District of New Jersey
Press releases recorded for this federal judicial district.
Camden, New Jersey, Man Sentenced to 151 Months in Prison for Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – A Camden, New Jersey, man was sentenced today to 151 months in prison for sex trafficking of a minor, Acting U.S. Attorney William E. Fitzpatrick announced.
Aaron J. Gray, 30, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of sex trafficking of a minor. Gray was originally charged in a criminal complaint with co-defendants Aja M. Easley, 24, of Camden, and Kenneth A. Mertz, 36, of Collingswood.
According to the documents filed in this case and statements made in court:
On March 2, 2015, Easley communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.”
Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts for the purpose of earning money. To do so, Gray, Mertz, and Easley drove the minor to a motel in Cherry Hill.
At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts.
After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement seeking to engage in commercial sex acts with the minor. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals that, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley and Gray also told the victim that if any trouble arose, Gray would be outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.
The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim.
On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
In addition to the prison term, Judge Sheridan sentenced Gray to 10 years of supervised release.
On Aug. 17, 2016, Easley pleaded guilty before Judge Sheridan to an information charging her with one count of sex trafficking of a minor. Easley is awaiting sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Brian Morell, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Office’s Criminal Division in Trenton.
The charges and allegations against Mertz remain merely accusations, and he is considered innocent unless and until proven guilty.
Defense Counsel: Andrea D. Bergman Esq., Federal Public Defender’s Office, Trenton
Virginia Man Charged with Robbing Two New Jersey BanksRead the Press Release
CAMDEN, N.J. – A Virginia man appeared in federal court today to face charges that he robbed a TD Bank in Ocean City, New Jersey, and a Wells Fargo Bank in Atlantic City, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Bruce Wayne Higgins, 43, of Herndon, Virginia, is charged by complaint with two counts of bank robbery. Higgins appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.
According to the complaint:
On Dec. 15, 2016, a man entered a TD Bank in Ocean City and presented a teller with a note that read: “GUN IN Pocket, MONEY NOW or –BANG-.” He then took cash from the teller and fled on foot. Afterwards, law enforcement officers issued a bulletin with a bank surveillance photograph. The robber was later identified as Higgins.
On Dec. 16, 2017, a man fitting Higgins’s description walked into a TD Bank in Atlantic City. After recognizing Higgins from the police bulletin, a bank employee triggered the bank’s “hold-up” alarm, and Higgins left the bank and got into a taxicab. Officers from the Atlantic City Police Department (ACPD) arrived at the TD Bank and, following up on information provided by witnesses, issued a bulletin describing the taxicab’s number and direction of travel.
Having received the bulletin describing the taxicab, another ACPD officer located the taxicab near a Wells Fargo Bank in Atlantic City while Higgins was allegedly in the process of robbing that bank. Higgins entered the Wells Fargo Bank and presented a teller with a note that read, “Gun in Pocket, Money Now or Bang now.” After Higgins took the money and fled the bank, ACPD officers arrested him.
Higgins had been detained at the Atlantic County Jail on state charges relating to the bank robberies.
Each bank robbery count carries a maximum potential penalty of 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 Ocean City Police Department, under the direction of Chief Chad Callahan; the Atlantic City Police Department, under the direction of Chief Henry White; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner, with the investigation.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Defense Counsel: Lori Koch Esq., Assistant Federal Public Defender, Camden
Statement by U.S. Attorney Paul J. FishmanRead the Press Release
This afternoon, the President requested my resignation, along with the remaining presidentially appointed U.S. Attorneys across the country, effective at midnight tonight.
It has been the greatest professional experience that I can possibly imagine to have served in this office for the past seven-and-a-half years. Having spent so much of my career working to protect the interests of the people of New Jersey, I can think of no greater form of public service.
I am enormously grateful for the opportunity I was given to lead the men and women who work in this office. They are the most extraordinary group of public servants I have ever known, and I am more than honored to have been their colleague.
Owner of Commercial Supply Companies Admits Conspiring to Defraud Approximately 40 Companies of More Than $1 MillionRead the Press Release
CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., today admitted his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, U.S. Attorney Paul J. Fishman announced.
Keith B. Fisher Sr. 59, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.
Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. isher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.
The charge to which Fisher pleaded guilty 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 greatest. Sentencing is scheduled for June 19, 2017.
U.S. Attorney Fishman credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General – Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge David Bosch, for conducting the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
New York Man Sentenced to 25 Years in Prison for Sexual Exploitation of Girl While Being Unregistered Sex OffenderRead the Press Release
Also Sentenced for Wire Fraud and Identity Theft Charges
CAMDEN, N.J. – A New York man was sentenced today to 300 months in prison for engaging in illicit sexual conduct with a 12-year-old girl and falsely claiming he had cancer in order to defraud victims out of $150,000, U.S. Attorney Paul J. Fishman announced.
Joseph Anthony Caracciolo, 50, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a four-count information charging him with traveling in interstate commerce to engage in illicit sexual conduct with a minor, committing that offense while being an unregistered sex offender with a duty to register under state and federal law, wire fraud and aggravated identity theft. Judge Bumb imposed the sentence today in Camden federal court.
According to the documents filed in the case and statements made in court:
Caracciolo admitted that on numerous occasions between June 2012 and August 2012, he travelled to New Jersey and Pennsylvania to engage in sexual intercourse with a then 12-year-old-girl, identified as “Victim 1” in the information. During this time, Caracciolo was not registered as a sex offender as required by his 1993 rape conviction in the Superior Court of Hampden County in Springfield, Massachusetts.
In July 2009, Caracciolo became romantically involved with a woman, identified in the information as “Victim 2,” with whom he had a child. Caracciolo admitted that he asked Victim 2’s parents to help pay for his cancer treatments, even though he wasn’t actually diagnosed with cancer. From December 2011 through August 2013, Victim 2’s father wired Caracciolo more than $150,000. Caracciolo also admitted that during this time, he used the identity of “Anthony Scibelli,” a Massachusetts man who died in 1998, to perpetuate the fraud.
Following the entry of Caracciolo’s guilty plea before Judge Bumb in January 2016, Caracciolo sought to withdraw his guilty plea in January 2017. At a hearing on Caracciolo’s motion to withdraw his guilty plea, Caracciolo admitted under cross-examination that he has lived a life of lies, including by telling people that he was a pediatric dentist and a celebrity chef, conning and deceiving women from coast to coast, selling sports memorabilia on eBay that he knew was not authentic, and selling fake cellphones and stereos.
In addition to the prison term, Judge Bumb sentenced Caracciolo to serve a lifetime of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Egg Harbor Township Police Department, the U.S. Marshals Fugitive Task Force, and members of the “Innocence Lost” Task Force from the Atlantic County Prosecutor’s Office and the Atlantic County Sheriff’s Office, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Peter Levin Esq., Philadelphia, Pennsylvania
New York Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. –A New York man was charged today with robbing a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.
Isaac Nesbit, 30, is charged by complaint with one count of bank robbery. He is expected to make his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
On Jan. 20, 2017, Nesbit allegedly entered the Bank of New Jersey in Fort Lee and presented the teller a note demanding cash and threatening to shoot everyone if the teller did not comply. After Nesbit left the bank with stolen money, law enforcement recovered the note and the clothes worn by Nesbit in a nearby dumpster. Nesbit was spotted and apprehended by law enforcement a short time later during a canvas of the surrounding area. The stolen cash was recovered from Nesbit’s back pocket. Nesbit has been detained in the Bergen County Jail on state charges related to the robbery.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sammi Malek 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 defendant is presumed innocent unless and until proven guilty
Postal Supervisor Charged with Theft of Government PropertyRead the Press Release
CAMDEN, N.J. – A Delran, New Jersey, man will appear in federal court today to face charges that he abused his position as a U.S. Postal Service supervisor to steal cash deposits, U.S. Attorney Paul J. Fishman announced.
Amar D. Patel, 35, is charged by complaint with knowingly embezzling, stealing, purloining, and converting to his use U.S. Postal Service funds exceeding $1,000. He is scheduled to appear this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to the complaint:
In July 2016, the U.S. Postal Service Office of Inspector General started investigating shortages in cash deposits reported by the Riverside, New Jersey, Delanco, New Jersey, and Delran post offices. Patel – who was a supervisor at those three offices – had access to deposit bags containing cash acquired during retail operations.
As part of the investigation, agents installed covert surveillance cameras inside the Riverside post office. On Jan. 14, 2017, one of the surveillance cameras captured images of Patel tearing open a sealed deposit bag, removing cash deposits, and placing the funds into his pocket. According to U.S. Postal Service financial records and bank deposit records, the Riverside office’s deposit was short $1,650 on Jan. 14, 2017.
Based on this and other information, Patel is accused of stealing $15,700 in U.S. Postal Service funds on 12 separate occasions from Feb. 20, 2016, through Jan. 14, 2017.
The embezzlement charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia, Pennsylvania.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Former Deportation Officer Convicted of Accepting Bribes, Harboring an Undocumented Immigrant and Lying to U.S. Immigration AuthoritiesRead the Press Release
NEWARK, N.J. – A Somerset, New Jersey, man was convicted by a federal jury today of accepting cash bribes and sex in exchange for providing employment authorization documents and concealing his employment of an undocumented immigrant at a hair salon he owned, U.S. Attorney Paul J. Fishman announced.
Arnaldo Echevarria, 39, a former deportation officer with Immigration and Customs Enforcement (ICE), was convicted of Counts 1-6 and Counts 8 and 9 of an indictment charging him with seven counts of accepting bribes, one count of harboring an undocumented immigrant and one count of making false statements to immigration authorities. He was acquitted on Count 7, one of the bribery counts. Echevarria was convicted following a one-week trial before U.S. District Judge Esther Salas in Newark federal court. The jury deliberated for one day before returning the guilty verdict.
According to statements made in court and evidence presented at trial:
As a deportation officer, Echevarria enforced immigration and customs laws by identifying, locating, arresting and removing undocumented immigrants from the United States and by supervising certain undocumented immigrants who had not yet been deported. Undocumented immigrants subject to a deportation order often were able to obtain employment authorization documents which allowed them to legally work in the United States for a one-year period and which could be renewed annually.
Between 2012 and 2014, Echevarria agreed to obtain employment authorization documents for undocumented immigrants who were not lawfully present in the country. In return, Echevarria demanded and received approximately $75,000 in cash bribes, and demanded and received sex from one individual. In order to conceal them from immigration authorities, Echevarria falsely stated that they had been granted temporary protected status, which allows nationals from certain countries experiencing environmental disaster, ongoing armed conflict, or other extraordinary conditions to lawfully remain in the United States. None of the individuals who bribed Echevarria had actually applied for, or received, temporary protected status.
In December 2012, Echevarria received permission from his superiors at ICE to open a hair salon in West Orange, New Jersey. Echevarria certified to ICE that the hair salon would not conflict with ICE matters and would not involve undocumented workers. However, Echevarria employed his girlfriend at the time, an undocumented immigrant, to manage the salon. Echevarria’s girlfriend had entered the United States illegally, using the name and identification of an individual in Puerto Rico to obtain a Pennsylvania identification card.
Echevarria knew his girlfriend resided in the United States illegally. Prior to opening the hair salon, Echevarria queried the name and date of birth of his girlfriend’s alias in various law enforcement databases. After opening the salon, Echevarria ensured that his girlfriend’s illegal status remained a secret by signing the lease for her apartment and by placing her cable and electric bills in his name. In addition to driving his girlfriend and other employees to and from the salon each day, Echevarria also paid the employees in cash and never asked them to fill out employment eligibility paperwork.
The six bribery counts on which Echevarria was convicted each carry a maximum potential penalty of 15 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, or three times the monetary equivalent of the things of value accepted by the defendant. The charges of harboring and making false statements are each punishable by a maximum potential penalty of five years in prison and $250,000 fine, or twice the gross gain or loss arising from the offense. Echevarria’s sentencing is scheduled for June 19, 2017.
U.S. Attorney Fishman credited special agents of ICE, Office of Professional Responsibility, under the direction of Special Agent in Charge Keith Barwick, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark, and Barbara Llanes, Deputy Chief of the General Crimes Unit.
Union County, New Jersey, Man Sentenced to Two Years in Prison for $1.1 Million Food Stamp FraudRead the Press Release
NEWARK, N.J. – A grocery store owner from Union County, New Jersey, was sentenced today to 24 months in prison for stealing more than $1.1 million through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.
Charles Silva, 33, of Hillside, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of theft of government funds. Judge Chesler imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Silva was the owner of Checkpoint Mini Mart, a small convenience store in Elizabeth, New Jersey. Checkpoint was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture.
Silva admitted he controlled a business bank account to receive the reimbursements for SNAP benefits. He knew that as a SNAP retailer, he was not allowed to exchange food stamps for cash.
From June 2015 through May 2016, he and others under his supervision illegally permitted recipients of SNAP benefits to redeem those benefits at Check Point Mini Mart for cash rather than food. Silva admitted that, in general, he and other employees redeemed SNAP benefits for approximately 30 cents on the dollar. He also admitted that from June 2015 through May 2016, Check Point Mini Mart received through its business account $1,131,063 for illegally redeemed SNAP benefits.
Silva admitted that shortly after receiving the money in the Check Point Mini Mart account, he transferred the money to another account which he used to pay personal expenses.
In addition to the prison term, Judge Chesler ordered Silva to serve three years of supervised released, forfeit $370,000 in criminal proceeds, and pay restitution of $990,000.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins in New York.
The government is represented by Special Assistant U.S. Attorney Frank A. Cavanagh of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: John P. McGovern Esq., Newark
Two South Jersey Men Charged with Bank RobberyRead the Press Release
CAMDEN, N.J. - Two Vineland, New Jersey, men were federally charged in connection with a Cumberland County, New Jersey, bank robbery, U.S. Attorney Paul J. Fishman announced.
Nathan L. Wallace, 28, and Quintin L. Jones, 34, are charged in separate complaints with one count of bank robbery. Wallace will appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court. Jones is scheduled to appear before Judge Schneider tomorrow morning. Both defendants had been in state custody since their arrests on related charges in October 2016.
According to the complaint:
On Oct. 11, 2016, Wallace and Jones allegedly robbed a Cape Bank in Upper Deerfield Township, New Jersey. According to bank employees and video surveillance, two men wearing black hooded sweatshirts entered the bank. While one man crouched near the entrance and pointed what appeared to be a black revolver at employees, the other man approached bank tellers and directed them to place cash into a bag.
Afterwards, both robbers fled and employees observed a tan or gold vehicle with a black soft-top rapidly exit the parking lot and turn in the direction of Vineland. Security cameras at the bank and an employee also captured pictures of the car. Investigators determined that the car matched the description of a Chrysler Sebring that was stolen on Sept. 22, 2016 during a carjacking in the parking lot of a Walmart in Mays Landing, New Jersey.
The following Saturday, on Oct. 15, 2016, troopers with the N.J. State Police responded to a vehicle fire at a parking lot in Parvin State Park in Pittsgrove Township, New Jersey. After fire personnel extinguished the flames, troopers determined that the vehicle was the same car that had been stolen in the carjacking on Sept. 22, 2016.
Subsequent investigation revealed that Wallace and Jones had allegedly purchased a gas can at a Walmart in Vineland and then took a cab to a Wawa gas station near Parvin State Park, where they purchased gas shortly before police responded to the vehicle fire. Investigators also learned that Jones, who had been staying at a local hotel on Oct. 15, 2016, had been observed by an employee placing a large amount of cash in a bag. Acting on this and other information, the N.J. State Police later obtained state arrest warrants for Wallace and Jones along with search warrants for their residences. Law enforcement personnel who searched Wallace’s residence also found clothing consistent with the outfits worn by the two men during the Cape Bank robbery as well as a toy revolver, cash, gloves, and a car key that appeared to be for the Chrysler Sebring.
If convicted of the bank robbery charges, Wallace and Jones each face up to 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Timothy Gallagher in Newark; the FBI’s South Jersey Resident Agency, under the direction of Special agent in Charge Michael Harpster in Philadelphia; the N.J. State Police, under the direction of Col. Rick Fuentes, as well as the Vineland Police Department; the Hamilton Township Police Department; the Newfield Police Department; the Cumberland County Prosecutor’s Office, and the Salem County Prosecutor’s Office, with the investigation.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charge and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Mercer County, New Jersey, Man Admits Role in Conspiracy to Distribute CocaineRead the Press Release
TRENTON, N.J. – A Trenton, New Jersey, man today admitted his role in a conspiracy to sell more than 1.5 kilograms of cocaine and more than 87 grams of cocaine base in the Trenton area, U.S. Attorney Paul J. Fishman announced.
William Enmond, 53, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine, and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.
According to the documents filed in this case and statements made in court:
From September of 2013 through his arrest on Jan. 13, 2016, Enmond conspired with co-defendants Bobby Williams, Khalfini Richardson and Capitol T. Wellons to distribute cocaine, and to manufacture and distribute cocaine base, primarily from two adjacent residences in Trenton. On Sept. 6, 2013, Enmond sold 446.5 grams of cocaine to a confidential government source in exchange for $17,320. Enmond admitted to conspiring to distribute and possess with intent to distribute 1.72 kilograms of cocaine and to conspiring to manufacture as well as distribute, and possess with intent to distribute, 87.9 grams of cocaine base.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and detectives of the Mercer County Prosecutor’s Office Special Investigations Unit, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s guilty plea.
The count to which Enmond pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum of 40 years in prison and a fine of up to $5 million or twice the gross profits or other proceeds to Enmond. Sentencing is scheduled for June 13, 2017.
The government is represented by Assistant U.S. Attorneys Molly Lorber and Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Charges and allegations pending against the remaining defendants are merely accusations, and they are considered innocent unless and until proven guilty.
Defense counsel: Mark G. Davis Esq., Hamilton, New Jersey
Former N.J. Lawyer Sentenced to Four Years in Prison for $40.8 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey lawyer was sentenced today to 48 months in prison for participating in a conspiracy that caused lenders to release $40.8 million based on fraudulent mortgage loan applications and laundered the proceeds of the fraud, U.S. Attorney Paul J. Fishman announced.
Joseph W. Witkowski, 70, of Flemington, New Jersey, previously pleaded guilty to an indictment charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. District Judge Joseph H. Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Witkowski and his conspirators located oceanfront condominiums overbuilt by financially distressed developers in Wildwood Crest, New Jersey; premier real estate in vacation destinations in Georgia and South Carolina; and properties in New Jersey owned by financially distressed homeowners facing foreclosure. They then recruited “straw buyers” – people with good credit scores but lacking the financial resources to qualify for mortgage loans – to purchase those properties.
Witkowski and his conspirators created false documents, including fake W-2 forms, income tax returns, investment statements, and rental agreements, to make the straw buyers appear more creditworthy than they actually were. They also established numerous telephone lines for companies owned by some of the conspirators so that when a lender contacted the telephone number, the conspirators could falsely verify that a straw buyer was employed by the company listed on his or her fraudulent loan application.
Witkowski also caused fraudulent mortgage loan applications in the name of the straw buyers and supporting documents, which attributed to the straw buyers inflated income and assets, to be submitted to mortgage lenders. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Witkowski and his conspirators had some of the funds wired or checks deposited into various accounts that he and his conspirators controlled.
In addition to the prison term, Judge Rodriguez sentenced Witkowski to three years of supervised release and ordered restitution of $13,105570. As part of his plea agreement, he must forfeit $2,412,899, representing the proceeds of the fraud.
U.S. Attorney Fishman 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 sentencing.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Operator of South Jersey Tax Preparation Company Sentenced to One Year in Prison for $340,000 Tax Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, woman was sentenced today to 12 months in prison her role in a conspiracy to boost business at a tax preparation company she operated by preparing bogus income tax returns for her clients, U.S. Attorney Paul J. Fishman announced.
Noemi Pender, 58, of Rosenhayn, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Pender was a tax preparer who operated Pender Tax Services in Rosenhayn. For the tax years 2007 through 2011, Pender and Grace Garrett, 64, of Pittsgrove, New Jersey, sought to increase referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information. They used a number of fraudulent practices, including falsely claiming a filer was a “head of household,” inventing and inflating deductions, creating fictitious dependents, and creating false credits for education and childcare.
The bogus returns resulted in a tax loss to the government of more than $340,000.
In addition to the prison term, Judge Hillman ordered Pender to serve three years of supervised release and pay restitution of $341,439.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the 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: Jeffrey Zucker Esq., Camden
New York Man Charged with Two Bank Robberies in Bergen County, New JerseyRead the Press Release
NEWARK, N.J. – A man charged with robbing TD Banks in Fort Lee, New Jersey, and Hasbrouck Heights, New Jersey, made his initial court appearance today, U.S. Attorney Paul J. Fishman announced.
Eddy Cruz, 41, of Manhattan, New York, is charged by complaint with two counts of bank robbery. Cruz appeared this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to the complaint:
On Feb. 13, 2017, Cruz allegedly entered a TD Bank in Fort Lee wearing a hat, sunglasses, and a tight-fitting mask. Cruz presented the teller with a note demanding cash and then left the bank with the stolen money.
On Feb. 18, 2017, Cruz entered another TD Bank in Hasbrouck Heights wearing a similar disguise. As in the previous robbery, Cruz presented a teller with a note demanding cash and then left with the stolen money.
On Feb. 24, 2017, law enforcement officers tracked his car, which had been spotted at one of the earlier bank robberies, to a location in Manhattan. Later that day, Cruz drove to yet another TD Bank in Englewood, New Jersey, where he was apprehended by FBI special agents outside the bank while wearing the same disguise that he allegedly used in the prior robberies.
Among the items recovered from Cruz following his arrest were latex gloves, a scarf, sunglasses, and the tight-fitting mask, all of which Cruz was wearing at the time of his arrest. In addition, law enforcement officers recovered a handwritten note demanding money from inside Cruz’s vehicle.
Cruz has been detained in the Bergan County Jail on state charges related to both bank robberies.
The bank robbery counts each carry 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.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark and Acting Special Agent in Charge William Sweeney in New York; the Bergen County Prosecutor’s Office, under the direction of Bergen County Prosecutor Gurbir S. Grewal; the Fort Lee Police Department, under the direction of Police Chief Keith M. Bendul; the Hasbrouck Heights Police Department, under the direction of Police Chief Michael J. Colaneri; the Roxbury Police Department, under the direction of Chief Marc Palanchi; and the Paramus Police Department, under the direction of Chief Kenneth Ehrenberg. He also thanked the Greenburgh, New York, the Mount Pleasant, New York, and Yonkers, New York, police departments, as well as the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber 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 defendant is presumed innocent unless and until proven guilty.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Member of Camden, New Jersey, Drug Trafficking Organization Admits Drug Conspiracy and Firearm OffensesRead the Press Release
CAMDEN, N.J. - A Camden, New Jersey, man today admitted his role in a crack cocaine distribution conspiracy, U.S. Attorney Paul J. Fishman announced.
Tony Wilson, a/k/a “Tony Langston,” a/k/a “Tone,” and a/k/a “H,” 25, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and statements made in court:
Wilson admitted that he was a member of an organization which sold crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden. Wilson also admitted that he possessed a .40 caliber handgun in connection with the organization’s drug trafficking activities.
Wilson, Jason Boyd, Joseph Boyd, Preston Thomas, Derek Stallworth, Jeffrey Whitaker, Nafeez Griffin, and Julian Dickerson were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
Two other charged conspirators have also pleaded guilty to drug conspiracy and firearm offenses.
On Jan. 17, 2017, Jason Boyd, 36, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” pleaded guilty before Judge Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Boyd’s sentencing is scheduled for April 28, 2017.
On Dec. 8, 2016, Derek Stallworth, 20, a/k/a “AK” and a/k/a “A,” of Camden, also pleaded guilty before Judge Simandle to the same charges. Stallworth’s sentencing is scheduled for March 24, 2017.
On Feb. 8, 2017, a federal grand jury also charged Preston J. Thomas, 30, a/k/a “Boo,” of Camden, in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. In addition, the superseding indictment charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, with the same drug trafficking conspiracy offense.
Charges against Joseph Boyd, Nafeez Griffin, Julian Dickerson, Jeffrey Whitaker, and Preston Thomas remain pending.
The drug distribution conspiracy charges carry a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charges carry a mandatory minimum sentence of five years in prison to be served consecutively to the conspiracy charges. Sentencing is scheduled for June 16, 2017.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to today’s guilty plea.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the above-referenced complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Passaic County, New Jersey, Man Sentenced to Two Years in Prison for Illegally Possessing MachinegunsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 24 months in prison for possession of multiple machineguns, which are illegal under federal law, U.S. Attorney Paul J. Fishman announced.
Mariusz Cebula, 36, Ringwood, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of knowingly possessing five machineguns, which are defined as weapons that can shoot more than one shot automatically, without manual reloading, by a single function of the trigger. Judge Wigenton imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Cebula admitted that he possessed five machineguns, but agreed to forfeit to the Government an additional 12 machineguns and machinegun parts, all of which were possessed illegally, as well as 10 other firearms and firearm parts. The five machineguns specifically charged in the information were determined to be readily operational as automatic weapons, meaning that they required no modification to shoot more than one shot automatically by a single function of the trigger and without manual reload. Cebula obtained most of the firearms through purchases at gun shows from unlicensed gun sellers and on the Internet.
Besides the machineguns charged in the information and forfeited by him, Cebula also possessed numerous other firearms, weapons and ammunition, all of which have been administratively forfeited by the Passaic County Prosecutor’s Office. According to data published by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the town of Ringwood ranked number six on the list of top ten cities in New Jersey where guns were seized in 2015, behind Newark, Paterson, Trenton, Jersey City and Camden. Of the 93 recovered guns that propelled Ringwood, New Jersey to the sixth spot on the list, the overwhelming majority (approximately 80) were recovered from Cebula’s home.In addition to the prison term, Judge Wigenton sentenced Cebula to three years of supervised release.
U.S. Attorney Fishman 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, and the Ringwood Police Department, under the direction of Chief Joseph Walker, with the investigation leading to the charge. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its role in the case.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Miles Feinstein Esq., Clifton, New Jersey
Former New Jersey Attorney General and Chairman of Port Authority Board of Commissioners Sentenced to One Year of Home Confinement for BriberyRead the Press Release
Court Also Fines Him $100,000, Orders Four Years’ Probation
NEWARK, N.J. – David Samson, the former chairman of the Board of Commissioners of the Port Authority of New York and New Jersey, was sentenced today to 12 months of home confinement and four years of probation for using his official authority to pressure the parent company of United Airlines Inc. to institute a non-stop flight from Newark to South Carolina for his personal benefit, U.S. Attorney Paul J. Fishman, Inspector General Michael Nestor of the Port Authority of New York and New Jersey, Office of Inspector General, and Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division, announced.
Samson, 77, of Aiken, South Carolina, who served as New Jersey Attorney General from 2002 to 2003 and was the founding member and chairman of the law firm Wolff & Samson PC, previously pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an information charging him with one count of bribery. Judge Linares imposed the sentence today in Newark federal court.
“We believe that Mr. Samson’s crime, which involved a substantial violation of trust by a high-ranking public official, warranted a significant term of incarceration,” U.S. Attorney Fishman said. “Obviously we’re disappointed in the sentence, but we respect the court’s decision.”
“The investigation, prosecution, and sentencing of David Samson demonstrates that no individual is above the law, and that no government employee may use their official position for personal gain,” Inspector General Nestor said. “The Port Authority Office of Inspector General will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”
“The FBI’s stance on public corruption is that of zero tolerance and therefore one of our highest priorities,” Special Agent in Charge Gallagher said. “We in the FBI believe that public corruption is among the most serious of criminal violations. It is a betrayal of the public’s sacred trust. If allowed to grow, public corruption permeates all aspects of society and affects all other criminal priorities. And if allowed to spread unchecked, public corruption can threaten the very foundation of democracy. These charges reflect the FBI’s commitment to fighting public corruption and we will continue to aggressively pursue those that participate in these types of crimes.”
According to documents filed in this case and statements made in court:
The Port Authority operates Newark Liberty International Airport, one of United’s largest hubs. In September 2011, several months after Samson became the chairman of the Port Authority, he and Jamie Fox, who at the time was a paid consultant and lobbyist for United Continental Holdings Inc. (United), the Chicago-based parent company of United Airlines Inc., met with representatives of United for dinner at a restaurant in New York. (Fox, who was the commissioner of the N.J. Department of Transportation from September 2014 to October 2015 and who was charged separately with conspiring with Samson to commit bribery, died Feb. 20, 2017.)
During that dinner and following a discussion of certain of United’s priorities for Newark Airport, Samson told the United representatives that Continental Airlines Inc., a predecessor of United, used to have non-stop flight route between Newark Airport and Columbia Airport, and that the route had made his travel from New Jersey to his home in South Carolina more convenient. A United representative responded that United generally stopped flying routes because they were not profitable, but told Samson that United would look into reinstating the Newark/Columbia route.
Subsequent to this dinner and additional inquiries from Fox on Samson’s behalf, United concluded that reinstating the Newark/Columbia route would not be profitable and communicated United’s lack of interest to Fox. Samson and Fox used Samson’s official position and authority as chairman of the Port Authority’s Board of Commissioners – which included control over the board’s agenda – to pressure United to reinstate the Newark/Columbia route. In November 2011, Samson and Fox were aware that an agreement between United and the Port Authority relating to United’s construction of a wide-body maintenance hangar at Newark Airport was to be presented to the Port Authority Board for its consideration at its Nov. 5, 2011, meeting. In an email exchange between Samson and Fox on Nov. 2, 2011, Samson and Fox discussed using Samson’s official authority to remove from the agenda the hangar agreement for the purpose of pressuring United to reinstate the Newark/Columbia route. Samson wrote Fox that he was “reviewing current Board agenda items of interest.” Referring to the hangar agreement, Fox suggested to Samson that “[m]aybe it needs further review!!!!!,” to which Samson responded “[y]es, it’s already off this month’s agenda: I hate myself.” Following through on this exchange with Fox, Samson caused the hangar agreement to be removed from the Port Authority Board’s agenda.
In advance of the board’s next meeting on Dec. 8, 2011, Samson and Fox continued to use Samson’s official authority to pressure United. On multiple occasions, Fox communicated to United that its failure to reinstate the route had made Samson angry and was having a negative impact on United’s relationship with the Port Authority. Samson and Fox also discussed further using Samson’s official authority over the board’s agenda to pressure United. On Dec. 7, 2011, the day before the Port Authority Board’s meeting, Samson sent Fox an email telling him that Samson had given instructions to remove the hangar agreement from the agenda. Fox responded that he thought it was a good time to put the agreement back on the agenda and Samson agreed to do so. The Port Authority Board then considered the hangar agreement on Dec. 8, 2011, and approved it. Fox later emailed Samson: “Finally have their [United’s] attention. Having item off/on this week worked,” referring to the hangar agreement.
As a result of the repeated use of Samson’s official authority to pressure United by Samson and Fox, United decided to reinstate the Newark/Columbia route. Based on Samson’s preferred travel schedule to South Carolina, which Fox communicated to United, the airline implemented a weekly schedule that only included flights from Newark Airport to Columbia Airport departing at 6:00 p.m. on Thursdays (with a returning flight the same night) and from Columbia Airport to Newark Airport departing at 6:20 a.m. on Mondays (after a flight to Columbia Airport the evening before). United began flying the Newark/Columbia route in September 2012 and operated the route until March 2014. Samson used the Newark/Columbia route on 27 occasions between October 2012 and January 2014. Samson and others referred to the Newark/Columbia route as the “Chairman’s Flight” and Fox referred to it as “Samson Air.”
In addition to home confinement and probation, Judge Linares sentenced Samson to 3,600 hours of community service and fined him $100,000.U.S. Attorney Fishman credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Vikas Khanna and Lee M. Cortes Jr. and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney David Feder of the criminal division.
Defense counsel: Michael Chertoff Esq., Washington, D.C., & Justin Walder Esq., Hackensack, New Jersey
Bergen County Doctor Convicted of Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A family doctor practicing in Bergen County, New Jersey, was convicted today of all 10 counts of an indictment charging him with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Bernard Greenspan, 79, of River Edge, New Jersey, was convicted of one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Greenspan was convicted following a 11-day trial before U.S. District Judge William H. Walls in Newark federal court. The jury deliberated just over four hours before returning the guilty verdict.
“We rightfully expect doctors to make their medical decisions based solely on what’s in the best interest of a patient,” U.S. Attorney Fishman said. “Whether they are dealing with a routine procedure or grappling with a potentially serious condition, patients should never have to worry that a doctor has violated that trust for personal greed. As we showed at trial – and the jury agreed – Greenspan abused his position and broke a wide range of federal laws when he accepted cash bribes and other illicit services in return for blood test referrals to BLS.”
“Patients have every right to insist that their physician is making medical referrals based on what is best for the patient—not what’s best for the doctor’s bank account,” said Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “Bernard Greenspan decided to accept bribes in exchange for referrals and deprived patients of their right to honest services. These types of kickback arrangements cripple the healthcare industry and severely impact patient care. The FBI remains committed to investing its resources to combat these types of schemes.”
According to the indictment and testimony at trial, between March 2006 and April 2013, Greenspan received bribes totaling approximately $200,000 from BLS employees and associates. Greenspan periodically solicited and received monthly bribe payments in the form of sham rental, service agreement, and consultant payments.
In addition, Greenspan solicited and received other bribes, including payment for holiday parties for Greenspan and his office staff and additional cash bribes for ordering specific blood tests. In addition, BLS hired – at Greenspan’s specific request –a patient of Greenspan’s with whom he was having a sexual relationship. Greenspan’s referrals generated approximately $3 million in lab business for BLS.
The investigation has thus far resulted in 43 convictions – 29 of them of 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.
“This verdict should serve as a warning to any health care provider that dares to put personal profit ahead of proper patient care,” said Scott J. Lampert, Special Agent in Charge, Office of Inspector General, U.S. Department of Health and Human Services. “HHS-OIG, along with our law enforcement partners, will continue to aggressively pursue those who seek to undermine the federally funded health care programs intended for our most vulnerable Americans.”
“Dr. Greenspan violated the Hippocratic Oath taken by medical professionals when he pledged to ‘come for the benefit of the sick, remaining free of all intentional injustice,” said Inspector in Charge James V. Buthorn of U.S. Postal Inspection Service, Newark Division. “The culture of kickbacks and bribery have no place in our healthcare system, and the U.S. Postal Inspection Service was proud to do our part, working with our law enforcement partners to ensure justice was served today. Congratulations on the successful outcome to the agents and prosecutors who untiringly worked on investigating this case and preparing for trial.”
The investigation has 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, Anti-Kickback, and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are punishable by a maximum potential penalty of 20 years in prison per count. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Greenspan’s sentencing is scheduled for June 20, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge 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 Lampert with the ongoing investigation.
The government was represented at trial by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, 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: Damian Conforti Esq. and Eric Kanefsky Esq., Newark, NJ
New Jersey Resident Pleads Guilty to Theft of Public MoneyRead the Press Release
A New Jersey man pleaded guilty today in the U.S. District Court for the District of New Jersey in Newark, to one count of theft of public money, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to information and documents presented to the court, from approximately December 2010 through April 2014, Derrick M. Madison, 39, of Jersey City, New Jersey, used the Internal Revenue Service’s (IRS) telephone payment system hundreds of times in an effort to make fake payments to a taxpayer account he controlled from bank accounts that were closed, frozen or had minimal balances. The goal was to induce the IRS to fully credit these fake payments and then for the IRS to “refund” Madison for his overpayments. On one occasion, the IRS issued Madison a $170,681 refund check, which he deposited into his bank account.
Sentencing is scheduled for June 12. Madison faces a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Eric Powers 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.
California Man Sentenced to 76 Months in Prison for Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A California man was sentenced today to 76 months in prison for his role in a conspiracy to traffic approximately 12 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.
Jesus Raul Iribe, 38, of Riverside, California, previously pleaded guilty before U.S. District Court Judge Kevin McNulty to an information charging him with one count of conspiring to distribute more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
On Feb. 8, 2013, law enforcement officers recorded and observed meetings between Iribe and other conspirators in which they allegedly planned to use a tractor-trailer to transport cocaine from California to New Jersey and other destinations along the East Coast. Eventually, law enforcement followed the tractor trailer to Bronx, New York, where they recovered a produce box containing 12 kilograms of cocaine. Iribe admitted that he conspired with others to traffic the cocaine from California to New Jersey.
In addition to the prison term, Judge McNulty sentenced Iribe to five years of supervised release. Under terms of the plea agreement, he must also forfeit $446,310 in cash, three handguns, and an AR-1 assault rifle that were recovered when he was arrested in March 2015.
U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA Los Angeles Field Office, and the Fontana, California Police Department.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office General Crimes Unit.
Passaic County, New Jersey, Doctor Pleads Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, 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, U.S. Attorney Paul J. Fishman announced today.
Salvatore Conte, 52, of Totowa, New Jersey, pleaded guilty to Count One, Count Two, Count Five, and Count Eight of an indictment charging him with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes, one substantive violation of the Anti-Kickback Statute, one substantive violation of the Federal Travel Act, and one substantive violation of wire fraud. Conte pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
Conte admitted accepting bribes from BLS employees and associates in the form of sham rental, service, and consulting agreements. From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte’s referrals generated approximately $525,000 in lab business for BLS.
Conte was the fifth physician indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. 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. Bernard Greenspan was indicted on March 14, 2016 and his trial is ongoing before U.S. District Judge William H. Walls.
The investigation has thus far resulted in 42 guilty pleas – 28 of them from 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, Anti-Kickback, and Federal Travel Act counts to which Conte pleaded guilty are each punishable by a maximum potential penalty of five years in prison. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Conte’s sentencing is scheduled for June 6, 2017.
U.S. Attorney Fishman 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.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, 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: Howard Brownstein Esq., Jersey City, New Jersey
Ohio Man Admits Defrauding Essex County, New Jersey, Company Out of More Than $950,000Read the Press Release
NEWARK, N.J. – A Milford, Ohio, man today admitted using an Essex County, New Jersey, medical company’s credit card without the company’s permission or consent to fraudulently obtain more than $950,000, U.S. Attorney Paul J Fishman announced.
John Tekulve, 44, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
From January 2011 through October 2012, Tekulve owned a medical supply company that sold products to an Essex County medical company. He obtained the company’s credit card information, which he used to fraudulently bill the company nearly $1 million for products and services that neither Tekulve nor his medical supply company provided. Tekulve then used the proceeds of the scheme for his own purposes, including the purchase of high-end automobiles and jewelry.
The count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Defense counsel: Peter Carter Esq., Newark
Middlesex County, New Jersey, Man Admits to Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted distributing and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
John Fricovsky, 57, of Edison, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to documents filed in the case and statements made in court:
Fricovsky admitted that in February 2015 he sent an email attaching an image of child sexual abuse involving a child under the age of 12. He also admitted to, in December 2015, possessing computer devices containing at least 10, but fewer than 150, images of child sexual abuse.
The possession of child pornography charge to which Fricovsky pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Fricovsky will be required to register as a sex offender. Sentencing is currently scheduled for June 7, 2017.
U.S. Attorney Fishman credited Special Agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Former Pharmaceutical Employee Admits Role in Scheme to Obtain Medically Unnecessary Compounded MedicationRead the Press Release
NEWARK, N.J. – A former pharmaceutical company employee today admitted accepting thousands of dollars in exchange for filling medically unnecessary prescriptions for compounded medications for herself and her husband, causing losses of $956,885, U.S. Attorney Paul J. Fishman announced.
Julie Andresen, 39, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging her with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Andresen, a former employee of a New Jersey pharmaceutical company, admitted that from September 2014 through September 2015, she received payments from a marketing business – identified in the information as “Company A” – for filling and obtaining medically unnecessary prescription compounded medications for herself and her husband through the pharmaceutical company’s prescription drug benefit plan.
As part of the scheme, Andresen approached a doctor – who was a close friend – at social gatherings that they attended. She would give the doctor pre-printed forms listing compounded medications and ask the doctor to authorize the medications. The doctor did so, as well as authorizing multiple refills. Andresen faxed prescriptions to compounding pharmacies located outside of New Jersey designated by Company A. The compounding pharmacies would fill and bill Andresen’s prescription drug benefit plan. The pharmaceutical company’s prescription drug benefit plan reimbursed the compounding pharmacies $13,572 to $43,689 for each compounded medication Andresen and her husband received.
The compounding pharmacies would pay Company A a percentage of the reimbursement amount, and Company A would pay Andresen a percentage of the amount Company A received from the compounding pharmacies. Andresen received a total of $161,378 from Company A for her role in the conspiracy. The pharmaceutical company lost $956,885 from this scheme.
The conspiracy to commit health care fraud count to which Andresen pleaded guilty carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 7, 2017.
On June 29, 2016, Stephanie Naar, 27, of St. Louis, Missouri, who had been an employee of the same pharmaceutical company as Andresen, pleaded guilty before Judge Vazquez and admitted accepting thousands of dollars in exchange for obtaining and filling her own medically unnecessary prescriptions for compounded medications.
On July 19, 2016, Peter Pappas, 44, of Drexel Hill, Pennsylvania, another former employee of the same New Jersey pharmaceutical company as Andresen, also pleaded guilty before Judge Vazquez and admitted to accepting thousands of dollars in exchange for obtaining and filling his own medically unnecessary prescriptions for compounded medications. Pappas also admitted to recruiting others into this scheme.
Naar and Pappas both await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office, Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, 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: Judson Aaron Esq., Philadelphia
Technology Company Owner Admits Paying Bribes to Secure Contract with Medical Device CompanyRead the Press Release
NEWARK, N.J. – A Stamford, Connecticut, man today admitted paying bribes in order to secure a contract between his metallurgical technology company and a medical device company, U.S. Attorney Paul J. Fishman announced.
Eugene Ostrovsky, 56, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with violating the Federal Travel Act.
According to documents filed in this case and statements made in court:
Ostrovsky was a principal at a metallurgic technology company in New York. Ostrovsky admitted that he and others sought a multimillion-dollar supply contract with a medical device company in New Jersey. From 2012 through 2013, Ostrovsky and others paid approximately $70,000 in illicit bribes to an employee of the medical device company – Daniel Lawrynowicz, 47, of Monroe, New York – in return for Lawrynowicz’s assistance in securing the contract.
The count of violating the Federal Travel Act carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Ostrovsky must also forfeit $1.1 million as part of today’s guilty plea. Sentencing is scheduled for June 29, 2017.
On March 23, 2016, Lawrynowicz was charged by complaint with accepting the bribe payments. The charge and allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Paula M. Junghans Esq.
Gloucester County, New Jersey, Man Sentenced to 37 Months in Prison for 2015 South Jersey Bank Robbery SpreeRead the Press Release
CAMDEN, N.J. – A Deptford, New Jersey, man was sentenced today to 37 months in prison for robbing five New Jersey banks and one Pennsylvania bank between June 2015 and September 2015, U.S. Attorney Paul J. Fishman announced.
Michael A. Fanelli, a/k/a “Michael Carducci,” 37, previously pleaded guilty before U.S. District Judge Reneé Marie Bumb to an information charging him with six counts of bank robbery. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court, Fanelli robbed the following banks on the dates set forth below:
Bank
Location
Date
Cornerstone Bank
West Deptford, New Jersey
June 2, 2015
Fulton Bank
Mullica Hill, New Jersey
June 5, 2015
Malvern Federal Savings Bank
Concordville, Pennsylvania
July 22, 2015
Susquehanna Bank
Mullica Hill, New Jersey
July 28, 2015
Susquehanna Bank
Mullica Hill, New Jersey
Aug. 21, 2015
National Penn Bank
Florence, New Jersey
Sept. 24, 2015
Fanelli typically robbed each bank by approaching a teller, displaying what appeared to be a firearm, and demanding money.
Fanelli robbed the same Susquehanna Bank on July 28, 2015 and August 21, 2015. Immediately following his robbery of National Penn Bank on Sept. 24, 2015, Fanelli was followed by law enforcement officers to his residence, where he was taken into custody.
In addition to the prison term, Judge Bumb sentenced Fanelli to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation. He also thanked the West Deptford, Harrison Township, and Florence Township police departments, as well as the Gloucester County Prosecutor’s Office and the Pennsylvania State Police for their assistance.The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender
Former Bayonne Official Sentenced to 21 Months Prison for Accepting $65,000 in Bribes for Awarding HUD Grant FundsRead the Press Release
TRENTON, N.J. – A Hudson County, New Jersey, man, who served as the senior accountant of the City of Bayonne Department of Community Development (CBDCD) was sentenced today to 21 months in prison for accepting $65,000 in bribe payments in exchange for his assistance in awarding projects funded by U.S. Department of Housing and Urban Development grants, U.S. Attorney Paul J. Fishman announced.
Anselmo Crisonino, 56, of Bayonne, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to a four-count information charging him with one count of accepting bribe payments totaling approximately $65,000 from Joseph Arrigo, the owner of a contracting company in Bayonne. Crisonino also pleaded guilty to one count of theft and conversion of federal funds ($422,360), one count of conducting an illegal gambling business, and one count of submitting a false tax return for tax year 2011.
According to documents filed in this case and statements made in court:
The CBDCD was an agency that received funds from the U.S. Department of Housing and Urban Development (HUD) under a federal program that provided grants up to $20,000 to low income families to rehabilitate their homes and to repair conditions affecting health and safety, accessibility, energy efficiency or code compliance. The CBDCD also provided these HUD funds under the same federal program to nonprofit organizations. Crisonino was responsible for reviewing applications and awarding such funds to qualified applicants.
In September 2010, Crisonino solicited cash bribe payments from Arrigo in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo as the owner of Shadow Contracting LLC. From September 2010 to February 2013, Crisonino received cash payments from Arrigo totaling approximately $65,000 in exchange for Crisonino’s assistance in awarding HUD grant funds from the CBDCD to Arrigo that totaled approximately $426,000.
Between September 2010 and February 2013, Crisonino awarded HUD grant funds to several contractors and plumbers in Bayonne through the CBDCD, despite the fact that Crisonino knew that the submitted bids for the projects were fraudulent and were the result of collusion by the contractors and plumbers. Crisonino also approved change orders on projects where little to no legitimate work had been done by the contractors and plumbers at the job sites. The approved change orders allowed the CBDCD to disperse additional HUD grant funds to the projects that had already reached the maximum $20,000 grant allotment.
Crisonino also pleaded guilty to conducting an illegal gambling business in northern New Jersey. The illegal gambling business was administered and managed through a website that Crisonino and others accessed through usernames and passwords.
He admitted making and subscribing a U.S. Individual Tax Return, Form 1040, for tax year 2011 filed with the IRS, which he did not believe to be true and correct as to every material matter, including approximately $65,000 in unreported income through the bribe payments.
In addition to the prison term, Judge Sheridan sentenced Crisonino to three years of supervised release and ordered him to pay restitution of $439,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark: 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 IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, with the investigation leading to today’s sentencing plea.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division.
Defense counsel: Daniel J. Welsh Esq., Jersey City, N.J.
Owners of Popular Ocean City, New Jersey, Pizza Restaurants Sentenced on Tax Evasion, Structuring and Making False StatementsRead the Press Release
CAMDEN, N.J. – The owners of popular Ocean City, New Jersey, restaurant chain Manco & Manco Pizza were sentenced today for evading taxes, structuring cash payments to avoid reporting requirements and lying to IRS special agents, U.S. Attorney Paul J. Fishman announced.
Charles Bangle, 57, of Somers Point, New Jersey, was sentenced to 15 months in prison. He previously pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 5 of an indictment charging him with evading taxes with respect to his 2010 personal tax returns and Count 30 charging him with structuring financial transactions in 2011 to avoid reporting requirements. His wife, Mary Bangle, 56, also of Somers Point, was sentenced to three years of probation and fined $3,000. She previously pleaded guilty to Count 7 of the same indictment, which charges her with knowingly making materially false statements to IRS special agents. Judge Kugler imposed the sentences today in Camden federal court.
According to the documents filed in this case and statements made in court:
Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.
Charles Bangle admitted to substantially underreporting his income on his 2010 U.S. individual income tax return, specifically, failing to report additional taxable income that he deposited in cash into his bank account during that year. According to the indictment, by only reporting $127,955 in 2010 and omitting an additional $263,113 in taxable income, Charles Bangle avoided $91,577 in taxes. Charles Bangle also admitted to making cash deposits into his TD Bank account in February of 2011 in increments of less than $10,000 in order to prevent TD Bank from filing a Currency Transaction Report with the U.S. Department of Treasury.
Mary Bangle admitted that she was interviewed by IRS special agents on May 30, 2012, at which time she was asked questions about her personal bank account. Mary Bangle falsely stated that when cash receipts came into the business she only retained enough to pay that week’s payroll and some bills, when in fact she retained cash receipts for her personal use. Mary Bangle also lied to agents about the amount of cash deposited into her personal banking account, which was substantially more that the net pay listed on her W-2 forms issued by Manco and Manco Pizza.
In addition to the prison term, Judge Kugler sentenced Charles Bangle to three years of supervised release, ordered him to pay restitution of $248,560 and fined him $5,000. He allowed Bangle until Sept. 10, 2017, to report to the federal Bureau of Prisons to begin serving his sentence.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencings.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: Laurence S. Shtasel Esq., Philadelphia
Mercer County, New Jersey, School Bus Driver Admits Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Yardville, New Jersey, man today admitted using his e-mail account to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Christopher Walsh, 31, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of receiving and distributing child pornography.
According to documents filed in this case and statements made in court:
From June 15, 2014 through Jan. 10, 2016, Walsh’s email account either sent or received a total of 1,590 files that contained content constituting child pornography. Walsh, who was a school bus driver, admitted today that on Aug. 2, 2015, he knowingly emailed a video depicting child sexual abuse to another individual.
Walsh faces a maximum potential penalty of 20 years in prison, a minimum penalty of five years in prison, a $250,000 fine, and up to a lifetime of supervised release.
U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Molly S. Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Assistant Federal Public Defender Lisa Van Hoeck Esq., Trenton, New Jersey.Ocean County, New Jersey, Business Owner Admits Operating Unlicensed Money Transmitting BusinessRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted owning and operating an unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.
Yisroel Malamud, 53, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with running an unlicensed money transmitting business.
According to documents filed in this case and statements made in court:
Between January 2010 and May 2013, Malamud maintained a retail storefront in Lakewood under the name “Beepers Plus.” Malamud received money from members of the public, deposited the funds into bank accounts that he maintained in the name of different entities, and then transmitted the money from those bank accounts to third-parties within the United States in accordance with the customers’ instructions, charging the customers a fee for this service.
New Jersey law provides that the operation of an unlicensed money transmission business is punishable as a felony. Federal law requires anyone conducting such a business to register the business with the Secretary of the Treasury. Malamud did not possess and failed to obtain a money transmitting license, nor did he register with the Secretary of the Treasury.
The charge to which Malamud pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea.
The government is represented by Deputy Chief, Criminal Division Eric W. Moran of the U.S. Attorney’s Office in Newark.
Defense Counsel: Peter W. Till Esq., Springfield, New Jersey, and Stacy Ann Biancamano Esq., Chatham, New Jersey
Member of Large-Scale ‘ATM Skimming’ Scheme Sentenced to 57 Months Prison for Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Alin Carabus, 43, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with conspiracy to commit bank fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this and other cases and statements made in court:
Carabus admitted he was part of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.
Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs.
The stolen data was used to create thousands of fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.
In addition to the prison term, Judge Martini also sentenced Carabus to five years of supervised release and ordered to pay restitution and forfeiture of $5 million.
The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Carabus, Vintila and Radu, have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division in Newark.
Defense Counsel: Joseph M. Corazza Esq., Sparta, New Jersey
Three People Admit Conspiracy to Import and Traffic Counterfeit Electronic ProductsRead the Press Release
NEWARK, N.J. – Three people admitted today that they smuggled counterfeit electronics, including Apple iPhones, iPads and iPods, from China for sale in the United States, U.S. Attorney Paul Fishman of the District of New Jersey, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Terence Opiola of Homeland Security Investigations (HSI) in Newark, and Bergen County Prosecutor Gurbir Grewal announced.
Andreina Becerra, 31, a Venezuelan national, Roberto Volpe, 34, an Italian national, and Rosario La Marca, 54, an Italian national and resident of Naples, Italy, were originally charged in an eight-count indictment returned in April 2015 with importing and trafficking fake iPhones, iPads and iPods bearing counterfeit Apple trademarks, and fake camcorders bearing counterfeit Sony trademarks, as well as smuggling, structuring and international money laundering.
The three defendants pleaded guilty before U.S. District Court Judge Kevin McNulty in Newark federal court to Count One of the indictment, charging conspiracy to traffic in counterfeit goods, to smuggle goods into the United States, and to structure financial transactions, and Count Two, charging trafficking in counterfeit goods.
As part of their plea agreements, Volpe and Becerra, who are husband and wife, agreed to forfeit their interest in 10 bank accounts, three Florida condominiums, and approximately $167,000 in cash. La Marca agreed to forfeit funds in a corporate bank account which represented proceeds of the charged offenses.
According to the documents filed in this case and statements made in court:
From July 2009 through February 2014, the defendants conspired to smuggle into the United States from China more than 40,000 electronic devices and accessories. The estimated manufacturer’s suggested retail prices for an equivalent number of genuine items would have exceeded $15 million. The devices were shipped separately from the labels bearing counterfeit trademarks in order to avoid detection by U.S. Customs and Border Protection. The devices were then labeled and packaged after they passed through customs.
The defendants then re-shipped the devices to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits – broken into multiple deposits of less than $10,000 each to avoid bank reporting requirements – and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
The defendants made more than 100 illegal wire transfers totaling more than $1.1 million to Hong Kong to facilitate their criminal activity.
The conspiracy charge to which the defendants pleaded guilty in Count One carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gain or loss associated with the offense, whichever is greatest. The charge for trafficking in counterfeit goods to which the defendants pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum fine of $2 million. Sentencing for La Marca is scheduled for June 14, 2017. Sentencing for Volpe and Becerra is scheduled for Sept. 7, 2017.Jianhua Li, a Chinese national currently residing in California, was charged in the original indictment, but has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The case was jointly investigated by the HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Office Financial Crimes Unit, with significant assistance from Europol and Italy’s Guardia di Finanza.
The government is represented by Senior Litigation Counsel Leslie Schwartz and Assistant U.S. Attorney Sarah Devlin of the District of New Jersey and Senior Counsel Sarah Chang of the Criminal Division’s Computer Crime and Intellectual Property Section.
Three Individuals Plead Guilty to Conspiracy and Trafficking of Counterfeit Electronic Goods into the United StatesRead the Press Release
Three individuals pleaded guilty today for their roles in a scheme to smuggle into the United States counterfeit electronic devices, including those purporting to be genuine Apple iPhones, iPads and iPods, from China for sale in the United States.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Paul Fishman of the District of New Jersey, Special Agent in Charge Terence Opiola of Homeland Security Investigations (HSI) in Newark and Bergen County Prosecutor Gurbir Grewal made the announcement.
Andreina Becerra, 31, a U.S. citizen, Roberto Volpe, 34, an Italian national, and Rosario La Marca, 54, an Italian national and resident of Naples, Italy, each pleaded guilty before U.S. District Court Judge Kevin McNulty of the District of New Jersey to one count of conspiracy to traffic in counterfeit goods and labels, to smuggle goods into the United States, and to structure financial transactions, and one count of trafficking in counterfeit goods. Becerra and Volpe will be sentenced on Sept. 7. La Marca will be sentenced on June 14.
According to the documents filed in this case and statements made in court, from July 2009 through February 2014, the defendants conspired to smuggle and traffic into the United States from China more than 40,000 electronic devices and accessories, including digital cameras, iPads, iPhones, and iPods, along with labels and packaging bearing counterfeit Apple and Sony trademarks. Defendants also wired or transferred more than 100 monetary instruments and funds totaling over $1.1 million in sales proceeds from U.S. accounts into accounts in China.
Further, the documents filed in this case and statements made in court showed that defendants shipped devices separately from the labels bearing counterfeit trademarks for later assembly to avoid detection by U.S. Customs officials. The devices were then shipped to conspirators all over the United States. Proceeds from the sales of the devices were funneled back to the defendants’ accounts in Florida and New Jersey via structured cash deposits and a portion of the proceeds was then transferred to conspirators in Italy, further disguising the source of the funds.
Jianhua Li, also known as “Jeff Li,” a Chinese national currently residing in California, was charged as a co-defendant in an indictment filed on April 17, 2015, but has pleaded not guilty. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
The HSI Newark Seaport Investigations Group and the Bergen County Prosecutor’s Financial Crimes Unit investigated the case with significant assistance from Europol and Italy’s Guardia di Finanza.
Senior Counsel Sarah Chang of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Leslie Schwartz and Sarah Devlin of the District of New Jersey are prosecuting the case.
Grape Street Crips Associate Pleads Guilty to Committing Murder During Home-Invasion RobberyRead the Press Release
NEWARK, N.J. – A Newark man today admitted his involvement in an August 2015 home invasion that left one person dead, U.S. Attorney Paul J. Fishman announced.
Jahad Lemons, a/k/a “JBird,” 26, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to all four counts of an indictment charging him with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
On Aug. 18, 2015, Lemons, Aaron Terrell, a/k/a “Push,” 27, and Papayaw Mack, a/k/a “GY,” 25, as well as two other individuals – referred to in the indictment as “CC-1” and “CC-2” – used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.
At the residential building, Lemons, Terrell, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3 who were already inside the apartment – of cash and personal affects. During the course of the robbery, Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.
All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on Oct. 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in and around Newark.
Under the terms of today’s plea agreement, Lemons will be sentenced to between 17 years and 22 years in prison and five years of supervised release. Sentencing is scheduled for June 12, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations against Terrell and Mack are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: Kathleen M. Theurer Esq., Jersey City, New Jersey
Gloucester County, New Jersey, Man Admits Enticing Children to Engage in Criminal Sexual ConductRead the Press Release
CAMDEN, N.J. – A Deptford, New Jersey, man today admitted using a fake Facebook profile to entice children to produce sexually explicit images, U.S. Attorney Paul J. Fishman announced.
Michael J. Mostovlyan, 33, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
Mostovlyan admitted that, between Jan. 1, 2016 and June 2, 2016, he communicated with children online in order to obtain sexually explicit images of those children. Using a fake female persona on Facebook in the name of “Amber Zee,” which he created using actual images of a girl, Mostovlyan was able to persuade the victims to send him sexually explicit photographs or videos.
The count to which Mostovlyan pleaded guilty carries a mandatory minimum term of 10 years in prison, a potential maximum term of life imprisonment, and a $250,000 fine. Mostovlyan must also register as a sex offender. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction Special Agent in Charge Michael Harpster in Philadelphia; the Monroe Township Police Department under the direction of Chief Michael E. Lloyd; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the Deptford Township Police Department, under the direction of Chief William Hanstein, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Jonathan Kessous, Esq.
Contractor at U.S. Military Bases Admits Paying Bribes and KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man who operated a construction company that did work at construction projects at two military bases in New Jersey today admitted paying bribes and kickbacks to get the contracts, U.S. Attorney Paul J. Fishman announced.
George Grassie, 54, of Covington Township, Pennsylvania, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to defraud the United States and commit bribery and one count of providing unlawful kickbacks.
According to documents filed in this case and statements made in court:
Grassie owned a business that did construction, excavation and landscaping and did work as a subcontractor at Picattiny Arsenal (PICA) and Joint Base McGuire-Dix Lakehurst (Ft. Dix). He admitted that from December 2010 to December 2013, he paid bribes valued at $95,000 to $150,000 to an individual employed by the U.S. Army Contracting Command in New Jersey to obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. He also admitted that he paid kickbacks valued at $40,000 to $95,000 to Shawn Fuller and James Conway, who were then project managers for a prime contractor at PICA and Fort Dix.
Conway previously pleaded guilty to wire fraud and accepting unlawful kickbacks on August 2016. Fuller previously pleaded guilty to accepting unlawful kickbacks in November 2015.
The conspiracy charge to which Grassie pleaded guilty carries a maximum potential penalty of five years in prison. The charge for making unlawful kickbacks to which Grassie pleaded guilty carries a maximum potential penalty of 10 years in prison. Both charges carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for May 31, 2017.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Craig R.Rupert, Special Agent in Charge, DCIS Northeast Field Office; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with conducting the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the United States Attorney’s Office’s Special Prosecutions Division and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.
Defense counsel: Lawrence S. Lustberg Esq., Newark
Former New Jersey Attorney and Father Indicted in Connection with $13 Million Ponzi SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey attorney and his father have been indicted for their respective roles in a $13 million Ponzi scheme, U.S. Attorney Paul J. Fishman announced today.
Michael W. Kwasnik, 47, of North Miami Beach, Florida, and William M. Kwasnik, 68, of Marlton, New Jersey, were indicted Feb. 16, 2017, by a federal grand jury on three counts of wire fraud, two counts of mail fraud, one count of conspiracy to commit money laundering, and seven counts of money laundering. Michael Kwasnik was also charged with eight additional counts of transacting in criminal proceeds. The defendants are both scheduled to appear Feb. 21, 2017, before U.S. Magistrate Judge Karen M. Williams in Camden federal court.
Michael Kwasnik previously owned and operated a law firm, Kwasnik, Rodio, Kanowitz and Buckley P.C. – and its successor firm, Kwasnik, Kanowitz and Associates P.C. – with offices in Cherry Hill, New Jersey, and Philadelphia, Pennsylvania. William Kwasnik owned and operated an insurance company, Abby Grant, in Lakewood and Cherry Hill, New Jersey.
According to documents filed in this case and statements made in court:
From October 2008 to November 2011, Michael and William Kwasnik controlled a number of entities, including Liberty State Financial Holdings Corp. and its subsidiaries (Liberty State Benefits of Pennsylvania; Liberty State Benefits of Delaware; Liberty State Insurance Services; Liberty State Wealth Management; and Liberty State Credit) and Oxbridge Investors Fund; OPIS Management Fund; and Capital Management of Delaware.
The Kwasniks allegedly carried out a scheme to defraud clients of the Kwasnik law firm by diverting funds from their trust accounts to themselves and the entities they controlled. Michael Kwasnik and others induced clients to establish various types of trusts based on misrepresentations and false pretenses. Michael Kwasnik named himself as the clients’ trustee and directed clients to transfer their money, property and other assets into their trust accounts. Michael Kwasnik then transferred the money out of the clients’ trust accounts and into accounts which he and his father controlled. More than $13 million was collected from more than 40 clients over the three-year period. The Kwasniks laundered the funds through the entities they controlled and Abby Grant before ultimately using the stolen funds to pay for legal and operational expenses of the entities they controlled, the law firm, and personal expenses.
Each count of wire fraud, mail fraud and money laundering carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Each count of transacting in criminal proceeds carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Michael T. Harpster, Philadelphia Division, and special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, Newark Division, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The charges and allegations in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Ukrainian Citizen Sentenced to 41 Months in Prison for Using Army of 13,000 Infected Computers to Loot Log-In Credentials, Payment Card DataRead the Press Release
NEWARK, N.J. – The administrator of two criminal online hacking forums was sentenced today to 41 months in prison for stealing log-in and payment card data as part of an international hacking conspiracy, U.S. Attorney Paul J. Fishman announced.
Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,” “Stranier,” and “Darklife,” 31, most recently of Naples, Italy, previously pleaded guilty before the U.S. District Judge Esther Salas to Count One and Count Three of an indictment charging him with wire fraud conspiracy and aggravated identity theft. Judge Salas imposed the sentence today in Newark federal court.
Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.
According to documents filed in this case and statements made in court:
From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.
Vovnenko admitted that, in order to steal this data, he operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. Vovnenko admitted using malware known as “Zeus” to steal banking information and record the keystrokes of the users of infected computers.
According to the indictment, Vovnenko was a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members.
The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.
In addition to the prison term, Judge Salas sentenced Vovnenko to three years of supervised release and ordered him to pay restitution of $83,368.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations Division, under the direction of Director Joseph P. Clancy, and special agents from the Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the ongoing investigation leading to today’s sentencing.
He also thanked the Department of Justice’s Office of International Affairs in Washington and its attaché in Rome; The U.S. Embassy to Italy and the Republic of San Marino; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Counsel: Timothy Anderson Esq., Red Bank, New Jersey
Oncology Practice, Doctor and Practice Manager Pay $1.7 Million to Resolve Allegations They Billed Medicare for Illegally Imported DrugsRead the Press Release
NEWARK, N.J. – A Monmouth County doctor, his oncology practice, and his wife, who managed the practice, have agreed to pay the United States $1.7 million to resolve allegations that they illegally imported and used unapproved chemotherapy drugs from foreign distributors and illegally billed Medicare, U.S. Attorney Paul J. Fishman announced today.
“Illegally imported drugs avoid the FDA’s rigorous oversight and manufacturing standards,” U.S. Attorney Fishman said. “Health care providers who import those drugs are exposing their patients to serious risks of harm from contaminated or counterfeit products.”
“Patients receiving cancer treatment drugs should be assured that the medications meet FDA’s standards for safety and quality,” Jeffrey J. Ebersole, special agent in charge, FDA Office of Criminal Investigations’ New York Field Office, said. “OCI will continue its vigilance over the prescription drug supply chain to ensure that the drugs reaching patients comply with federal law, and that those who attempt to circumvent the agency’s oversight will be brought to justice.”
The settlement announced today resolves allegations that The Oncology Practice of Dr. Kenneth D. Nahum, Nahum himself, and his wife, Ann Walsh, of Colts Neck, New Jersey, ordered cancer drugs from a foreign distributor. From April 1, 2010, until January 31, 2011, Walsh allegedly ordered chemotherapy drugs from the foreign distributor for use at the practice, which was owned by Nahum and operated in Howell, New Jersey, and Wall, New Jersey. These drugs had not been approved by FDA for sale in the United States.
Doctors at the practice allegedly injected the drugs into their patients, and the practice then submitted claims to Medicare for reimbursement for the drugs and infusion services. Since Medicare will only reimburse for drugs that have been approved for use in the United States, the practice allegedly violated the federal False Claims Act.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigation, under the direction of Special Agent in Charge Ebersole, and special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorneys Sarah Wolfe of the U.S. Attorney’s Office in Trenton, and Andrew A. Caffrey III and Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, 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.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Defense counsel:
The Oncology Practice and Nahum: Michael B. Himmel Esq. and Matthew M. Oliver Esq., Roseland, New Jersey
Walsh: Salvatore T. Alfano Esq., Bloomfield, New Jersey
Morris County, New Jersey, Plastic Surgeon Sentenced to Three Years in Prison for Evading Taxes on More Than $5 Million in IncomeRead the Press Release
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, was sentenced today to 36 months in prison for fraudulently diverting millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue between 2006 and 2010, U.S Attorney Paul Fishman announced.
David Evdokimow, 56, of Harding Township, New Jersey, was previously convicted of all eight counts of a superseding indictment charging him with one count of conspiring to defraud the United States, four counts of personal income tax evasion and three counts of corporate tax evasion. He was convicted following three-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to the superseding indictment and evidence at trial:
Evdokimow ran his medical practice through a corporation called De’Omilia Plastic Surgery P.C. (De’Omilia). He conspired with others to conceal millions of dollars of taxable income from the IRS by forming shell corporations and then having trusted associates open bank accounts for those corporations. Evdokimow then convinced these associates to give him their signatures or signature stamps so that he had full access to the shell company bank accounts while at the same time being able to conceal his connection to those accounts. He and the other conspirators then funneled millions of dollars in De’Omilia income into the bank accounts of the shell corporations and falsely claimed that these transfers were legitimate business expenses. Evdokimow also used bank accounts in the name of De’Omilia to pay his personal expenses, and falsely claimed those were business expenses too.
Evdokimow used the shell corporation and De’Omilia bank accounts to pay for more than $5.8 million in personal expenses, including designer apparel, jewelry, vacations, artwork, and multiple residences, all of which he falsely claimed as business expenses.
Evdokimow also opened accounts at several banks in order to cash checks received directly from patients for professional medical services. Between 2009 and 2011, Evdokimow cashed more than $360,000 in checks from patients, which he failed to report on his federal income tax returns.
Evdokimow was convicted of concealing more than $5.8 million in income from tax years 2006 to 2010. By concealing this income, Evdokimow evaded paying almost $3 million in taxes during that period.
In addition to the prison term, Judge Hillman sentenced Evdokimow to one year of supervised release and fined $96,000. He previously paid the taxes owed.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Paul Murphy and Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Kridel Esq., Clifton, New JerseyMan Admits Assaulting Sleeping Woman on Flight from Los Angeles to NewarkRead the Press Release
NEWARK, N.J. - An airline passenger today admitted assaulting a female passenger who did not know him aboard a flight from Los Angeles International Airport to Newark Liberty International Airport on July 30, 2016, U.S. Attorney Paul J. Fishman announced.
Veerabhadrarao Kunam, 58, of Visakhapatnam, India, pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an information charging him with assault in the special aircraft jurisdiction of the United States.
According to documents filed in this case and statements made in court, Kunam was seated next to a woman who occupied a middle seat on a Virgin America redeye flight from Los Angeles to Newark on July 29 and 30, 2016. While the plane was in the air, the woman fell asleep. Kunam admitted that while the victim was asleep, he touched her vagina and buttocks without her consent.
Kunam was arrested on July 30, 2016 – the day his flight arrived in Newark – and was taken into federal custody by the FBI.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
Under the terms of today’s plea agreement, Kunam will be sentenced to between 30 and 60 days in prison and up to 90 days in an inpatient alcohol treatment center. Sentencing is scheduled for March 22, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation.
The government is represented by Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Alexander Spiro, New York, New York
Florida Man Sentenced for Hacking, Spamming Scheme that Used Stolen Email AccountsRead the Press Release
A Florida man was sentenced for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails and generated more than $1.3 million in illegal profits, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.
Timothy Livingston, 31, of Boca Raton, Florida, was sentenced Tuesday to serve 48 months in prison before U.S. District Judge William J. Martini of the District of New Jersey. Livingston previously pleaded guilty to one count each of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud in connection with electronic mail and aggravated identity theft.
According to admissions made in connection with his plea agreement, beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
As part of his plea, Livingston admitted that beginning in January 2012, he solicited Tomasz Chmielarz to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed filters. Livingston also used proxy servers and botnets to remain anonymous and evade spam blocking techniques. Livingston further admitted that he hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns, which enabled him to send out massive amounts of spam without identifying himself as the sender.
The FBI’s Cyber Division investigated the case. Senior Trial Attorney William Hall Jr. of the Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Daniel Shapiro of the District of New Jersey’s Computer Hacking and Intellectual Property Section of the Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture-Money Laundering Unit prosecuted the case.
Florida Man Sentenced to Four Years in Prison for Hacking, Spamming Scheme That Used Stolen Email AccountsRead the Press Release
NEWARK, N.J. – A Boca Raton, Florida man was sentenced to 48 months in prison for his role in a computer hacking and identity theft scheme that hijacked customer email accounts to send bulk unsolicited or “spam” emails and generated more than $1.3 million in illegal profits, New Jersey U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division announced today.
Timothy Livingston, 31, previously pleaded guilty before U.S. District Judge William J. Martini to one count each of conspiracy to commit fraud in connection with computers and access devices, conspiracy to commit fraud in connection with electronic mail, and aggravated identity theft. Judge Martini imposed the sentence Feb. 14, 2017 in Newark federal court.
According to documents filed in this case and statements made in court:
Beginning as early as 2011, Livingston operated A Whole Lot of Nothing LLC – a business that specialized in sending spam emails on behalf of its clients. Livingston’s clients included legitimate businesses, such as insurance companies that wished to send bulk emails to advertise their businesses, as well as illegal entities, such as online pharmacies that sold narcotics without prescriptions.
Beginning in January 2012, Livingston solicited Tomasz Chmielarz, 34, of Rutherford, New Jersey, to write computer programs that would send spam in a manner that concealed the true origin of the email and bypassed filters. Livingston also used proxy servers and botnets to remain anonymous and evade spam blocking techniques.
Livingston hacked into individual email accounts and utilized corporate mail servers to further his spam campaigns. For instance, Livingston and Chmielarz created custom software designed to hack into the customer email accounts of a company identified in the indictment as “Corporate Victim 1” so that those accounts could then be used to send out spam. By using proxy servers and Corporate Victim 1’s customer accounts, Livingston was able to send out massive amounts of spam without identifying himself as the sender.
Livingston and Chmielarz also created custom software that appropriated a corporate website, identified in the indictment as “Corporate Victim 2,” which allowed Livingston to use Corporate Victim 2’s servers to send spam that appeared to be from Corporate Victim 2, but in reality was transmitted by Livingston.
In addition to the prison term, Judge Martini sentenced Livingston to three years of supervised release.
U.S. Attorney Fishman and Acting Assistant Attorney General Blanco credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit in Newark, Senior Trial Attorney William Hall of the Department of Justice’s Criminal Division Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Sarah Devlin of the Asset Forfeiture-Money Laundering Unit in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey
Amtrak Supervisor Admits Overbilling FraudRead the Press Release
NEWARK, N.J. – A former Amtrak supervisor today admitted fraudulently overbilling Amtrak overtime and regular hours that he claimed to be working when he was actually not present at Amtrak work sites, U.S. Attorney Paul J. Fishman announced.
Richard Vogel, 64, of Edison, New Jersey, pleaded guilty before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court to an information charging him with converting to his own use federal government funds.
According to documents filed in this case and statements made in court:
Vogel, who had been employed by Amtrak since January 1977 until he retired in July 2016, supervised approximately 35 employees in work gangs on the Construction Signals side of the Communications and Signals Department, New York Division. Between November 2015 and June 2016, Vogel fraudulently billed Amtrak for 41 regular hours and 685.75 overtime hours when he was not actually present at Amtrak work sites, resulting in a loss to Amtrak of more than $71,000.
The count to which Vogel pleaded guilty carries a maximum potential penalty of one year in prison and fines of up to $250,000, or twice the gain or loss resulting from the offense, whichever is greater. Sentencing is scheduled for May 22, 2017. The plea agreement requires Vogel to make full restitution for losses related to his conduct in the amount of $71,946.
U.S. Attorney Fishman credited Amtrak’s Office of Inspector General, Office of Investigations, Philadelphia office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
Nevada Man Sentenced to More Than Six Years in Prison for $5 Million Investment Fraud SchemeRead the Press Release
NEWARK, N.J. - A Nevada man was sentenced today to 78 months in prison for defrauding investors out of more than $5 million, U.S. Attorney Paul J. Fishman announced.
Lee Vaccaro, 45, of Las Vegas, Nevada, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit securities fraud and one substantive count of securities fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Vaccaro was the chief marketing officer and vice president of investor relations for eAgency, a California-based company developing mobile security products. Vaccaro admitted that he and an individual identified as “Conspirator #1” sold investors interests in companies they controlled, and falsely represented to investors that the companies held warrants in eAgency. Warrants are derivative securities that give the holder the right to purchase common stock at a specific price within a certain time frame.
Vaccaro also admitted that he and Conspirator #1 made oral and written misrepresentations concerning the existence, number, validity, and term of eAgency warrants purportedly owned by the investment companies, as well as about the amount of money Conspirator #1 had personally invested in and raised for eAgency, and Conspirator #1’s current position at eAgency.
In addition, Vaccaro admitted that he and Conspirator #1 created and showed to investors numerous forged documents purporting to reflect the issuance of warrants to entities controlled by Vaccaro, and the transfer of those warrants to a company controlled by Conspirator #1. He admitted that most of the eAgency warrants purportedly transferred by Vaccaro to Conspirator #1’s company had, in fact, never been issued.
Beginning in January 2011, the dollar amount of interests Vaccaro and Conspirator #1 sold in the investment companies began to surpass the dollar amount of valid warrants held by the investment companies. Neither Vaccaro nor Conspirator #1 disclosed to investors the risk that their investments would be diluted by the sale of additional interests in the companies.
Vaccaro and Conspirator #1’s actions defrauded investors of more than $5 million.
In addition to the prison term, Judge Martini ordered Vaccaro to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Sanjay Wadhwa and the New Jersey Bureau of Securities, under the direction of Acting Chief Amy G. Kopleton, for their assistance.
The government is represented by Assistant U.S. Attorney Daniel Shapiro and Deputy Chief Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
Today’s sentencing is due to efforts by the Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Defense counsel: Robert C. Scrivo, Esq., Newark
Middlesex County, New Jersey, Man Sentenced to Eight Years in Prison for Role in Ethylone Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A Carteret, New Jersey, man was sentenced today to 96 months in prison for conspiring to traffic approximately four kilograms of ethylone from China to New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Seymore, 38, previously pleaded guilty before U.S. District Court Judge Katharine S. Hayden to an indictment charging him with one count of conspiring to distribute ethylone, a Schedule I controlled substance. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On June 10, 2014, Seymore conspired with Michael Correa, 33, of Rahway, New Jersey, to distribute approximately four kilograms of ethylone, which had been ordered from China and shipped to a location in Teaneck, New Jersey. Ethylone, sometimes referred to as “bath salts” and “molly,” is an illegal synthetic drug that stimulates the central nervous system and can cause hallucinogenic effects.
In addition to the prison term, Judge Hayden sentenced Seymore to three years of supervised release. Correa previously pleaded guilty to his role and was sentenced Dec. 20, 2016 to 57 months in prison.
U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; the U.S. Department of Homeland Security-Homeland Security Investigations under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Postal Inspection Service under the direction of Inspector in Charge James V. Buthorn.
The government is represented by Assistant U.S. Attorneys Jonathan M. Peck and Tazneen Shahabuddin of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Susan C. Cassell Esq., Ridgewood, New Jersey
Human Resources Manager for Information Technology Companies Admits Obstruction of JusticeRead the Press Release
NEWARK, N.J. – A human resources manager for two information technology companies today admitted that she obstructed a federal investigation as part of a scheme to fraudulently obtain foreign worker visas, U.S. Attorney Paul J. Fishman announced.
Hiral Patel, 34, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with conspiracy to obstruct justice.
According to the document filed in this case and statements made in court:
SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H-1B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science.
Patel’s conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to the U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS), the conspirators represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the visas.
Contrary to these representations and in violation of the H-1B program, the conspirators paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems. The conspirators told the foreign workers who were not currently working that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems so the companies could issue payroll checks to the foreign workers.
The conspirators then encouraged the foreign workers to submit the bogus payroll checks to USCIS as proof that the workers were engaged in full-time work despite the fact that they were not working for the companies. Once the U.S. Department of Labor (USDOL) launched an audit of SCM Data and MMC Systems, the conspirators fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working to conceal the fact that they were not paid during those time periods as required by federal law.
Patel – who was a human resources manager for SCM Data and MMC Systems –
admitted that in February 2015 and March 2015, in response to a USDOL audit, she was involved in preparing false leave slips for the foreign workers on behalf of SCM Data and MMC Systems.Patel faces a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for June 1, 2017.
U.S. Attorney Fishman praised special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael Mikulka, with the investigation.
The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.Defense Counsel: Michael V. Gilberti, Esq.
Grape Street Crips Crack-Cocaine Wholesaler Pleads Guilty to Racketeering, Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – A crack-cocaine wholesaler for the New Jersey set of the Grape Street Crips today admitted his involvement in racketeering and drug trafficking conspiracies operating in Newark, New Jersey, U.S. Attorney Paul J. Fishman announced.
James S. Gutierrez, a/k/a “Bad News,” 26, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count 1 and Count 18 of a sixth superseding indictment charging him with racketeering conspiracy and conspiracy to distribute crack-cocaine.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Gutierrez and other members of the gang accepted orders for, and distributed, thousands of clips of crack-cocaine to other distributors, including other gang members.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the area of 6th Avenue and North 5th Street in Newark used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
Under the terms of today’s plea agreement, Gutierrez will be sentenced to between 10 years and 14 years in prison and five years of supervised release. Sentencing is scheduled for May 22, 2017.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Edward J. Plaza Esq., Little Silver, New Jersey
Former Bergen County, New Jersey, Coin Dealer Admits Income Tax EvasionRead the Press Release
TRENTON, N.J. – A former resident of Old Tappan, New Jersey, today admitted evading personal income taxes on more than $400,000 in income in 2013, U.S. Attorney Paul J. Fishman announced.
William Dominick, 68, of Collier County, Florida, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of tax evasion and one count of identity theft.
According to documents filed in this case and statements made in court:
Dominick owned and operated Westwood Rare Coin out of his home in Old Tappan. He was required to include income earned by Westwood Rare Coin on his individual IRS 1040 form. During calendar year 2013, Dominick failed to report $400,000 in income earned by Westwood Rare Coin. He did this by using other people’s identities to open credit cards to purchase bulk quantities coins from the U.S. Mint in order to corner the market. Dominick then sold those coins through his business, retained the proceeds for his personal use, and failed to include the proceeds on the tax return that he signed and filed with the IRS.
The count of identity theft to which Dominick pleaded guilty carries a maximum potential penalty of 15 years in prison; the count of tax evasion carries a maximum potential penalty of five years in prison; both counts also carry a fine of up to $250,000. Sentencing is scheduled for May 23, 2017.
Under terms of his plea agreement, Dominick will file amended returns and make full restitution for years 2010 through 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of special agent in charge Timothy Gallagher; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge James V. Buthorn, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shana Chen of the Economic Crimes Unit in Newark.
Defense counsel: John Whipple Esq., Morristown, New Jersey
Members of Camden, New Jersey, Drug Trafficking Organization Charged with Drug Conspiracy and Firearm OffensesRead the Press Release
CAMDEN, N.J. – Two Camden-area men were charged by a federal grand jury today in connection with their roles in a drug distribution organization, U.S. Attorney Paul J. Fishman announced.
Preston J. Thomas, 30, a/k/a “Boo,” of Camden, was charged in a superseding indictment with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. The superseding indictment also charged Jeffrey Whitaker, 33, a/k/a “Jay,” a/k/a “Jay Black,” and a/k/a “Black,” of Collingswood, with the same drug trafficking conspiracy offense.
According to documents filed in this case and statements made in court:
Thomas, Whitaker and others were originally charged by complaint on Sept. 9, 2016, following a long-term investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Law enforcement officers seized drugs and recovered two handguns that were kept by members of the conspiracy in connection with the organization’s drug trafficking activities. Investigators also intercepted communications pursuant to court-authorized wiretaps on cellular telephones used by several members of the conspiracy.
Two conspirators identified in the indictment have already pleaded guilty to drug conspiracy and firearm offenses.
On Jan. 17, 2017, Jason Boyd, 36, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Boyd’s sentencing is scheduled for April 28, 2017.
On Dec. 8, 2016, Derek Stallworth, 20, a/k/a “AK” and a/k/a “A,” of Camden, also pleaded guilty before Judge Simandle to the same charges. His sentencing is scheduled for March 24, 2017.
The drug distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charge carries a mandatory minimum sentence of five years in prison to be served consecutively to the sentence for the conspiracy charge.
U.S. Attorney Fishman 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 indictment.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel:
Thomas: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Whitaker: Mark Catanzaro Esq., Mt. Holly, New Jersey