District of New Jersey
Press releases recorded for this federal judicial district.
Former Monmouth County Resident Sentenced to 16 Years in Prison for Role in Fraudulently Obtaining over $3.7 Million in Cares Act LoansRead the Press Release
NEWARK, N.J. – A former resident of Monmouth County was sentenced to prison for his role in a scheme to fraudulently obtain Payroll Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds, U.S. Attorney Alina Habba announced.
Kevin Aguilar, age 54, previously of Farmingdale, New Jersey, was sentenced by U.S. District Judge Michael A. Shipp in Trenton federal court following Aguilar’s guilty plea to one count of conspiracy to commit bank fraud; seven counts of bank fraud; one count of conspiracy to commit wire fraud; three counts of wire fraud; one count of conspiracy to commit money laundering; one count of money laundering; and one count of aggravated identity theft. Aguilar was sentenced to 192 months in prison.
According to documents filed in this case and statements made in court:
From April 2020 to April 2021, Aguilar conspired with others to submit seven fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of four businesses. Based on the fraudulent applications, Aguilar received a total of approximately $3.3 million in PPP loan funds and approximately $450,000 in EIDL funds. After receiving the PPP and EIDL funds, Aguilar caused those funds to be transferred to other businesses that he created to give the false appearance that the PPP and EIDL funds were being used for legitimate purposes. Aguilar then used the PPP and EIDL funds to purchase residential properties in Sherman, Texas, a new truck for approximately $100,000, and to pay for other personal expenses.
In addition to the 192-month prison term, Judge Shipp sentenced Aguilar to 5 years of supervised release and ordered him to pay $3,772,567 in restitution, as well as a forfeiture money judgment of $3,772,567. Judge Shipp also ordered the forfeiture of approximately $1,511,221.62 that law enforcement seized from twelve bank accounts, as well as the three real properties in Sherman, Texas.
U.S. Attorney Habba credited special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Amy Connelly; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the U.S. Attorney’s Office’s Health Care Fraud Unit, Assistant U.S. Attorney Jennifer S. Kozar, of the U.S. Attorney’s Office’s Economic Crimes United in Newark, and Assistant U.S. Attorney Peter Laserna of the U.S. Attorney’s Office’s Bank Integrity, Money Laundering, and Recovery Unit.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defense counsel: Alyssa Cimino, Esq., Fairfield, New Jersey; Robert Brady, Esq., Newton, New Jersey
Former Employee of Telecommunications Company Admits to Wire Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A former telecommunications company employee admitted to wire fraud conspiracy for his role in a scheme to fraudulently unlock the Subscriber Identification Module (SIM) cards of thousands of mobile phones, U.S. Attorney Alina Habba announced.
Richard Forrest Sherman, 46, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court, to an information charging him with wire fraud conspiracy.
According to documents filed in this case and statements made in court:
Sherman worked at a multinational telecommunications company. While there, he managed an account for a customer that received an exemption to unlock the SIM cards of mobile devices. Sherman exploited this exemption by creating a series of customer accounts within the carrier’s system to make the accounts look like an affiliate company of the customer that actually received the exemption. Sherman and others then submitted bulk unlocking requests through these fake affiliate accounts that Sherman set up before leaving the telecommunications company.
Sherman, through his entities, received payment from others in exchange for causing the fake affiliate accounts to successfully send International Mobile Equipment Identity (IMEI) numbers in bulk to the carrier. The carrier, believing that the fake affiliate company was entitled to the unlocking exception, unlocked these IMEIs in bulk. Unlocking these IMEIs permitted others involved in the scheme to resell the phones for profit – the phones would have otherwise remained locked or required payment of a fee to be unlocked. Sherman set up the fake affiliate accounts in or around 2013; he and his conspirators exploited the fraud scheme until it was discovered in August 2020.
The wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest.
U.S. Attorney Habba credited special agents of the U.S. Secret Service’s Seattle Field Office, under the direction of Special Agent in Charge Glen Peterson, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sean Nadel of the Narcotics/OCDETF Unit in Newark.
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Defense Counsel: Henry Klingeman, Esq. and Robert Westinghouse, Esq.
sherman.information.pdfEssex County Man Sentenced to Multiple Life Sentences in Prison for Murder and Other Crimes Committed in His Role as Leader of Sprawling Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – An Essex County man was sentenced to four life sentences on April 23, 2025 for ordering and committing three murders and for his role in a large-scale narcotics enterprise, U.S. Attorney Alina Habba announced.
Michael Healy, 44, of Montclair, New Jersey, was convicted by a federal jury in April 2024 of racketeering conspiracy, conspiracy to distribute narcotics, conspiring to murder a federal witness, three counts of murder in aid of racketeering, and related firearms offenses following a four-week trial before U.S. District Judge Michael E. Farbiarz in Newark federal court.
“Michael Healy orchestrated three murders in order to silence the victims in this case. When Healy believed that someone in his drug trafficking enterprise was cooperating with law enforcement, he demonstrated that he was willing to go to the greatest lengths possible – to commit multiple acts of murder – to protect his profitable enterprise. This sentence will prevent Healy from harming any other members of our community and will send a message that attacks on the justice system will not be tolerated.”
- U.S. Attorney Alina Habba
“Healy spent much of his life building an illegal drug trafficking enterprise, fueled by greed and violence,” FBI Acting Special Agent in Charge Terence Reilly said. “He used his power to destroy communities through the distribution of poisonous narcotics and murdered those who he perceived as a threat to his empire. Now, he will spend the rest of his life in federal prison, where his power and money won’t matter.”
According to court documents and evidence presented at trial:
In February 2018, Healy found out that one of his conspirators in the drug trafficking enterprise (DTE) was cooperating with law enforcement by providing information about the drug enterprise. Healy ordered members of the Bloods in East Orange to kill the informant, referenced in the Indictment as ‘A.S.” On Feb. 3, 2018, outside the informant’s residence in Bloomfield, New Jersey, Healy’s conspirators shot and killed a bystander, referenced in the Indictment as “Victim-1,” believing the bystander was the informant. Realizing they killed the wrong person, Healy ordered the Bloods to finish the job, and on March 12, 2018, in Bloomfield, the conspirators killed the informant while he was walking his dog in the area of his residence. On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also pose a risk to the Enterprise, Healy himself shot and killed “J.C.” in Newark.
Healy’s DTE operated in and around Newark beginning in approximately 2012. Between 2003 and 2012, Healy became a member of the Tree Top PIRU set of the Bloods street gang in Maryland. In and around 2012, Healy formed and led the Healy DTE, a large and sophisticated drug distribution organization that obtained, transported and distributed large amounts of cocaine, heroin, fentanyl and marijuana. Healy used his leadership status in the Tree Top PIRU Bloods to assist him with obtaining suppliers, recruiting and controlling enterprise members, and otherwise conducting the Healy DTE’s operations.
The Healy DTE transported multi-kilogram quantities of controlled substances from California to New Jersey by various means, including private aircraft, vehicles with hidden secret compartments, and the U.S. Postal Service. The Healy DTE then processed and repackaged the controlled substances at various “stash houses” in New Jersey. The Healy DTE distributed some of the controlled substances in New Jersey, including through Bloods gang members in East Orange.
The Court sentenced Healy to four life sentences plus 360 months’ imprisonment. On Counts One (Racketeering Conspiracy), Six (Murder of a Federal Witness), and Twelve (Drug Trafficking Conspiracy), Healy was sentenced to life in prison, each term ordered to run concurrent to each other and consecutive to the prison sentences imposed on the remaining counts. On Counts Two (Murder in Aid of Racketeering for the murder of Victim-1), Five (Murder in Aid of Racketeering for the murder of A.S.), and Nine (Murder in Aid of Racketeering for the murder of J.C.), the Court imposed life sentences on each count to run consecutively. On Counts Three, Seven, and Ten (each charging Discharge of a Firearm in Furtherance of a Crime of Violence), the Court imposed consecutive 10-year sentences for a total of 360 months, ordered to run consecutively to the sentences imposed on all other counts.
Thomas Zimmerman, Tyquan Daniels, and Ali Hill – all members of the Brick City Brims subset of the Bloods street gang in East Orange – previously pleaded guilty to racketeering conspiracy for their respective roles in the murders of Victim-1 and A.S. Zimmerman was sentenced to a 37-year term of imprisonment; Daniels was sentenced to a 35-year term of imprisonment; and Hill was sentenced to a 25-year term of imprisonment. In addition, on February 22, 2024, Leevander Wade pleaded guilty to racketeering conspiracy for his roles in all three murders, and was sentenced to a term of 36 years and 8 months’ imprisonment.
U.S. Attorney Habba credited special agents of the Newark FBI Joint Organized Crime Task Force, under the direction of Acting Special Agent in Charge Terence Reilly; the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda; the Essex County Prosecutors Office, under the direction of Theodore N. Stephens, II; the Union County Prosecutor’s Office, under the direction of William A. Daniel, the East Orange Police Department, under the direction of Phyllis L. Bindi; the Montclair Police Department, under the direction of Todd M. Conforti, the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division, under the direction of Secretary Robert Green; the Ohio State Highway Patrol, under the direction of Colonel Charles A. Jones.
The government is represented by Senior Trial Counsel Robert L. Frazer and Assistant U.S. Attorney Samantha C. Fasanello.
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Defense counsel: Stephen Turano and Thomas Ambrosio
Vault Agrees to Pay $8 Million to Settle Allegations of Billing False Claims to the COVID-19 Uninsured Program for Patients with Health InsuranceRead the Press Release
NEWARK, N.J. – Vault Medical Services, P.A. and Vault Medical Services of New Jersey, P.C. (collectively “Vault”), have agreed to pay the United States $8 million to resolve allegations that Vault violated the False Claims Act by knowingly submitting or causing the submission of false claims to the Health Resources & Services Administration COVID-19 Claims Reimbursement to Health Care Providers and Facilities for Testing, Treatment, and Vaccine Administration for the Uninsured Program (the “Uninsured Program”) for patients who had health insurance, U.S. Attorney Alina Habba announced.
Between approximately May 2020 and April 2022, the Uninsured Program reimbursed eligible providers for COVID-19 tests, testing-related items and services, treatment, and vaccines performed on uninsured individuals. During the public health emergency, Vault provided various COVID-19 related services to patients across the country, including specimen collection services and vaccine administration. Vault provided these services via telehealth and at in-person testing sites, and specimens were sent to laboratories for processing. The settlement announced resolves allegations that Vault knowingly submitted or caused the submission of claims for these services to the Uninsured Program for patients who had active health insurance.
Specifically, the United States alleges Vault was aware of data integrity issues with patient information collected at the point of service but failed to substantively address those issues, and did not ensure the collection of complete patient information, including demographic and insurance information. The United States further alleges that Vault failed to properly confirm whether certain patients had health insurance coverage, and disregarded insurance information for individuals for whom Vault had valid insurance information on file, including confirmation through an insurance verification process, before submitting claims to the Uninsured Program.
“The Uninsured Program provided critical support for testing and treatment for uninsured Americans during the height of the pandemic. Our office will not tolerate the alleged fraud, abuse, and waste of these funds.”
- U.S. Attorney Alina Habba
“Individuals and entities that participate in the federal healthcare system are required by law to preserve the integrity of program funds,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General. “The settlement in this case involves a provider that knowingly sought reimbursement for federal funds to which they were not entitled, and by doing so jeopardized the provision of services for the uninsured.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Trial Attorneys Lindsay DeFrancesco, Elizabeth J. Kappakas, and James Nealon in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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vault.agreement.pdfUnion County Teacher Admits to Producing Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man who was employed as a New Jersey high school teacher, admitted to producing child pornography, U.S. Attorney Alina Habba announced.
Michael Hamilton, 53, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to one count of producing child pornography.
According to documents filed in this case and statements made in court:
Hamilton admitted to meeting a minor victim and engaging in sexual conduct with that victim, which Hamilton recorded on video. Law enforcement seized a copy of that video during the search of his home in October 2023. Hamilton also admitted to receiving and possessing sexually explicit messages, pictures, and videos of two other minor victims.
The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for September 9, 2025.
U.S. Attorney Habba credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation. U.S. Attorney Habba also thanked the Springfield Police Department and the Union County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
The government is represented by Rebecca Sussman and Robert Taj Moore of the Narcotics/OCDETF Unit in Newark.
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Defense counsel: Randy Davenport, Esq.
hamilton.information.pdfHudson County Man Sentenced to 26 Years in Prison for Role in Four Robberies and Two Shootings in Jersey City, New JerseyRead the Press Release
NEWARK, N.J. – A Hudson County man was sentenced today for his role in four robberies and two shootings in Jersey City, New Jersey, which took place the same night, U.S. Attorney Alina Habba announced today.
Rodney Williams, 33, of Jersey City, New Jersey pleaded guilty in December 2024 before U.S. District Judge Brian R. Martinotti in Newark federal court to an Indictment charging him with conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm in relation to a crime of violence, Hobbs Act robbery, attempted Hobbs Act robbery, using and carrying a firearm in relation to a crime of violence, and possession of a firearm and ammunition by a convicted felon.
In addition to the prison term, Judge Martinotti sentenced Williams to 5 years of supervised release. Williams’ co-defendant, Siobhan Chandler, was sentenced on April 25, 2024 to 12 years’ imprisonment followed by 5 years’ supervised release for her role.
According to documents filed in this case and statements made in court:
On the evening of November 14, 2021, Williams and Chandler committed multiple armed robberies and two shootings in Jersey City. The criminal activity began when Williams, acting alone, robbed a store while he pointed his gun at the clerk and demanded money. The clerk handed money to Williams who then fled.
A short time later, Williams, now with Chandler, robbed a gas station, where Williams pointed his gun at two attendants and demanded money. When the attendants did not immediately comply, Williams shot one of the attendants in the chest. Williams and Chandler then fled.
Williams and Chandler later entered another store, and Williams again pointed his gun at a clerk and demanded money. The clerk handed money to Williams and he and Chandler fled.
Williams and Chandler then entered a nearby restaurant, and Williams again pointed his gun at the cashier and demanded money. When the cashier did not immediately comply, Williams shot the cashier in the chest. The cashier then handed money to Williams, after which Williams and Chandler fled.
U.S. Attorney Habba credited officers of the Jersey City Police Department, under the direction of Acting Chief Kearns, and the Hudson County Prosecutor’s Office with the investigation leading to today’s sentence. She also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
The government is represented by Assistant U.S. Attorneys Shontae D. Gray and Eli Jacobs of the Criminal Division in Newark.
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Defense counsel: John C. Whipple, Esq. and Adam M. Elewa, Esq.
Hudson County Man Charged with Production, Distribution, and Possession of Child Pornography, and Coercion and EnticementRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey man was arrested for allegedly inducing multiple minors to send him sexually explicit videos and pictures over online platforms, U.S. Attorney Alina Habba announced.
Julian Nova, 19, of Bayonne, New Jersey is charged by complaint with two counts of production of child pornography, two counts of coercion and enticement, one count of distribution of child pornography, and one count of possession of child pornography. Nova appeared on April 17, 2025, before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
In or around October and November 2023, Nova coerced multiple minor victims to produce child pornography, which he then distributed online. After gaining the victims’ trust, including by posing as a teenage girl, Nova enticed the victims to send child pornography of themselves. Nova then blackmailed the minor victims into producing additional child pornography, some of which included acts of self-degradation, by threatening to distribute the existing images and videos to the minor victims’ family and friends if they did not comply.
The charges of production of child pornography carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of coercion and enticement carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of 5 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Habba credited special agents of the FBI’s Child Exploitation Operational Unit with the investigation leading to the charges. She also thanked the FBI Newark’s Child Exploitation and Human Trafficking Task Force under the direction of Acting Special Agent in Charge Terence Reilly for their assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
The government is represented by Assistant U.S. Attorney Lauren Kober of the Criminal Division in Newark and Trial Attorney Adam Braskich of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Carol Dominguez, Esq.
nova.complaint.pdfSomerset County Man Convicted of Drug Trafficking, Possession of Firearms in Furtherance of Drug Trafficking, and Illegal Possession of FirearmsRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was convicted of drug trafficking, possessing firearms in furtherance of drug trafficking, and illegal possession of firearms, U.S. Attorney Alina Habba announced.
Malachi A. Muhammad, 50, of Somerset, was convicted of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl and heroin, and one count of possession with intent to distribute cocaine. Muhammad was also convicted of one count of possession of firearms in furtherance of a drug trafficking crime and one count of unlawful possession of firearms by a convicted felon. Muhammad was convicted following a one-week trial before U.S. District Judge Georgette Castner in Trenton federal court. The jury deliberated less than two hours before returning the guilty verdicts.
“This verdict underscores our commitment to keeping guns out of the hands of drug traffickers and dangerous drugs like methamphetamine, fentanyl, heroin and cocaine out of our communities. My message is clear: if you jeopardize the safety and security of New Jerseyans, we will hold you accountable. Our office and our law enforcement partners won’t rest until we do.”
- U.S. Attorney Alina Habba
“This conviction is an example of ATF’s dedication to working with our state and local partners in identifying, investigating, and apprehending criminals who prey upon innocent citizens and lessen the quality of life in our neighborhoods through the trafficking of narcotics and the illegal possession and use of firearms, said Newark ATF Special Agent in Charge L.C. Cheeks, Jr. “This is a reminder that there is no safe haven for those that wreak havoc or contribute to crime in our communities. ATF will never waver in our commitment to protecting the people we serve and public safety.”
According to documents filed in this case and the evidence at trial:
On August 19, 2021, officers from the Lawrence Township Police Department responded to the southbound lanes of Route 1 near the Quaker Bridge Mall in response to calls from concerned citizens about a car stopped in the middle of the highway. Officers found Muhammad, the only occupant and driver of the car, initially unresponsive and believed him to be asleep or experiencing a medical emergency. After officers were able to arouse Muhammad, they noticed the handle of a handgun in between his legs. Officers removed Muhammad from the vehicle, and he was placed under arrest. A subsequent search of the vehicle revealed 91 pills of methamphetamine, 468 wax folds of fentanyl and heroin, 5 bags of cocaine, and five additional firearms, including two semi-automatic rifles, and over 150 rounds of ammunition.
The drug trafficking charges each carry maximum penalties of up to 20 years in prison and fines of up to $1,000,000. The firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum sentence of five years imprisonment, which must be served consecutively to any other term of imprisonment, a maximum penalty of life imprisonment, and a fine of up to $250,000. The unlawful possession of a firearm charge carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Habba credited special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the direction of Special Agent in Charge L.C. Cheeks, Jr., the Lawrence Township Police Department, under the direction of Interim Chief Kevin Reading, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney Tracey A. Agnew and Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
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Operators of New Jersey Company Sentenced to Prison and Enter into Related Civil Settlement Agreement for Roles in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – Two operators of a New Jersey marketing company were sentenced to prison for their roles in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, United States Attorney Alina Habba announced.
Eric Karlewicz a/k/a “Anthony Mazza,” 46, of Rockland County, New York, and Nicco Romanowski, 33, of Roswell, Georgia, were sentenced by U.S. District Judge Esther Salas in Newark federal court following their guilty pleas to Informations charging conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud. Karlewicz was sentenced to 51 months in prison and Romanowski was sentenced to 80 months in prison.
According to documents filed in this case and statements made in court:
From in or around June 2017 through in or around May 2019, Karlewicz and Romanowski participated in a scheme with durable medical equipment (“DME”) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Karlewicz and Romanowski controlled a New Jersey-based marketing company, Empire Pain Center Holdings LLC (“Empire”), though which they and their co-conspirators identified Medicare and TRICARE beneficiaries to target. Employees of Empire called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and Romanowski paid Empire’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Karlewicz and Romanowski, through Empire, then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors in exchange for prescriptions for the DME. As agreed upon, the doctors signed the prescription orders regardless of medical necessity, often without ever speaking to the patient. Karlewicz and Romanowski distributed the prescriptions to DME suppliers around the country, with which Empire had additional kickback arrangements. These DME suppliers submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Empire as payment for the doctor’s orders generated through the conspiracy. Empire received more than $63 million from DME suppliers in exchange for the referrals.
In total, Karlewicz and Romanowski caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $127 million for DME. Using proceeds from the scheme, Karlewicz and Romanowski purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.
In addition to the prison terms, Judge Salas sentenced each defendant to three years of supervised release and ordered them to pay $127,600,000 in restitution. Karlewicz was ordered to forfeit over $63 million, and Romanowski was ordered to forfeit over $5.5 million.
United States Attorney Habba also announced that Karlewicz and Empire entered into a civil settlement agreement. As part of that civil settlement agreement, Karlewicz and Empire admitted to violating the False Claims Act and agreed to the entry of a consent judgment against them in the amount of $63.8 million.
The civil settlement agreement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Robert Jackson Tyler, Jr., will receive a share of the funds recovered by the United States pursuant to the False Claims Act.
United States Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro, with the investigation.
The government is represented in the criminal case by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit in Newark.
The government is represented in the civil case by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit and Trial Attorney Martha Glover of U.S. Department of Justice, Civil Fraud Section.
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Defense counsel: Darren Gelber, Esq. (for Eric Karlewicz)
Alyssa Cimino, Esq. (for Nicco Romanowski)
Middlesex County Woman Admits to Fraudulently Obtaining over $150,000 in Social Security Retirement BenefitsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey woman admitted she defrauded the Social Security Administration for over eight years by improperly claiming her deceased mother’s Social Security retirement benefits, U.S. Attorney Alina Habba announced.
Deborah Bailey, 68, of Piscataway, New Jersey, pleaded guilty before U.S. District Judge Robert A. Kirsch in Trenton federal court to an Information charging her with theft of public money.
According to documents filed in this case and statements made in court:
The Social Security Administration provided retirement benefits to Bailey’s mother. Those benefits were paid through electronic funds into Bailey’s mother’s bank account. After Bailey’s mother died in 2016, Bailey did not notify the Social Security Administration about her mother’s death, and she made withdrawals from that bank account between 2016 and 2024. Through an investigation by the Social Security Administration, it was determined that Bailey withdrew approximately $150,903.00 in retirement benefits.
The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for August 19, 2025.
U.S. Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.
The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.
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Defense counsel: David Holman, Esq.
bailey.information.pdfCalifornia Resident Sentenced to 100 Months in Prison for Possession with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A California resident was sentenced to 100 months in prison for possessing fentanyl for distribution, U.S. Attorney Alina Habba announced.
Timothy Alan Blank, 55, of Los Angeles, California, previously pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of possession with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
On March 6, 2024, Blank, transported approximately five kilograms of fentanyl in his personal vehicle from the Los Angeles, California area across the United States into the District of New Jersey. On March 8, 2024, Blank’s vehicle was stopped by law enforcement agents in Fort Lee, New Jersey when agents discovered the five kilograms of fentanyl inside the trunk area of the vehicle. Following his arrest, Blank admitted to law enforcement agents his intent to distribute the fentanyl inside of the District of New Jersey.
In addition to the prison term, Judge Padin sentenced Blank to three years of supervised release.
U.S. Attorney Alina Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, Customs and Border Protection Air and Marine Operations, the Bergen County Sheriff’s Office, the Fort Lee Police Department, and the FBI Los Angeles Field Office, with the investigation that led to the sentencing.
The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.
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Defense counsel: Claressa L. Lowe
Warren County Man Charged for Possession of Videos and Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Warren County man was charged with possessing videos and images of child sexual abuse, U.S. Attorney Alina Habba announced.
Marc Panchenko, 53, of Washington Township, New Jersey, was charged in a one-count complaint with possession of child pornography. He had an initial appearance before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was ordered detained.
According to documents filed in this case and statements made in court:
Following Panchenko’s release from federal custody in November 2023 for a prior offense, Panchenko was placed on supervised release and a monitoring software was installed on his cellular telephone to detect any images of child sexual abuse materials (“CSAM”). On or about March 3, 2025, the software alerted the authorities to the existence of CSAM on Panchenko’s phone. A further examination of the contents of the phone revealed the presence of over 600 videos of varying length and over 12,000 digital photos, an ongoing review of which has revealed numerous images of CSAM, including images depicting prepubescent minors engaged in sexually explicit conduct as further outlined in the complaint.
The charge of possession of child pornography carries a statutory maximum penalty of 20 years in prison, but due to his prior conviction on a similar charge, Panchenko is also facing a mandatory minimum penalty of 10 years in prison. He is also facing a fine of up to $250,000.
U.S. Attorney Habba credited special agents of the Child Exploitation and Human Trafficking Task Force—Newark Office of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly, the Washington Township Police Department, Warren County, under the direction of Chief of Police Christopher M. Jones, and the Warren County Prosecutor’s Office, under the direction of Acting Prosecutor Jessica Cardone, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Candace Hom, Esq.
panchenko.complaint.pdfMJH Healthcare Holdings, LLC Agrees to Pay $2 Million to Settle False Claims Act Allegations Relating to Postage RatesRead the Press Release
WASHINGTON – MJH Healthcare Holdings, LLC, its subsidiary, MJH Life Sciences, LLC, and several affiliates of MJH Life Sciences, LLC (collectively MJH), have agreed to pay $2,006,424 to resolve allegations that they violated the False Claims Act by knowingly certifying their eligibility to use the periodicals postage rate offered by the United States Postal Service when they were ineligible for that rate. MJH, based in Cranbury, New Jersey, publishes educational and promotional materials aimed at healthcare providers and patients.
The United States alleged that for 40 mailings of MJH publications between October 2021 and June 2024, MJH calculated the required postage based on the periodicals postage rate. The periodicals rate is only available for publications where more than half of the mailed issues have been requested by recipients. However, in calculating the percentage of these issues that were requested by the addressee, MJH certified figures to the Postal Service that were inaccurate in two ways. First, it allegedly included among the “requesters” addressees appearing on lists received from third-party sources that had not qualified the listed individuals to be requesters, as required. Second, MJH counted requests that had aged out. Under Postal Service rules, requests must be less than three years old to qualify for the periodicals rate. Had MJH excluded these categories from its calculations, as required, the percentage of requesters would have been less than 50 percent of recipients. MJH should not have certified that its requester figures were accurate and that it was eligible for the lower periodicals rate for these mailings.
“The United States relies on individuals and companies doing business with it to accurately report what they owe the government. When they do not, we will not hesitate to take appropriate steps to protect the public fisc.”
- U.S. Attorney Alina Habba
“The USPS OIG will continue to aggressively investigate companies that defraud the Postal Service,” said Tammy Hull, Inspector General U.S. Postal Service. “This settlement demonstrates that our special agents will work with the United States Department of Justice and the United States Attorney’s Office to identify companies that misrepresent their eligibility for lower postage rates.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by John Burke, a former employe of one of the MJH affiliates. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Burke will receive $341,092 under this resolution. The qui tam case is captioned U.S. ex rel. Burke v. MJH Healthcare Holdings, LLC, et al., No. 3:22-cv-07367 (D. N.J.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of New Jersey with assistance from the United States Postal Service’s Office of the Inspector General.
The matter was investigated by Assistant United States Attorney Paul Kaufman and Trial Attorney Wesley Heath.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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mjh.agreement.pdfInvestment Firm Owner Admits Defrauding Approximately 47 Victim Investors over Three DecadesRead the Press Release
TRENTON, NJ. – A New Jersey man admitted to a decades-long scheme to defraud approximately 47 victim investors out of more than $6.9 million, U.S. Attorney Alina Habba announced.
Vincent Dispoto Jr., 67, formerly of Belmar, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of wire fraud.
According to documents filed in the case and statements made in court:
Dispoto owned and operated Giddeon Financial Services, a purported investment services firm, and Liberty Mortgage Services, an alleged mortgage company. Beginning in or around 1988, Dispoto raised money through these and other entities by falsely claiming to victims, many of whom were elderly, that he would invest their money in low-risk investment products with guaranteed rates of return, including municipal bonds and certificates of deposits. Dispoto also told some victims that he was using their investments to fund loans and mortgages for medical professionals, which would generate long-term returns through interest payments. To perpetuate his fraud, Dispoto mailed victims false and fraudulent financial statements that purported to show significant increases in the value of their investments.
In reality, Dispoto did not invest the victims’ money as promised. Instead, he used it to make Ponzi-like payments to other victims, which he falsely claimed to be “returns” on investments. He also misappropriated victim money to fund his gambling and other personal expenses. Dispoto’s scheme collectively resulted in more than approximately $6,990,635.62 million in losses to victims.
The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest. Sentencing is scheduled for August 26, 2025.
U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Jennifer Kozar of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Areeb Salim, Esq. and John Yauch, Esq., Assistant Federal Public Defenders, Newark
dispoto.information.pdfFormer Owner of Collapsed Nursing Home Empire Sentenced to 36 Months’ Imprisonment for $38 Million Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man was sentenced to 36 months in prison for his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Alina Habba announced.
Joseph Schwartz, 65, of Suffern, New York, previously pled guilty to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored, before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and statements made in court:
Schwartz, an insurance broker and operator of Skyline Management Group LLC (“Skyline”), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.
According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the Internal Revenue Service (“IRS”) trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
U.S. Attorney Habba credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; Investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Mark Seidel in the New York Regional Office; special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly; and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz in the New York Regional Office, with the investigation that led to the sentencing in this case.
The government is represented by Assistant U.S. Attorneys Daniel H. Rosenblum and Kendall R. Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
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Defense counsel: Kevin H. Marino, Esq.
Former Commodities Trader Pleads Guilty to Multi-Mullion Dollar Wire and Commodities Fraud SchemeRead the Press Release
Newark, N.J. – A Chicago man admitted to engaging in a wire and commodities fraud scheme that caused losses of more than $4 million, U.S. Attorney Alina Habba announced.
Philip Galles, 59, of Chicago, Illinois, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to both counts of an Indictment charging him with wire and commodities fraud.
According to documents filed in this case and statements made in court:
Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company, Tyche Asset Management, based in Chicago, Illinois. As part of the scheme, Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100%.
But in reality, Galles made virtually no legitimate investments in commodity futures or otherwise. Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and on to pay his own personal expenses—including high-end clothing, rent on a luxury apartment, and luxury automobiles.
During the investigation, Galles met with an undercover agent in New Jersey purporting to be an investment manager looking to make a large investment. Galles repeatedly lied during those meetings about Tyche and his personal history. Galles falsely claimed that Tyche had annual returns of 336%, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest.
In total, through his scheme, Galles defrauded more than a dozen victims out of more than $4 million.
The wire fraud charge carries a maximum sentence of 20 years in prison and the commodities fraud charge carries a maximum sentence of 25 years in prison. Both charges also carry a fine of up to $250,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for September 23, 2025.
U.S. Attorney Habba credited special agents of the United States Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahony in Newark, and the inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, with the investigation. She also thanked the Commodity Futures Trading Commission and the National Futures Association for their role in the investigation.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit and Andrew Kogan of the Cybercrime Unit in Newark.
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Defense counsel: Michael Koribanics, Esq.
galles.indictment.pdfEssex County Man Sentenced to 210 Months in Prison for Sex Trafficking OffensesRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey, man was sentenced to 210 months in prison on charges of sex trafficking and prostitution-related offenses, U.S. Attorney Alina Habba announced.
Amin Sharif, 50, of Newark, was convicted by a jury in July 2024 of one count of attempted transportation of a victim with intent to engage in prostitution, one count of sex trafficking of a minor, one count of use of an interstate facility to promote unlawful activity, one count of transporting a victim with intent to engage in prostitution, and one count of persuading a victim to travel to engage in prostitution, following an eight-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and the evidence at trial:
In January 2021, the Federal Bureau of Investigation began investigating Sharif for sex trafficking offenses. Sharif recruited four females, including one minor victim, from states across the country—New York, Pennsylvania, Idaho, and Utah. Sharif used multiple social media accounts and assumed aliases and false identities to recruit and entice victims. He made promises of housing stability, payment of bills and living expenses, and promises that the victims could make up to thousands of dollars per day by working for him. Sharif advertised the minor victim online, offering her for 32 sexual services.
Sharif was previously convicted of transporting a minor to engage in prostitution in federal court and was sentenced to 10 years in prison.
In addition to the prison term, Judge Shipp sentenced Sharif to 20 years of supervised release.
“Amin Sharif is a dangerous sex offender who has repeatedly preyed on vulnerable young women and minors in our society. The Court’s sentence will prevent Sharif from harming additional victims and will send a strong signal to would-be traffickers that sex trafficking will not be tolerated in the District of New Jersey and will result in serious sentences.”
-U.S. Attorney Alina Habba
“Disguised with multiple names and social media profiles, and promising help financially, Sharif instead sexually exploited his victims for his own monetary gain. Sharif ignored the physical and psychological trauma he was causing these vulnerable women and minors. FBI Newark Special Agents, Analysts, and Task Force Officers will stop at nothing to get heinous criminals off the streets, phones, and computers from where they lurk and put them behind bars where they belong,” stated FBI Acting Special Agent in Charge Terence G. Reilly.
U.S. Attorney Habba credited special agents of the FBI Newark Field Office, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation leading to this sentencing. She also thanked the FBI’s Rochester, New York Office and the Dansville Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Farhana C. Melo and Chelsea D. Coleman of the Criminal Division in Newark.
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Defense counsel: Laurie M. Fierro Esq., Kinnelon, New Jersey; Mary F. Khellah, North Bergen, New Jersey
Eight Individuals Charged with Multi-Million Dollar Fraudulent Lending Scheme Targeting Small Business Owners Across the United StatesRead the Press Release
NEWARK, N.J. – Eight individuals have been charged in connection with a large-scale lending scheme that targeted the owners of small businesses from across the United States, U.S. Attorney Alina Habba announced.
The complaint charges the defendants with multiple counts of conspiracy to commit wire fraud. Joseph Rosenthal, 33, of Holmdel, New Jersey; Nicholas Smith, 31, of Bradley Beach, New Jersey; James Missry, 40, of New York City, New York; Paul Cotogno, 31, of Long Branch, New Jersey; Blaise Cotogno, 32, of Tinton Falls, New Jersey; and Adam Akel, 30, of Long Branch, New Jersey, appeared before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were released on bail. Matthew Robertson, 31, of Miami, Florida, who was arrested in the Southern District of Florida, appeared before U.S. Magistrate Judge Enjoliqué A. Lett and was released on bail. Nicholas Winter, 38, of Asbury Park, New Jersey is currently in custody on unrelated state charges.
“These defendants perpetrated a years’ long scheme to defraud hard-working business owners in New Jersey and across the United States, stealing millions of dollars from thousands of victims. These charges reflect our Office’s commitment to holding accountable those who prey on small business owners trying to support their communities and earn a decent living.”
- U.S. Attorney Alina Habba
According to documents filed in this case and statements made in court:
Since June 2020, the defendants enriched themselves by defrauding small business owners interested in obtaining financing for their businesses. Through misrepresentations and falsehoods, the defendants promised their victims that in exchange for money provided upfront, the defendants would ultimately extend a loan or line of credit to the victims. In reality, once a victim provided the upfront payment to the defendants, the defendants did not extend financing to the victim. Instead, the defendants kept the victims’ money and broke off communication. As a result of the scheme, the defendants defrauded thousands of victims out of millions of dollars.
The wire fraud conspiracies charged in Counts One and Two of the criminal complaint each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Habba credited special agents and intelligence analysts of the FBI, under the direction of Acting Special Agent in Charge Terence Reilly in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys James H. Graham of the Special Prosecutions Division and Blake Coppotelli of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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rosenthaletal.complaint.pdfDisbarred Attorney Sentenced to 30 Months for Defrauding Victims in Ponzi-Like Wire Fraud SchemeRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, disbarred attorney was sentenced to 30 months in prison for a wire fraud scheme, U.S. Attorney Alina Habba announced.
Lawrence Coven, 61, of Hillsborough, New Jersey, previously pleaded guilty before U.S. District Court Judge Robert Kirsch in Trenton federal court to an Information charging him with one count of wire fraud. Judge Kirsch imposed the sentence.
According to documents filed in this case and statements made in court:
Coven operated and controlled Sunrise Enterprises LLC, which purported to provide financial services to investors. In reality, Coven induced victim investors into sending him funds by falsely representing that he would invest their money through Sunrise in exchange for large profits by providing short-term loans to borrowers who could not obtain standard loans. He falsely guaranteed investors returns of between 10 to 15 percent on their investments and told investors that their investments were risk-free. But instead of investing the money as he promised, Coven diverted investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills, and cash withdrawals. And when investors began asking questions, Coven provided them with false assurances that their money was safe and used money from existing investors to make payments to other investors in a Ponzi-like fashion.
In addition to the prison term, Judge Kirsch sentenced Coven to three years of supervised release.
U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to this sentence.
The government is represented by Assistant U.S. Attorneys Fatime Meka Cano and Olta Bejleri of the Economic Crimes Unit in Newark.
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Defense counsel: Jeffrey Chiesa, Esq.
coven.information.pdfCamden County Felon Admits to Illegally Possessing a Stolen Gun and Conspiring to Commit Bank FraudRead the Press Release
CAMDEN, N.J. – A Camden County man admitted to illegally possessing a firearm as a felon and to conspiring with others to negotiate checks that had been stolen from the mail, U.S. Attorney Alina Habba announced.
Donovan Bunch, 23, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to a two-count information charging him with one count of being a previously convicted felon in possession of a firearm and one count of conspiring to commit bank fraud.
According to documents filed in this case and statements made in court:
Donovan Bunch, Tracy Felder-Carter, Dante Ford, and Quamell Keyes-Griffin conspired to commit bank fraud by first obtaining checks that had been stolen from the U.S. mail. Bunch and other members of the conspiracy then would create counterfeit checks or alter the stolen checks by increasing the value of the check and changing the name of the payee to either a member of the conspiracy or somebody else recruited by the conspiracy. Bunch admitted that he and others would negotiate each counterfeit or altered check and then attempt to the withdraw the funds before the bank learned that the checks were illegitimate. The conspiracy involved the negotiation of checks at banks across southern New Jersey and elsewhere, with each check written for amounts upwards of several thousand dollars.
As part of the investigation, in July 2023, law enforcement officers executed search warrants at Bunch’s residence and in his car. Officers recovered from Bunch’s car a stolen Glock pistol with a 31-round magazine that was loaded with 14 rounds of ammunition. At the time he possessed the stolen firearm and ammunition found in his car, Bunch was on probation as a result of a prior New Jersey felony conviction.
The count of being a felon in possession of a firearm carries a maximum penalty of 15 years in prison and a fine of up to $250,000. The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Sentencing is scheduled for August 18, 2025.
Felder-Carter, Ford, and Keyes-Griffin each previously pleaded guilty to their roles in the same bank fraud conspiracy to which Bunch pleaded guilty. Their sentencings are upcoming before Judge Kiel.
U.S. Attorney Habba credited postal inspectors of the U.S. Postal Inspection Service – Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to this plea. She also thanked the Pennsylvania State Police – Media Station, Pennsauken Police Department, and the Springfield Township (Pennsylvania) Police Department for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
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Defense counsel:
Bunch: Martin Isenberg, Esq. (Gibbsboro, New Jersey)
Felder-Carter: Michael Kahn, Esq. (Haddonfield, New Jersey)
Ford: Margaret M. Grasso, Esq. (Philadelphia, Pennsylvania)
Keyes-Griffin: John B. Brennan, Esq. (Marlton, New Jersey)
bunch.information.pdfOcean County Man Charged with Traveling to a Foreign Place to Engage in Sexual Conduct with a MinorRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was arrested and charged with traveling to a foreign place to engage in sexual conduct with a minor, U.S. Attorney Alina Habba announced.
Jacob Bauer, 28, of Toms River, is charged by complaint with one count of traveling with intent to engage in illicit sexual conduct and one count of engaging in illicit sexual conduct in a foreign place. He made his initial appearance on April 2, 2025, before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court.
According to documents filed in this case and statements made in court:
From December 1, 2023 through December 10, 2023, Bauer, then 27 years old, traveled from the United States to Norway to engage in sexual activity with a 14-year-old female. Once in Norway, Bauer, staying at a hotel, engaged in sexual activity with the victim on at least one occasion. After returning to the United States, Bauer communicated over social media platforms with the victim and others about his sexual activities with the victim. During those conversations, Bauer acknowledged the victim’s age and status as a minor. After members of an online community that Bauer was active in learned of his sexual activities with a minor, Bauer was “doxxed” (his public information published online) by members of that community.
“Public safety is my number one priority for New Jersey’s residents, and my office is laser focused on protecting children and ending their exploitation at the hands of abusers. The conduct here is as reprehensible as it is egregious: a then-27-year-old male took pains to plan international travel from New Jersey to Norway for the purpose of having sex with a 14-year-old girl. These charges underscore how we are standing up for the most vulnerable and will not tolerate the sexual abuse of children. I commend our partners at the Federal Bureau of Investigation, law enforcement members at the state and local levels, and our international partners who assisted with this investigation.”
U.S. Attorney Alina Habba
"We have federal laws protecting children because they cannot defend themselves,” said Newark FBI Special Agent in Charge Terence G. Reilly. Most of these investigations go unnoticed because we do all we can to protect the innocent victims. However, the work FBI Newark agents and task force officers are doing should be heralded by all of us. Day in and day out - they are saving children who shouldn't have to experience unspeakable horrors and abuse perpetrated by child sexual predators."
Each of the charges, traveling with intent to engage in illicit sexual conduct and engaging in illicit sexual conduct in a foreign place, carries a potential maximum penalty of 30 years in prison and a fine of up to $250,000.
U.S. Attorney Habba credited the special agents and task force officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges. She also thanked the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the FBI Legal Attaché Office, U.S. Embassy, Copenhagen, Denmark, the FBI Legal Attaché Office, U.S. Embassy, Warsaw, Poland, the Jackson County, Georgia Sheriff's Office, INTERPOL, the Norwegian Politiet, Troms District, the Norwegian Politiet, NC3 KRIPOS, and the Poland Policja CBZC, Central Cybercrime Bureau for their assistance in the investigation.
The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Andrea Aldana, Esq., Assistant Federal Public Defender
bauer.complaint.pdfDelaware Woman Admits Role in COVID-19 Relief Program Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Delaware woman admitted to conspiring to obtain more than $1 million of federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Alina Habba announced.
Adrienne Ponzo, 50, of Bear, Delaware, pleaded guilty before U.S. District Judge Karen M. Williams to one count of wire fraud conspiracy.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP). The CARES Act also authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.
To obtain a PPP or EIDL loan, a qualifying small business was required to submit an application and provide information on its operations, including the number of employees and revenues or expenses. In addition, businesses generally had to provide supporting documentation such as tax returns and bank statements.
Adrienne Ponzo conspired with others to defraud the SBA and the PPP program. Ponzo’s co-conspirators recruited individuals who owned companies with little or no operations and introduced them to Ponzo. Ponzo prepared fraudulent PPP and EIDL applications for these businesses and caused them to be electronically submitted to the SBA and PPP lenders. Ponzo prepared fraudulent bank statements and tax returns for companies that did not have them. Ponzo received a portion of the loan proceeds for her role in the scheme. 14 loans totaling nearly $1,500,000 were part of the scheme.
The count of wire fraud conspiracy is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Sentencing is scheduled for August 26, 2025.
U.S. Attorney Habba credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly; and special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to this guilty plea.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless proven guilty.
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Defense counsel:
Troy A. Archie, Esq., Cinnaminson, New Jersey
ponzo.indictment.pdfTwo Men Admit Roles in Armed Robbery of U.S. Postal Service EmployeeRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey men admitted their roles in an armed robbery of a U.S. Postal Service employee, U.S. Attorney Alina Habba announced.
Dyshawn Williams, 28, of Newark, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of conspiring to interfere with commerce by robbery and one count of assaulting certain federal officers or employees. Karieem Stamps, 26, also of Newark, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to wire fraud, aggravated identity theft, and unlawful possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
In November 2023, three individuals – including Williams – robbed a U.S. Postal Service employee at gunpoint in Newark, New Jersey. The assailants stole the victim’s cell phone, keys, and wallet – including a credit card and debit card. The robbery impeded the victim from delivering mail, which interfered with interstate commerce. Shortly following the robbery, two individuals – including Stamps – used the stolen debit card to make purchases. Both transactions passed through servers located outside of New Jersey.
On August 1, 2024, Stamps – who was convicted of a felony offense in 2020 – possessed a Glock 29 Gen5 handgun bearing serial number CCRT895 with an extended magazine and 26 rounds of 9-millimeter ammunition.
As to Williams, the counts of conspiracy to interfere with commerce by robbery and assaulting or impeding a federal employee carry a maximum penalty of 20 years in prison and a $250,000 fine. As to Stamps, the count of wire fraud carries a maximum penalty of 20 years in prison and a $1,000,000 fine; the count of aggravated identity theft carries a mandatory two-year prison sentence; and the count of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 15 years in prison and a $250,000 fine.
U.S. Attorney Habba credited postal inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Christopher A. Nielsen, with the investigation. She also thanked special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, deputies of the U.S. Marshals Service, under the direction of United States Marshal Juan Mattos Jr., police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, officers of the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri, Jr., and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge L.C. Cheeks, Jr.
The government is represented by Assistant U.S. Attorney Eli Jacobs of the Organized Crime and Gangs Unit in Newark.
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Defense counsel:
Williams: Laura K. Gasiorowski, Westfield, New Jersey
Stamps: Joseph Z. Amsel, Newark, New Jersey
dwilliams.information.pdf stamps.information.pdfSan Antonio, Texas Woman Indicted for Fraudulently Selling Thousands of Counterfeit Coupons Causing Losses to Retailers Across the United States in Excess of $17 MillionRead the Press Release
NEWARK, N.J. – A federal grand jury in the District of New Jersey returned a six-count indictment against a San Antonio, Texas woman for fraudulently creating and selling over $17 million worth of counterfeit retail coupons used at various retail stores across the United States for the purchase of household items, United States Attorney Alina Habba announced.
Janet Bernal, 48, is charged with one count of conspiracy to commit wire fraud and five counts of wire fraud. According to the Indictment:
From June 2020 through August 2024, Bernal orchestrated a fraudulent scheme to produce and sell fraudulent, counterfeit coupons for use by purchasers at retail stores throughout the United States, including large pharmacies and grocery stores. In furtherance of her scheme, Bernal offered counterfeit coupons through a monthly fee-based subscription group that was available on a commonly used Internet cloud-based messaging application. Members subscribed to the group, paid the monthly fee, and then had unlimited access to numerous types of counterfeit coupons that Bernal posted for download.
Members paid the monthly fee via mobile cash accounts that Bernal directly controlled. Over the span of the scheme, members downloaded thousands of counterfeit coupons and redeemed them at retail stores throughout New Jersey and elsewhere in the United States. In total, the loss to the retail stores and to the manufacturers whose products were covered by the counterfeit coupons was in excess of $17 million.
The conspiracy and wire fraud counts carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, per count.
United States Attorney Alina Habba credited postal inspectors of the United States Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, in Newark, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel:
Carol Dominguez, Esq., Assistant Federal Public Defender
bernal.indictment.pdfOwner of New Jersey Businesses Admits to Fraudulently Obtaining over $3.2 Million from the Paycheck Protection ProgramRead the Press Release
TRENTON, N.J. – An owner of several New Jersey businesses admitted to fraudulently obtaining over $3.2 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Alina Habba announced.
Daniel Dadoun, 48, of Israel, formerly of South Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch to an information charging bank fraud and money laundering.
According to documents filed in this case and statements made in court:
From April 2020 through August 2022, Dadoun engaged in a scheme to illegally obtain over $3.2 million in PPP loans for his New Jersey businesses by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications that misrepresented payroll expenses and the number of employees at his companies. In support of the loan and forgiveness applications, Dadoun submitted falsified tax documents and altered bank statements.
The charge of bank fraud carries a maximum penalty of 30 years’ imprisonment and a maximum fine of $1,000,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The charge of money laundering carries a maximum penalty of 10 years’ imprisonment and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, or twice the amount of criminally derived property involved in the transaction, whichever is greater. Sentencing is scheduled for August 13, 2025.
U.S. Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, special agents of IRS – Criminal Investigation, New York Field Office, under direction of Acting Special Agent in Charge Harry T. Chavis, Jr., special agents of the Social Security Administration – Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defense counsel: Anthony J. Pope, Jr., Esq.
dadoun.information.pdfDominican National Arrested for Assaulting ICE Deportation OfficerRead the Press Release
NEWARK, N.J. – A Dominican national was arrested for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (“ICE”) deportation officer, U.S. Attorney Alina Habba announced.
Darlin Leon, 39, of the Dominican Republic, is charged by complaint with one count of assaulting a federal officer. Leon appeared on March 28, 2025 before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On March 26, 2025, Leon was in the lawful custody of ICE at a facility located in Newark, New Jersey pending removal from the United States. While being processed for removal, Leon struck the victim deportation officer in the head with a closed fist at least four times. As a result of Leon’s assault, the victim deportation officer sustained bodily injury, including lacerations and abrasions to the back of his head.
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Ricky J. Patel, with the investigation.
The government is represented by Assistant U.S. Attorney Ariel Douek of the Organized Crime and Gangs Unit in Newark.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Linda Foster, AFPD, Esq.
leon.complaint.pdfColombian National Indicted for Assaulting Ice Deportation OfficerRead the Press Release
NEWARK, N.J. – A Colombian national was indicted for assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Alina Habba announced.
Hector Villegas-Alvarez, 27, of Colombia, is charged with one count of assaulting a federal officer. Villegas Alvarez appeared before U.S. Magistrate Judge Jessica S. Allen in Newark federal court last week and was detained.
According to documents filed in this case and statements made in court:
On February 23, 2025, ICE deportation officers identified Villegas Alvarez as an individual without legal immigration status to be deported from the United States. ICE deportation officers stopped Villegas Alvarez and attempted to arrest him. Villegas Alvarez, however, physically resisted arrest and, in the process, forcefully elbowed one of the ICE deportation officers in the face. As a result of Villegas Alvarez’s assault, the victim deportation officer sustained bodily injury, including a broken nose and a concussion from which she suffers severe post-concussion symptoms, including fainting and difficulty breathing.
“These charges reaffirm our commitment to protect the law enforcement officers who put their lives on the line for the people of New Jersey every day. Those who choose to attack and assault law enforcement will continue to be met with swift and severe punishment.”
U.S. Attorney Alina Habba
The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Habba credited deportation officers of United States Immigration and Customs Enforcement, Enforcement and Removal Operations Newark, under the direction of Field Office Director John Tsoukaris, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: K. Anthony Thomas, Esq., Federal Public Defender
villegasalvarez.indictment.pdfEssex County Man Sentenced to 46 Months in Prison for Stealing Federal Benefits Meant for Missing Girlfriend’s Disabled Son and Violating Supervised ReleaseRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 38 months in prison for stealing federal benefits meant for the disabled child of his former girlfriend shortly after she went missing, and for an additional 8 months in prison for violating supervised release, U.S. Attorney Alina Habba announced.
Asmar Earp, 37, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to three counts of an Indictment charging him with two counts of wire fraud and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Earp was in a romantic relationship and shared a house in Newark, New Jersey with V.W. Through a program administered by Social Security Administration, V.W. received monthly payments on behalf of Victim-1, her disabled minor son, who was not capable of managing these benefits on his own. On December 24, 2017, V.W. went missing and her whereabouts remain unknown. Six days after V.W.’s disappearance, Earp fraudulently gained control of Victim-1’s benefits by changing the PIN code on the debit card used to access those funds. In March and April 2018, Earp also fraudulently used V.W.’s name, date of birth, and social security number to receive a replacement debit card to continue accessing and using Victim-1’s benefits. Overall, from December 2017 through February 2020, Earp and others acting at his direction repeatedly and fraudulently took the money intended to help Victim-1 and used it on themselves.
U.S. Attorney Habba credited special agents of the Social Security Administration, Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent-in-Charge Amy Connelly, and the Essex County Prosecutor’s Office, under the leadership of Acting Prosecutor Theodore N. Stephens II, with the investigation that led to the sentencing in this case.
The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the Narcotics/OCDETF Unit in Newark.
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Defense counsel: Timothy Donahue, Assistant Federal Public Defender
Union City Pharmacy Agrees to Resolve False Claims Act Allegations of Billing for Drugs Not DispensedRead the Press Release
NEWARK, N.J. – People’s Rx, Inc., d/b/a The People’s Pharmacy Shoppe (“People’s”), a pharmacy located in Union City, New Jersey, has agreed to pay $995,420 to resolve allegations that it violated the False Claims Act by knowingly billing a federal health care program for medications that it never dispensed, U.S. Attorney Alina Habba announced.
According to the contentions of the United States in the settlement agreement:
The United States alleged that, from January 2, 2015, through January 24, 2022, People’s caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The government contends that inventory records showed that People’s did not purchase enough of these medications from wholesalers to fill the prescriptions billed to the federal health care program.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section.
The government is represented by Assistant U.S. Attorneys Robert Toll and Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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peoples_pharmacy.agreement.pdfSussex County Man Sentenced to 80 Months for Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Sussex County, New Jersey, man was sentenced to 80 months for distributing videos and images of child sexual abuse, U.S. Attorney Alina Habba announced.
Gaetano Lapegna, 67, of Franklin, New Jersey previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging one count of distribution of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From December 2022 to March 2023, Lapegna distributed videos and images of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. During the course of the investigation, an undercover law enforcement officer conducted online sessions using the P2P program, during which a user shared hundreds of videos and images of child sexual abuse from an IP address traced to Lapegna’s address.
Subsequent to a lawful search of his residence on March 30, 2023, law enforcement officers recovered over 100 items depicting child pornography on Lapegna’s thumb drive. Law enforcement also found that Lapegna’s computer was running the same version of the P2P program from which law enforcement downloaded child pornography from Lapegna.
In addition to the prison term, Judge Cecchi sentenced Lapegna to five years of supervised release and ordered restitution of $50,000.
U.S. Attorney Habba credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s sentencing. She also thanked the United States Postal Inspection Service, Sussex County Prosecutor’s Office, and Franklin Borough Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
Defense counsel: Claressa Lowe Esq., Assistant Federal Public Defender, Newark
Philadelphia Man Admits to Conspiring to Defraud the IRSRead the Press Release
CAMDEN, N.J. – A Philadelphia man admitted to conspiring to defraud the Internal Revenue Service by paying himself and his co-workers in cash in order to avoid payroll taxes, U.S. Attorney Alina Habba announced.
Henry “Hank” Collins, 53, of Philadelphia, Pennsylvania pleaded guilty before U.S. District Judge Karen M. Williams to an information charging him with one count of conspiring to defraud the IRS.
According to documents filed in this case and statements made in court:
Collins worked at Davis Brothers Chimney Sweep & Masonry (“Davis Brothers”), a business located in Egg Harbor Township, New Jersey. Collins admitted that between January 1, 2018 and April 30, 2024, he conspired with the spouse of the owner of Davis Brother to defraud the IRS. As part of the conspiracy, Collins utilized a commercial check casher to negotiate a substantial amount of Davis Brothers’s gross receipts checks. Collins used some of the resulting cash to pay himself and other Davis Brothers employees in cash. Collins provided the rest of the cash to the business owner and spouse. Collins then provided false and misleading information to the business’s outside accounting firm that resulted in the preparation and filing of false payroll tax returns that omitted the employees paid in cash and their cash wages. Collins also admitted filing false individual income tax returns for himself that concealed his own cash wages. Collins admitted that the conspiracy resulted in a tax loss of approximately $1 million.
The count of conspiracy carries a maximum penalty of 5 years in prison and a fine of up to $250,000. Sentencing is scheduled for August 18, 2025.
U.S. Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
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Defense counsel: Joseph Marrone, Esq., Philadelphia, Pennsylvania
collins.information.pdfOcean County Man Admits to Fraudulently Obtaining over $250,000 in Social Security Disability BenefitsRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey man admitted he defrauded the Social Security Administration for nearly eight years in order to improperly obtain over $250,000.00 in Social Security Disability Insurance Benefits, U.S. Attorney Alina Habba announced.
Krzysztof Niedzielski, 49, of Toms River, New Jersey, pleaded guilty yesterday before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an Information charging him with theft of public money and making false statements to the Social Security Administration.
According to documents filed in this case and statements made in court:
From at least as early as 2012 through at least as recently as 2020, Niedzielski obtained approximately $270,933.10 in Social Security disability benefits for himself, his wife, and his dependent children on the basis that he was disabled and could not work. During this period, Niedzielski managed and performed physical labor for a home improvement contracting company where he obtained a substantial income. However, during this time, Niedzielski failed to notify the Social Security Administration of his employment and income. Niedzielski knowingly and intentionally concealed this work from the Social Security Administration to prevent any reduction in disability benefits.
The charge of theft of public money carries a maximum sentence of 10 years in prison and the charge of making false statement to the Social Security Administration carries a maximum sentence of 5 years in prison. Each charge also carries a fine of up to $250,000. Sentencing is scheduled for August 5, 2025.
U.S. Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.
The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.
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Defense counsel: Nicholas Moschella, Esq.
niedzielski.information.pdfNew York Man Sentenced to 15 Years in Prison for Role in KidnappingRead the Press Release
NEWARK, N.J. – A Queens, New York man was sentenced to 15 years in prison for his role in a Paterson, New Jersey, kidnapping, U.S. Attorney Alina Habba announced.
Reginald Law, 39, previously pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an indictment charging him with kidnapping and Hobbs Act robbery.
According to documents filed in this case and statements made in court:
On October 8, 2020, Law and his conspirator, Maurice Cottman, entered a retail store in Paterson, where they accosted the victim, who was working in the store. Law and Cottman physically removed the victim from the store, then transported him in the back of a U-Haul truck from Paterson to New York. Law admitted that during the kidnapping, he and Cottman called the victim’s family and demanded ransom for his return. Law and Cottman also forced the victim to give them his debit card and pin number, which they used to withdraw money from his bank accounts.
In addition to the prison term, Judge Padin sentenced Law to five years of supervised release.
Cottman previously pleaded guilty before Senior U.S. District Judge Stanley R. Chesler to an Information charging him with one count of kidnapping. On March 29, 2022, Judge Chesler sentenced Cottman to 15 years in prison with five years of supervised release.
U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to today’s sentence. He also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit.
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Defense counsel: Christopher L. Patella Esq., Bayonne, New Jersey
Colombian National Sentenced to 178 Months in Prison for Conspiring to Transport Hundreds of Kilograms of Cocaine into the United StatesRead the Press Release
NEWARK, N.J. – A Colombian citizen was sentenced to 178 months in prison for conspiring to import hundreds of kilograms of cocaine into the United States from other countries including Colombia, Venezuela, and the Dominican Republic, U.S. Attorney Alina Habba announced.
Raul Orlando Torres Cubides, aka “Jose Jota,” 57, previously pleaded guilty before U.S. District Judge Esther Salas to Count One of an Indictment charging him with conspiracy to import five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2016 through January 2020, Cubides and others conspired to import hundreds of kilograms of cocaine. Cubides admitted playing a managerial role in this conspiracy, which involved more than five individuals.
In addition to the prison term, Judge Salas sentenced Cubides to five years of supervised release.
U.S. Attorney Habba credited special agents and task force officers with the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey, as well as special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico. She also thanked the Justice Department’s Office of International Affairs; the Criminal Division’s Narcotic and Dangerous Drug Section Judicial Attachés in Bogotá, Colombia; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
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Defense counsel: James Plaisted, Esq., Hackensack, New Jersey
Bergen County Man Sentenced to 86 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced to 86 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Alina Habba announced.
Michael Kimmerle, 35, of New Milford, New Jersey previously pleaded guilty before U.S. District Judge Claire C. Cecchi 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 this case and statements made in court:
From August 24, 2021, through August 7, 2022, Kimmerle distributed material containing video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing program. Law enforcement used undercover online sessions to access the P2P program. During these sessions a user shared multiple video files of child sexual abuse from an Internet Protocol address traced to Kimmerle’s residence. During a September 14, 2022 search of Kimmerle’s residence, law enforcement found over 600 thumbnail images containing child pornography on Kimmerle’s laptop, including images derived from video files Kimmerle previously distributed through the P2P file-sharing program.
In addition to the prison term, Judge Cecchi sentenced Kimmerle to 5 years of supervised release and ordered him to pay $59,500 in restitution to the victims.
U.S. Attorney Habba credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Newark, under the direction of Acting Special Agent in Charge Ricky J. Patel, with the investigation leading to sentencing.
The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
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Defense counsel: John J. Bruno, Jr., Esq., Rutherford, New Jersey
Trenton Man Sentenced to 168 Months in Prison for Assaulting, Robbing and Discharging A Firearm at A Federal AgentRead the Press Release
TRENTON, N.J. – A Trenton man was sentenced to 168 months in prison for assaulting a federal agent with a deadly weapon, armed robbery, and discharging a firearm during and in relation to a crime of violence, U.S. Attorney Alina Habba announced.
Jabree Johnson, 30, of Trenton, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to a three-count indictment charging him with one count of assault on a federal officer with a deadly weapon, one count of robbery with a dangerous weapon of an individual with custody of federal property, and one count of using and carrying a firearm during and relation to a crime of violence, in which the firearm was discharged.
According to documents filed in this case and statements made in court:
On March 22, 2021, federal law enforcement officers were conducting an investigation of firearms trafficking and other illegal activities in and around Trenton and Hamilton, New Jersey. In connection with the investigation, a federal law enforcement agent, working in an undercover capacity, arranged to purchase multiple firearms from an individual later identified as Johnson.
After arriving at an agreed-upon location for the firearms transaction, Johnson entered the undercover federal agent’s vehicle, and handed the agent a black, semi-automatic firearm. The undercover federal agent inspected the firearm and then returned it to Johnson and requested to see the other firearms that Johnson had agreed to sell. Instead, Johnson pointed the loaded firearm directly at the undercover federal agent and demanded money from the agent. In response, the undercover federal agent provided Johnson with an amount of U.S. currency that the agent had on him to purchase the guns. Johnson then ordered the undercover federal agent out of the vehicle at gunpoint. The agent exited the vehicle as ordered and immediately drew his/her service-issued firearm and fired at Johnson, striking Johnson in the shoulder. Johnson also fired his handgun multiple times at the undercover federal agent. Johnson fled the area with the money. Johnson was later identified at a local hospital as the individual who had assaulted and robbed the undercover federal agent at gunpoint and placed under arrest.
In addition to the prison term, Judge Shipp sentenced Johnson to five years of supervised release and ordered him to forfeit the firearm using during the commission of the crimes.
U.S. Attorney Alina Habba credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Satellite Office, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents of the Federal Bureau of Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Terence G. Reilly; officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; officers of the Hamilton Township Police Division, under the direction of Police Chief Kenneth DeBoskey; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Janetta D. Marbrey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton.
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Defense Counsel: Mark Catanzaro, Esq.
U.S. Attorney John Giordano Thanks President Donald Trump and Attorney General Pamela Bondi Upon His Departure from the District of New JerseyRead the Press Release
NEWARK, N.J. – John Giordano announced today that he will be stepping down as U.S. Attorney for his new role as U.S. Ambassador.
“I thank President Donald Trump and Attorney General Pam Bondi for their trust and confidence in me as U.S. Attorney. Serving President Trump and the citizens of my home state of New Jersey has been a great honor. I am particularly proud of the impactful and meaningful work of this office and our law enforcement partners to uphold the rule of law and safeguard our nation. I look forward to continuing to serve the President in my forthcoming role, and I remain committed to advancing the important work of his Administration.”
U.S. Attorney John Giordano
During his tenure, Giordano led the office in prosecuting significant and complex cases for the District of New Jersey. Under his leadership, the office worked closely with the dedicated and talented men and women of our law enforcement community to take back America. Giordano aggressively targeted violent gang activity, human trafficking networks, illegal immigration, and the ability of cartels to flood our streets with fentanyl and other deadly drugs. Giordano made it very clear, notably through both the conviction of individuals attempting to support ISIS and the extradition to the District of New Jersey of a dual Russian and Israeli national on charges he was a developer of the LockBit ransomware group, that if you commit crimes against the United States regardless of where you hide, we will find you and bring you to justice.
As the U.S. Attorney for the District of New Jersey, Mr. Giordano oversaw all federal criminal prosecutions and civil litigation involving federal interests in the State. With offices in Newark, Camden, and Trenton, he supervised a dedicated staff of approximately 153 federal prosecutors and 104 support personnel.
Following the departure of U.S. Attorney Giordano, Alina Habba will serve as the new U.S. Attorney for the District of New Jersey.
Middlesex County Man Charged for Making False Statement About Terrorist Organization Association on U.S. Citizenship ApplicationRead the Press Release
NEWARK, N.J. – A federal grand jury in the District of New Jersey returned a two-count indictment against a New Jersey man for falsely stating on an application for naturalization that he had never been associated with a terrorist organization, U.S. Attorney John Giordano announced.
Gafur Abdudzhamilovich Aliev, 44, of Edison, New Jersey, is charged with one count of making a false statement on an application for naturalization and one count of perjury. Aliev is scheduled to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor via videoconference.
According to the indictment, between in or around January 2018 and in or around January 2020, Aliev was a moderator and/or member of numerous channels on a social media application with encryption features that targeted members, associates, supporters, and potential recruits of the Islamic State of Iraq and al-Sham (“ISIS”). On or about August 7, 2020, Aliev told Individual-1, in substance, that he previously sent money to ISIS for the purchase of weapons, and on or about August 16, 2020, Aliev additionally told Individual-1, in substance, that sending even a small amount of money ($100 to $400) to ISIS was “ok.” On or about September 28, 2020, Aliev further told Individual-1, in substance, that those who commit jihad in the name of Allah should commit jihad financially and physically and that without financial support, jihad could not be performed, as money was needed to purchase equipment to conduct jihad.
On or about December 26, 2020, Aliev, under penalty of perjury, falsely stated in his application for naturalization that he had never been a member of, or in any way associated with, a terrorist organization.
The false statement on a naturalization application count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The perjury count carries a maximum potential penalty of 5 years in prison and a $250,000 fine.
U.S. Attorney Giordano credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly, deportation officers of Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris, the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, and the Edison Police Department, under the direction of Chief Thomas Bryan, with the investigation leading to the charges. He also thanks U.S. Citizenship and Immigration Services for its assistance with the case.
The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Defense counsel: Naz Ahmad, Esq.
Linda Foster, AFPD, Esq.
aliev.indictment.pdfDiopsys Inc. Agrees to Pay up to $14.25 Million to Resolve Alleged Federal False Claims Act and State Law Violations Relating to Vision TestingRead the Press Release
Diopsys Inc., a medical device company based in Middletown, Pennsylvania, has agreed to pay up to $14.25 million to resolve allegations that the company violated the federal False Claims Act and various state laws by knowingly submitting or causing others to submit false claims for payment to Medicare and Medicaid in connection with certain vision testing services.
The settlement resolves allegations relating to Diopsys’ NOVA device, an electrophysiological device that the U.S. Food and Drug Administration (FDA) cleared for visual evoked potential (VEP) testing. The United States alleged that, during the period from Jan. 1, 2015 through Dec. 31, 2021, Diopsys caused healthcare providers to submit false claims to Medicare and Medicaid for services in which the NOVA device was utilized for medically unnecessary uses, specifically electroretinography (ERG) vision testing, a substantially different vision test for which the NOVA device lacked FDA clearance. The government further contended that Diopsys made substantial changes to the NOVA device that it never submitted to FDA for clearance or approval despite knowing that such a submission was required.
“Today’s resolution reaffirms our commitment to protect the integrity of the Medicare and Medicaid programs,” said U.S. Attorney John Giordano for the District of New Jersey. “Health care companies must not encourage doctors to submit claims for payment for medically unnecessary tests.”
Under the terms of the settlement, Diopsys will make guaranteed payments of $1,225,000 and contingent payments of up to $13,025,000. The settlement is based on Diopsys’ financial condition.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dr. Atul Jain, a California ophthalmologist. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Approximately $1,120,000 of the guaranteed payment and up to approximately $11,900,000 of the contingent payments constitute the federal portion of the recovery. Dr. Jain will receive at least approximately $207,000 as his share of the federal recovery in this case.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of New Jersey, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney David Simunovich of the Health Care Fraud Unit in the U.S. Attorney’s Office for the District of New Jersey, and Trial Attorney Daniel Meyler of the Civil Division’s Commercial Litigation Branch, Fraud Section.
The case is captioned United States ex rel. Jain v. Diopsys Inc., et al., Civil Action No. 21-18151 (D.N.J.).
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Ocean County Man Sentenced to 151 Months in Prison for Drug and Weapons ChargesRead the Press Release
CAMDEN, N.J. – An Ocean County, New Jersey, man was sentenced on March 26, 2025 to 151 months in prison for illegally possessing cocaine for distribution and possessing a firearm as a convicted felon, U.S. Attorney John Giordano announced.
Masta Redding, 38, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an indictment charging him with one count of possession with intent to distribute a controlled substance and one count of being a previously convicted felon in possession of a firearm and ammunition.
According to documents filed in this case and statements made in court:
On March 5, 2020, Redding possessed cocaine on his person and in his residence which he intended to distribute. Redding, a previously convicted felon, also possessed a Jimenez Arms pistol loaded with six rounds of ammunition. Redding admitted that sometime after he was arrested he paid another individual for, and then provided to the government, an affidavit in which the other individual falsely claimed ownership of the cocaine and firearm found in Redding’s house.
In addition to the prison term, Judge Williams sentenced Redding to 3 years of supervised release and ordered him to forfeit the weapon and ammunition he used during the commission of the offense.
U.S. Attorney Giordano credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks, Jr., and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, with the investigation leading to the convictions and sentencing with the investigation. U.S. Attorney Giordano also thanked officers of the Monmouth County Sheriff’s Office, the Ocean County Prosecutor’s Office, and the Asbury Park Police Department for their work on this case.
The government is represented by Assistant U.S. Attorneys Matthew J. Belgiovine and Elisa T. Wiygul of the Criminal Division in Trenton and Camden, respectively.
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Defense counsel: Jonathan Sobel, Philadelphia, Pennsylvania
New York Man Sentenced to Two Years in Prison for Laundering Proceeds of Fraudulent SchemesRead the Press Release
NEWARK, N.J. – A New York man was sentenced to two years in prison for laundering the proceeds of elder fraud and computer fraud schemes, U.S. Attorney John Giordano announced.
Hector Claveria 51, of Elmhurst, New York, was sentenced by U.S. District Judge Esther Salas in Newark federal court on March 26, 2025 following his guilty to Count Two of an Indictment charging him with international money laundering.
According to documents filed in this case and statements made in court:
In early 2020, Claveria acted as a money mule for a fraudulent scheme by picking up numerous packages that contained cash that he knew were proceeds of illegal activity. He then laundered some of this money in June 2020 by wiring $20,000 from his U.S. bank account to a foreign bank account. These funds were the proceeds of two fraudulent schemes: The first was an elder-fraud scheme in which the perpetrators tricked elderly victims into believing that they owed money to various government agencies and companies, and then into sending payments to locations identified by the perpetrators. The second was a computer-fraud scheme in which perpetrators tricked victims into believing that they owed money to a computer services company, and then into sending payments to locations identified by the perpetrators, purportedly at the direction of the computer company. At the time Claveria wired the funds to a foreign account, he knew that the transfer was designed to conceal and disguise the nature of the funds.
In additional the prison term, Judge Salas sentenced Claveria to three years of supervised release. Claveria was also ordered to forfeit $20,000.
U.S. Attorney Giordano credited special agents of the Social Security Administration Office, of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker.
The government is represented by Assistant U.S. Attorneys Chana Zuckier of the Bank Integrity, Money Laundering and Recovery Unit and Jennifer Kozar of the Economic Crimes Unit in Newark.
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Defense counsel: Vinoo Varghese, Esq.
Diopsys, Inc. Agrees to Pay up to $14.25 Million to Resolve Alleged Federal False Claims Act and State Law Violations Relating to Vision TestingRead the Press Release
Newark, N.J. – Diopsys, Inc., a medical device company based in Middletown, Pennsylvania, has agreed to pay up to $14.25 million to resolve allegations that the company violated the federal False Claims Act and various state laws by knowingly submitting or causing others to submit false claims for payment to Medicare and Medicaid in connection with certain vision testing services, U.S. Attorney John Giordano announced today.
The settlement resolves allegations relating to Diopsys’ NOVA device, an electrophysiological device that the U.S. Food and Drug Administration (FDA) cleared for visual evoked potential (VEP) testing. The United States alleged that, during the period from January 1, 2015 through December 31, 2021, Diopsys caused healthcare providers to submit false claims to Medicare and Medicaid for services in which the NOVA device was utilized for medically unnecessary uses, specifically electroretinography (ERG) vision testing, a substantially different vision test for which the NOVA device lacked FDA clearance. The government further contended that Diopsys made substantial changes to the NOVA device that it never submitted to FDA for clearance or approval despite knowing that such a submission was required.
“Today’s resolution reaffirms our commitment to protect the integrity of the Medicare and Medicaid programs. Health care companies must not encourage doctors to submit claims for payment for medically unnecessary tests.”
U.S. Attorney John Giordano
Under the terms of the settlement, Diopsys will make guaranteed payments of $1,225,000 and contingent payments of up to $13,025,000. The settlement is based on Diopsys’ financial condition.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dr. Atul Jain, a California ophthalmologist. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Approximately $1,120,000 of the guaranteed payment and up to approximately $11,900,000 of the contingent payments constitute the federal portion of the recovery. Dr. Jain will receive at least approximately $207,000 as his share of the federal recovery in this case.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of New Jersey, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney David Simunovich of the Health Care Fraud Unit in the U.S. Attorney’s Office for the District of New Jersey, and Trial Attorney Daniel Meyler of the Civil Division’s Commercial Litigation Branch, Fraud Section.
The case is captioned United States ex rel. Jain v. Diopsys, Inc., et al., Civil Action No. 21-18151 (D.N.J.).
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Counsel for Diopsys, Inc: Paul Fishman, Newark, NJ
Counsel for Relator Dr. Atul Jain: Justin Berger, Esq., San Mateo, CA
diopsys.agreement.pdfCamden County Man Admits to Distributing Methamphetamine and FentanylRead the Press Release
CAMDEN, N.J. – A Camden County man today admitted to distributing methamphetamine and fentanyl, U.S. Attorney John Giordano announced.
Joseph Watson, 38, of Sicklerville, New Jersey, pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, a Schedule II controlled substance, contrary to 21 U.S.C. §§ 841(a) and (b)(1)(C), in violation of 21 U.S.C. § 846; with possession with intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C); and with possession with intent to distribute fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C), before U.S. District Judge Christine P. O’Hearn in Camden federal court.
According to documents filed in this case and statements made in court:
From June 2023 through October 2023, Watson conspired with Ian Dudley and others to distribute crystal methamphetamine and fentanyl in Camden County, Gloucester County, and elsewhere in southern New Jersey. During the course of that conspiracy, Watson sold approximately 927 grams of crystal methamphetamine and approximately 28 grams of fentanyl to an undercover federal agent.
The counts of conspiracy to distribute methamphetamine, distribution of methamphetamine, and distribution of fentanyl each carry a maximum penalty of 20 years in prison and a $1,000,000 fine. Sentencing is scheduled for July 29, 2025.
U.S. Attorney Giordano credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of L.C. Cheeks, Jr., with the investigation.
Co-Defendant Ian Dudley is awaiting trial in this matter and is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Joseph McFarlane in Camden.
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Defense counsel: Stanley King, Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins
watson.indictment.pdfCamden County Company Settles Matter Alleging Receipt of Improper Cares Act LoansRead the Press Release
Newark, N.J. – A furniture rental company based in Pennsauken, New Jersey entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a Paycheck Protection Program (PPP) loan to which it was not entitled, United States Attorney John Giordano announced today.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
In January 2021, American Furniture Rentals, Inc. (AFR) applied for and received a $2 million PPP loan. Under the eligibility rules in effect at that time, a company was required to have 300 employees or less to qualify for a PPP loan. Despite the fact that AFR had more than 300 employees at the time, AFR certified in its loan application that it was eligible to participate in the PPP program. After receiving the PPP loan, AFR sought and received forgiveness of the total amount of the loan, plus interest that had accrued.
AFR fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, AFR will pay the United States $2,907,703. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. Verity Investigations, LLC v. American Furniture Rentals, Inc., 24-7540 (D.N.J.).
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Counsel for American Furniture Rentals, Inc.: Brian K. Kidd, Esq., Washington, D.C.
Counsel for Relator Verity Investigations, LLC: Steven Shepard, Esq., New York, NY
american_furniture.agreement.pdfPhiladelphia Man Found Guilty of Conspiring to Distribute CocaineRead the Press Release
CAMDEN, N.J. – A Philadelphia, Pennsylvania, man was found guilty of conspiring to distribute cocaine, U.S. Attorney John Giordano announced.
Marvin Murphy, 48, of Camden, New Jersey, was convicted on March 18, 2025 after a two-day bench trial before Chief U.S. District Judge Renée Marie Bumb. Murphy was remanded into custody after the verdict.
According to documents filed in this case and evidence at trial:
From June 2021 through July 13, 2021, Murphy conspired with Carl Lee Holloway, Lavinston Lamar, and others to distribute and to possess with intent to distribute cocaine. On June 23, 2021, Holloway traveled to San Diego, California, to meet with an undercover agent posing as a drug dealer. Holloway and the undercover agent discussed arranging a drug deal in New Jersey during which the undercover agent would deliver at least 10 kilograms of cocaine for Holloway and his associates. During the meeting, Holloway called Murphy, and the two proceeded to communicate about the drug deal during the subsequent weeks.
On July 13, 2021, Holloway, Murphy, and Lamar separately arrived at a hotel in Mount Laurel, New Jersey, each with bags containing U.S. currency collectively totaling over $340,000. They met with undercover agents inside a hotel room at the hotel. They briefly inspected one of the kilograms of cocaine previously brought into the room by undercover agents, after which agents entered the room and arrested Holloway, Lamar, and Murphy.
Chief Judge Bumb previously sentenced Holloway to 120 months in prison after Holloway pleaded guilty to his involvement in the same conspiracy. Chief Judge Bumb also previously sentenced Lamar to 114 months in prison, which was later reduced to 100 months, after Lamar pleaded guilty to his involvement in the same conspiracy and to violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine.
The count of conspiracy to distribute cocaine carries a maximum penalty of twenty years in prison and a fine of up to $1,000,000. Sentencing is scheduled for July 17, 2025.
U.S. Attorney Giordano credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Shawn S. Gibson in San Diego; and the Mount Laurel Police, under the direction of Chief Timothy Hudnall, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
Newark Expediter Admits Conspiring to Give Bribes to Newark Officials and Other FraudRead the Press Release
NEWARK, N.J. – A Newark-based expediter today admitted to conspiring to give bribes to Newark public officials, including then-Newark Councilmember Joseph A. McCallum, Jr., in connection with real estate development and construction-related transactions and conspiring with others to create and sell falsified documents supposedly issued by the City of Newark in connection with development, construction, rental or sale of such properties in Newark. Baxter also admitted to feigning the need to pay a bribe to a Newark official to fraudulently obtain money for himself and participating in a separate scheme to fraudulently obtain federal COVID-19 Paycheck Protection Program (PPP) loans, U.S. Attorney John Giordano announced.
Lamont Baxter, 49, pleaded guilty before U.S. District Judge William J. Martini to seven counts in an information charging him with conspiring to give bribes to Newark officials, giving bribes to McCallum in connection with a developer’s real estate transactions, committing wire fraud in connection with a purported cash bribe payment, conspiring to commit wire fraud in connection with falsifying documents purportedly issued by the City of Newark, and committing wire fraud to obtain PPP loans.
According to documents filed in these cases and statements made in court:
As an expediter on real estate and construction matters in Newark, from 2017 through August 2022, Baxter served as a liaison between Newark officials and agencies and individuals seeking permits, Certificates of Continued Occupancy (CCO), Certificates of Code Compliance (CCC), approvals and other actions on an expedited basis. To provide these expediting services, for years, Baxter conspired with others, including developers, to pay cash bribes to various Newark officials so that these officials completed the official acts that Baxter requested on behalf of the developers and others. Baxter would often use the term “taking care of” a Newark official to indicate to a developer when additional cash or extra payment was needed to be added to official fees charged by Newark so that Baxter could use the extra money to bribe a Newark official, such as an official handling the issuance of a CCC.
In addition to paying bribes to Newark officials on behalf of others, Baxter also once fraudulently obtained a $10,000 cash payment for himself by falsely indicating to his developer client that the cash was needed to pay a bribe to a Newark official. In that instance, Baxter kept the entire payment for himself and simply pretended that he had given the payment to a Newark Official.
Part of Baxter’s participation in the bribery schemes included delivering cash bribes exceeding $5,000 from 2019 to 2020 to then-Councilmember McCallum on behalf of a Newark developer who sought and obtained McCallum’s official assistance in obtaining approvals for real estate projects in Newark. On March 15, 2022, before Judge William J. Martini, McCallum admitted receiving bribes while serving as a Councilmember and a director of the Newark Community Economic Development Corporation, as part of his guilty plea to wire fraud for devising a scheme to defraud Newark and of the right to McCallum’s honest services and subscribing to a false personal tax return for calendar year 2018.
Part of Baxter’s expediting services from 2017 to August 2022, included conspiring with others to create and deliver falsified and fraudulent CCOs, CCCs, and certificates of approval issued by the City of Newark notifying a utility that was to provide electricity for a property that the required inspection had been conducted at the property (known as “cut-in cards”) to individuals who needed these official documents in relation to the development, construction, rental or sale of properties in Newark. Baxter and others used this scheme to fraudulently obtain payments from the individuals who required these official documents from the City of Newark.
Baxter also used the various entities he incorporated to obtain payments as an expediter to facilitate a scheme to fraudulently obtain PPP loans during the COVID-19 pandemic. In 2020 and 2021, Baxter participated in preparing and submitting fraudulent PPP loan applications that included false tax forms and documents and contained false information on the application forms, concerning, among other things, the companies’ gross revenue. As part of this scheme, Baxter even attempted to obtain a PPP loan for a lounge that he did not actually own and control, pretending to be its owner. As a result of his fraudulent scheme, Baxter obtained over $40,000 in PPP loan funds.
The conspiracy to commit bribery charge in Count 1 of the information to which Baxter pleaded guilty carries a maximum penalty of 5 years in prison and the bribery charge in Count 2 to which Baxter pleaded guilty carries a maximum penalty of 10 years in prison. The wire fraud and wire fraud conspiracy charges in Counts 3 through 7 to which Baxter pleaded guilty each carry a maximum penalty of 20 years in prison. All of the charges carry a maximum fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims, whichever is greater. Sentencing for Baxter is scheduled for August 12, 2025 at 11 a.m.
U.S. Attorney Giordano credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge in Newark Terence G. Reilly in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Shawn Rice, with the investigation leading to today’s guilty plea by Baxter.
The government is represented by Deputy Chief Jihee G. Suh and Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office’s Special Prosecutions Division and Chief Katherine Calle of the U.S. Attorney’s Office’s Opioid Unit.
All other co-conspirators identified in the Information are presumed innocent until proven guilty.
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Defense counsel: John A. McMahon, Esq.
baxter.information.pdfEssex County Man Admits to Committing Firearms Trafficking and Narcotics OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted to several firearms and narcotics trafficking offenses, U.S. Attorney John Giordano announced.
Carlo M. De Leon De Jesus, 28, of Newark, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an Information charging him with one count of dealing firearms without a license, one count of transferring firearms to an out-of-state resident, one count of firearms trafficking, and one count of conspiracy to distribute narcotics. De Leon De Jesus’s sentencing hearing is scheduled for July 28, 2025.
According to documents filed in this case and statements made in court:
On multiple dates between July 2023 and September 2023, De Leon De Jesus sold firearms and narcotics to law enforcement, including one pistol, one semiautomatic handgun, one short barrel rifle, one AK variant style rifle, fentanyl, heroin and cocaine.
The count of dealing firearms without a license and transferring firearms to an out-of-state resident each carry a maximum penalty of five years in prison and a fine of $250,000. The count of gun trafficking carries a maximum penalty of 15 years in prison and a fine of $250,000. The count of conspiracy to distribute controlled substances carries a maximum sentence of 20 years in prison and a fine of $1,000,000.
U.S. Attorney Giordano credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge L.C. Cheeks Jr., with the investigation leading to the charges. He also thanked the Drug Enforcement Administration, Newark Field Division, under the leadership of Special Agent in Charge Cheryl Ortiz, and Homeland Security Investigations, Newark Field Division, under the leadership of Special Agent in Charge Ricky Patel.
The government is represented by Assistant U.S. Attorney Robert Taj Moore of the Narcotics/OCDETF in Newark.
deleondejesus.information.pdf
Union County Woman Admits Embezzling Hundreds of Thousands of Dollars from SynagogueRead the Press Release
NEWARK, N.J. – A Union County woman admitted her role in embezzling more than approximately $350,000 from a Union County synagogue, U.S. Attorney John Giordano announced.
Stacy Margaritondo, 52, of Scotch Plains, New Jersey pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an Information charging her with wire fraud.
According to documents filed in this case and statements made in court:
In 2010, Margaritondo began working at the synagogue located in Union County, New Jersey and was promoted to office manager and bookkeeper in July 2020. From December 2019 through May 2023, Margaritondo abused this position of trust by engaging in a fraudulent scheme to misappropriate approximately $350,000 from the synagogue’s accounts. As part of the scheme, Margaritondo routinely issued unauthorized checks made payable to herself drawn on the synagogue’s bank accounts; obtained unauthorized additional funds to conceal the embezzlement scheme by fraudulently using the synagogue’s name, bank statements, and balance sheet to obtain short-term financing from at least three cash advance companies; and intentionally kept inaccurate accounting records and altered bank statements that she provided to the board of directors to conceal her scheme.
The wire fraud charge 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. Sentencing is scheduled for July 22, 2025 at 12 p.m.
U.S. Attorney Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the guilty plea. He also thanked the Scotch Plains Police Department, under the direction of Chief Jeffrey J. Briel, for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
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Defense counsel: Marc A. Sposato, Esq. and Steven F. Wukovits, Esq., Cranford, New Jersey
margaritondo.information.pdfNew Jersey Pain Clinic Admits Health Care Fraud and Agrees to Criminal and Civil PenaltiesRead the Press Release
CAMDEN, N.J. – A pain clinic with locations in Atlantic, Cape May, and Cumberland Counties admitted to overbilling insurance companies for services provided, U.S. Attorney John Giordano announced today.
Pain Specialists, P.A., with locations in Northfield, Vineland, and Cape May Courthouse, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams to an information charging it with health care fraud. Pain Specialists also signed a civil settlement with the United States to resolve allegations that it violated the False Claims Act.
According to documents filed in this case, statements made in court, and the terms of the civil settlement:
Pain Specialists was owned by a physician specializing in anesthesia and pain management (“Individual-1”). On various dates between November 2015 and January 2020 when Individual-1 was traveling and not physically present at a Pain Specialists location, Pain Specialists used Individual-1’s National Provider Identifier (“NPI”) number to bill Medicare, Medicaid, and private insurance plans for services and procedures requiring Individual-1’s in-person consultation or Individual-1’s direct supervision of the rendering provider. Pain Specialists received approximately $58,365.26 for services purportedly rendered by Individual-1 or directly supervised by him while he was traveling and out of the office.
In addition, Pain Specialists entered a civil settlement with the United States to resolve allegations that, between January 2014 and November 2020, Pain Specialists improperly listed a physician as the rendering provider for services that were provided by a non-physician practitioner when no physician was present in the office, in violation of Medicare’s “incident-to billing” requirements and in violation of Medicaid’s requirement that providers bill under their own NPI number.
Pain Specialists agreed to pay criminal restitution of $58,365.26, a criminal fine of $81,711.36, and a civil settlement of $240,000. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.
U.S. Attorney Giordano credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Naomi Gruchacz; special agents of the FBI Atlantic City Resident Agency and the Healthcare Fraud Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; and special agents and diversion investigators of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division and Susan Pappy of the Health Care Fraud Unit, and Trial Attorney Daniel Meyler of the Department of Justice’s Civil Division, Commercial Litigation Branch (Fraud Section).
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Defense counsel:
Riza I. Dagli Esq., Roseland, New Jersey
pain_specialists.information.pdf pain_specialists.civil_settlement_agreement.pdfFormer Salem County Man Sentenced to over Nine Years in Prison for Bank Fraud and Conspiracy to Rob U.S. Post Office EmployeesRead the Press Release
CAMDEN, N.J. – A former Salem County, New Jersey, man was sentenced to an aggregate term of 111 months in prison for his role in multiple schemes, including bank fraud, aggravated identity theft, and the robbery of two US Post Office letter carriers, U.S. Attorney John Giordano announced.
Dezhon McCrae, 25, formerly of Penns Grove, was sentenced by U.S. District Judge Karen M. Williams in Camden federal court on Tuesday, March 18, 2025, following his guilty plea to a six-count information charging him with two counts of conspiracy to commit bank fraud, possession of a stolen postal key, possession of stolen mail, aggravated identity theft, and conspiracy to commit Hobbs Act robbery.
According to documents filed in this case and statements made in court:
From May 2018 through February 2020, McCrae was part of a “card cracking” conspiracy in which the conspirators obtained stolen checks from the mail and other sources. They then used the stolen checks to create counterfeit checks with the same routing and account numbers for deposit into area banks. Next, the conspirators posted advertisements on social media, seeking individuals who had bank accounts and were willing to give the conspirators access to their accounts. The conspirators then deposited the counterfeit checks into the compromised banks accounts. The conspirators transferred as much money as possible out of the accounts before the banks discovered that the deposits were fraudulent. The conspirators were able to defraud the victim banks of over $274,000. McCrae’s role in this scheme resulted in over $10,000 loss to the victim banks. Six other codefendants have already been sentenced in connection with this scheme and three additional codefendants have pleaded guilty and are awaiting sentencing.
After being charged via federal criminal complaint for the “card cracking” scheme, McCrae engaged in a second scheme to commit bank fraud. From May 11, 2022, to July 27, 2022, McCrae participated in a nearly identical scheme to defraud another bank. This time, the victim bank suffered over $14,000 of loss due to McCrae’s offense.
On August 18, 2023, while on pretrial release, McCrae was residing in Paulk County, Georgia. Police officers were dispatched to McCrae’s residence in response to eye-witness reports of a shooting. The investigation of the shooting led to the discovery of a stolen postal mailbox key and stolen mail in McCrae’s residence.
During the investigation of the August 18, 2023 shooting at McCrae’s residence, police officers obtained a warrant to search McCrae’s cellphone. The cellphone was found to contain evidence that McCrae had manufactured a fraudulent New Jersey driver’s license in the name of a real person, but using the photograph of a conspirator. The cellphone evidence also showed that McCrae mailed the false ID to his conspirators in Camden in late June 2023. On July 3, 2023, the false ID was used in an attempt to cash a stolen check at a bank in New Jersey. The bank’s employees were suspicious of the fraudulent ID and the conspirator fled the bank before the stolen check was cashed.
Finally, the search of McCrae’s cellphone also uncovered evidence of his role in a conspiracy to rob two U.S. Postal Letter Carriers in Cumberland County, New Jersey. The robbers targeted the letter carriers to steal their postal mailbox keys. The first robbery occurred in Fairfield Township on June 13, 2023, when a masked assailant assaulted the letter carrier and successfully stole the postal mailbox key. The second robbery occurred on July 3, 2023, in Vineland. During the second robbery, a masked assailant attacked the letter carrier from behind, striking him and spraying him with a cannister of bear repellant. The second robbery was unsuccessful in stealing the letter carrier’s postal mailbox key.
In addition to the prison term, Judge Williams sentenced McCrae to five years of supervised release. McCrae was also ordered to pay $24,411.89 of restitution.
U.S. Attorney Giordano credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation. U.S. Attorney Giordano also thanked the Paulk County (Georgia) Sheriff’s Department, the New Jersey State Police, the Cumberland County Prosecutor’s Office, the Glassboro Police Department, and the Cherry Hill Police Department.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
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Defense counsel: Christopher St. John, Esq. (Cherry Hill, NJ)