District of New Jersey

NEWARK, N.J. – An Irvington, New Jersey, man appeared in federal court today to face allegations that he possessed a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.

Tyshone T. Overstreet, a/k/a “Tata,” 21, is charged by complaint with one count of being a felon in possession of a firearm. Overstreet was arrested in the evening May 12, 2017. He made his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was detained.

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

On March 3, 2017, law enforcement officers attempted to conduct a motor vehicle stop of a car in which Overstreet was a passenger. Before the car came to a complete stop, Overstreet jumped out of the vehicle and fled on foot. As Overstreet ran away from law enforcement, he threw an object that was later recovered and determined to be a .40 caliber Glock Model 22 handgun. Law enforcement also recovered an extended caliber magazine and 17 rounds of live .40 caliber ammunition. At the time, Overstreet had at least one prior felony conviction in Essex County Superior Court.

The felon in possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

Acting U.S. Attorney Fitzpatrick credited FBI special agents, under the direction Special Agent in Charge Timothy Gallagher, with the investigation. He also thanked the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose and the Irvington Police Department, under the direction of Director Tracy Bowers, for their assistance.

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

The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.

Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark

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

 

Felix Restitullo, 41, Jersey City, New Jersey, was convicted of one count of production of child pornography and one count of possession of child pornography following a two-week trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated less than three hours before returning the guilty verdicts.

 

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

 

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

 

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

 

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

 

The charge of production of child pornography carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. Because of Restitullo’s prior conviction for possession of child pornography, he is subject to an increased mandatory minimum sentence of 25 years and a maximum prison term of 50 years. With a qualifying prior conviction, the charge of possession of child pornography carries a mandatory minimum sentence of 10 years, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for June 20, 2017.

 

Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Brian A. Michael, Newark Field office, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s guilty verdict.

 

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

 

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

NEWARK, N.J. – An Essex County, New Jersey, man was convicted today of robbing the same Capital One Bank in Newark twice, including once in an armed robbery, Acting U.S. Attorney William E. Fitzpatrick announced.

Gregory A. Jones, 60, of Newark, was convicted of one count of bank robbery, one count of armed bank robbery and one count of using a firearm during a crime of violence. Jones was convicted following a one-week trial before U.S. District Judge Kevin McNulty in Newark federal court. The jury deliberated less than six hours before returning the guilty verdicts.

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

On May 6, 2014, Jones entered the Capital One Bank wearing dark glasses and a scarf around his head and presented the teller a note demanding cash. After Jones left the bank with stolen money a hidden dye pack burst, and he left his glasses, scarf, and hat at the scene of the crime. Law enforcement recovered the glasses, hat and scarf near the bank next to currency, saturated with ink from the dye pack. DNA recovered from the glasses, hat and scarf matched a DNA sample that was lawfully obtained from Jones.

On Sept. 19, 2014, Jones entered the bank again, brandished a firearm from underneath his sweatshirt, and told a teller to give him money, stating that he had a gun and would shoot. Jones fired the weapon into the ceiling and left with several thousands of dollars. He was later identified using surveillance video and witness statements.

The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. The armed bank robbery count carries a maximum potential penalty of up to 25 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss. The discharging a firearm during the bank robbery count carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison, which must be served consecutive to the other counts. Sentencing will be scheduled at a later date.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; N.J. State Police, under the direction of Col. Rick Fuentes; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; and the Newark Division of Public Safety, under the direction of Public Safety Director Anthony Ambrose, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorneys Svetlana M. Eisenberg and Daniel Shapiro of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Bayonne, New Jersey, police officer was charged today with falsifying records to conceal the use of excessive force during an arrest, Acting U.S. Attorney William E. Fitzpatrick announced.

Francis Styles, 36, of Bayonne, is charged by indictment with one count of falsifying records in a federal investigation and one count of misprision of a felony for his role in attempting to conceal actions taken by former Bayonne police officer Domenico Lillo during an arrest in which Styles, Lillo and others participated. Styles’ arraignment is pending.

According to the indictment:

In the late afternoon of Dec. 27, 2013, Styles, Lillo and another Bayonne police officer went to an address in Bayonne to execute a Sussex County arrest warrant. After the individual was handcuffed and no longer physically resisting arrest, Lillo struck the individual with a flashlight, which resulted in bodily injury requiring hospital treatment.

However, the incident report filed by Styles omitted that Lillo struck the individual in the face with the flashlight, falsely asserted that the individual continued to violently struggle as he was being led to the patrol vehicle, and falsely asserted that the individual sustained injuries as a result of hitting the wall and the ground.

The charge of falsifying records carries a maximum potential penalty of 20 years in prison. The charge of misprision of felony carries a potential penalty of three years in prison.

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

Lillo previously pleaded guilty to deprivation of civil rights under color of law, falsifying records to impede a civil rights investigation, and assisting in the filing of a false report to the U.S. Department of Housing and Urban Development. He awaits sentencing.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation. He also thanked the Hudson County Prosecutor’s Office and the Bayonne Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Bruce P. Keller of the Appeals Division.

 

Defense counsel: John D. Arseneault Esq. Chatham, New Jersey

CAMDEN, N.J. - A Williamstown, New Jersey, man was sentenced today to 12 months in prison for hiring illegal immigrants to work in his dry cleaning business and failing to collect and pay over payroll taxes on behalf of those employees, Acting U.S. Attorney William E. Fitzpatrick announced.

Bill Li, 50, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of failure to collect, account for, and pay over payroll taxes and one count of harboring illegal aliens. Judge Kugler imposed the sentence today in Camden federal court.

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

Li owned Minuteman Cleaners located on North Black Horse Pike in Williamstown. At the time, Li and Kathy Lei, 36, also of Williamstown, owned a house on South Main Street in Williamstown. Lei and Phillip Hui, 39, of Washington Township, New Jersey, own New Eastern Cleaners in Voorhees Township, New Jersey.

Li was responsible for hiring employees, handling the books and supervising and paying the employees at Minuteman Cleaners. At various times in 2012 and 2013, Li, Lei and Hui hired individuals – generally from Mexico or Guatemala – that were in the United States illegally. The illegal immigrant employees were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Li paid their wages in cash.

While working at Minuteman Cleaners, Li allowed the illegal immigrant employees to stay at the South Main Street house. Li admitted that the rent was part of their employment compensation. Li or others working for Li would transport the illegal immigrant employees between the South Main Street house and Minuteman Cleaners.

Li admitted that prior 2012, he was aware that he was required to verify that all his employees were eligible to work in the United States. Li also admitted that between Jan. 1, 2012 and Oct. 29, 2013, he knowingly hired individuals that were in the United States illegally and did not report their wages to IRS for his own financial gain.

Li further admitted that as the owner or someone with authority over the employer financial affairs, he was responsible for collecting, accounting for and paying over to the IRS the employment taxes for his businesses’ employees. For tax quarters in 2012 and 2013, Li failed to report the wages and pay over employment taxes for at least eight illegal immigrant employees of Minuteman Cleaners. By filing the false quarterly payroll tax forms, Li failed to pay over to the IRS employment taxes of at least $79,000.

In addition to the prison term, Judge Kugler sentenced Li to three years of supervised release and ordered him to pay restitution of $79,000.

Hui and Lui previously pleaded guilty to one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens. Hui was sentenced Sept. 8, 2016 to 15 months in prison. Lei was sentenced on Feb. 17, 2017 to three years of probation.

Acting U.S. Attorney Fitzpatrick credited Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.

The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.

Defense counsel: Robert Agre, Esq., Haddonfield, New Jersey

CAMDEN, N.J. – The executive director of a nonprofit provider of mental health services to Camden’s poorest residents and a former therapist who worked at the facility have admitted their respective roles in defrauding New Jersey Medicaid, Acting U.S. Attorney William E. Fitzpatrick announced today.

On May 11, 2017, Cesar Tavera, 53, of Cherry Hill, the executive director of Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with conspiracy to commit health care fraud and with embezzling from a health care benefit program. Andres Ayala, 62, of Cherry Hill, New Jersey, pleaded guilty today before Judge Hillman to an information charging him with conspiracy to commit health care fraud.

 

According to documents filed in these cases and statements made in court:

 

Most of Nueva Vida’s patients are on Medicaid, and Tavera controlled Nueva Vida’s billings to New Jersey Medicaid. He also supervised the people at Nueva Vida who treated Medicaid patients. New Jersey Medicaid rules require that people giving mental health therapy to Medicaid recipients must either be licensed or have a master’s degree in mental health. Tavera had several unlicensed, unqualified individuals treat Medicaid recipients and then billed Medicaid as if qualified therapists had treated the patients. Tavera himself treated Medicaid patients even though he was not qualified.

Under Tavera’s direction, Nueva Vida used several other fraudulent practices to obtain money from Medicaid. Nueva Vida billed Medicaid for therapy that never happened and billed group therapy as if each participant received individual therapy. If a mother received therapy without her child, Nueva Vida would bill Medicaid for a session with the mother and a separate session with the child. Nueva Vida billed Medicaid for short sessions as if they lasted for 45 minutes. To cover up his crimes, Tavera created false records to pass Medicaid audits.

He regularly embezzled money from the Nueva Vida bank account in addition to his salary and spent the money on himself and his family. He used the Nueva Vida bank account to pay for dental care, meals, travel in the United States and abroad, and the expenses of his daughter’s music career. Tavera paid no-show employees with cash and payroll checks from Nueva Vida’s bank account. He repeatedly withdrew cash at the Sugar House Casino in Philadelphia and used the money to gamble at the casino. Tavera embezzled more than $1.5 million from Nueva Vida.

Ayala worked for many years as a therapist at Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community. Ayala conspired with Tavera to submit false billings to New Jersey Medicaid. If patients did not show up for their appointments, Ayala would have Nueva Vida bill Medicaid, and he was paid for the phantom session. If a mother came for therapy, Ayala would bill for a therapy session with the child. If he saw a Medicaid patient for 10 to 15 minutes, he would bill Medicaid for 45 minutes of therapy. Ayala was responsible for $200,000 in losses to Medicaid.

The counts of health care fraud and embezzlement each carry a maximum penalty of 10 years in prison and a fine of the greater of $250,000 or twice the gain or loss caused by the offense. Sentencing for both defendants is scheduled for Aug. 18, 2017.

 

Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, for the investigation leading to the guilty pleas. He also thanked the Medicaid Fraud Division of the N.J. Office of the State Comptroller.

The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.

The U.S. Attorney’s Office reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.33 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.

Defense counsel:

Tavera: Michael Miller Esq., Haddon Heights, New Jersey

Ayala: Hope C. Lefeber Esq., Philadelphia

Scheme Targeted Hundreds of Investors in More Than 30 Countries, Including United States

NEWARK, N.J. – A Thai man today admitted to orchestrating a scheme to defraud hundreds of investors worldwide of approximately $1.4 million through his operation of Nonko Trading, a purported online day trading firm, Acting U.S. Attorney William E. Fitzpatrick announced. Also, a federal grand jury has indicted two conspirators in connection with the scheme.
 
Naris Chamroonrat, 33, of Bangkok, Thailand, pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of conspiracy to commit securities fraud. On May 10, 2017, a federal grand jury returned an indictment against Yaniv Avnon, 36, of Tel Aviv, Israel, and Ran Armon, 45, of Toronto, Canada, who are each charged with one count of conspiracy to commit securities fraud and one count of wire fraud.     

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

Between December 2013 and June 2015, Chamroonrat, Avnon, Armon and their conspirators solicited individual investors to open day trading accounts with Nonko and to wire thousands of dollars to Nonko to fund those accounts. Instead, the conspirators allegedly stole the victims’ money. To cover up the theft, they provided the victims with online trading simulator, or “demo,” accounts, and told the investors that they were real accounts to be used for trading securities. They allegedly misappropriated at least $1.4 million from more than 260 investors from 30 countries, including at least 180 investors from the United States, several of whom are in New Jersey.

The conspirators selected as victims only those customers who they believed would not be profitable day-traders and would be less likely to seek to withdraw funds from their accounts. They limited the scheme to inexperienced, unsophisticated “losing” traders because those customers would simply believe they lost their money trading in the open markets. If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts. 

The conspirators discussed the scheme in detail in email and online chat communications.  In one online chat communication between Chamroonrat and Avnon on Feb. 2, 2014, Avnon referred to the profits that the scheme had generated the prior month, noting, “It was a huge month, huge month means that a lot of traders got burned .... New blood, all the time, that’s what we need[.]”  Although Nonko paid back a small percentage of customers,  the majority of misappropriated funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions, including transferring proceeds of the scheme to Avnon and Armon.   

The conspiracy count in the information and indictment carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.  The wire fraud count in the indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for Chamroonrat is scheduled for Sept. 20, 2017.

In a separate civil action, the Securities and Exchange Commission today filed an amended complaint in Newark federal court charging Avnon and Armon with, among other things, violating and aiding and abetting violations of the antifraud provisions of the securities laws. The amended complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties. Before amending the complaint, the SEC had asserted similar claims against Chamroonrat.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea and yesterday’s indictment. He also thanked the SEC for its valuable assistance in the investigation.

The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Defense counsel:  Chamroonrat: Edward E. Alon Esq., Woodland Hills, California

PHILADELPHIA – An associate of Philadelphia District Attorney Rufus Seth Williams today admitted providing bribes to Williams and making and subscribing a false federal tax return, Acting U.S. Attorney William E. Fitzpatrick announced.

Mohammad N. Ali, 40, of Feasterville, Pennsylvania, pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of federal tax evasion.

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

From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.

For example, Ali provided Williams with an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, a $502 dinner at a Philadelphia restaurant, a $7,000 check, approximately $2,000 in cash, a Louis Vuitton tie worth $205, an iPad worth approximately $300, a Burberry watch, and a Burberry purse for Williams’ girlfriend.

In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.

Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”

Ali also admitted making and subscribing a false personal federal income tax return, which failed to report taxable income of approximately $246,504.

The bribery count is punishable by a maximum potential penalty of five years in prison. The false tax return count is punishable by a maximum potential penalty of three years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 24, 2017.

Williams is charged in a related superseding indictment. The charges and allegations against him are merely accusations, and he is considered innocent unless and until proven guilty.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.

The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.

The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.

Defense counsel: Mark E. Cedrone Esq., Philadelphia

NEWARK, N.J. – A Newark man was sentenced today to 46 months in prison for possessing a firearm as a previously convicted felon, Acting U.S. Attorney William E. Fitzpatrick announced.

Brehon Widgeon, 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to Count One of an indictment charging him with possession of a firearm by a convicted felon. Judge Arleo imposed the sentence today in Newark federal court. 

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

In late June 2014 through July 10, 2014, Widgeon – who had been previously convicted of a felony in Monmouth County, New Jersey – sought to trade a handgun in his possession for either an AK-47 rifle or for a weapon that could be easily concealed on his person. On July 10, 2014, Widgeon was found in possession of a 9 mm handgun along with 18 rounds of 9 mm ammunition and five rounds of .380 caliber ammunition.

In addition to the prison term, Judge Arleo sentenced Widgeon to three years of supervised release.
 

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.

 

The government is represented by Assistant U.S. Attorneys Margaret Mahoney and Meredith Williams of the U.S. Attorney’s Office Criminal Division in Newark.

 

Defense counsel: Christopher Adams Esq., Holmdel, New Jersey

PHILADELPHIA – Philadelphia District Attorney Rufus Seth Williams was indicted today on additional fraud charges stemming from his alleged use of political action committee (PAC) funds and official government vehicles for his personal benefit, Acting New Jersey U.S. Attorney William E. Fitzpatrick announced.

Williams, 50, of Philadelphia, is now charged in a superseding indictment with 11 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law (the “Travel Act counts”), two counts of Hobbs Act extortion under color of official right, two counts of honest services wire fraud, 12 counts of wire fraud and two counts of mail fraud.

 Williams was originally charged in a 23-count indictment on March 21, 2017. The superseding indictment now contains 29 counts, including Counts 22 to 29 regarding Williams’ use of PAC funds and official vehicles.

The Fraud Involving PAC Funds Friends of Seth Williams, a/k/a “The Committee to Elect Seth Williams,” was a political action committee that accepted contributions from individuals to support Williams’ campaigns for public office. Under applicable law, the PAC funds could only be used in relation to political campaigns.

According to the superseding indictment, from August 2010 through August 2016, Williams allegedly defrauded the PAC by using its funds for personal expenditures, which he concealed by providing false or incomplete reports to the Commonwealth of Pennsylvania and to the City of Philadelphia.

For instance, between August 2010 and September 2010, the PAC disbursed two checks to a political consultant totaling approximately $4,136.59. The memo line on these checks falsely stated, “Political Consulting.” Within days of the political consultant receiving the PAC checks, Williams obtained checks from the political consultant’s account and deposited them into his own bank account. In total, Williams received approximately $4,036.59 of the approximately $4,136.59 that the political consultant received from the PAC between August 2010 and September 2010. Williams used these funds for personal expenses.

In addition, from October 2011 through April 2015, Williams incurred expenses at a social club for his personal benefit, including dinner parties, lodging, and family events, none of which were incurred in connection with any election. Williams used the PAC’s debit card to pay for these expenses, including charges of $677.98 for a New Year’s Eve celebration at the social club on Dec. 31, 2013 for Williams and his girlfriend; $195.50 for a facial and massage in January 2014; $777.19 for an April 10, 2014 birthday dinner that Williams held for his girlfriend; $491.50 for a massage, facial, gift card, and fitness classes in January 2015; approximately $2,674.41 for an April 10, 2015 birthday dinner that Williams held for his girlfriend; and approximately $211.50 for massages in May 2015.

From January 2013 through May 2015, Williams incurred expenses at a health club for his own personal benefit, including massages, facials, and clothing, none of which were incurred in connection with any election. Williams also used the PAC’s debit card to pay for these expenses, including charges for massages of $222.50 in January 2013, $209 in July 2013, $251.50 in September 2013, and $90 in November 2013.

The Fraud Involving Official Government Vehicles Williams also allegedly engaged in a scheme to use official vehicles – which were provided by the City of Philadelphia and a federal narcotics law enforcement program – for his personal benefit.
 
Some of those vehicles were obtained through grants provided by the High Intensity Drug Trafficking Area (HIDTA) program. The purpose of the HIDTA program was to reduce illegal drug trafficking and drug production in the United States by, among other things, facilitating cooperation among federal, state, and local law enforcement agencies. The HIDTA program provided resources and funding to enhance and promote regional drug control strategies within defined geographic areas. Each geographic area designated as a HIDTA was governed by an Executive Board comprised of federal, state, and local law enforcement agencies.
 
Williams was a member of the Executive Board for the HIDTA of Philadelphia and Camden, New Jersey. The District Attorney’s Office (DAO) assigned HIDTA vehicles to detectives in its Dangerous Drug Offender Unit (DDOU), which often conducted narcotics investigations with federal and state HIDTA partners. Vehicles owned or leased by these agencies could not be used for personal purposes.

According to the superseding indictment, Williams repeatedly used city and HIDTA vehicles for his personal use during non-working hours, including weeknights and weekends. Williams directed his security detail to leave a city or HIDTA vehicle at his home every weeknight, so that he would have access to it during all non-working hours. Williams used the vehicles to transport himself, family members, friends and other non-employees on non-DAO business, including personal trips outside of Philadelphia.

During the scheme, Williams had full-time access to city or HIDTA vehicles for nearly all of his personal vehicular needs and personally incurred almost no expenses related to the use of a personal vehicle for years, including costs of purchasing, leasing, or renting a vehicle, or paying for insurance, fuel, and maintenance.

In addition, Williams’ acquisition and use of the HIDTA vehicles, including a Nissan Armada SUV and two Chevrolet Tahoe SUVs, reduced the number of vehicles available to members of the DAO’s DDOU for undercover operations, surveillance, and other aspects of narcotics investigations.

Bribes Involving Business Owners and Fraud on a Nursing Home and Family Friends

Williams remains charged with the same three schemes that were detailed in the March 21, 2017 indictment:

• From July 2010 through May 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #1,” in which Williams, while serving as the Philadelphia District Attorney, accepted trips, money, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #1.

• From March 2012 through July 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #2,” in which Williams accepted airline tickets, money, an automobile, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #2.

• From February 2012 through November 2013, Williams allegedly diverted a relative’s pension and Social Security payments to pay for his own personal expenses instead of applying them to the relative’s nursing home costs. In addition, after accepting $10,000 from friends of his relative intended to cover expenses for the relative’s nursing home care, Williams spent the money on his personal expenses instead.

The 29-count superseding indictment presents some alterations to the original counts, without changing the substance of the above allegations. Williams was arraigned on March 22, 2017, and entered a plea of not guilty. The trial is presently set for May 31, 2017.

Each of the Travel Act counts is punishable by a maximum potential penalty of five years in prison. The Hobbs Act extortion under color of official right and the wire and mail fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. The indictment also seeks forfeiture of a total of approximately $64,878.22, representing the sum of approximately $33,765.52 worth of bribe proceeds and approximately $31,112.70 worth of fraud proceeds.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.

The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.

The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.

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

Defense counsel: Thomas F. Burke Esq., Philadelphia.

CAMDEN, N.J. - A Gloucester County man was sentenced today to 106 months in prison for his role in conspiring over 15 months to sell crack cocaine in Camden, Acting U.S. Attorney William E. Fitzpatrick announced.

Harold Miller, 41, of Sewell, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with conspiracy to distribute and to possess with intent to distribute cocaine base.   
According to documents filed in this case and statements made in court:

Miller was arrested on Sept. 2, 2015, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force into an organization that controlled the distribution of crack cocaine on Pfeiffer Street in Camden. 

Members of the drug organization sold crack cocaine to a confidential source and to customers who arrived in vehicles and on foot. Law enforcement officers intercepted conversations over multiple court-authorized wiretaps during which Miller and his conspirators discussed drug trafficking activities on Pfeiffer Street.  Miller oversaw and managed the activities of this drug trafficking organization. Rasheed Wise, Rodney Wall, and David Wilkerson, all of Camden, previously pleaded guilty to their respective roles in the charged conspiracy. Wall was sentenced May 4, 2017, to 100 months in prison and Wilkerson was sentenced April 5, 2017, to 77 months in prison. Wise is awaiting sentencing. 

In addition to the prison term, Judge Rodriguez sentenced Miller to three years of supervised release.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentencing.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.

Defense counsel: Christopher H. O’Malley Esq., Assistant Federal Public Defender, Camden

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

 

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

 

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

 

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

 

The embezzlement charge carries a maximum penalty of one year in prison and a $100,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Aug. 15, 2017.

 

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

 

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

NEWARK, N.J. – A Point Pleasant, New Jersey, man will appear in federal court today to face allegations that he planned to construct and use a pressure cooker bomb in support of the Islamic State of Iraq and al-Sham (ISIS), Acting U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General for National Security Dana Boente announced.

Gregory Lepsky, 20, is charged by criminal complaint with one count of attempting to provide material support to a designated foreign terrorist organization, specifically ISIS. Lepsky is expected to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

According to the complaint:

On Feb. 21, 2017, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.

During searches of computers and other digital evidence linked to Lepsky, law enforcement found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS, and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.

Law enforcement also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery of the pressure cooker to Lepsky a short time before his arrest. In addition, law enforcement recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.

The material support charge carries a maximum potential penalty of up to 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense.

Acting U.S. Attorney Fitzpatrick credited the FBI and the Joint Terrorism Task Force (JTTF), under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Attorney General’s Office under the direction of Attorney General Christopher Porrino; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph Coronato; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the N.J. Office of Homeland Security and Preparedness under the direction of Director Chris Rodriguez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office National Security Unit in Newark and Justin Sher and B. Celeste Corlett, Trial Attorneys of the Department of Justice, National Security Division-Counterterrorism Section.

The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

Gregory Lepsky, 20, of Point Pleasant, New Jersey, will appear in federal court today to face allegations that he planned to construct and use a pressure cooker bomb in support of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Lepsky is charged by criminal complaint with one count of attempting to provide material support to ISIS.

The announcement was made by Acting Assistant Attorney General for National Security Dana Boente and Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey. Lepsky is expected to make his initial appearance this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark, New Jersey federal court.

According to the complaint:

On February 21, Lepsky was arrested by the Point Pleasant Police Department in connection with an incident that occurred that day in his family’s home. Following the arrest, law enforcement officers searched the residence and found a new pressure cooker stored behind a roll of bubble wrap in Lepsky’s bedroom closet.

During searches of computers and other digital evidence linked to Lepsky, law enforcement found evidence of Lepsky’s plan to build and detonate a bomb as part of his support for ISIS. During several social media communications, Lepsky told others that he intended to fight on behalf of ISIS, and that he would, if necessary, become a martyr by driving a “bunch of explosives” to where the “enemies” could be found and blowing himself up.

 

Law enforcement also located a series of instructions that had been published online by another terrorist group that gave specific, step-by-step instructions on how to build a pressure cooker bomb, which coincided with the delivery to Lepsky of the pressure cooker a short time before his arrest. In addition, law enforcement recovered a message forwarded by Lepsky from another ISIS supporter stating that if a westerner could not travel to Syria to fight for ISIS, he could conduct a terrorist attack in his home country using improvised explosive devices.

 

The material support charge carries a maximum potential penalty of up to 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI and the Joint Terrorism Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the New Jersey State Attorney General’s Office under the direction of Attorney General Christopher Porrino; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph Coronato; the Point Pleasant Police Department under the direction of Chief Richard P. Larsen; and the New Jersey Office of Homeland Security and Preparedness under the direction of Director Chris Rodriguez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office National Security Unit in Newark and Trial Attorneys Justin Sher and B. Celeste Corlett of the National Security Division’s Counterterrorism Section.

17 05 05 Lepsky Complaint

NEWARK, N.J. – A Newark, New Jersey, man was sentenced today to 79 months in prison for trying to rob a Paterson, New Jersey, residence while dressed in a Passaic County Sheriff’s uniform, Acting U.S. Attorney William E. Fitzpatrick announced.

Clemente R. Carlos, 30, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit Hobbs Act robbery. Judge Cecchi imposed the sentence today in Newark federal court.

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

Carlos admitted that on Aug. 12, 2015, he conspired with Jason Thompson, 34, of Paterson, to rob a Paterson home because they believed the resident kept cash proceeds from his distribution business at that location. At around 7:00 a.m. that day, Carlos and Thompson, both dressed in Passaic County Sherriff’s uniforms, accosted a female victim and her infant as the victim was leaving her residence in Paterson. The two men, posing as law enforcement officers, led the victim back into her apartment inside the residence.

 

Once inside, Thompson removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Thompson and Carlos left the residence.

In addition to the prison term, Judge Cecchi sentenced Carlos to three years of supervised release.

Thompson was indicted March 22, 2017, on one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. The allegations against him are merely accusations, and he is innocent unless and until proven guilty.

U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.

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

Defense counsel: Gary Cutler Esq., Newark

NEWARK, N.J. – The owner of a group of freight payment, logistics, and shipping businesses headquartered in Branchburg, New Jersey, was sentenced today to 50 months in prison for wire fraud and money laundering, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Shirley Sooy, 66, of Fort Smith, Arkansas, previously pleaded before U.S. District Judge William Walls to an information charging her with one count of wire fraud and one count of transacting in criminal proceeds. Judge Walls imposed the sentence today in Newark federal court.

 

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

 

From 2010 through April 2013, Sooy, through a collection of businesses operating under the umbrella of the “TransVantage Group,” entered contracts with corporate clients – referred to in a criminal complaint as the “victim companies.” TransVantage audited freight bills generated by common carriers and freight forwarders hired by the victim companies. TransVantage was obligated to pay the audited and approved freight bills to the carriers from funds provided by those companies, and the funds were supposed to be held in trust by TransVantage until paid over to the carriers. The victim companies also paid TransVantage for its purported auditing services, payments separate and apart from the carrier payment funds.

 

Sooy operated TransVantage as a Ponzi scheme, which resulted in substantial losses to the victim companies. Sooy and others comingled the funds from the victim companies – funds that were to have been paid to carriers – and then misused those funds in various ways. They paid unauthorized operating expenses and personal expenses.

 

In addition to the prison term, Judge Walls sentenced Sooy to two years of supervised release and ordered her to pay restitution of $1,185,404.

 

Acting U.S. Attorney Fitzpatrick credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty sentencing.

 

The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

 

Defense counsel: Michael J. Rogers Esq., Somerville, New Jersey

CAMDEN, N.J. – A Carbon County, Pennsylvania, man today admitted conspiring to illegally traffic over 20 firearms – including assault rifles and other high-capacity weapons – in the South Jersey area, Acting U.S. Attorney William E. Fitzpatrick announced.

Darnel Johns, 49, of Albrightsville, Pennsylvania, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to deal in firearms without a federal firearms license and one count of possession of firearms by a convicted felon. Johns had previously turned himself into law enforcement in late 2016 after several months as a fugitive.

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

Johns admitted that in the Fall and Winter of 2014, he conspired with co-defendant David Potts, 45, of Camden, to illegally sell at least 22 guns. The firearms included a sawed-off shotgun, multiple high-capacity assault-style rifles, and a high-capacity assault-style pistol with a 30-round magazine. Several of the firearms were stolen and had obliterated serial numbers.

Potts previously pleaded guilty to his role in the conspiracy and was sentenced on April 10, 2017 to 121 months in prison.

The illegal firearms dealing count to which Johns pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The possession of firearms by a convicted felon count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 4, 2017.

This case was initiated as part of a wide-ranging set of gun trafficking arrests that took place on March 4, 2015. Acting U.S. Attorney Fitzpatrick credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, Newark Division, and Essam Rabadi, Special Agent in Charge of ATF’s Philadelphia Field Division, with the investigation. He additionally credited special agents of the Drug Enforcement Administration, Maple Shade Resident Office, under the direction of Special Agent in Charge Carl J. Kotowski; the ATF Charlotte Field Division under the direction of Special Agent in Charge C. J. Hyman; investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; detectives of the Camden County Police Department, under the direction of Chief Scott J. Thomson; the Newark Division of Public Safety’s Ballistics Laboratory; and the Bergen County Sheriff’s Office Ballistics Laboratory, with the investigation.

He additionally credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr.; investigators under the Camden High Intensity Drug Trafficking Area; the New Jersey State Police’s Metro South Unit, under the direction of Superintendent Col. Rick Fuentes; the New Jersey State Parole Board, under the direction of Chairman James T. Plousis; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert L. Wilson; and the Cherry Hill, Pennsauken and Maple Shade Police Departments.

The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.

This investigation was coordinated through the Camden County Crime Collaboration (“C-4”). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute Camden’s most dangerous criminals.

Defense counsel: Thomas Young Esq., Assistant Federal Defender, Philadelphia

TRENTON, N.J. – A Trenton, New Jersey, man today admitted his role in a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding area, Acting U.S. Attorney William E. Fitzpatrick announced.

 

Bernadino Guervil, a/k/a “BG,” 29, pleaded guilty today before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute heroin.

 

In December 2016, Guervil and nine other members of a drug trafficking organization operating in Trenton were charged by criminal complaint with conspiracy to distribute heroin. The complaint referred to the drug trafficking organization as the “Abdullah DTO,” after its leader, Ishmael Abdullah. Guervil is the fourth defendant to plead guilty.

 

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

 

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

 

Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the Abdullah DTO, and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Jose Joaquin Torres-Mezquita and Ileana Sanchez. Ishmael Abdullah and Keith Hunter coordinated the organization’s distribution of heroin through themselves and other conspirators, including Guervil. Members of the Abdullah DTO used temporary prepaid phones, stash houses and cars, and spoke in code to avoid detection by law enforcement.

 

The conspiracy charge to which Guervil pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 27, 2017.

 

Acting U.S. Attorney Fitzpatrick credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Scott C. Curley; officers of the Trenton Police Department, under the direction of Director Ernest Parrey Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.

 

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

 

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

 

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

 

Defense counsel: Anthony G. Simonetti Esq., Hightstown, New Jersey

TRENTON, N.J. – A former financial advisor entrusted with advising clients on investments was convicted by a federal jury today for defrauding his client, a former factory worker, out of his retirement savings and using the funds for his own benefit, Acting U.S. Attorney William E. Fitzpatrick announced.

Jesse Holovacko, 39, of Sayreville, New Jersey, was convicted on all counts of an indictment charging him with six counts of wire fraud and one count of investment advisor fraud following a five-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court. The jury deliberated for approximately one hour before returning the guilty verdicts.

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

Holovacko was an investment advisor at a financial institution located in New Jersey. In 2012, Holovacko went to the factory where the victim worked, met with the victim and some of his co-workers, and signed the victim on as a client, transferring the victim’s pension savings into an Individual Retirement Account (IRA). The victim entrusted Holovacko with managing the victim’s retirement savings.

From December 2013 through August 2014, Holovacko falsely told the victim that he would use retirement account funds to purchase bonds for him and advised the victim to transfer the retirement money to the victim’s bank account and then provide cashier’s checks made out directly to the financial advisor, telling the victim it would make it easier to purchase the bonds. Based on these false representations, Holovacko obtained 18 cashier’s checks totaling approximately $255,000.

Holovacko deposited all of the cashier’s checks into his own personal bank account and spent it for his car loan and mortgage payments, dining out, concerts and clubs, baseball game tickets, as well as taking out approximately $150,000 in cash. In order to continue deceiving the victim, Holovacko promised the victim documentation of the purported investments in bonds.

The wire fraud charges on which Holovacko was convicted each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The investment advisor fraud charge carries a maximum potential penalty of five years in prison and a maximum fine of $10,000. Sentencing is set for Aug. 8, 2017.

Acting U.S. Attorney Fitzpatrick credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn in Newark, and agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s verdict. He also thanked the Financial Industry Regulatory Authority (FINRA) and the N.J. Bureau of Securities of the New Jersey Attorney General’s Office for their assistance.

The government is represented by Assistant U.S. Attorneys Jihee G. Suh and Zach Intrater of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Paul Condon, Jersey City, New Jersey

CAMDEN, N.J. – A Honduran national today admitted to kidnapping his former girlfriend in Kansas City, Missouri, and raping her while they traveled to New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.

José Amaya-Vasquez, 32, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to Count One of an indictment, charging him with kidnapping, and Count Two, charging him with engaging in interstate domestic violence. Amaya-Vasquez previously pleaded guilty to Count Four which charged him with illegally re-entering the U.S. after having been deported.

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

Amaya-Vasquez is a citizen of Honduras. On Feb. 14, 2005, he attempted to enter the United States illegally in Texas, at which time the U.S. Customs and Border Protection (CBP) arrested him, gave him a Notice to Appear in Immigration Court and released him from custody. On July 13, 2005, he failed to appear as ordered, at which time an Immigration Judge entered an Order of Removal.

On June 7, 2014, the Kansas City, Missouri, Police Department arrested Amaya-Vasquez and charged him with domestic assault after he threw a comb at the Victim and pushed her into a table. The police turned the defendant over to Immigration and Customs Enforcement (ICE), which removed him from the United States on July 4, 2014.

On September 9, 2014, CBP officers arrested Amaya-Vasquez after he illegally entered the United States from Mexico near Eagle Pass, Texas. On Sept. 16, 2014, the defendant pleaded guilty to a count of illegal entry before a U.S. Magistrate Judge for the Western District of Texas and was sentenced to 30 days’ incarceration. On Oct. 22, 2014, ICE again removed the defendant from the United States and he was barred from reentering the United States for 20 years. He admitted that he illegally re-entered the country in January 2015.

On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez entered the victim’s vehicle, threatened her with a knife, duct-taped the victim and then took her and the victim’s 2-year old child to an abandoned house in Kansas City, where he sexually assaulted the victim at knifepoint.

From May 24, 2015, through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.

On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody since his arrest.

The kidnapping count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of life in prison and a $250,000 fine. The interstate domestic violence count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The illegal re-entry into the United States count to which Amaya-Vasquez pleaded guilty carries a maximum potential penalty of two years in prison. Sentencing is scheduled for Sept. 8, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to the charges. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.

The government is represented by Senior Litigation Counsel Jason M. Richardson and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A Rockland County, New York, man today admitted his role in a conspiracy to rob a Hawthorne, New Jersey, bar, Acting U.S. Attorney William E. Fitzpatrick announced.

Oscar Avalos-Cortez, 22, of New City, New York, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a one-count information charging him with conspiracy to commit Hobbs Act Robbery.

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

On Dec. 25, 2015, Avalos-Cortez drove at least six conspirators to a bar in Hawthorne, where they forcibly robbed the bar and subsequently fled with approximately $200 in cash in Avalos-Cortez’s car.

The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. Sentencing is scheduled for Aug. 2, 2017.

Avalos-Cortez was originally charged with Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, Guillermo Carrillo-Iraheta, 19, of Suffern, New York, Balmore Carrillo-Iraheta, 19, of Suffern, Juan Chiliseo-Vega, 20, of Suffern, and Jostin Reyes, 21, of Waldwick, New Jersey, in November 2016.

Chiliseo-Vega, Guillermo Carrillo-Iraheta, and Reyes previously pleaded guilty in Newark federal court to three-count informations in connection with their involvement in the conspiracy to commit Hobbs Act Robbery, as well as a carjacking and kidnapping in which Avalos-Cortez was not involved. They await sentencing.

Balmore Carrillo-Iraheta was indicted by a federal grand jury on April 18, 2017, for his role in the conspiracy to rob the bar. The charges against Barahona for his role in the robbery, carjacking, and kidnapping are still pending. Both men are presumed innocent unless and until proven guilty.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to today’s guilty plea.

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

Defense counsel: Kevin Conway Esq., Spring Valley, New York

NEWARK, N.J.  – A Newark man today admitted filing false tax returns and structuring cash payments to avoid reporting requirements, Acting U.S. Attorney William E. Fitzpatrick announced.

Okoro Ifeanyi, 55, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to a two-count information charging him with filing false tax returns with respect to his 2010 through 2013 personal tax returns and with structuring financial transactions in 2007 and 2008 to avoid reporting requirements.

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

Ifeanyi was the owner and operator of Amiri Mbubu Auto Sales. His primary business was buying used cars in and around New Jersey, often at auto auctions, and exporting the cars to Nigeria. 

Ifeanyi admitted to substantially underreporting his income on his 2010, 2011, 2012, and 2013 U.S. individual income tax returns, specifically, failing to report additional taxable income that he earned through his business. According to the information, by failing to report his true income, Ifeanyi avoided paying approximately $461,085 in taxes. 

Ifeanyi also admitted to structuring a series of transactions in 2007 and 2008. He made 17 different deposits into his Bank of America account, each less than $10,000, in order to avoid currency reporting requirements.

The filing a false tax return count carries a maximum potential penalty of three years in prison. The structuring count carries a maximum potential penalty of 10 years in prison. Both counts carry a potential $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is set for July 19, 2017. 

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney's Office Economic Crimes Unit in Newark.

Defense counsel: Patrick O’keke Esq., New York

TRENTON, N.J. – A Long Branch, New Jersey, man was sentenced today to 72 months in prison for using his computer to possess and distribute images of child sexual abuse via a peer-to-peer file-sharing network, Acting U.S. Attorney William E. Fitzpatrick announced.

Donald Haring, 62, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with possession and distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Haring admitted that he knowingly used a computer from his home to share images and videos of child sexual abuse with other members of a publicly-available, peer-to-peer file-sharing network. Haring also admitted to possessing at least three videos and 600 images of child sexual abuse on his computer and other electronic devices.

In addition to the prison term, Judge Wolfson sentenced Haring to five years of supervised release.

Acting U.S. Attorney Fitzpatrick credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Brian A. Michael, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Charles M. Moriarty Esq.

NEWARK, N.J. – A Jersey City, New Jersey, man who was arrested yesterday while robbing a Wells Fargo Bank made his initial appearance today in federal court, Acting U.S. Attorney William E. Fitzpatrick announced.

Billy Le, 25, is charged by complaint with one count of bank robbery. Le appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.

According to the complaint:

On April 25, 2017, Le entered a Wells Fargo Bank in Jersey City wearing a black gas mask and holding a black duffle bag in one hand and a long metal rod with a red tip in the other hand. Waiving the metal rod, Le approached a teller and yelled, “Give me your money. Give me all your money.” A different bank employee immediately called the police.

Still wielding the metal rod, Le climbed onto the teller’s counter and threatened the teller with violence. A bank customer approached Le from behind, pulled him off the counter, and held him down until law enforcement officers arrived minutes later.

Law enforcement officers arrested Le at the scene and recovered the duffle bag and the metal rod, which appeared to be a pipe bomb. The officers evacuated the bank, after which Emergency Service Unit officers examined the device and determined that it was not an explosive. The duffle bag contained, among other things, a large knife.

The bank robbery count carries a maximum potential penalty of up to 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hudson County Prosecutor’s Office, under Prosecutor Esther Suarez; and the Jersey City Police Department, under the direction of Chief Philip D. Zacche, with the investigation.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.

The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.   

Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – Five men imprisoned on child pornography charges were arrested today at the Federal Correctional Institution-Fort Dix and charged with new counts of distributing images and videos of child sexual abuse within the prison, Acting U.S. Attorney William E. Fitzpatrick announced.

The inmates were charged with using contraband cellphones and micro SD cards to distribute the images, as well as selling and possessing with intent to sell the images and videos on federal property and conspiracy to commit these offenses. They are scheduled to appear later today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.

“These five defendants, each having been previously convicted and imprisoned for trafficking in child pornography, have allegedly continued while in prison to trade and profit from the exploitation and sexual abuse of innocent children,” Acting U.S. Attorney Fitzpatrick said. “The federal law enforcement community is committed to protecting our nation’s children by exhaustively investigating and aggressively prosecuting those who seek to do them harm.”

“Anyone who sexually exploits children, whether incarcerated or not, will be relentlessly pursued and brought to stand trial for their heinous crimes,” stated Timothy Gallagher, Special Agent in Charge of the FBI's Newark Field Office. “The FBI and our law enforcement partners are resolute in this commitment and remain ever vigilant in protecting one of society’s most vulnerable members, our children.”

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

Anthony C. Jeffries, 31, of Orange, Virginia, is serving a 168-month sentence, with a scheduled release date of Aug. 13, 2022, following his guilty plea in the Western District of Virginia to three counts of distribution of child pornography and one count of possession of child pornography. He is allegedly a leader of the Fort Dix child pornography network, and maintained a “cloud” account containing images and videos of child sexual abuse. Jeffries allegedly transferred a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016. The micro SD card included videos involving prepubescent children, including infants and toddlers and depictions of child sexual abuse.

Brian J. McKay, 46, of Brookhaven, Pennsylvania, is serving a 180-month sentence, with a scheduled release date of June 28, 2021, following his guilty plea in the Eastern District of Pennsylvania to one count of distribution of child pornography and one count of possession of child pornography. McKay is charged with allegedly transferring micro SD cards containing images of child sexual abuse to a government informant at Fort Dix on Nov. 1, 2016, and on Feb. 15, 2017, on behalf of other inmates (conspirators Allen and Roffler, below). The first micro SD card included child sexual abuse videos involving prepubescent children as well as bestiality. The second micro SD card included hundreds of images and videos of child sexual abuse.

Jordan T. Allen, 30, of Plain City, Ohio, is serving a 102-month sentence, with a scheduled release date of Dec. 30, 2018, following his guilty plea in the Southern District of Ohio to one count of receipt of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Feb. 15, 2017, in exchange for the micro SD card that McKay transferred to the informant on that date. Allen told the informant that he utilized The Onion Router (also known by its acronym, “TOR”) to access images of child sexual abuse.

Christopher D. Roffler, 29, of Virginia Beach, Virginia, is serving a 100-month sentence, with a scheduled release date of Aug. 22, 2019, following his guilty plea in the Eastern District of Virginia to one count of transportation of child pornography. He is charged with receiving payment from a government informant at Fort Dix on Nov. 1, 2016, in exchange for the micro SD card that McKay transferred to the informant on that date.

Erik M. Smith, 35, of Iron Mountain, Michigan, is serving a 235-month sentence, with a scheduled release date of March 26, 2027, following his guilty plea in the Western District of Michigan to one count of receipt of child pornography. He is charged with distribution of images of child sexual abuse and selling and possessing with intent to sell images of child sexual abuse on federal property. Smith allegedly sold a micro SD card containing images of child sexual abuse to a government informant at Fort Dix on Feb. 15, 2017. Smith stated that he had sufficient postage stamps – a form of illicit currency among inmates – in order to obtain a cellphone to access the cloud account.

The counts of distributing child pornography, selling and possessing with intent to sell child pornography, and conspiracy to commit these offenses – due to the prior convictions of each of the defendants – carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrests. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.

The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Gabriel Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.

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

 

CAMDEN, N.J. – A Canadian man today admitted his role in a conspiracy to traffic 100 kilograms of cocaine from Chicago to New Jersey and then on to Canada, Acting U.S. Attorney William E. Fitzpatrick announced.

Sezayir Bulamun, 48, of Hemmingford, Canada, pleaded guilty before U.S. District Court Judge Robert Kugler in Camden federal court to an indictment charging him with one count of conspiring to distribute more than five kilograms or more of cocaine.

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

Between October 2012 and Nov. 29, 2012, Bulamun conspired with others to pick up 100 kilograms of cocaine in Chicago, Illinois, transport it to a warehouse in New Jersey and then transport it to Canada. He was indicted in 2012, but fought extradition to the United States. The FBI seized the cocaine as part of the operation.

The conspiracy count to which Bulamun pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison. Sentencing is scheduled for Aug. 4, 2017.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sara F. Merin of the OCDETF/Narcotics Unit and Andrew J. Bruck of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.

TRENTON, N.J. – A Windermere, Florida, man was sentenced today to 53 months in prison for using phony invoices to fraudulently obtain more than $1.5 million from a factoring company in Bergen County, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.

Jerry Guidice, 57, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.

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

In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company in which the trucking company would assign some of its accounts receivable in return for short-term financing. Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.

In addition to the prison term, Judge Thompson sentenced Guidice to three years of supervised release and ordered him to pay restitution of $1.6 million.

Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Christopher Atcachunas Esq., Orlando, Florida

NEWARK, N.J. – A Paterson, New Jersey, man appeared in federal court today to face charges that he attempted to rob a Paterson residence while dressed in a Passaic County Sheriff’s uniform and wielding a firearm, Acting U.S. Attorney William E. Fitzpatrick announced.

Jason Thompson, 34, complaint in is charged by indictment with one count of conspiracy to commit Hobbs Act robbery, one count of attempted Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of possession of a firearm by a convicted felon. Thompson was arraigned this morning before U.S. District Judge Claire C. Cecchi in Newark federal court.

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

On Aug. 12, 2015 at around 7:00 a.m., Thompson and Clemente Carlos, 30, of Newark, New Jersey – while dressed in Passaic County Sherriff’s uniforms – accosted a female victim and her infant as the victim was leaving her residence in Paterson. The two men posed as law enforcement officers and led the victim back into her apartment inside the residence.

Once inside, Thompson allegedly removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Thompson and Carlos left the residence.

Law enforcement officers arrested Thompson outside his Paterson residence on Dec. 2, 2015. During a subsequent search of the residence, officers recovered a loaded revolver handgun from Thompson’s bedroom.

On Dec. 1, 2016, Carlos appeared before Judge Cecchi and pleaded guilty to a one-count information charging him with conspiracy to commit Hobbs Act robbery. Carlos is scheduled to be sentenced on May 2, 2017.

The Hobbs Act conspiracy charge and the attempted Hobbs Act robbery each carry a statutory maximum sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. The charge of being a felon in possession of a firearm carries a maximum sentence of 10 years in prison and a $250,000 fine.

The charges and allegations in the indictment are merely accusations, and Thompson is presumed innocent unless and until proven guilty.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s charges. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.

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

Defense counsel: Michael Pedicini Esq., Chatham

NEWARK, N.J. –Three men from New Jersey and another from Nevada have been arrested for allegedly defrauding two individual victims out of approximately $800,000 through an advance fee scheme, Acting U.S. Attorney William E. Fitzpatrick announced today.

Harold Mignott, 54, of Voorhees, New Jersey, James Adkins, 64, of Hillside, New Jersey, Jerrid Douglas, 43, of Freehold, New Jersey, and Roy Johannes Gillar, 44, of Las Vegas, are each charged by criminal complaint with one count of conspiracy to commit wire fraud.

Mignott, Adkins, and Douglas were arrested this morning and made their initial court appearances this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal Court. Gillar was arrested yesterday and appeared before U.S. Magistrate Judge Nancy J. Koppe in Las Vegas federal court. Gillar was detained. Mignott, Adkins, and Douglas were released on $200,000 unsecured bonds.

According to the complaint:

From March 2016 through June 2016, Mignott, Adkins, Douglas, and Gillar allegedly agreed to defraud an entity identified in the complaint as “Victim Company A” out of approximately $1 million.

As part of the scheme, the defendants fraudulently induced two individuals who ran Victim Company A to have Victim Company A enter a joint-venture agreement with their New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide Victim Company A with a “standby letter of credit” backed by Mexican gold bonds. A standby letter of credit is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.

Victim Company A wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint-venture agreement, Victim Company A agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.

In order to cover up the scheme and convince the victims to approve transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion standby letter of credit to the defendants’ shell company.

However, after Victim Company A transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide Victim Company A with a standby letter of credit or anything of value. Instead, the defendants misappropriated Victim Company A’s money for their personal use on items like luxury cars, expensive watches, mortgage payments on their personal residences, and large cash withdrawals.

At no time since March 2016 have the defendants or any company owned or operated by them provided anything of value to Victim Company A in exchange for Victim Company A’s $800,000. The defendants also have not returned any of the money to Victim Company A.

The conspiracy to commit wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the arrests.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office General Crimes Unit in Newark.

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

NEWARK, N.J. – An internal medicine doctor practicing in Staten Island, New York, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.

Ahmed El Soury, 44, of Monmouth Junction, New Jersey, pleaded guilty to Count One of an indictment charging him with conspiracy to violate the Anti-Kickback Statute, the Federal Travel Act, and the honest services wire fraud statute. El Soury pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court.

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

El Soury admitted accepting cash bribes in return for referring patient blood specimens to BLS. From March 2011 through April 2013, El Soury received bribes totaling more than $66,000 from BLS employees and associates. El Soury’s referrals generated approximately $650,000 in lab business for BLS.

The investigation has thus far resulted in 44 convictions – 30 of them doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.

The conspiracy charge to which El Soury pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. El Soury’s sentencing is scheduled for July 19, 2017.

El Soury is one of five physicians who have been indicted in connection with the BLS bribery scheme. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Salvatore Conte was indicted on Jan. 10, 2017, pleaded guilty on Feb. 28, 2017, and will be sentenced June 6, 2017. Bernard Greenspan was indicted on March 14, 2016, convicted at trial before U.S. District Judge William H. Walls on March 6, 2017, and will be sentenced on June 20, 2017. Thomas Savino was indicted on Dec. 20, 2016 and is pending trial before Judge Chesler.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the ongoing investigation.

The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.

The New Jersey U.S. Attorney’s Office reorganized its health care fraud practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.

Defense counsel: Albert Dayan Esq., Kew Gardens, New York

A member of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark, New Jersey, Office made the announcement.

Joel Abel Garcia, 35, a U.S. citizen from Bronx, New York, pleaded guilty before U.S. District Judge Esther Salas of the District of New Jersey to one count of conspiracy to commit bank fraud. Garcia is the third of 13 defendants charged in this matter to plead guilty. Victor A. Hanganu, 35, a Romanian citizen residing in Bayside, New York, pleaded guilty on April 10, 2017, to an information charging him with one count of conspiracy to commit bank fraud. Sentencing for Garcia and Hanganu is set for Aug. 2, 2017, and July 31, 2017, respectively.

According to admissions made in connection with the pleas, Garcia, Hanganu and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Garcia and Hanganu both admitted that between March 2015 and July 2016, they used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. As part of his plea, Hanganu also admitted that as part of the scheme, he installed “skimming” devices on the ATMs, including pinhole cameras that recorded password entries and card-reading devices capable of recording customer information encoded on magnetic strips.

Garcia, Hanganu and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, causing losses of $428,581. Of that sum, $132,805 was personally attributable to Garcia.

In addition to Garcia and Hunganu, Radu Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty on March 29, 2017, to an information charging him with one count of conspiracy to commit bank fraud.

The ICE-HSI’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kelly Graves of the District of New Jersey are prosecuting the case.

NEWARK, N.J. – A member of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.

 

Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.

 

Joel Abel Garcia, 35, a U.S. citizen from Bronx, New York, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to commit bank fraud.

 

Garcia is the third of 13 defendants charged in this matter to plead guilty. Victor A. Hanganu, 35, a Romanian citizen residing in Bayside, New York, pleaded guilty on April 10, 2017 to an information charging him with one count of conspiracy to commit bank fraud.

 

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

 

Garcia, Hanganu, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Garcia and Hanganu both admitted that between March 2015 and July 2016, they used counterfeit ATM cards and stolen customer information to withdraw cash from compromised bank accounts at ATMs in New Jersey. Hanganu also admitted that as part of the scheme, he installed “skimming” devices on the ATMs, including pinhole cameras that recorded password entries and card-reading devices capable of recording customer information encoded on magnetic strips.

 

Garcia, Hanganu, and others used more than 10 ATM cards to conduct fraudulent cash withdrawals in New Jersey, causing losses of $428,581, $132,805 of which was personally attributable to Garcia.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for Garcia and Hanganu is set for Aug. 2, 2017 and July 31, 2017, respectively.

 

In addition to Garcia and Hunganu, Radu Marin, 36, a Romanian citizen residing in Glendale, New York, pleaded guilty on March 29, 2017, to an information charging him with one count of conspiracy to commit bank fraud.

 

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.

 

The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.

 

Defense counsel:

Garcia: Lorraine Gauli-Rufo Esq., Verona, New Jersey

Hanganu: Michael N. Pedicini Esq., Chatham, New Jersey

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

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

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

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.

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

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

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

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

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

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

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

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

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

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.

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.

 

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

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.

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