alleged role in a June 2016 armed robbery of a retail store in Orange, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Frederick A. White, 43, is charged by indictment with one count of being a felon in possession of a firearm, one count of Hobbs Act robbery, and one count of brandishing a firearm during a crime of violence. He has been in custody since his arrest in June 2016.
According to the indictment and other documents filed in this case:
In the afternoon of June 11, 2016, White allegedly entered a mobile communications company retail store in Orange wearing a wig and brandishing a handgun. White stole cash from an employee of the store and fled.
White was arrested shortly afterwards when he attempted to evade the Orange Police Department on foot and was charged by the Essex County Prosecutor’s Office with robbery and firearms offenses. He was charged by federal criminal complaint on Nov. 10, 2016 in Newark federal court.
White was previously convicted in Newark federal court of armed carjacking and brandishing a firearm during a crime of violence in 1993.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of 25 years in prison based on White’s prior conviction for the same offense, and that sentence must be consecutive to any other sentence imposed. The Hobbs Act charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The felon in possession of a firearm charge carries a statutory maximum of 10 years in prison.
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 Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s charges. He also thanked the Orange Police Department for their assistance.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Kevin Carlucci Esq., Newark
Mercer County, New Jersey, Man Sentenced to 20 Years in Prison for Enticing Minor to Engage in Sexually Explicit ConductRead the Press Release
NEWARK, N.J. – A Lawrenceville, New Jersey, man was sentenced today to 240 months in prison for paying a minor to engage in sexually explicit conduct and stream it online, Acting U.S. Attorney William E. Fitzpatrick announced.
Curtis E. Thompson, 32, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of production of child pornography. Thompson was charged by complaint on Nov. 10, 2015, and has been in custody since that date. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Thompson admitted that from May 2015 through September 2015, he used Facebook Messenger and FaceTime on his iPhone to communicate with an individual, referred to in the information as “Victim 1,” and Victim 1’s friends. Thompson also admitted that based on those communications, he learned that Victim 1 was less than 18 years old.
Thompson admitted using Facebook Messenger and FaceTime to encourage Victim 1 and Victim 1’s friends to engage in sexually explicit activity and either record the conduct or stream it online. Thompson also admitted that he offered and made payments to the victim for recording and streaming the sexually explicit conduct.
In addition to the prison term, Judge Vazquez sentenced Thompson to lifetime supervised release.
Acting U.S. Attorney Fitzpatrick credited Special Agents with the FBI, under the direction of Special agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David A. Holman Esq., Assistant Federal Public Defender, Newark
Two Men Charged with $900,000 Interstate Theft SchemeRead the Press Release
NEWARK, N.J. - Two New Jersey men were arrested today for their roles in a scheme to fraudulently obtain more than $900,000 in commercial and residential merchandise from various companies, Acting U.S. Attorney William E. Fitzpatrick announced.
Roy Depack, a/k/a “Ray Depack,” a/k/a “Roy Soriano,” a/k/a “John Soriano,” 42, of Elizabeth, New Jersey, and Louis J. Pobutkiewicz Sr., 39, of Newark, are charged by complaint with conspiracy to commit mail and wire fraud.
Both defendants were arrested this morning by FBI special agents and postal inspectors from the U.S. Postal Inspection Service. They appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:Beginning in mid-2014, Depack allegedly engaged in a scheme to fraudulently obtain merchandise – including Apple computers, iPads, digital scales, a walk-in freezer, a dishwasher, microwaves, gas ranges, refrigerators, ice makers, commercial grade food processors, coin operated commercial washers and dryers, Samsung televisions, Dewalt and Milwaukie tools kits, plasma cutters, and NFL jackets – from at least six different victim companies.
In furtherance of the scheme, Depack called the victim companies and falsely claimed to be a representative of companies that had preexisting business relationships, lines of credit, or accounts with the victim companies. Depack would then direct the victim companies to ship the products to various addresses in Newark, Elizabeth, Union, New Jersey, and New York, while the victims billed the companies that Depack was pretending to represent.
At times, Pobutkiewicz would accept the shipments of the fraudulently ordered merchandise. Afterwards, Depack and others sold and attempted to the sell the fraudulently obtained merchandise to pawn stores and others.
For example, on Nov. 21, 2016, Depack called a victim company in Illinois while fraudulently using the name “Greg” and claiming to be a representative of an electric distributor that operates in West Virginia, Kentucky, and Ohio. Depack ordered a power tool kit valued at approximately $1,241.65 and directed the company to deliver the merchandise to an address in Newark that was close to Pobutkiewicz’s residence. The next day, federal agents conducted surveillance near the delivery address in Newark and observed Depack and Pobutkiewicz meet near the delivery address. Afterwards, federal agents observed Pobutkiewicz take possession of the parcel.
Depack used over 100 different telephones numbers to call the victim companies. These phone numbers were often registered in another person’s name. In addition to using different names to place orders, Depack often attempted to use a female voice. The Victim Companies recorded many of these the calls – including the above example – and provided them to federal agents.
When the victim companies rejected his orders, Depack sometimes threatened to cancel business accounts or file lawsuits. In one instance, after a company rejected his order, Depack stated, “I’m gonna come down there with a Louisville Slugger. We’re gonna see what their gonna do now, alright. Thank you.”
In total, Depack and others caused and attempted to cause over $900,000 in financial losses to the victim companies.
The charge of conspiracy to commit mail and wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. After the initial appearance, Depack was detained. Pobutkiewicz will be detained temporarily pending further proceedings.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy A. Gallagher in Newark, and postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation.
The charge in the complaint is merely an accusation, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel:
Depack: Stacy Ann Biancamano Esq., Chatham, New Jersey
Pobutkiewicz: Chester Keller Esq., Assistant Federal Public Defender, Newark
Essex County, New Jersey, Man Gets over Two Years in Prison for Prison Tax ScamRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was sentenced today to 26 months in prison for his role in a conspiracy to file false federal income tax returns on behalf of inmates at the Essex County Correctional Facility, Acting U.S. Attorney William E. Fitzpatrick announced.
Winfred Moses, 49, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with conspiracy to make and present false, fictitious, and fraudulent claims to the IRS. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2013 through Aug. 5, 2014, Moses, Reginald Eaford, 46, also of East Orange, and others conspired to file bogus federal tax returns in order to fraudulently obtain tax refunds.
Eaford was an inmate at the Essex County Correctional Facility from approximately May 20, 2013 through Feb. 12, 2014. As part of the scheme, Eaford, Moses, and others obtained social security numbers, dates of birth, and other information from inmates at the jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.
Afterwards, Eaford and Moses filed false federal income tax returns on behalf of the inmates and had the refund checks sent to the Essex County Correctional Facility or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates. Eaford and Moses admitted that they filed 112 phony tax returns that sought approximately $670,206 in fraudulent refunds.
In addition to the prison term, Judge Walls sentenced Moses to three years of supervised release and ordered him to pay restitution of $200,045. Eaford previously pleaded guilty with Moses on Dec. 19, 2016 and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Leigh-Anne Mulrey Esq., Morristown, New Jersey
Suspended New Jersey Attorney Admits to Failing to Pay TaxesRead the Press Release
NEWARK, N.J. B A suspended Essex County, New Jersey, lawyer today admitted he failed to pay personal and employment payroll taxes, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard Roberts, 79, of Bloomfield, New Jersey, pleaded guilty before U.S. District Judge U.S. District Judge Esther Salas in Newark federal Court to an information charging him with one count of failing to pay payroll taxes and one count of failing to pay personal income taxes.
According to documents filed in the case and statements made in Court:
Roberts was the sole owner of legal practice he operated out of a law office in Newark. He maintained at least one employee, besides himself, and managed all aspects of the law office. Roberts was required to deduct and withhold federal income and insurance taxes from his employees’ wages. He was required to prepare and file quarterly forms that reported to the IRS the total amount of wages paid by an employer to all employees (Forms 941). Roberts was required to pay the employer’s portion of the payroll tax to the IRS. For the 12 quarters of the tax years 2009 through 2011, Roberts failed to make any payroll tax payment to the IRS. In each quarter, Roberts either failed to file a Form 941 or failed to pay the payroll tax reflected on the form.
Roberts has not paid personal income taxes since at least 2000. On June 24, 2012, Roberts filed a tax return for the tax years 2007 through 2010, listing the amount of tax due on each return. For example, on the 2010 tax return, Roberts listed a tax due of $20,361, but he has to date failed to pay the tax for tax years 2007 through 2010.
The count of failure to pay payroll taxes carries a maximum potential penalty of five years in prison and a fine of the greater of $250,000, twice the gross profits to Roberts or twice the gross loss to the victim. The count of failure to pay income taxes carries a maximum potential penalty of one year in prison and a fine of the greater of $100,000, twice the gross profits to Roberts or twice the gross loss to the victim. Sentencing is scheduled for Aug. 1, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and investigators of the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Lisa Mack Esq., Assistant Federal Public Defender, Newark
Monmouth County, New Jersey, Man Admits Multimillion-Dollar Investment Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Monmouth County, New Jersey, man admitted today that he conspired to defraud 76 victims of more than $4 million and evaded paying more than $273,000 in taxes, Acting U.S. Attorney William E. Fitzpatrick announced.
Peter Zuck, 66, of Middletown, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to commit wire fraud and four counts of tax evasion.
According to documents filed in this case and statements made in court:
Zuck was a co-founder of Osiris Partners LLC and Osiris Partners Fund Limited. Starting in 2009, Zuck was employed in a management role with Osiris Partners LLC and Osiris Partners Fund Limited, including as a managing member and portfolio manager of the fund. Between June 2009 and November 2011, Osiris Fund Limited Partnership solicited 76 investors to invest $12 million in the Fund. Zuck, Michael Spak, who previously pleaded guilty to one count of conspiracy to commit wire fraud for his role in the scheme, and other conspirators defrauded investors by concealing investments losses in the fund, misappropriating assets from the fund for their own personal use, and obtaining management fees based on a fraudulently inflated net asset value.
Zuck admitted that members of the Osiris Fund Limited Partnership diverted $4 million in investors’ funds from the fund and fraudulently drew $3.9 million in management fees to which they were not entitled.
Zuck also admitted that he was issued $1.3 million in checks in connection with his employment at Osiris Partners LLC and Osiris Fund Limited Partnership, which he used to pay for personal expenditures but which he did not report as income to the IRS. Instead, Zuck concealed his income by causing the checks to be deposited in an account that he controlled but that was in his son’s name and falsely assigning the income to his son on IRS forms. He admitted that he attempted to evade $273,417 in income tax.
The charge of wire fraud conspiracy to which Zuck pleaded guilty carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater. Each charge of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greater. The information also includes a forfeiture provision for the fraudulent payments Zuck received from the scheme. Sentencing is scheduled for July 17, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou, David M. Eskew, and Shirley Emehelu of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Tim Anderson Esq., Red Bank
California Man Admits Possessing with Intent to Distribute 29 Kilograms of MethamphetamineRead the Press Release
TRENTON, N.J. – A South Gate, California, man today admitted his intent to distribute over 29 kilograms of methamphetamine that was hidden in a tractor trailer he was driving, Acting U.S. Attorney William E. Fitzpatrick announced.
Tomas Lopez Beltran, 45, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of possession with intent to distribute more than 500 grams or more of methamphetamine.
According to documents filed in this case and statements in the court:
On Oct. 28, 2016, law enforcement lawfully searched a tractor trailer driven by Beltran and recovered approximately 29 kilograms of methamphetamine and $73,500 in cash from a concealed compartment located inside the cab of the trailer. Beltran admitted today that he intended to distribute the methamphetamine and cash to an individual in Georgia.
The count of possession with intent to distribute more than 500 grams or more of methamphetamine carries a minimum potential penalty of 10 years in prison and a maximum potential penalty of life in prison. Sentencing will be scheduled at a later date.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation 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 Criminal Division in Newark.
Defense counsel: David Holman, Esq., Assistant Federal Public Defender, Newark
Middlesex County, New Jersey, Man Charged with Theft of Trade Secret Materials from DupontRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man has been charged with stealing computer files containing trade secrets from a DuPont manufacturing facility in Parlin, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced today.
Anchi Hou, 61, East Brunswick, New Jersey, was arrested this morning and charged by complaint with one count of theft of trade secrets. Hou is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
In the summer and fall 2016, Hou allegedly copied and removed thousands of files containing DuPont’s proprietary information, including formulas, data, and customer information related to flexographic printing plate technology. He also allegedly took photographs in restricted areas of plant equipment and layouts used to manufacture DuPont’s products.
After allegedly stealing DuPont’s trade secrets, Hou announced his intention to retire from the company by the end of 2016. At some point in 2016, he formed a consulting business intended to provide consulting services to the manufacturing industry. Hou admitted to DuPont officials he secretly copied the files from his DuPont work computer and then uploaded those files onto a personal computer at his residence in order to assist him with his consulting business.
A forensic review of Hou’s personal computer revealed that it contained more than 20,000 stolen DuPont files related to the company’s flexographic printing plate technology. Some of the stolen files include information that DuPont considers trade secrets developed by its employees over the course of the past 40 years and which are critical to its technical, economic, and business operations.
The theft of trade secrets charge carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
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 the arrest. He also thanked security officials in the DuPont corporation for their cooperation in the investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly of the U.S. Attorney’s Office National Security Unit and L. Judson Welle, coordinator of the Computer Hacking and Intellectual Property Unit, in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Indicted on Additional Charges Including Tax Evasion, Structuring and Falsifying RecordsRead the Press Release
Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, were indicted today on additional charges including tax evasion, structuring and falsifying records, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey announced.
In September 2014, the Sorrentino brothers were indicted for tax offenses and conspiring to defraud the United States. The superseding indictment returned today includes new charges against both men. Michael is now also charged with tax evasion and structuring funds to evade currency transaction reports and Marc is now also charged with falsifying records to obstruct a grand jury investigation. An arraignment on the superseding indictment is scheduled on April 17 at 11:30 a.m. before U.S. District Court Judge Susan D. Wigenton in Newark, New Jersey.
According to the superseding indictment, Michael was a reality television personality who gained fame on the television show “The Jersey Shore,” which first appeared on the MTV network. Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012. It is alleged that the brothers filed or caused to be filed with the Internal Revenue Service (IRS) false tax returns that understated gross receipts, claimed fraudulent business deductions, disguised income payments made to the brothers and to others and underreported net business income. As part of the conspiracy, the brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing.
The superseding indictment further alleges that Michael evaded his 2011 income taxes – failing to file a personal return, filing a false corporate return for Situation Nation and concealing his cash income.
The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed.
The superseding indictment also alleges that after being served with Grand Jury subpoenas seeking books and records of MPS and Situation Nation, but prior to producing the books and records to the Grand Jury, Marc falsified them by altering and reclassifying taxable payments to himself as non-taxable payments and as legitimate business deductions.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the Sorrentino brothers face a statutory maximum sentence of five years in prison on the conspiracy count and three years in prison for each count of aiding in the preparation of false tax returns. Michael faces a statutory maximum sentence of 10 years in prison for each structuring count and five years in prison for the tax evasion count. Marc faces a statutory maximum sentence of 20 years in prison for obstruction. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney William E. Fitzpatrick thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Jonathan W. Romankow and Trial Attorneys Yael T. Epstein and Jeffrey Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Indicted on Additional ChargesRead the Press Release
Tax Evasion, Structuring and Falsifying Records
NEWARK, N.J. – Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, were indicted today on additional charges including tax evasion, structuring and falsifying records, Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced.
In September 2014, the Sorrentino brothers were indicted for tax offenses and conspiring to defraud the United States. The superseding indictment returned today includes new charges against both men. Michael is now also charged with tax evasion and structuring funds to evade currency transaction reports and Marc is now also charged with falsifying records to obstruct a grand jury investigation. An arraignment on the superseding indictment is scheduled for April 17, 2017, before U.S. District Court Judge Susan D. Wigenton in Newark federal court.
According to the superseding indictment:
Michael was a reality television personality who gained fame on the television show “The Jersey Shore,” which first appeared on the MTV network. Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012. The brothers allegedly filed or caused to be filed with the IRS false tax returns that understated gross receipts, claimed fraudulent business deductions, disguised income payments made to the brothers and to others and underreported net business income. The brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing.
The superseding indictment alleges that Michael evaded his 2011 income taxes – failing to file a personal return, filing a false corporate return for Situation Nation and concealing his cash income.
The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed.
The superseding indictment also alleges that after being served with Grand Jury subpoenas seeking books and records of MPS and Situation Nation, but prior to producing the books and records to the Grand Jury, Marc falsified them by altering and reclassifying taxable payments to himself as non-taxable payments and as legitimate business deductions.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the Sorrentino brothers face a statutory maximum sentence of five years in prison on the conspiracy count and three years in prison for each count of aiding in the preparation of false tax returns. Michael faces a statutory maximum sentence of 10 years in prison for each structuring count and five years in prison for the tax evasion count. Marc faces a statutory maximum sentence of 20 years in prison for obstruction. They also face a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney William E. Fitzpatrick and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS–Criminal Investigation with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow and Trial Attorneys Yael T. Epstein and Jeffrey Bender of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Defense counsel:
Michael Sorrentino: Henry E. Klingeman Esq., Newark
Marc Sorrentino: Michael D’Alessio Esq., West Orange, New Jersey
New York Man Gets Three Years in Prison for Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 36 months in prison for his role in a conspiracy to traffic approximately two kilograms of cocaine from Puerto Rico to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Ramis Esteves, 33, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiring to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Esteves was arrested on March 24, 2015 in Bergen County after he accepted delivery of approximately two kilograms of cocaine which had been sent by mail from Puerto Rico. Esteves admitted that he conspired with co-defendant Sasha Melendez, 38, of Bergenfield, New Jersey, to distribute the cocaine.
In addition to the prison term, Judge Cecchi sentenced Esteves to three years of supervised release.
Melendez previously pleaded guilty to conspiracy to distribute cocaine and was sentenced Jan. 5, 2017 to 37 months in prison.
Acting U.S. Attorney Fitzpatrick credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.
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: Paul Brenner, Esq.
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 today.
Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E,” 21, 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 100 grams or more of heroin. As part his guilty plea, Abdullah admitted to possessing one or more firearms during the conspiracy.
In December 2016, Abdullah and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader and Elijah Abdullah’s brother, Ishmael Abdullah. Elijah Abdullah is the third defendant to plead guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Elijah Abdullah and others engaged in a drug trafficking organization that operated in the area of Spring and Passaic Streets in Trenton.
Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Elijah Abdullah.
Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with the narcotics conspiracy, Elijah Abdullah and other members of the Abdullah DTO maintained joint access to multiple firearms.
The conspiracy charge carries a mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Sentencing set for July 19, 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: Michael A. Armstrong, Willingboro, New Jersey
Mercer County, New Jersey, Man Admits Enticing Minor to Engage in Sexually Explicit ConductRead the Press Release
NEWARK, N.J. – A Lawrenceville, New Jersey, man today admitted paying a minor to engage in sexually explicit conduct and stream it online, Acting U.S. Attorney William E. Fitzpatrick announced.
Curtis E. Thompson, 32, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of production of child pornography. Thompson was charged by complaint on Nov. 10, 2015, and has been in custody since that date.
According to documents filed in this case and statements made in court:
Thompson admitted that from May 2015 through September 2015, he used Facebook Messenger and FaceTime on his iPhone to communicate with an individual referred to in the information as “Victim 1” and Victim 1’s friends. Thompson also admitted that based on those communications, he learned that Victim 1 was less than 18 years old.
Thompson admitted using Facebook Messenger and FaceTime to encourage Victim 1 and Victim 1’s friends to engage in sexually explicit activity and either record the conduct or stream it online. Thompson also admitted that he offered and made payments to the victim for recording and streaming the sexually explicit conduct.
Under the terms of today’s plea agreement – which has been accepted by the court – Thompson will be sentenced to 240 months in prison and a lifetime of supervised release. Sentencing is set for April 13, 2017.
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.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David A. Holman, Assistant Federal Public Defender, Newark
Former NBA Player’s Nine-Year Prison Sentence Affirmed for Role in a $2 Million Ponzi SchemeRead the Press Release
PHILADELPHIA, P.A. – C. Tate George, former NBA basketball player and the CEO of purported real estate development firm The George Group, today lost his appeal of the nine-year prison sentence he received for his role in orchestrating a $2 million real estate investment Ponzi scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
George had raised multiple issues on appeal. Each was rejected, in a three-judge panel opinion, written by Judge Thomas M. Hardiman of the United States Court of Appeals for the Third Circuit.
George had argued, among other things, that the Government had withheld evidence proving his innocence while, at the same time, ensuring his conviction based on false testimony from an FBI agent. The panel disagreed, noting that the evidence George identified was “inculpatory, not exculpatory.” It labeled “fallacious” the suggestion that the Government could have withheld from George his own bank account information. Not only did George and his attorneys have access to the account information, the same bank accounts also were used to prove George’s guilt and did not qualify as the type of information that could be improperly withheld.
The panel also rejected George’s claim that an FBI agent had falsely testified against him, pointing out his argument was based on a mischaracterization of the agent’s testimony. Far from admitting the FBI had not properly conducted its investigation into George’s finances, the agent actually had, “multiple times” testified the FBI had conducted a “thorough pre-trial investigation.”
The opinion also disagreed that George had uncovered new evidence showing there were no victims of his scheme. That evidence, which took the form of a forensic accounting, showed George’s own business dealings and, therefore, could not be newly discovered. It also “would not have been admissible at trial in any event” because of the district court’s ruling that it was so flawed as to not qualify as a true forensic accounting.
Finally, the panel concluded the trial court had properly enhanced George’s sentence because George had perjured himself at trial and because of the magnitude of the hardship he had caused his multiple victims. It concluded by stating it had considered George’s other “miscellaneous arguments” but found them to be “without merit.”
According to documents filed in this case and the evidence presented at trial:
George, a former player for the New Jersey Nets and Milwaukee Bucks professional basketball teams, held himself out as the CEO of The George Group and claimed to have more than $500 million in assets under management. He pitched prospective investors, including several former professional athletes, to invest with the firm and told them their money would be used to fund The George Group’s purchase and development of real estate development projects, including projects in Connecticut and New Jersey. George represented to some prospective investors that their funds would be held in an attorney trust account and personally guaranteed the return of their investments, with interest.
Based on George’s representations, investors invested more than $2 million in The George Group between 2005 and 2011, which he deposited in both the firm’s and his personal bank account. Instead of using investments to fund real estate development projects, George used the money from new investors to pay existing investors in Ponzi-scheme fashion, as well as paying for his daughter’s sixteenth birthday party, extensive renovations on his New Jersey home (that has since been foreclosed), the mortgage on a New Jersey home, the mortgage on a Florida home, taxes to the IRS, and traffic tickets. The defendant gave money to family members and friends. He also spent $2,905 for a reality video about himself – a “sizzle reel” for “The Tate Show” – which was made available on YouTube. The George Group had virtually no income-generating operations.
In addition to his prison sentence, which will be followed by three years’ supervised release, the court affirmed the order requiring George to pay $2.55 million in restitution.
The government was represented by Assistant U.S. Attorney Bruce P. Keller of the U.S. Attorney’s Office Appeals Division in Newark. Assistant U.S. Attorney Zach Intrater, now Deputy Chief of the Economic Crimes Unit, represented the government at George’s trial.
Bergen County, New Jersey, Man Admits Role in Conspiracy to Distribute More Than Three Kilograms of Heroin in PatersonRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted purchasing more than three kilograms of heroin from a source in Bronx, New York, and re-selling it to drug dealers in Paterson, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Edwin Lopez, a/k/a “E,” a/k/a “Pan,” 31, of Elmwood Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to information charging him with one count of conspiracy to possess with intent to distribute more than one kilogram of heroin.
According to the documents filed in this case and statements made in court:
From June 2015 to May 2016, Lopez, Juan Pablo Goris-Castellano, 26, of Bronx; Carolina Almonte, 29, of Bronx; Charlie Rodriguez, 33, of Paterson; Reinaldo Rodriguez, 27, of Paterson; Victor Alfonso Alvarez Martinez, 26, of Bronx; Edward M. Stanel, 25, of Parsippany, New Jersey; and Joseph Trimarco, 28, of Stony Point, New York, allegedly participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations around Bronx and used couriers to deliver large quantities of heroin to mid-level drug dealers in Paterson. The heroin was either sold in the Paterson area or redistributed to street-level drug dealers in suburban areas, including Morris County, New Jersey, and Rockland County, New York.
Goris-Castellano, who was based out of Bronx, packaged and then distributed large quantities of heroin to Lopez, who operated out of Paterson. Almonte and Martinez brought the heroin to Lopez and returned to Goris-Castellano with Lopez’s payment. Lopez then sold portions of that heroin to Charlie Rodriguez, who worked closely with Reinaldo Rodriguez to resell portions of the heroin to street-level dealers in Paterson and to street-level dealers in suburban areas, including Stanel, who operated in Morris County, and Trimarco, who operated in Rockland County.
Lopez admitted he participated in this conspiracy from June 2015 until his arrest on April 19, 2016. He admitted that at the time of his arrest, he was giving a $13,500 payment to one of Goris-Castellano’s couriers in exchange for the 150 bricks of heroin.
The count of conspiracy to possess with intent to distribute more than one kilogram of heroin carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum $10 million fine. Sentencing is scheduled for July 11, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
This case was brought under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), 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.
Almonte, Alvarez Martinez, and Stanel have pleaded guilty to participation in portions of this conspiracy. Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Defense counsel: John T. Somohano Esq., Paterson
Warren County, New Jersey, Man Charged with Production of Child Pornography, Threatening and Stalking A ChildRead the Press Release
NEWARK, N.J. – A federal grand jury returned an indictment today charging a Washington, New Jersey, man with coercing a girl to produce sexually explicit images of herself and with stalking and threatening another girl, Acting U.S. Attorney William E. Fitzpatrick announced.
Brandon McIntyre, 24, is charged in a six-count superseding indictment with two counts of production of child pornography, one count of online enticement of a minor to engage in criminal sexual conduct, two counts of interstate extortionate threat, and one count of stalking.
McIntyre was originally arrested on a complaint in September 2014 and indicted in January 2016 with one count of production of child pornography and one count of stalking. Today’s charges account for McIntyre’s use of the internet to entice a girl to produce images of herself engaging in sexually explicit conduct, his additional attempts – through threats – to have this same girl produce additional sexually explicit images, and McIntyre’s use of the internet to threaten a second girl.
According to the superseding indictment and other documents filed in this case:
McIntyre allegedly met various girls through Facebook, sometimes pretending to be a teenage girl. From Aug. 6, 2013 through Aug. 18, 2013, McIntyre communicated via Facebook with a girl. During his interaction with this girl over Facebook, McIntyre sent images of his genitals to the girl and asked her to send images of herself engaging in sexually explicit conduct. After McIntyre threatened to injure the girl and others, the girl acquiesced and sent sexually explicit photographs of herself on two different dates in August 2013.
From March 22, 2014 through April 7, 2014, McIntyre – disguised under the Facebook alias of “Katie Thompson” – urged another girl over Facebook to go on trips with him. When she refused, McIntyre, still using the alias, repeatedly threatened to kill her boyfriend and family.
Each production of child pornography count carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison. The online enticement of a minor to engage in criminal sexual conduct count carries a mandatory minimum sentence of 10 years in prison and a maximum potential penalty of life in prison. The counts of interstate extortionate threat and stalking each carry a maximum potential penalty of five years in prison. All counts in the indictment carry a potential $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Hunterdon County Prosecutor’s Office for the investigation. He also thanked special agents from FBI in Anchorage, Alaska, and Albany, New York, for their assistance.
The government is represented by Assistant U.S. Attorney Erica Liu of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Adalgiza A. Nunez Esq., Newark
Members of DeCavalcante Crime Family Sentenced to Prison Terms for Distributing CocaineRead the Press Release
NEWARK, N.J. – Two associates of the DeCavalcante organized crime family of La Cosa Nostra were sentenced today to prison terms for their roles in distributing more than 500 grams of cocaine, Acting U.S. Attorney William E. Fitzpatrick announced.
Rosario Pali, 33, of Linden, New Jersey, was sentenced to 76 months in prison and Nicholas DeGidio, 39, of Union, New Jersey, was sentenced to 17 months in prison. Both had previously pleaded guilty before U.S. District Judge William H. Walls, separate informations charging them with one count each of conspiracy to distribute more than 500 grams of cocaine. Judge Walls imposed the sentences today in Newark federal court.According to documents filed in this case and statements made in court:
DeGidio and Pali were arrested and charged by complaint in March 2015, along with eight other members of the DeCavalcante crime family. Both admitted selling cocaine in conjunction with other family associates.
In addition to the prison term, Judge Walls sentenced DeGidio to two years of supervised release and Pali 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; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park, with the investigation leading to today’s sentencings.
The government is represented by Senior Litigation Counsel V. Grady O’Malley Sr. and Assistant U.S. Attorney James Donnelly.
Defense counsel:
DeGidio: Ted Romankow Esq., Springfield, New Jersey
Pali: Christopher L. Patella Esq., Bayonne, New JerseyFormer Bergen County, New Jersey, Man Admits Role in $5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. - A former resident of Alpine, New Jersey, today admitted defrauding investors out of more than $5 million, Acting U.S. Attorney William E. Fitzpatrick announced.
James Trolice, 63, of Fairfield, Connecticut, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to a two-count information charging him with securities fraud and transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Trolice was the president and owner of Trolice Consulting Services LLC and the president and chief marketing officer of eAgency, a California-based company that developed mobile security products. Trolice and Lee Vaccaro, 45, of Las Vegas, sold investors interests in Trolice Consulting Services and companies Vaccaro controlled and falsely represented to investors that those companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.
Trolice admitted that he made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies; the amount of money he had personally invested in and raised for eAgency; and his current position at eAgency.
Trolice also admitted that beginning in January 2011, the dollar amount of interests Trolice and Vaccaro sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Trolice nor Vaccaro disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies. Altogether, Trolice and Vaccaro defrauded investors out of more than $5 million.
The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 20, 2017.
Vaccaro previously pleaded guilty to his role in the scheme and was sentenced Feb. 17, 2017 to 78 months in prison.
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. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa and the New Jersey Bureau of Securities, under the direction of Acting Chief Amy G. Kopleton, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this scheme, you are encouraged to contact the FBI at 973-792-3000.
Today’s plea is due to efforts by the Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: K. Anthony Thomas Esq., Newark
South Jersey Man Admits Role in Crack Distribution ConspiracyRead the Press Release
CAMDEN, N.J. - A Camden man today admitted his role in a crack cocaine distribution conspiracy operating in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.
Joseph Boyd, a/k/a “Breet,” 31, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base.
According to documents filed in this case and statements made in court:
Joseph Boyd admitted that he sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden and supplied crack cocaine to other members of the conspiracy to sell in the area.
Joseph Boyd – along with Jason Boyd, Tony Wilson, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson – were originally charged by complaint on Sept. 9, 2016, following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities.
The drug distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 13, 2017.
Jason Boyd, Stallworth, and Wilson have all pleaded guilty to drug distribution conspiracy and firearms possession and await sentencing. The charges against Thomas, Whitaker, Griffin and Dickerson are still pending, and they are presumed innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: David Rudenstein, Esq.
New Jersey Resident Pleads Guilty to Attempting to Provide Material Support to TerroristsRead the Press Release
Today, Santos Colon, Jr., 17, of Lindenwold, New Jersey, pleaded guilty as an adult to an information charging him with one count of attempting to provide material support to terrorists.
Acting Assistant Attorney General for National Security Mary B. McCord and Acting U.S. Attorney William E. Fitzpatrick made the announcement. The plea was entered before U.S. District Court Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and statements made in court, Colon, a U.S. citizen, admitted that from June 30, 2015, to Aug. 14, 2015, he devised a plan to conduct an attack during the September 2015 papal visit in Philadelphia, Pennsylvania. The plot involved utilizing a sniper to shoot the Pope during his Papal mass and setting off explosive devices in the surrounding areas.
Colon engaged someone he believed would be the sniper, but in reality was an undercover FBI employee. Colon engaged in target reconnaissance with an FBI confidential source and instructed the source to purchase materials to make explosive devices. FBI agents arrested Colon in 2015.
Acting Assistant Attorney General McCord and 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, with the ongoing investigation leading to today’s guilty plea.
Colon faces a maximum of 15 years in prison and a fine of $250,000, or twice the gross amount of any financial 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.
No date has been set for sentencing.
This case is being prosecuted by Attorney in Charge R. Stephen Stigall of the Camden Branch Office of the U.S. Attorney’s Office for the District of New Jersey; Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office for the District of New Jersey; and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.
New Jersey Resident Admits Attempting to Provide Material Support to TerroristsRead the Press Release
CAMDEN, N.J. – A New Jersey resident today admitted attempting to provide material support to terrorists, Acting U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General for National Security Mary B. McCord announced.
Santos Colon Jr., 17, of Lindenwold, New Jersey, pleaded guilty as an adult before U.S District Court Judge Noel L. Hillman in Camden federal court to an information charging him with one count of attempting to provide material support to terrorists.
According to documents filed in this case and statements made in court:
Colon admitted that from June 30, 2015, to Aug. 14, 2015, he plotted to assassinate Pope Francis during the papal visit to Philadelphia in September 2015. The plot involved utilizing a sniper to shoot the Pope during his Papal mass and setting off explosive devices in the surrounding areas. Colon engaged someone he believed would be the sniper, but in reality was an undercover FBI employee. Colon engaged in target reconnaissance with an FBI confidential source and instructed the source to purchase materials to make explosive devices. FBI agents arrested Colon in 2015.
Acting U.S. Attorney Fitzpatrick and Acting Assistant Attorney General McCord credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the ongoing investigation leading to today’s guilty plea.
The count to which Colon pleaded guilty is punishable by a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. No date has been set for sentencing.
The government is represented by R. Stephen Stigall, Attorney-in-Charge of the Camden Branch Office of the U.S. Attorney’s Office, Assistant U.S. Attorney Patrick C. Askin, and Trial Attorney C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.
Defense counsel: Richard Coughlin Esq., Camden
Fairlawn, New Jersey, Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
NEWARK, N.J. – A Fairlawn, New Jersey, tax preparer today admitted preparing fraudulent income tax returns on behalf of her clients, causing losses of over $130,000, Acting U.S. Attorney William E. Fitzpatrick announced.
Shirley Arias, a/k/a “Shirley Zambrano,” 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging her with one count of aiding and assisting others in the preparation of false and fraudulent tax returns.
According to documents filed in this case and statements made in court:
Arias was an owner and operator of Santos & Associates in Union City, New Jersey. For the tax years 2012 through 2014, Arias assisted in the filing of income tax returns based on false information. She used a number of fraudulent practices, including falsely claiming deductions and fabricating educational credits in order to obtain refunds for her clients in amounts greater than those to which they were entitled. The bogus returns resulted in a tax loss to the government of approximately $130,279.
The charge to which Arias pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for July 25, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea. He also thanked special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, for their assistance.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office in Newark.
Defense counsel: Katey Theurer Esq., Jersey City, New Jersey
Somerset County, New Jersey, Man Sentenced to 18 Years in Prison for Producing Sexually Explicit Images of ChildrenRead the Press Release
TRENTON, N.J. – A Branchburg, New Jersey, man was sentenced today to 216 months in prison for his role in a scheme to produce sexually explicit images of children through a website he operated from his home computer, Acting U.S. Attorney William E. Fitzpatrick announced.
Jonathan Soto, 27, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to Count One of an indictment charging him with conspiracy to produce child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Soto admitted that, from July 2014 through April 2015, he administered and operated a website designed to produce child pornography by tricking minor victims into engaging in sexually explicit activity on web cameras. As part of the conspiracy, Soto designed the website with certain online tools and a chatroom function that enabled users to target minor victims online, share victims’ social media profiles and discuss ways to get minors to produce child pornography over the internet.
Users of the website created false profiles on popular social media websites purporting to be young children, aged from about 10 to 16. Using these false profiles, the users chatted with actual children and lured the minor victims to other websites to engage in private chats. Once in a private chat room, users then persuaded child victims to engage in sexually explicit activity. Unbeknownst to the victims, when they engaged in sexually explicit activity, they were secretly recorded, and those videos were shared with other users on Soto’s website.
In addition to the prison term, Judge Wolfson sentenced Soto to five years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Branchburg Township Police Department, under the direction of Chief David Young, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark
Two Members of Trenton Drug Trafficking Organization Plead GuiltyRead the Press Release
TRENTON, N.J. – Two Trenton, New Jersey, men admitted their roles in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, Acting U.S. Attorney William E. Fitzpatrick announced today.
Keith Hunter, a/k/a “Meech,” 24, 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 100 grams or more of heroin. On March 29, 2017, Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod,” 23, pleaded guilty before Judge Wolfson to a separate information charging him with conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. As part of their guilty pleas, Rogers and Hunter both admitted possessing at least one firearm during the conspiracy.
In December 2016, Hunter, Rogers, and eight other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its alleged leader, Ishmael Abdullah. Hunter and Rogers are the first of the 10 defendants to plead guilty.
According to documents filed in this case and statements made in court:
From June 2015 through December 2016, Hunter, Rogers and others engaged 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 defendant Ishmael Abdullah was a leader of the Abdullah DTO and was responsible for obtaining significant quantities of heroin from multiple suppliers, including from defendants Jose Joaquin Torres-Mezquita and Ileana Sanchez. Abdullah and Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Rogers. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement. In connection with their narcotics conspiracy, Rogers, Hunter, and other members of the Abdullah DTO maintained joint access to multiple firearms.
The conspiracy charge to which Hunter and Rogers pleaded guilty carries a mandatory minimum term of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. Rogers and Hunter will be sentenced on July 10, 2017, and July 7, 2017 respectively.
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 Satellite 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 Special Agent in Charge Terence S. Opiola; 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:
Rogers: David R. Oakley Esq., Princeton
Hunter: Robert J. Haney Esq., Princeton
Soldier of Violent Bloods Street Gang Admits Racketeering ConspiracyRead the Press Release
Plea Calls for 22-Year Prison Sentence
NEWARK, N.J. – A soldier of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved attempted murder and conspiracy to distribute heroin, Acting U.S. Attorney William E. Fitzpatrick announced.
Laquan Reed, 27, a/k/a “Drama,” of Montclair, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.
According to documents filed in this case and statements made in court:
The Bloods street gang is organized into subgroups, called “sets,” that operate in specific geographic locations. Sex Money Murder is the set that operates primarily in Essex County, New Jersey. Reed, a ranking member in Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives. He admitted that he conspired with set members to murder a rival gang member on Aug. 3, 2011, identified in the indictment as “Victim 6.” Reed admitted he and others engaged in a shootout in an effort to kill the rival gang member in and around Newark. Reed also admitted conspiring to distribute more than one kilogram of heroin in and around Newark.
The plea agreement requires Reed to be sentenced to 22 years in prison and five years of supervised release. Sentencing is scheduled for July 10, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando V. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Mary Toscano, Chief, Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division, and Dara Govan of the Criminal Division in Newark.
Defense counsel: James Patton Esq., Livingston, New Jersey
Romanian Citizen Pleads Guilty in ATM Skimming ConspiracyRead the Press Release
A Romanian citizen pleaded guilty today to a scheme to defraud customers of Bank of America and PNC Bank through conduct known as “ATM skimming.”
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 Special Agent in Charge Terence S. Opiola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark, New Jersey, Division made the announcement.
Radu Bogdan Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty to one count of conspiracy to commit bank fraud before U.S. District Judge Esther Salas of the District of New Jersey.
According to admissions in the plea agreement, Marin and his co-conspirators sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Marin admitted that between March 2015 and July 2016, Marin and his co-conspirators used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. Marin and his co-conspirators used more than 10 ATM cards to conduct cash withdrawals in New Jersey, withdrawing tens of thousands of dollars, $39,140 of which was personally atrributable to Marin.
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. 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 Special Agent in Charge Terence S. Opiola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.
Radu Bogdan Marin, 36, a Romanian citizen residing in Glendale, 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. Marin is the first of 13 defendants charged in this matter to plead guilty.
According to documents filed in this case and statements made in court:
Marin and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Marin admitted that between March 2015 and July 2016, he and others used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. Marin and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, $39,140 of which was personally attributable to Marin.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is set for July 17, 2017.
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: Gary Mizzone Esq., Little Falls, New Jersey
Former Deputy Executive Director of Port Authority Sentenced to 24 Months in Prison, Former Deputy Chief of Staff in N.J. Governor’s Office to 18 MonthsRead the Press Release
Misused Government Property to Punish Fort Lee Mayor for Not Endorsing Gov. Christie’s Re-election
NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey and a former member of Gov. Christopher J. Christie’s senior staff were sentenced today to prison terms for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Acting U.S. Attorney William E. Fitzpatrick announced.
William E. Baroni Jr., 45, former deputy executive director of the Port Authority of New York and New Jersey, was sentenced to 24 months in prison and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, to 18 months. On Nov. 4, 2016, Baroni and Kelly were each convicted following a six-week trial before U.S. District Judge Susan D. Wigenton on all seven counts with which they had been charged in an indictment returned May 1, 2015, by a federal grand jury. Judge Wigenton imposed the sentences today in Newark federal court.
“We are satisfied that the sentences handed down today are a just result,” Acting U.S. Attorney Fitzpatrick said. “The defendants’ unlawful use of their government positions and government resources to settle a petty political score was a flagrant breach of their duty to the public and reflected a callous disregard for the welfare of the people of New Jersey. These sentences are fair and appropriate.”
“Today’s sentencing further reinforces the FBI’s commitment to aggressively pursue public corruption at any level, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office said. “The citizens of the state of New Jersey expect and deserve the highest quality of government, and the FBI and our law enforcement partners remain dedicated to ensuring they receive it.”
“The investigation, prosecution, and convictions, after trial, of William Baroni and Bridget Anne Kelly established that they misused their sacred public trust to harm the very constituents they were hired to serve,” Michael Nestor, Inspector General of the Port Authority, said. “Further, Baroni and Kelly engaged in a cover-up of their scheme, and caused false information to be distributed to their fellow Port Authority employees, other government employees, and the public. The Port Authority Office of Inspector General, and its professional staff, will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”
Baroni and Kelly were each convicted of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing Gov. Christie’s re-election bid.
A third conspirator, David Wildstein, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty May 1, 2015, to a separate information charging him with two counts of conspiracy for his role in the scheme. Wildstein pleaded guilty to conspiring to misuse the property of an organization receiving federal benefits and conspiring to injure and oppress certain individuals’ civil rights in connection with his role in causing traffic problems to punish Mayor Sokolich. He is awaiting sentencing.
According to documents filed in this case, statements made in court and the evidence at trial:
In August 2013, after Kelly confirmed that Mayor Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, they caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, Baroni, Kelly and Wildstein caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes and for residents, whose streets were choked with traffic.
The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety. On Sept. 9, 2013, after Baroni received an email that Mayor Sokolich had called about an urgent matter of public safety, Wildstein sent an email to Baroni reiterating that Baroni should maintain “radio silence” toward the mayor. On Sept. 10, 2013, Kelly sent Wildstein a text message stating: “I feel badly about the kids … I guess,” to which Wildstein replied, “They are the children of Buono voters …” a reference to Christie’s opponent in the gubernatorial election, state Sen. Barbara Buono (D-Middlesex).
When Kelly was made aware of Mayor Sokolich’s communication regarding an urgent matter of public safety, she thanked Wildstein for confirming that Baroni had maintained “[r]adio silence” toward Mayor Sokolich. On Sept. 12, 2013, Baroni instructed a Port Authority employee through coded language that the employee should not contact Mayor Sokolich.
The three conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee. Baroni knowingly and intentionally made misleading statements and false representations, including: (1) communications between members of the Port Authority Police Department and Wildstein triggered the lane and toll booth reductions; (2) the lane and toll booth reductions were part of a one-week traffic study; and (3) the failure to communicate with Fort Lee and the executive director of the Port Authority was simply the result of communication breakdowns at the Port Authority.
In addition to the prison terms, Judge Wigenton sentenced the each of the defendants to one year of supervised release.
Acting U.S. Attorney Fitzpatrick credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel:
William E. Baroni: Michael Baldassare Esq., Newark
Bridget Anne Kelly: Michael Critchley Sr. Esq., Roseland, New JerseyShort Hills, New Jersey, Investment Manager Admits Using Ponzi Scheme to Steal More Than $675,000Read the Press Release
NEWARK, N.J. – An investment manager with an office in Short Hills, New Jersey admitted today that he fraudulently induced investments, concealed investment losses, and diverted more than $675,000 in investor money for his own use, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Moskowitz, 48, of Short Hills, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of wire fraud.
In a separate legal proceeding, the N.J. Bureau of Securities today ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.
According to documents filed in this case and statements made in court:
Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.
Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.
The count of wire fraud to which Moskowitz pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 5, 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. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Acting Bureau Chief Amy Kopleton, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defenders, Newark
Member of DeCavalcante Crime Family Sentenced to 10 Years in Prison for Use of Interstate Facility to Commit MurderRead the Press Release
NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra was sentenced today to 120 months in prison for using a telephone to plan the murder of an organized crime rival, Acting U.S. Attorney William E. Fitzpatrick announced.
Charles Stango, 73, of Henderson, Nevada, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stango was arrested on April 14, 2015, as part of a sweep of DeCavalcante crime family members that operated in New Jersey and elsewhere. The DeCavalcante crime family was part of a nationwide criminal organization known variously as the “Mafia” and “La Cosa Nostra,” which operated through entities called “families.” The DeCavalcante family engaged in numerous criminal activities, including conspiracy to commit murder, distribution of controlled substances, prostitution, extortion, and other crimes of violence.
Stango admitted today that he used the telephone to plan the murder of a crime family rival (identified in court papers as “Victim 1”). Based on tape-recorded evidence uncovered during the investigation, Stango believed that Victim 1 had falsely held himself out to be a “made man” within the family structure. Stango refused to recognize Victim 1’s alleged new status. Stango also believed that Victim 1 had intentionally insulted a high-ranking family member, which Stango felt deserved the ultimate punishment. He offered up to $50,000 to two assassins to carry out the order. The two assassins were, in fact, undercover FBI agents. Law enforcement officials closed down the investigation to ensure Victim 1’s safety, and he was never harmed.
Six of Stango’s co-defendants, including his son, Anthony Stango, have pleaded guilty to various crimes – including distribution of significant amounts of cocaine and attempting to set up a prostitution business – to enrich the crew members and the crime family.
In addition to the prison term, Judge Walls sentenced Stango 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; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Acting Director Lee C. Seglem, with the investigation leading to today’s sentencing. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit.
Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark
Former Commercial Supply Company Employee Charged with Fraud, Corruption, and Giving False TestimonyRead the Press Release
NEWARK, N.J. – A former salesman at Bayway Lumber, a Linden, New Jersey company that sold commercial and industrial products to numerous public and private entities, was charged today with defrauding Bayway Lumber customers and knowingly making false statements before a federal grand jury, Acting U.S. Attorney William E. Fitzpatrick announced.
Adam Martignetti, 43, of South River, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, four counts of corruptly giving valuable items to agents of entities receiving federal funds, and one count of providing false testimony to a federal grand jury. He was arrested this morning by federal agents and is scheduled to appear this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the indictment:
From 2011 through 2013, Martignetti allegedly conspired with others to defraud certain customers by fraudulently billing them for free items given to the customers’ employees and by fraudulently providing lower-quality products than what was actually purchased.
Martignetti gave a variety of valuable items to employees of Amtrak, the City of Elizabeth, and the Plainfield Board of Education. These items included a laptop, several iPads, a camera and sound system, patio furniture, and other merchandise. Under the supervision of Robert Dattilo, President and partial owner of Bayway Lumber, Martignetti overbilled those customer entities to recover the gifts’ costs and generate additional revenue. Dattilo even kept a running tally of how much Martignetti and others fraudulently billed those customer entities – which many at Bayway Lumber referred to as the “Bank” – to ensure that Bayway Lumber recovered the full cost of the free items.
Martignetti also participated in a product substitution fraud in which Bayway Lumber supplied lower quality products than what was actually ordered and paid for. When Consolidated Edison Company of New York Inc. (ConEdison) ordered plywood that was graded to meet certain specifications, Martignetti, at Dattilo’s instruction, routinely sent lower grade or ungraded plywood, all while still charging ConEdison for the higher quality plywood.
While appearing as a witness under oath before a federal grand jury in March 2013, Martignetti falsely testified that he had never given free Bayway Lumber items to City of Elizabeth employees and that Elizabeth was never charged for items that were for the employees’ personal use.
The conspiracy to commit wire fraud count carries a maximum potential penalty of 20 years in prison. Each charge of corruptly giving valuable items to agents of federally-funded entities carries a maximum potential penalty of 10 years in prison. The knowingly making false statements before a grand jury count carries a maximum penalty of five years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
Dattilo previously pleaded guilty to conspiracy to commit mail and wire fraud and was sentenced to 48 months in prison and ordered to pay restitution of $708,386 in July 2016.
Acting U.S. Attorney Fitzpatrick credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; the Office of Inspector General, Amtrak, under the direction of Inspector General Thomas Howard; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s arrest. He also thanked the Department of Education Office of Inspector General, under the direction of Special Agent in Charge Brian Hickey, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division, and Deputy Chief Barbara R. Llanes of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Michael A. Armstrong Esq., Willingboro
Former Atlantic County, New Jersey, Man Charged with Smuggling and Dispensing Misbranded DrugsRead the Press Release
CAMDEN, N.J. – A former Atlantic County, New Jersey, man charged in connection with a scheme to smuggle misbranded drugs into the country and dispense drugs without a valid prescription will make his initial court appearance today, Acting U.S. Attorney William E. Fitzpatrick announced.
Merwin Marc Snyder, 64, formerly of Egg Harbor Township, New Jersey, is charged by indictment with one count of conspiracy, three counts of smuggling of misbranded drugs, one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. He will then be arraigned before U.S. District Judge Noel L. Hillman.
Snyder was located in China’s Jiangsu Sheng Province earlier in the month and deported back to the United States to face the pending charges. He was indicted by a federal grand jury in Camden on Dec. 9, 2015.
According to documents filed in this case and statements made in court:
The U.S. Food and Drug Administration (FDA) is responsible for protecting the health and safety of the American public by enforcing the Federal Food, Drug, and Cosmetic Act (FDCA), a law intended to assure that drugs are safe, effective, and bear accurate labeling containing all required information. The FDA regulates the manufacture, labeling, and distribution of all drugs shipped or received in interstate commerce.
Between May 7, 2010, through July 25, 2013, Snyder allegedly received by mail from India various parcels that were accompanied by incomplete or misleading U.S. Customs declarations. The parcels contained prescription drugs, including unapproved generics that contained the active ingredients in the popular brand-name drugs Viagra, Cialis, and Levitra, as well as unapproved Mifepristone and Misoprostol. Snyder then repackaged these wholesale quantities of drugs into smaller amounts and dispensed them to consumers. Snyder did not seek FDA approval to market these drugs nor was he licensed as a pharmacist in the State of New Jersey or otherwise authorized to prescribe or dispense prescription drugs. The parcels Snyder shipped through the U.S. Postal Service contained misbranded drugs that did not bear the FDA-approved labeling.
Snyder allegedly caused to be shipped 27 parcels addressed to him in Egg Harbor that contained more than 25,000 tablets of unapproved generic drugs containing Tadalifil (active ingredient in Cialis) and 28,000 tablets of Sildenafil Citrate (active ingredient in Viagra).
The conspiracy count carries a maximum potential penalty of up to five years in prison. The three counts of smuggling each carry a carry a maximum potential penalty of up to 20 years in prison; one count of receipt and delivery of misbranded drugs, four counts of misbranding by dispensing prescription drugs without a valid prescription, four counts of introducing misbranded drugs into interstate commerce each carry a maximum potential penalty of up to three years in prison. All counts carry a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, New Jersey; special agents of the Food and Drug Administration, under the direction of Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations’ Metro Washington Field Office; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to the indictment.
The government is represented by Special Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Lisa Lewis Esq., Camden
Essex County, New Jersey, Man Admits Defrauding Investors Out of Hundreds of Thousands of DollarsRead the Press Release
NEWARK, N.J. – A North Caldwell, New Jersey, man today admitted fraudulently using over $550,000 in investment funds that he solicited to purchase and sell consumer products in bulk, Acting U.S. Attorney William E. Fitzpatrick announced.
Michael Esposito, 45, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of wire fraud.
According to the documents filed in this case and statements made in court:
From August 2013 through February 2017, Esposito was the president of numerous entities that purported to purchase consumer products in bulk from manufacturers for resale to wholesalers and retailers. Esposito admitted that he told potential investors that he could purchase consumer goods – such as soda and bottled water – at substantial discounts, and that he had buyers ready to purchase the products at a significant profit.
In return for providing the funds necessary to purchase the products, Esposito promised the victim investors a large percentage of the profits. However, Esposito admitted that he used the funds for his personal expenses and to pay other investors in order to make it appear the money was properly used. Esposito admitted that his actions resulted in losses of more than $550,000.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 20, 2017.
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. He also thanked investigators with the Florida Office of Financial Regulation for their assistance.
The government is represented by Assistant U.S. Attorneys Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Sarah Devlin of the Asset Forfeiture Unit in Newark.
Defense counsel: Brooke M. Barnett Esq., Newark
New York Man Admits Armed Robbery of New Jersey Bar, Carjacking, and Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – A Rockland County, New York, man today admitted participating in a 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.
Guillermo Carrillo-Iraheta, 19, of Suffern, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count each of conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping.
According to documents filed in this case and statements made in court:
Guillermo Carrillo-Iraheta admitted that on Dec. 25, 2015, he and others 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, Guillermo Carrillo-Iraheta and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta admitted that he and others forced the driver into the back of the vehicle and took over driving. Guillermo Carrillo-Iraheta also admitted that he and others 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 June 27, 2017.
Guillermo Carrillo-Iraheta was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, Oscar Avalos-Cortez, 23, of New City, New York, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016. Chiliseo-Vega pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on March 21, 2017 to a three-count information charging him with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. He awaits sentencing.
The charges against Barahona, Reyes, Balmore Carrillo-Iraheta, and Avalos-Cortez are still pending, 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, 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. Attorney Elaine K. Lou of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michele Ann Adubato Esq., Bayonne, New Jersey.
New Jersey Man Admits Operating Payroll Tax Fraud SchemeRead the Press Release
TRENTON, N.J. – The owner of former payroll company, Innovative Payroll Services LLC (IPS) admitted today he operated a multimillion-dollar fraud scheme through his company, Acting U.S. Attorney William E. Fitzpatrick announced.
John Scholtz, 68, of Sea Isle City, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of wire fraud and one count of transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Scholtz owned and operated IPS, a company that provided payroll services to clients – including municipalities, educational institutions, and various small to medium-sized privately held companies – in New Jersey and elsewhere. Each payroll period, IPS provided its clients with a summary setting forth the payroll taxes owed for that period. IPS clients then deposited the specified payroll taxes into an IPS bank account, where IPS held the funds until they were remitted to the taxing authorities.
Scholtz admitted that from February 2012 to January 2016, he withdrew or directed others at IPS to withdraw client tax funds from IPS’ Tax Impound Accounts, knowing that these funds constituted client tax funds, and used these funds instead for IPS operating expenses and his own personal expenses, including payments for homes, cars, boats, airplanes and credit cards.
This ongoing misappropriation of funds caused many IPS clients to be in delinquent status with the IRS and state and local taxing authorities. As clients’ tax deposit funds came in, IPS used such funds to pay other clients’ taxes owed for prior pay periods, as well as penalties and interest. As a result, at least 103 IPS clients lost more than $8.4 million worth of federal, state and local tax deposits that IPS failed to make, as well as more than $578,000 in associated penalties and interest. The City of Trenton was an IPS client from July 2009 to January 2016, and is one of is the IPS clients whose tax deposit funds were misappropriated by Scholtz.
The wire fraud count to which Scholtz pleaded guilty carries a maximum potential penalty of 20 years in prison; the transacting in criminal proceeds count carries a maximum penalty of 10 years in prison. Both charges also carry a fine of $250,000 or twice the gross gain or loss from the offense. Scholtz will also be ordered to pay restitution and forfeit certain property at sentencing, currently scheduled for July 6, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, Newark Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division; and the Mercer County Prosecutor's Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sarah M. Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Brian Reilly Esq., Assistant Federal Public Defender, Trenton
Jewelry Store Owners Sentenced for Roles in International, $200 Million Credit Card Fraud SchemeRead the Press Release
TRENTON, N.J. – The two owners of a New Jersey jewelry store who used the business to further one of the largest credit card fraud schemes ever charged by the Justice Department were both sentenced today for their respective roles in the scheme, Acting U.S. Attorney William E. Fitzpatrick announced.
Vijay Verma, 49, and Tarsem Lal, 78, both of Iselin, New Jersey, were sentenced to 14 months in prison and 12 months of home confinement, respectively. Both previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to informations charging them with one count of access device fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Verma and Lal were indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions. These debts were incurred at Verma’s jewelry store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large charges.
The scope of the criminal fraud enterprise required other scheme participants to construct an elaborate network of false identities. Across the country, they maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
Verma and Lal each admitted allowing others who came to their Jersey City, New Jersey, store, store to swipe cards they knew did not legitimately belong to them. Verma and Lal would then split the proceeds of the phony transactions with these other conspirators.
In addition to the prison terms, Judge Thompson sentenced Verma to three years of supervised release and Lal to three years of probation. Each defendant was fined $5,000 and ordered to pay forfeiture of $451,259.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher; postal inspectors from the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencings. He also thanked the U.S. Social Security Administration Office of Inspector General, Office of Investigations in New Jersey for assisting in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.
This case is part of efforts underway by the Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel:
Verma: Gerald Krovatin Esq., Newark
Lal: Paul Condon Esq., Jersey City, New Jersey
Two Essex County, New Jersey, Men Charged with Armed Robbery of Passaic, New Jersey, ClubRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, men were indicted by a federal grand jury today for their alleged roles in a September 2015 armed robbery of a club in Passaic, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Jimmy Cooper, a/k/a “Flip,” 32, of Irvington, New Jersey, and Keontrae Lawrence, a/k/a “Taz,” 28, of South Orange, New Jersey, were both charged by indictment with one count of conspiracy to commit Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. They will be arraigned at a date to be determined.
According to the indictment and other documents filed in this case:
In the early morning hours of Sept. 6, 2015, Cooper, Lawrence, and others allegedly agreed to rob a club in Passaic at gunpoint. Cooper sent text messages to a conspirator’s phone coordinating the timing of the robbery and discussing how to smuggle the gun into the club. Minutes later, Lawrence and a conspirator entered the office of the club where an employee was alone. They brandished a firearm, threatened to kill the employee, and emptied the contents of an open safe into two purses. Lawrence and the other robber ordered the employee to the ground and told him to count to 100 as they lowered the lights and fled the club in a getaway car.
Following the robbery, the robbers led the police on a high-speed car chase through Passaic, Newark, and East Orange, New Jersey, abandoning the car in East Orange and fleeing on foot. Lawrence was arrested a short while later and charged by the Passaic County Prosecutor’s Office with robbery and firearms offenses. Cooper was arrested on Nov. 3, 2016, after both men were charged by complaint in Newark federal court on Nov. 2, 2016.
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.
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, the Passaic Police Department, and the Newark Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s General Crimes Unit in Newark.
Defense counsel:
Cooper: Kevin Carlucci Esq, Newark
Lawrence: Paulette Pitt Esq., Woodbridge
Monmouth County, New Jersey, Man Admits Receiving Images of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted using his e-mail and instant messaging accounts to receive images of child sexual abuse, Acting U.S. Attorney William E. Fitzpatrick announced.
Matthew Kaminsky, 50, of Matawan, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of receiving child pornography.
According to documents filed in this case and statements made in court:
Kaminsky allegedly met various underage girls through online chat applications and sent them naked pictures of himself. In late January of 2015, over the course of several days, he began corresponding with a 13-year-old girl over an online chat application and induced her to take nude pictures of herself and to send them to him. In March 2015 law enforcement officers recovered computer equipment belonging to Kaminsky containing images and videos appearing to be of child sexual abuse. Law enforcement officers located and interviewed the 13-year-old girl Kaminsky had chatted with online in January of 2015, and she confirmed that she had chatted online with Kaminsky and had sent him nude pictures of herself at his request.
The count of receiving child pornography carries a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, a $250,000 fine, and up to a lifetime of supervised release. Sentencing is scheduled for June 28, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge John Walker, Philadelphia Division, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
U.S. Army Employee at Picattiny Arsenal Charged with Conspiracy to Defraud the United States and to Accept BribesRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged today with abusing his position as an employee of the U.S. Army Contracting Command New Jersey by accepting bribes in connection with renovation projects at Picattiny Arsenal (PICA) and at the Joint Base McGuire-Dix Lakehurst (Ft. Dix), Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Leondi, 56, of Stroudsburg, Pennsylvania, was arrested today at PICA. He is charged by complaint with knowingly and intentionally conspiring to defraud the United States and to demand, seek, receive, accept, and agree to accept bribes in return for being influenced in the performance of his official duties. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
Leondi represented the Army as a liaison with contractors on renovation projects at PICA and Ft. Dix. A contractor (Contractor No. 1) owned and operated a construction company in Pennsylvania that had subcontracts with a business (Company No. 1) that operated as a prime contractor with respect to various construction projects at PICA and Fort Dix. From December 2010 through August 2015, Leondi demanded and accepted more than $125,000 in bribes from Contractor No. 1 in return for assisting Contractor No. 1 obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. The bribes included direct payments by Contractor No.1 to Leondi, Contractor No. 1’s purchase of unneeded equipment from Leondi at inflated prices, and Contractor No. 1’s payment for construction work done by another contractor at Leondi’s personal property. Leondi also demanded and accepted more than $30,000 in bribes from someone who managed large-scale construction projects (Project Manager No. 1) for Contractor No. 1. The bribes included cash payments as well as the purchase by Leondi of a truck from Contractor No. 1 at a significantly discounted price.
Leondi also directed Contractor No. 1 to perform free construction work at Project Manager No. 1’s home in Pennsylvania and to pay Project Manager No. 1 approximately $50,000 to help Project Manager No. 1 pay his mortgage.
The conspiracy count with which Leondi is charged carries a maximum potential penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s charges.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division, and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.
Defense counsel: Ernest D. Preate, Jr. Scranton, Pennsylvania
New York Man Admits Assault with the Intent to Stalk on AirplaneRead the Press Release
NEWARK, N.J. – A Monsey, New York, man admitted today that he assaulted with the intent to stalk a woman on a flight from Israel to Newark Liberty International Airport, Acting U.S. Attorney William E. Fitzpatrick announced.
Yoel Oberlander, 36, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a superseding information charging him with assault with intent to commit stalking.
According to the Superseding Information:
While on an El Al flight from Tel Aviv to Newark on May 29, 2016, Oberlander knowingly and intentionally assaulted an adult female victim with the intent to harass and intimidate her, and such conduct caused or could be reasonably expected to cause the victim substantial emotional distress.
Oberlander admitted that he assaulted the female victim, who was seated next to him on the plane, that he touched her in the area of her chest, upper thigh, and hand without her consent, and that he did so with the intent to harass and intimidate her.
Oberlander faces a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 28, 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 the Port Authority of New York-New Jersey, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Melissa M. Wangenheim and Joyce M. Malliet of the U.S. Attorney’s Criminal Division in Newark.
Defense counsel: Eric Kanefsky Esq., Newark
Two Men Sentenced to Prison for Smuggling Foreign Nationals into the United StatesRead the Press Release
NEWARK, N.J. – Two men were each sentenced to 17 months in prison today for their roles in a conspiracy to illegally transport foreign nationals into the United States via commercial airline flights, Acting U.S. Attorney William E. Fitzpatrick announced.
Nileshkumar Patel, 42, and Harsad Mehta, 67, both of India, previously pleaded guilty before U.S. District Judge William J. Martini to separate superseding informations charging them each with one count of conspiracy to smuggle foreign nationals into the United States for commercial advantage and private financial gain. Judge Martini imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
Patel and Mehta admitted that from June 2013 through October 2015, they conspired to make money by recruiting Indian nationals to enter and reside in the United States illegally. Patel and Mehta admitted that on July 24, 2014, they brought two Indian nationals to Bangkok, Thailand, so that they could be transported into the United States. They also admitted paying an individual – who was actually an undercover officer – to transport the foreign nationals from Thailand into Newark.
In addition to the prison terms, Judge Martini sentenced them Patel and Mehta to three years of supervised release.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S Attorney’s Office National Security Unit in Newark.
Philadelphia District Attorney Rufus Seth Williams Indicted on Bribery and Extortion ChargesRead the Press Release
Also Charged with Defrauding Nursing Home, Family Friends
PHILADELPHIA – A federal grand jury today returned a 23-count indictment charging Philadelphia District Attorney Rufus Seth Williams with bribery, extortion, and honest services wire fraud in connection with tens of thousands of dollars’ worth of concealed bribes that he received from two business owners in exchange for his agreement to perform official acts. The indictment also charges Williams with defrauding a nursing home and family friends of money earmarked for a family member’s care.
The charges were announced today by Acting New Jersey U.S. Attorney William E. Fitzpatrick, along with FBI Special Agent in Charge Michael Harpster, Philadelphia Division; Acting Special Agent in Charge Gregory Floyd of IRS-Criminal Investigation, Philadelphia Office; and Special Agent in Charge Marlon V. Miller of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Philadelphia.
Williams, 50, of Philadelphia, is charged with 10 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, five counts of honest services wire fraud, and six counts of wire fraud. He will be arraigned in U.S. District Court in Philadelphia on a date to be determined.
“The indictment alleges that as District Attorney, Mr. Williams compromised himself and his elected office by standing ready to help those who were willing to pay him with money, trips, and cars,” Acting U.S. Attorney William E. Fitzpatrick said. “Mr. Williams’ alleged willingness to compromise his position of public trust in exchange for private financial gain is all the more unfortunate given that he was elected to protect the interests of the people of Philadelphia as their chief law enforcement officer.”
“The alleged misconduct, as specifically laid out in this indictment, is brazen and wide-ranging, as is the idea that a District Attorney would so cavalierly trade on elected office for financial gain,” FBI Special Agent in Charge Harpster said. “The immense authority vested to law enforcement has to be kept in check, and that requires decision-makers and leaders with a steady ethical compass. When elected or appointed officials stray from their sworn oaths, they must be held accountable. Combating public corruption remains the FBI's top criminal priority."
According to the indictment:
From July 2010 to July 2015, Williams solicited and accepted a stream of bribes from two business owners in exchange for Williams performing and agreeing to perform official acts for the business owners and their associates. In order to conceal these illegal arrangements, Williams filed false and misleading personal financial statements for the years 2012 through 2015, which intentionally omitted references to the valuable items that Williams received from the business owners during those years. After Williams learned of the federal investigation, he amended those financial disclosure statements to list many of the items listed in the indictment, excluding a pre-owned 1997 Jaguar he received in June 2013.
The Unlawful Arrangement with Business Owner #1
From July 2010 through May 2015, Williams allegedly solicited and accepted a number of valuable items from an individual identified in the indictment as “Business Owner #1,” including an all-inclusive vacation to Punta Cana 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 Business Owner #1 with security screenings when Business Owner #1 returned from foreign travel. On numerous occasions, Williams contacted a Philadelphia police official in order to pressure and advise the police official to assist Business Owner #1 with those border encounters. On March 15, 2013, Williams met with the police official and Business Owner #1 and asked the police official to help Business Owner #1 avoid secondary screening. That same day, Williams accepted a $7,000 check from Business Owner #1. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on behalf of Business Owner #1 to pressure and advise the police official to assist Business Owner #1 with the border encounters.
Williams agreed to assist with criminal charges brought by the Philadelphia District Attorney’s Office against Business Owner #1’s associate, an individual identified in the indictment as “Person #1.” Between Feb. 1, 2012, and Feb. 5, 2012 – while on the Punta Cana vacation paid for by Business Owner #1 – Business Owner #1 asked Williams to help with Person #1’s charges, and Williams agreed. On Feb. 8, 2012, just days after returning from Punta Cana, Williams received a text message from Business Owner #1 listing the docket number and hearing date for Person #1’s case. The text message stated that Person #1 would “take any punishment” but “just doesn’t wanna do jail!” Williams responded with a text message stating: “I will look into it.” Moments later, Williams asked about a second anticipated trip to Punta Cana paid for by Business Owner #1 and stated “I am merely a thankful beggar and don’t want to overstep my bounds in asking...but we will gladly go.”
When Business Owner #1 sent a text message in September 2012 again asking Williams to assist Person #1, Williams responded with text messages saying, among other things, “It seems like he has the possibility of having it thrown out or continued ... if it gets continued I will then ask for the file and see what can be done to make it a county sentence...”
The Unlawful Arrangement with Business Owner #2
From March 2012 through July 2015, Williams solicited and accepted from a Philadelphia bar owner identified in the indictment as “Business Owner #2” approximately 16 round-trip airline tickets to Florida, San Diego, and Las Vegas for himself, his girlfriend and members of his family. Williams also solicited and accepted from Business Owner #2 a 1997 Jaguar XK8 convertible and at least $900 in cash.
In return for the benefits that he received from Business Owner #2, Williams appointed Business Owner #2 as Special Advisor to the Philadelphia District Attorney’s office in November 2012, including issuing an official badge, writing an official letter of appointment, and giving certain assignments to Business Owner #2 as Special Advisor. At the time, Business Owner #2 was on federal probation resulting from a June 2010 federal tax conviction.
In May 2013, Business Owner #2 requested that Williams write an official letter, as the Philadelphia District Attorney, acknowledging Business Owner #2’s appointment as Special Advisor to his office. On May 10, 2013, Williams provided the letter to Business Owner #2. In June 2013, Williams accepted the Jaguar from Business Owner #2.
On June 2, 2014, Williams issued a second official letter to the California Department of Alcoholic Beverage Control in order to influence a then-pending hearing to revoke or suspend Business Owner #2’s California liquor license.
In July 2015, Williams obtained a police accident report at Business Owner #2’s request. During this time, Williams sent text messages to Business Owner #2 saying, among other things, “I wish I could help more,” “Can I be a greeter or celebrity bartender to work off my debt…?” and “…I was serious about just doing whatever I can to help you guys!”
The Fraud on the Nursing Home and Family Friends
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, as was his obligation under agreements with the nursing home. Williams also falsely told a nursing home employee his relative spent the pension and Social Security payments. 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.
“Rooting out public corruption remains one of the IRS-Criminal Investigation’s highest priorities,” IRS Acting Special Agent in Charge Gregory Floyd said. “Today’s indictment underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who allegedly violated the public’s trust.”
“Homeland Security Investigations will continue to work with our law enforcement partners to bring to justice public officials who betray the trust of the community by engaging in unscrupulous behavior,” Marlon V. Miller, special agent in charge of HSI Philadelphia, said. “The public places an enormous amount of trust in elected officers, as such, they should be held accountable to a higher standard of conduct. HSI is pleased with the results of this criminal investigation and the collaborative efforts between our agency and our counterparts at the FBI and IRS.”
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 fraud charges are 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 $54,466, representing the sum of $34,146 worth of bribe proceeds and $20,320 worth of fraud proceeds.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Harpster; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Floyd; and special agents of the HSI Philadelphia, under the direction of Special Agent in Charge Miller, with the investigation leading to today’s indictment. 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 indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Massachusetts Man Charged with Online Enticement of A Child to Engage in Criminal Sexual ConductRead the Press Release
NEWARK, N.J. – A Dracut, Massachusetts, man who allegedly made arrangements to engage in sexual conduct with a child was arrested this morning at a North Jersey hotel, Acting U.S. Attorney William E. Fitzpatrick announced.
Richard Bly, 66, is charged by criminal complaint with one count of online enticement of a minor to engage in criminal sexual conduct. He appeared this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained.
According to the complaint:On Feb. 7, 2017, Bly posted an advertisement on an internet website seeking to meet a parent willing to make their child available to him for sexual activity. Over the course of several weeks, Bly had numerous e-mail exchanges with an undercover law enforcement agent posing as the mother of an eight-year-old girl. Bly repeatedly expressed his interest in engaging in sexual activity with the child and made plans to meet the child and her mother at a hotel in Ramsey, New Jersey. Law enforcement officers arrested Bly this morning at the hotel.
The online enticement of a minor charge carries a maximum potential penalty of life in prison, a mandatory minimum prison sentence of 10 years, and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terrence Opiola, with the investigation. He also thanked the Bergen County Prosecutor’s Office, under the direction of under the direction of Bergen County Prosecutor Gurbir S. Grewal, for its assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office General Crimes Unit.
Defense counsel: David Holman Esq., Assistant Federal Public Defender
Essex County, New Jersey, Man Admits Role in Bank RobberyRead the Press Release
NEWARK, N.J. – A Newark man today admitted to robbing a Valley National bank in Belleville, New Jersey, in April 2016, Acting U.S. Attorney William E. Fitzpatrick announced.
Donald Myer, 60, pleaded guilty before U.S. District Judge Jose L. Linares 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:
Myer admitted that during the robbery, he passed a note to a bank employee wherein he threatened to use a gun while demanding money from the bank employees.
The bank robbery charge to which Myer pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Kearny, and Port Authority police departments for their contributions to the case.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Defense counsel: Linda D. Foster Esq., Assistant Federal Public Defender