District of New Jersey

CAMDEN, N.J. – The U.S. Attorney’s Office filed a complaint today against a corporation which operates a South Jersey day care facility for allegedly violating the Americans with Disabilities Act (ADA) by expelling a child with Down syndrome, U.S. Attorney Paul J. Fishman announced.

The complaint was filed in Camden federal court against Nobel Learning Communities (NLC), a Delaware corporation with its principal place of business in West Chester, Pennsylvania. NLC owns and operates Chesterbrook Academy, a private, pre-school facility in Moorestown, New Jersey.

According to the complaint:

NLC failed to make reasonable modifications for a child with Down syndrome and then expelled the child from Chesterbrook.

Chesterbrook offers day care and education programs for children from six weeks old through kindergarten. The child in this case was enrolled at Chesterbrook when less than a year old. Approximately two years after enrolling, Chesterbrook notified the parents that their child was being moved from the “beginner” program to the “intermediate” program. The parents provided the school with literature on delayed toilet training in children with Down syndrome. The child was moved into the intermediate program, and the principal informed the parents that the school was going to work on getting the child toilet trained by a set date. Approximately two months later, the school notified the child’s parents that it was expelling their child because the child was not toilet trained. The parents requested various modifications to allow the child to remain enrolled, but the school refused to implement the modifications and expelled the child.

The federal civil suit seeks, among other things, a judgment against NLC for violation of the ADA, an injunction against the company to prevent discrimination against individuals with disabilities, compensatory damages to be awarded to the child and the child’s parents and a civil penalty against NLC.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

The government is represented by Assistant U.S. Attorney Jordan M. Anger of the U.S. Attorney’s Office Civil Division in Newark.

NEWARK, N.J. – A Berkeley Heights, New Jersey, man was sentenced today to 20 months in prison for bribing a doctor in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Michael J. Zarrelli, 50, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiring to bribe a doctor and one count of money laundering. Judge Chesler imposed the sentence today in Newark federal court.

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

Zarrelli admitted he agreed with BLS president David Nicoll, 42, of Mountain Lakes, New Jersey, his brother, Scott Nicoll, 36, of Wayne, New Jersey, and others to pay cash bribes to a doctor in return for referring patient blood specimens to BLS. The referrals sent to BLS by the doctor that Zarrelli bribed generated more than $400,000 in lab business for BLS.

In addition to the prison term, Judge Chesler sentenced Zarrelli to one year of supervised release. Zarrelli must also forfeit $247,264, representing the payment he received from BLS.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

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

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

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

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

Defense counsel: Michael Critchley Esq., Roseland, New Jersey

NEWARK, N.J. – A Bronx, New York, man who was arrested on Jan. 13, 2017 in connection with a Fort Lee, New Jersey, bank robbery will make his initial court appearance tomorrow, U.S. Attorney Paul J. Fishman announced today.

Andres Dominguez, 38, is charged by complaint with one count of bank robbery and is scheduled to make his initial appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court tomorrow.

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

On Jan. 12, 2017, Dominguez allegedly robbed the Bank of New Jersey in Fort Lee. According to bank employees and video surveillance, a man wearing a gray Nike hooded sweatshirt, a blue rubber glove, sunglasses, a wool hat, Adidas pants, and white sneakers entered the bank.

The robber approached one of the bank tellers with a large kitchen knife in his right hand and jumped onto the counter separating the tellers from customers. He then verbally demanded money from the teller and instructed the teller to give him all the money in the teller drawers or he would kill her. The teller complied, and the robber jumped back over the counter and fled the bank on foot. The robber was later identified as Dominguez.

When law enforcement later searched the area around the bank for evidence of the bank robbery, they recovered a large kitchen knife from a dumpster behind the bank. They also found two blue rubber gloves, a gray Nike hooded sweatshirt, and a dark wool hat on the street at various locations within a few blocks of the bank. Law enforcement later located Dominguez in the Bronx and arrested him.

The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and officers of the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation.

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

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

WASHINGTON – McKesson Corp. (McKesson), one of the nation’s largest distributors of pharmaceutical drugs, has agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA), U.S. Attorney Paul J. Fishman and DEA Special Agent in Charge Carl J. Kotowski announced today.
 

“The epidemic of opioid abuse is carving an increasingly destructive path through our country,” U.S. Attorney Fishman said. “But nearly a decade ago, McKesson was sanctioned for violations that were contributing to the misuse of these prescription painkillers. Given a chance to implement a more robust system for monitoring the distribution of these products, the company instead chose to ignore its own compliance regime in favor of a bigger bottom-line. The consequences of McKesson's decision to circumvent its obligations are too devastating to ignore and warrant today's punishment.”

“Pharmaceutical companies are our first line of defense in the fight against prescription opioid abuse,” SAC Kotowski said. “If they turn a blind eye to suspicious orders of pharmaceutical controlled substances they are contributing to this epidemic. This settlement sends a clear message that even corporations need to do their part to fight this devastating opioid epidemic.”

The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.

In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.

The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.

In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance – the first independent monitor of its kind in a CSA civil penalty settlement.

This was a multi-district investigation that involved DEA Field Divisions in the following locations: Boston, Chicago, Denver, Detroit, Miami, Newark, San Francisco, St. Louis, and the Washington District Office. The following U.S. Attorney’s Offices participated in the case: Central District of California, Eastern District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.

In the District of New Jersey, the government was represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division of the U.S. Attorney’s Office.

U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement.

CAMDEN, N.J. - A Camden man today admitted his role in a crack cocaine distribution conspiracy operating in Camden, U.S. Attorney Paul J. Fishman announced.

Jason Boyd, a/k/a “Teddy,” a/k/a “Teddy Reek,” and a/k/a “Fatboy,” 36, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime.

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

Boyd admitted that he sold, and directed others to sell, crack cocaine in and around the 1100 block of Lansdowne Avenue in Camden. Boyd also admitted that he provided crack cocaine to other members of the conspiracy and collected proceeds from the sales.

Boyd, who was one of the leaders of the conspiracy, was charged along with seven others in September 2016 following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. During the investigation, law enforcement recovered a .40 caliber handgun that was kept by the conspirators in connection with their drug trafficking activities.

The distribution conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. The firearms charge carries a mandatory minimum sentence of five years in prison to be served consecutively to the conspiracy charge. Sentencing is scheduled for April 28, 2017.

Codefendant Derek Stallworth, a/k/a “AK” and a/k/a “A,” 20, of Camden, pleaded guilty to his role in the conspiracy on Dec. 8, 2016 and is scheduled to be sentenced on March 24, 2017.

U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.

He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.

The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Jose Ongay Esq., Mount Ephraim, New Jersey

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 120 months in prison for robbing eight banks in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.

Steven Wisnowski, 33, of Barnegat, New Jersey, previously pleaded guilty before U.S. District Judge Peter J. Sheridan in Trenton federal court to an eight-count superseding information charging him with the bank robberies.

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

Wisnowski admitted that between Oct. 30, 2013, and Jan. 7, 2014, he robbed eight banks, seven of which were in New Jersey, and one of which was in New York:

Bank Name

Location

Date

PNC Bank

Edison

Oct. 30, 2013

TD Bank

Brick

Nov. 7, 2013

Santander Bank

Brick

Nov. 15, 2013

Ridgewood Savings Bank

Bayside (NY)

Nov. 22, 2013

Columbia Bank

Edison

Nov. 27, 2013

TD Bank

Toms River

Dec. 2, 2013

PNC Bank

Aberdeen

Dec. 9, 2013

Fulton Bank

Edison

Jan. 7, 2014

Wisnowski used a similar procedure for each robbery: he entered the banks wearing hats, hooded jackets, and wigs to conceal his identity, approached the bank tellers, and demanded money. In some instances, Wisnowski made the tellers believe he was armed and also threatened some tellers with violence.

During the Columbia Bank robbery, Wisnowski appeared to point something at the teller from under his clothing, as if he had a gun. Wisnowski then demanded money, stating: “Give me all your hundreds.” As the teller gathered the money, Wisnowski counted backwards from 10. He then fled with the money.

During the Fulton Bank robbery, Wisnowski gave a teller a manila envelope and stated, “Give me what I want and nobody gets hurt. I want large bills.” He then pulled up his sweatshirt as if he had a gun. The teller gathered the money and placed it in the envelope, after which Wisnowski fled.

Law enforcement tracked Wisnowski’s vehicle to the scene of the Fulton Bank robbery. Officers approached Wisnowski as he exited the bank and ordered him to the ground at gunpoint. Wisnowski threw the envelope filled with cash and fled. Law enforcement officers pursued Wisnowski and apprehended him moments later.

In addition to the prison term, Judge Sheridan sentenced Wisnowski to three years of supervised release and ordered to pay restitution of $22,240.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s sentencing. He also thanked the Edison, Aberdeen, Brick, Toms River, and New York City police departments, and the Middlesex, Ocean, and Monmouth County prosecutors’ offices for their contributions to the case.

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

Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark

The Department of Justice, 21 states, and the District of Columbia reached a nearly $864 million settlement agreement with Moody’s Investors Service Inc., Moody’s Analytics Inc., and their parent, Moody’s Corporation, the Department announced today. The settlement resolves allegations arising from Moody’s role in providing credit ratings for Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDO), contributing to the worst financial crisis since the Great Depression.　

The agreement resolves pending state court lawsuits in Connecticut, Mississippi, and South Carolina, as well as potential claims by the Justice Department, 18 states and the District of Columbia.

The settlement follows an investigation by the Justice Department’s Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey into potential claims pursuant to the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and investigations conducted by various State Attorneys General pursuant to state law.

"Moody’s failed to adhere to its own credit rating standards and fell short on its pledge of transparency in the run-up to the Great Recession," said Principal Deputy Associate Attorney General Bill Baer.　 "Today’s settlement contains not only a significant penalty and factual admissions of its conduct, but also a commitment by Moody’s to new and continued compliance measures designed to ensure the integrity of credit ratings going forward."

"Our investigation revealed, and Moody’s has now acknowledged, that Moody’s used a more lenient standard than it had itself published," said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. "Investors relied on Moody’s credit ratings to be objective and independent, and they naturally expected Moody’s to follow its own published methods."

"Moody’s touted a particularly robust analytical framework for rating RMBS and CDOs," said U.S. Attorney Paul J. Fishman for the District of New Jersey. "Moody’s now admits that it deviated from its methodologies and failed to disclose those changes to the public. People making decisions on how to invest their money thought they could rely on the ratings Moody’s assigned to these products. When securities are not rated openly and honestly, individual investors suffer, as does confidence in all parts of the financial sector."

The multi-faceted settlement includes a Statement of Facts in which Moody’s acknowledges key aspects of its conduct, and a compliance agreement to prevent future violations of law. The Statement of Facts addresses Moody’s representations to investors and the public generally about: (1) its objectivity and independence; (2) its management of conflicts of interest; (3) its compliance with its own stated RMBS and CDO rating methodologies and standards; and (4) the analytic integrity of certain rating methodologies.

The Statement of Facts addresses whether Moody’s credit ratings were compromised by what Moody’s itself acknowledged were the conflicts of interest inherent in the so-called "issuer pay" model, under which Moody’s and other credit rating agencies are selected by the same entity that puts together and markets the rated securities and therefore stands to benefit from higher credit ratings.

Among other things, Moody’s acknowledges in the Statement of Facts:

• Moody’s published and maintained online its "Code of Professional Conduct" for the stated purpose of promoting the "integrity, objectivity, and transparency of the credit ratings process," including managing conflicts of interest that it publicly acknowledged arose from the fact that RMBS and CDO issuers determined whether to retain Moody’s to rate these securities.
• Moody’s acknowledges that it passed these conflicts on to the managing directors of the business units, who were then asked to resolve the "dilemma" between maintaining ratings quality and the need to win business from the issuers that selected them.
• Moody’s publicly stated that its ratings "primarily address the expected credit loss an investor might incur," which included its assessment of both the "probability of default" and the "loss given default" of rated securities.
• Starting in 2001, Moody’s RMBS group began using an internal tool in rating RMBS that did not calculate the loss given default or expected loss for RMBS below Aaa and did not incorporate Moody’s own rating standards. Instead, the tool was designed to "replicate" ratings that had been assigned based on a previous model that calculated expected loss for each tranche and incorporated Moody’s rating level standards. In October 2007, a senior manager in Moody’s Asset Finance Group (AFG) noted the following about Moody’s RMBS ratings derived from the tool: "I think this is the biggest issue TODAY. [A Moody’s AFG Senior Vice President and research manager]’s initial pass shows that our ratings are 4 notches off."
• Starting in 2004, Moody’s did not follow its published idealized expected loss standards in rating certain Aaa CDO securities. Instead, Moody’s began using a more lenient standard for rating these Aaa securities but did not issue a publication about this practice to the general market.
• In 2005, Moody’s authorized the expanded use of this practice to all Aaa CDO securities and, in 2006, formally authorized the use of this practice, or of an even more lenient standard, to all Aaa structured finance securities. Throughout this period, although "[m]any arrangers and issuers were aware" that Moody’s was using a more lenient Aaa standard, Moody’s did not issue publications about these decisions to the general market.

The Statement of Facts further addresses other important aspects of Moody’s rating methodologies, including its "inconsistent use of present value discounts" in assigning CDO ratings and its selection of assumptions about the correlations between assets in CDOs.

Under the terms of the compliance commitments, Moody’s agrees to maintain a host of measures designed to ensure the integrity of its credit ratings.　 These include:

• Separation of Moody’s commercial and credit rating functions by excluding analytical personnel from any commercial related discussions and excluding personnel responsible for commercial functions from determining credit ratings or developing rating methodologies;
• Independent review and approval of changes to rating methodologies by maintaining separate groups to develop and review rating methodologies;
• Changes to ensure that specified personnel are not compensated on the basis of the company’s financial performance;
• Enhancing Moody’s oversight functions to monitor the content of press releases and the timeliness of methodology development;
• Deploying new technological platforms and centralized systems for documentation of rating procedures; and
• Certifications of compliance by the President/CEO of Moody’s with these commitments for at least five years.

"The Department of Justice is committed to working with companies that are willing to admit what they did and take steps to enhance compliance," said Deputy Assistant Attorney General Jonathan Olin for the Department’s Consumer Protection Branch. "Non-monetary measures such as those agreed to today are part of the Department’s comprehensive approach to protect the American people by promoting a culture of compliance across industries."　

The settlement includes a $437.5 million federal civil penalty, which is the second largest payment of this type ever made to the federal government by a ratings agency. The remainder will be distributed among the settlement member states in alignment with terms of the agreement. The states involved in today’s settlement include Arizona, California, Connecticut, Delaware, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Mississippi, Missouri, New Hampshire, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina and Washington as well as the District of Columbia.

The matter was handled by Consumer Protection Branch Senior Litigation Counsel Sondra L. Mills, and Trial Attorney James T. Nelson; and by the U.S. Attorney’s Office District of New Jersey Deputy Chief, Civil Division Leticia Vandehaar and Assistant U.S. Attorneys Thomas G. Strong and Alex S. Weinberg.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at http://www.justice.gov/usao-nj.

NEWARK, N.J. – The U.S. Department of Justice, 21 other states, and the District of Columbia reached a $864 million settlement agreement with Moody’s Investors Service Inc., Moody’s Analytics Inc. and their parent, Moody’s Corporation, the Department announced today. The settlement resolves allegations arising from Moody’s role in providing credit ratings for Residential Mortgage-Backed Securities (RMBS) and Collateralized Debt Obligations (CDO), contributing to the worst financial crisis since the Great Depression.

The agreement resolves pending state court lawsuits in Connecticut, Mississippi, and South Carolina, as well as potential claims by the Justice Department, 18 states and the District of Columbia.

The settlement follows an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Consumer Protection Branch into potential claims pursuant to the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) and investigations conducted by various State Attorneys General pursuant to state law.

“Moody’s touted a particularly robust analytical framework for rating RMBS and CDOs,” U.S. Attorney Fishman said. “Moody’s now admits that it deviated from its methodologies and failed to disclose those changes to the public. People making decisions on how to invest their money thought they could rely on the ratings Moody’s assigned to these products. When securities are not rated openly and honestly, individual investors suffer, as does confidence in all parts of the financial sector.”

“Moody’s failed to adhere to its own credit rating standards and fell short on its pledge of transparency in the run-up to the Great Recession,” said Principal Deputy Associate Attorney General Bill Baer.  “Today’s settlement contains not only a significant penalty and factual admissions of its conduct, but also a commitment by Moody’s to new and continued compliance measures designed to ensure the integrity of credit ratings going forward.”

“Our investigation revealed, and Moody’s has now acknowledged, that Moody’s used a more lenient standard than it had itself published,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Investors relied on Moody’s credit ratings to be objective and independent, and they naturally expected Moody’s to follow its own published methods.”

The multi-faceted settlement includes a Statement of Facts in which Moody’s acknowledges key aspects of its conduct, and a compliance agreement to prevent future violations of law. The Statement of Facts addresses Moody’s representations to investors and the public generally about: (1) its objectivity and independence; (2) its management of conflicts of interest; (3) its compliance with its own stated RMBS and CDO rating methodologies and standards; and (4) the analytic integrity of certain rating methodologies.

The Statement of Facts addresses whether Moody’s credit ratings were compromised by what Moody’s itself acknowledged were the conflicts of interest inherent in the so-called “issuer pay” model, under which Moody’s and other credit rating agencies are selected by the same entity that puts together and markets the rated securities and therefore stands to benefit from higher credit ratings.

Among other things, Moody’s acknowledges in the Statement of Facts:

• Moody’s published and maintained online its “Code of Professional Conduct” for the stated purpose of promoting the “integrity, objectivity, and transparency of the credit ratings process,” including managing conflicts of interest that it publicly acknowledged arose from the fact that RMBS and CDO issuers determined whether to retain Moody’s to rate these securities.

• Moody’s acknowledges that it passed these conflicts on to the managing directors of the business units, who were then asked to resolve the “dilemma” between maintaining ratings quality and the need to win business from the issuers that selected them.

• Moody’s publicly stated that its ratings “primarily address the expected credit loss an investor might incur,” which included its assessment of both the “probability of default” and the “loss given default” of rated securities.

• Starting in 2001, Moody’s RMBS group began using an internal tool in rating RMBS that did not calculate the loss given default or expected loss for RMBS below Aaa and did not incorporate Moody’s own rating standards. Instead, the tool was designed to “replicate” ratings that had been assigned based on a previous model that calculated expected loss for each tranche and incorporated Moody’s rating level standards. In October 2007, a senior manager in Moody’s Asset Finance Group (AFG) noted the following about Moody’s RMBS ratings derived from the tool: “I think this is the biggest issue TODAY. [A Moody’s AFG Senior Vice President and research manager]’s initial pass shows that our ratings are 4 notches off.”

• Starting in 2004, Moody’s did not follow its published idealized expected loss standards in rating certain Aaa CDO securities. Instead, Moody’s began using a more lenient standard for rating these Aaa securities but did not issue a publication about this practice to the general market.

• In 2005, Moody’s authorized the expanded use of this practice to all Aaa CDO securities and, in 2006, formally authorized the use of this practice, or of an even more lenient standard, to all Aaa structured finance securities. Throughout this period, although “[m]any arrangers and issuers were aware” that Moody’s was using a more lenient Aaa standard, Moody’s did not issue publications about these decisions to the general market.

The Statement of Facts further addresses other important aspects of Moody’s rating methodologies, including its “inconsistent use of present value discounts” in assigning CDO ratings and its selection of assumptions about the correlations between assets in CDOs.

Under the terms of the compliance commitments, Moody’s agrees to maintain a host of measures designed to ensure the integrity of its credit ratings. These include:

• Separation of Moody’s commercial and credit rating functions by excluding analytical personnel from any commercial related discussions and excluding personnel responsible for commercial functions from determining credit ratings or developing rating methodologies;

• Independent review and approval of changes to rating methodologies by maintaining separate groups to develop and review rating methodologies;

• Changes to ensure that specified personnel are not compensated on the basis of the company’s financial performance;

• Enhancing Moody’s oversight functions to monitor the content of press releases and the timeliness of methodology development;

• Deploying new technological platforms and centralized systems for documentation of rating procedures; and

• Certifications of compliance by the President/CEO of Moody’s with these commitments for at least five years.

“The Department of Justice is committed to working with companies that are willing to admit what they did and take steps to enhance compliance,” said Deputy Assistant Attorney General Jonathan Olin for the Department’s Consumer Protection Branch. “Non-monetary measures such as those agreed to today are part of the Department’s comprehensive approach to protect the American people by promoting a culture of compliance across industries.”

The settlement includes a $437.5 million civil penalty, which is the second largest payment of this type ever made to the federal government by a ratings agency. The remainder will be distributed among the settlement member states in alignment with terms of the agreement. The states involved in today’s settlement include Arizona, California, Connecticut, Delaware, Idaho, Illinois, Indiana, Iowa, Kansas, Maine, Maryland, Massachusetts, Mississippi, Missouri, New Hampshire, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina and Washington as well as the District of Columbia.

The matter was handled by Consumer Protection Branch Director Michael S. Blume, Senior Litigation Counsel Sondra L. Mills, and Trial Attorney James T. Nelson; and by the U.S. Attorney’s Office District of New Jersey Deputy Chief, Civil Division Leticia Vandehaar and Assistant U.S. Attorneys Thomas G. Strong and Alex S. Weinberg.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at http://www.justice.gov/usao-nj.

NEWARK, N.J. – An Amtrak supervisor today admitted fraudulently overbilling Amtrak overtime and regular hours that he claimed to be working when he was actually not present at Amtrak work sites, U.S. Attorney Paul J. Fishman announced.

Donald Harper Sr., 47, of Somerset, New Jersey, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging him with one count of converting to his own use federal government funds.

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

Harper, who has been employed by Amtrak since February 1990, supervised 19 employees in a work gang on the Signals side of the Communications and Signals Department of Amtrak’s New York Division. During the summer of 2015, Amtrak employees under Harper’s supervision performed work on a project known as the Positive Train Control installation, which was a project, mandated by Congress, to put in place advanced technological components that could automatically stop or slow a train in order to prevent accidents or derailments. Between October 2014 and October 2015, Harper fraudulently billed Amtrak for 27.75 regular hours and 192.25 overtime hours when he was not actually present at Amtrak work sites, resulting in a loss to Amtrak of over $20,000.

The count to which Harper pleaded guilty carries a maximum potential penalty of one year in prison and a fine of $250,000, or twice the gain or loss resulting from the offense, whichever is greater. The terms of the plea agreement require Harper to make full restitution of $20,346. Sentencing is scheduled for April 20, 2017.

U.S. Attorney Fishman credited special agents of Amtrak’s Office of Inspector General, Office of Investigations, Philadelphia office, under the direction of Special Agent in Charge Robert J. Koons, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.

Defense counsel: Linda Foster Esq., Assistant Federal Public Defender

NEWARK, N.J. – A Brooklyn, New York, man who was on the FBI’s 10 Most Wanted Fugitive List in 1988 was sentenced today to 240 months in prison for robbing a TD Bank in Oakland, New Jersey, in April 2013, U.S. Attorney Paul J. Fishman announced.  
 
John Edward Stevens, 63, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to Count Two of an indictment charging him with armed bank robbery. Judge Cecchi imposed the sentence today in Newark federal court.
 
According to documents filed in this case and statements made in court:   Stevens admitted that on April 15, 2013, he robbed a TD Bank in Oakland. After entering the bank, Stevens approached several bank employees while carrying a zipper pouch. He opened the zipper pouch, pulled out what appeared to be a black handgun, and brandished it at one of the bank employees. He then took several thousand dollars in cash and fled the scene.
 
Approximately 20 minutes after the robbery, law enforcement stopped a vehicle that was reported stolen. The driver of the stolen vehicle was identified as Stevens. Law enforcement arrested Stevens and located a TD Bank bag filled with money in the vehicle.
 
Stevens has been convicted of at least eight prior armed bank robberies in the Central District of California and the Southern District of Ohio.
 
In addition to the prison term, Judge Cecchi sentenced Stevens to three years of supervised release.
 
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s plea. He also thanked the Waldwick Police Department, the Oakland Police Department, the Ho-Ho-Kus Police Department and the Bergen County Sheriff’s Office for their contributions to the case.
 
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
 
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey

NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Salvatore Conte, 52, of Totowa, New Jersey, is charged by indictment with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Conte will be arraigned at a later date.

According to the indictment:

From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte periodically solicited, and received from the BLS employees and associates, monthly bribe payments in the form of sham rental, service agreement, and consultant payments. Conte’s referrals generated approximately $525,000 in lab business for BLS.

Conte is the fifth physician to be indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

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

The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.

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

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

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

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

Defense counsel: Robert Baer Esq., Wayne, New Jersey

NEWARK, N.J. – A former union official and an insurance broker have been charged in connection with their roles in conspiring to defraud Horizon Blue Cross Blue Shield and the United Auto Workers (UAW) Local 2326 Health Care Plan of millions of dollars, U.S. Attorney Paul J. Fishman announced today.

Sergio Acosta, 66, of Passaic New Jersey, formerly the president of Local 2326, and Lawrence Ackerman, 53, of Old Tappan, New Jersey, were both indicted by a federal grand jury on one count each of conspiring to defraud Horizon Blue Cross Blue Shield and one count each of conspiring to defraud the union’s self-insured health care plan. An arraignment for both defendants will be scheduled at a later date.

According to the indictment:

Acosta was an employee of Local 2326 and was its president from 2002 to 2008. During this time, he was responsible for conducting the union’s operations as well as its benefits plan. In 2008, he became a representative and employee of the UAW International Union, yet continued to serve as the union’s trustee to the benefit plan.

Ackerman was the chief operating officer of Atlantic Business Associates ABA, Atlantic Medical Associates (AMA), AM Law, Atlantic International Group and Pro-Tech Automotive services. In actuality ABA and AMA were “shell” companies allegedly created by Ackerman, through which he marketed health insurance nationally to people who were not, in fact, employees of ABA and AMA. He used ABA and AMA to create the appearance of employment status for individuals who were improperly seeking health care coverage through the benefit plan.

Acosta and Ackerman allegedly conspired to defraud Horizon Blue Cross Blue Shield of $5.6 million by covering 700 to 800 ineligible participants recruited by Ackerman from across the country. After Horizon discovered the fraud and rescinded its coverage from Local 2326, Acosta allegedly permitted the same ineligible participants to continue being covered by the Local 2326 self-insured health care plan. After just five months, an additional $1 million in losses were incurred.

Each of the counts with which the defendants are charged carries a maximum penalty of 10 years in prison and a $250,000 fine.

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

U.S. Attorney Fishman credited special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael Mikulka; the Office of Employee Benefit Security Act (EBSA), under the direction of Regional Director Jonathan Kay; and the Office of Labor Management Standards, under the supervision of District Director Andriana Vamvakas, with the investigation leading to today’s charges.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.

Defense counsel:

Ackerman: Robert Kipnees Esq., Roseland, New Jersey

Acosta, Alan Silber Esq., Roseland, New Jersey

NEWARK, N.J. – A Bergenfield, New Jersey, woman was sentenced today to 37 months in prison for her role in a conspiracy to traffic approximately two kilograms of cocaine from Puerto Rico to New Jersey, U.S. Attorney Paul J. Fishman announced.

Sasha Melendez, 38, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiring to distribute cocaine. Judge Cecchi imposed the sentence today in Newark federal court.

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

Melendez was the subject of an investigation by the U.S. Postal Inspection Service and the Drug Enforcement Administration (DEA) of an ongoing conspiracy to import cocaine from Puerto Rico. She was arrested on March 24, 2015 in Bergen County after she accepted delivery of a mail parcel from Puerto Rico containing approximately two kilograms of cocaine. Melendez admitted at her plea hearing that she conspired with co-defendant Ramis Esteves, 33, of New York, to distribute the cocaine.

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

Estevez previously pleaded guilty to his role in the conspiracy and awaits sentencing.

U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office General Crimes Unit.

Defense Counsel: Stacey Van Malden, Esq.

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 135 months in prison for distributing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.

Shawn Brown, 35, of Ewing, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to one count of a three-count an indictment charging him with distributing child pornography over the Internet. Judge Thompson imposed the sentence today in Trenton federal court.

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

Brown admitted that on July 14, 2013, he distributed a video depicting child sexual abuse on the Internet to another individual via instant messaging software. Authorities were first alerted to Brown’s conduct when an undercover agent discovered and downloaded images and videos containing child pornography that Brown had made available to users of a peer-to-peer file sharing network. Law enforcement traced the username and IP address of the sharer back to Brown’s residence. A review of Brown’s electronic devices, seized pursuant to a search warrant, revealed that Brown had been using aliases to contact underage girls online via instant messaging software and social media, where he had created a fake profile posing as a teenage boy.

In addition to the prison term, Judge Thompson sentenced Brown to lifetime supervised release.

U.S. Attorney Fishman credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Molly Lorber of the U.S. Attorney’s Office Criminal Division in Trenton.

Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – A New Jersey auto dealer was charged today for allegedly defrauding more than 140 Russian citizens who were customers of his auto sales business, U.S. Attorney Paul J. Fishman announced.

Sergey Kapustin, 47, of Warminster, Pennsylvania, was arrested today by special agents of the FBI and charged by complaint with one count of wire fraud and conspiring to commit wire fraud. He will appear this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

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

Kapustin was the owner and president of Global Auto Group, Effect Auto Sales and G Auto Sales, located in Elizabeth, New Jersey. Global bought and sold used cars, typically high-end vehicles that were classified as “salvaged.”

From January 2011 through December 2014, Kapustin allegedly operated business through a scheme to defraud customers, who usually lived in Russia, Ukraine or members of the former Soviet Union. Kapustin had one or more Russian language websites that offered for sale luxury vehicles, including Mercedes and Lexus that were normally priced below market value, that could be shipped to Finland for easy delivery to Russian citizens, if they agreed to pay full price upfront for the vehicle. Kapustin was Russian and his websites were geared to buyers who believed they were getting a “good deal” from a fellow countryman who could be trusted to follow through once the purchase price had been paid.

After the buyers would wire the full price to one or more bank accounts controlled by Kapustin, he would allegedly give them a litany of excuses and reasons for delay in delivery.  Unbeknownst to them, more often than not Kapustin had neither possession of nor title to the vehicles being sold. At some point, the victim would be offered a different, often inferior car, burdened with added shipping and storage costs.  The unsophisticated buyer, desperate to acquire something for money already spent, would oftentimes wire additional money to rescue the car from its storage; all to no avail. Those very few cars that did land in Finland were normally the product of salvage auctions for vehicles that had been immersed in or flooded with salt water and were inoperable. Kapustin allegedly stole approximately $2 million in this manner.

The count with which Kapustin is charged carries a maximum penalty of 20 years and $250,000 fine.

U.S. Attorney Fishman credited the special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to Kapustin’s arrest.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit.

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

CAMDEN, N.J. – A Burlington County, New Jersey, pharmacist today admitted his role in a long-running conspiracy to illegally distribute and dispense large quantities of oxycodone and other controlled substances from two pharmacies located in Medford, New Jersey, U.S. Attorney Paul J. Fishman announced.

David Goldfield, 58, of Medford Lakes, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to Count 1 of an indictment charging him with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, and Counts 10 through 15, which charge him with multiple substantive counts of illegal distribution and dispensing of oxycodone.

The guilty plea comes just six weeks after Goldfield and Michael Ludwikowski, 44, of Medford, were arrested on Nov. 14, 2016.

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

Goldfield was employed by Ludwikowski at Olde Medford Pharmacy and Medford Family Pharmacy. Goldfield admitted that from January 2010 through August 2013, he conspired with Ludwikowski to distribute and dispense oxycodone for individuals they knew were obtaining the pain killers for resale or for non-medical use.

Goldfield admitted, based upon his training and experience, as well as the “red flags” he observed, it was obvious that many of the oxycodone prescriptions that Goldfield and Ludwikowski filled were fraudulent. These red flags included prescriptions for oxycodone that appeared to have been “washed” or “bleached.” According to the indictment, this was achieved through a chemical process that removed the original writing for a non-narcotic substance. The customers then rewrote the prescriptions for their drug of choice, including oxycodone.

Other red flags included customers who were believed to be drug addicts, or believed to be selling or abusing the oxycodone; customers seeking oxycodone with residential addresses far from the Medford area, including for example, Camden, New Jersey; the same customer presenting oxycodone prescriptions in numerous different names, including the names of both men and women; and customers presenting oxycodone prescriptions for a 30-day supply multiple times a week.

On occasions that Goldfield had suspicions about the legitimacy of particular prescriptions, Ludwikowski allegedly told Goldfield to fill some of those prescriptions anyway. In addition, Goldfield admitted that he and Ludwikowski stored bottles of oxycodone in a pull-out drawer to which pharmacy employees working at the front counter would have easy access, rather than in a locked safe.

When Ludwikowski became concerned with the high number of oxycodone prescriptions that were being filled, Ludwikowski and Goldfield – in an attempt to evade law enforcement – turned away customers who were bringing in fraudulent prescriptions by telling them that the Drug Enforcement Administration (DEA) had reduced their supply of oxycodone.

The conspiracy charge and each substantive count of illegal distribution and dispensing of oxycodone charge to which Goldfield pleaded guilty carry a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 31, 2017.

The allegations against Ludwikowski are merely accusations, and he is innocent unless and until proven guilty.  

U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Timothy Gallagher; the DEA New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Medford Police Department under the direction of Chief Richard J. Meder; the Moorestown Police Department under the direction of Chief Lee R. Lieber; the Florence Police Department under the direction of Chief John Bunce; and the Lumberton Police Department under the direction of Chief Tony Diloreto, with the investigation leading to the charges.         

The government is represented by Assistant U.S. Attorney Justin C. Danilewitz and Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office in Camden, as well as Assistant U.S. Attorney Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.

Defense counsel: Gilbert J. Scutti, Esq.

NEWARK, N.J. – A Mercer County, New Jersey, man appeared in federal court today to face charges that he sexually abused a woman on a flight from India to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced.

Ganesh Parkar, 40, of Windsor, New Jersey, was charged by criminal complaint with one count of abusive sexual contact on an airplane. Parkar, who is an Indian citizen, had his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court and was released on $50,000 unsecured bond, home detention with electronic monitoring and surrender of his passport and all travel documents.

According to the complaint:

While on a Dec. 21, 2016, Air India flight from Mumbai to Newark, Parkar moved from his ticketed seat in the business class section of the plane to the economy class section and sat next to a female passenger seated in a center row. When the woman fell asleep, Parkar placed his hand on her breast without her consent.

The abusive sexual contact charge carries a statutory maximum of up to two years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Terence S. Opiola; and the Port Authority Police Department of New York-New Jersey, with the investigation leading to today’s arrest.

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

NEWARK, N.J. – A United States commercial airline pilot who held a U.S Customs and Border Protection (CBP) Global Entry Card today admitted smuggling $195,736 in undeclared currency into the country at Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced. 

Anthony Warner, 55, of Dallas, Texas, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with bulk cash smuggling.

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

Global Entry is a CBP program that allows expedited clearance upon arrival in the United States for pre-approved travelers who have been determined to be low-risk. Pre-approval must be completed before enrollment, and the process includes a background check and an in-person interview. At airports, program members proceed to Global Entry kiosks, present their machine-readable passport or U.S. permanent resident card, place their fingers on the scanner for fingerprint verification, and complete a Customs verification. The kiosk issues the traveler a transaction receipt and directs the traveler to baggage claim and the exit.

When Warner arrived at Newark Liberty International Airport on Jan. 10, 2016, the Global Entry computer system was not functioning, so he presented his customs declaration to a CBP officer.   CBP’s screening determined that he was carrying a laptop-style bag that contained $195,736 in United States currency wrapped in newspaper.  He also had 10 rings, four sets of earrings, and other assorted jewelry of undetermined value. 

Warner’s possession of currency was contrary to the statements in his customs declaration and verbal statements that he made to CBP.  Because of this, Warner was arrested by special agents of Immigration and Customs Enforcement’s Homeland Security Investigations.

The charge to which Warner pleaded guilty carries a maximum punishment of five years in prison and forfeiture of all property involved in the offense. In his plea agreement, Warner agreed to forfeit the $195,736 in undeclared U.S. currency. Sentencing is scheduled for April 18, 2017.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, and U.S. Customs and Border Protection, under the leadership of Robert E. Perez, Director, New York Field Office, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit in Newark.

Defense counsel: Steven Altman and Jeffrey Altman Esqs., New Brunswick, New Jersey

CAMDEN, N.J. – Two Camden, New Jersey, men were sentenced to prison today for their roles in a conspiracy to rob a drug stash house of multiple kilograms of cocaine that they believed would be stored at the location, U.S. Attorney Paul J. Fishman announced.

Cordero Hodge, 25, and Jameel Pierce, 25, were sentenced to 160 and 140 months in prison, respectively. Hodge and Pierce previously pleaded guilty in May 2016 to separate superseding informations charging them each with one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, and one count of possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Jerome B. Simandle imposed both sentences today in Camden federal court.

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

In October 2013, Hodge and Pierce planned a gunpoint robbery of a drug stash house in order to steal multiple kilograms of cocaine from drug dealers at the location.

During the investigation – which led to the recovery of a sawed-off shotgun from Pierce and a .40 caliber firearm from Hodge – Pierce was recorded saying that he and Hodge would “off them,” referring to killing the occupants of the stash house. Hodge was recorded seeking a silencer for his firearm, saying that he could use a potato, but that it would not silence a .40 caliber firearm.

Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Hodge and Pierce when they arrived at a meeting location in Maple Shade, New Jersey, on Oct. 18, 2013.

A subsequent ballistics comparison linked the same .40 caliber firearm recovered on Oct. 18, 2013 to evidence recovered from the scene of the Aug. 25, 2013 murder of Surinder Singh, who worked as an attendant at Garden State Fuel gas station in Woodbury, New Jersey.

In addition to the prison terms, Judge Simandle sentenced Pierce and Hodge to five years of supervised release.

U.S. Attorney Fishman credited special agents with the ATF Camden Field Office, under the direction of Special Agent in Charge George P. Belsky in Newark, with the investigation leading to today’s sentences. He also thanked the Drug Enforcement Administration (DEA) Maple Shade Field Office, as well as the Gloucester County Prosecutor’s Office, the Cherry Hill Police Department, and the Maple Shade Police Department.

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

Defense counsel:  

Hodge: Teri S. Lodge Esq.

Pierce: John F. Renner Esq.

Scheme Targeted Hundreds of Investors in Over 30 Countries, Including the United States

NEWARK, N.J. – A Thai man was arrested and charged with allegedly orchestrating a scheme to defraud hundreds of investors worldwide of at least $1.4 million through his operations of a purported online day trading firm, U.S. Attorney Paul J. Fishman announced today.

Naris Chamroonrat, 33, of Bangkok, Thailand, is charged by complaint with one count of conspiracy to commit securities fraud and one count of wire fraud. Chamroonrat was arrested by special agents of the FBI on Dec. 20, 2016, at the Los Angeles International Airport in California. He is scheduled to appear later today before U.S. Magistrate Judge Frederick Mumm in Los Angeles federal court.  

According to the complaint:

From December 2013 to June 2015, Chamroonrat and his conspirators allegedly solicited individual investors to open day-trading accounts with his company, Nonko Trading, and to wire thousands of dollars to the company to fund those accounts. Instead of using the money to fund the accounts, he and his conspirators allegedly stole $1.4 million from more than 260 investors in more than 30 countries. To cover up the theft, Chamroonrat provided the victims with online trading simulator, or “demo,” accounts, but told the investors they were real accounts to be used to trade securities. The majority of those funds were transferred to foreign bank accounts controlled by Chamroonrat and used for personal expenses or other unauthorized transactions. The victims of the scheme included at least 180 investors from the United States, including several in New Jersey.

Chamroonrat and others chose as victims those customers they believed would not make money day trading, and would therefore be less likely to try to withdraw funds from their accounts. These inexperienced, unsophisticated “losing” traders would simply believe they lost their money trading in the open markets.  If traders on the demo accounts started to appear profitable, Nonko would switch them to real accounts. 

Chamroonrat and his conspirators discussed the scheme in detail in email and online chat communications.  In one online communication between Chamroonrat and a conspirator on Feb. 3, 2014, Chamroonrat allegedly discussed the scheme, which he commonly referred to as Nonko’s “TRZ Program.”  He stated, “We also have the trz program, where instead [of] a live account it’s a trz account and if they blow it all up, then great, firm still profits.”  The conspirator responded: “and thing with TRZ that freaks me out … THE ONLY THING … someone … will make money … what happens when they do make money?” Chamroonrat replied, “bump them off of trz, put them on a real account[,] give them more leverage in exchange for a profit split.”

The conspiracy count with which Chamroonrat is charged carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense.  The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

In a separate civil action, the Securities and Exchange Commission today filed a complaint in Newark federal court charging Chamroonrat with violating and aiding and abetting violations of the antifraud provisions of the securities laws. The complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s charges. He also thanked the SEC for its valuable assistance in the investigation.

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

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

TRENTON, N.J. – A former Borough of Belmar fire marshal and senior lead fire protection inspector with the Picatinny Arsenal Fire Department today pleaded guilty to fraudulently reporting his hours on time cards to the Borough of Belmar, causing it losses of approximately $34,141, U.S. Attorney Paul J. Fishman announced.

John Rizzitello, 45, of Nashville, Tennessee, formerly of Freehold, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with fraudulently obtaining funds that belonged to the Borough of Belmar, a local government receiving federal funds. 

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

From January 2013 to December 2014, Rizzitello intentionally reported, and was compensated for, working approximately 1,540 hours for the Borough of Belmar Fire Department that he did not work, including instances when he was actually working at Picatinny Arsenal.

During the plea hearing, Rizzitello also admitted that he intentionally reported, and was compensated for, working approximately 508 hours for the Picatinny Fire Department that he did not work, causing losses to Picatinny of approximately $10,644.

The charge to which Rizzitello pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 27, 2016.

U.S. Attorney Fishman credited investigators with the Picatinny Arsenal Criminal Investigations Unit, under the direction of Picatinny Arsenal Garrison Commander Lieutenant Colonel Jeffrey Ivey, the Picatinny Arsenal Inspector General and Internal Review office, under the direction ARDEC Director John Hedderich, and criminal investigators with the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.  

The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.   

Defense counsel: Ryan J. Clark, Esq., New Jersey

NEWARK, N.J. – A Rahway, New Jersey, man was sentenced today to 57 months in prison for his role in a conspiracy to traffic approximately four kilograms of ethylone from China to New Jersey, U.S. Attorney Paul J. Fishman announced.

Michael Correa, 32, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to distribute Ethylone, a Schedule I controlled substance. Judge Hayden imposed the sentence in Newark federal court.

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

From October 2013 through July 2014, Correa conspired with Thomas Seymore, 38, of Carteret, New Jersey, and others to distribute approximately four kilograms of ethylone, which had been ordered from China and shipped to a location in Teaneck, New Jersey. Ethylone, sometimes referred to as “bath salts” or “molly,” is an illegal synthetic drug that stimulates the central nervous system and can cause hallucinogenic effects. 

In addition to the prison sentence, Judge Hayden also sentenced Correa to three years of supervised release. Seymore pleaded guilty to his role in the scheme on Oct. 25, 2016 and is scheduled for sentencing on Feb. 1, 2017.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; special agents of the U.S. Department of Homeland Security-Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of Organized Crime Drug Enforcement Task Force Unit (OCDETF).

Defense Counsel:   Steven Altman Esq., New Brunswick, New Jersey

TRENTON, N.J. – A former supervisor at Amtrak in Essex County, New Jersey, today admitted soliciting and accepting more than $7,000 worth of items for his personal use from a vendor as a reward for spending more than $185,000 with the vendor in his capacity as an Amtrak Building and Bridges Supervisor, U.S. Attorney Paul J. Fishman announced.

Louis Moschitti, 68, of Fairless Hills, Pennsylvania, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of corruptly soliciting things of value with the intent to be rewarded in connection with transactions of Amtrak—a federally funded organization. 

According to documents filed and statements made in court:

From April 2010 to July 2013, Moschitti, a building and bridges supervisor, used his Amtrak Procurement Charge Card to make more than $185,000 in purchases from Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products. He received items worth more than $7,000 intended as a reward for his official purchases. These included a Panasonic television, a Nikon camera, Michelin tires, and an Onkyo sound system.  Moschitti retired from Amtrak in August 2014. Robert Dattilo, a part owner of Bayway Lumber, previously pleaded guilty to conspiracy to commit mail and wire fraud in connection with this and other fraudulent activity and was sentenced by Judge Sheridan on July 15, 2016 to four years in prison.    

The charge to which Moschitti pleaded guilty carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for March 27, 2017.

U.S. Attorney Fishman credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; special agents of the FBI direction of Special Agent in Charge Timothy Gallagher; and the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Robert Koons, with the investigation leading to today’s guilty plea.   

The government is represented by Assistant U.S. Attorneys Barbara R. Llanes and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.  

Defense counsel: Marc Leibman Esq., New Jersey

TRENTON, N.J. – A Bronx, New York, man was sentenced today to 120 months in prison for driving to Clifton, New Jersey, to pick up a suitcase filled with 22 kilograms of heroin, U.S. Attorney Paul J. Fishman announced.

Emmanuel Gonzalez, 32, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with conspiracy to distribute and possess with intent to distribute a kilogram or more of heroin. Judge Sheridan imposed the sentence today in Trenton federal court.

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

On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Sauro D. Estevez Figueredo, 48, of Miami, and Alberto Mora, 53, of Morriston, Florida, parked at an intersection near a store in Clifton. That afternoon, Gonzalez and Edwin Alamo Jr., 22, of Bronx, drove to the tractor trailer and left with a suitcase given to them by Mora.

Subsequent traffic stops later revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl still remaining at the tractor trailer.

In addition to the prison term, Judge Sheridan sentenced Gonzalez to five years of supervised release.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Meredith Williams of the OCDETF/Narcotics Unit of the Criminal Division in Newark.

Defense Counsel: James Murphy Esq., Princeton, New Jersey        

NEWARK, N.J. – A doctor practicing in Staten Island, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Thomas V. Savino, 57, of Staten Island, was indicted by a federal grand jury in Newark. The indictment charges Savino with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Savino will be arraigned at a later date.              

According to the indictment:

From July 2012 through April 2013, Savino received cash bribes totaling at least $25,000 from BLS employees and associates. Savino’s referrals generated approximately $375,000 in lab business for BLS.

Savino is the fourth physician to be indicted in connection with the BLS bribery scheme. Ahmed El Soury was indicted Dec. 13, 2016 and arraignment this afternoon in Newark federal court. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

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

  The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.

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

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

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

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

Defense counsel: Mauro M. Wolfe, Esq., New York, NY

NEWARK, N.J. – A member of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13,” was sentenced to life in prison today for his role in the brutal murder of an associate of MS-13 in May 2011, U.S. Attorney Paul J. Fishman announced.

Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, New Jersey, was previously convicted of Count 18 and Count 19 of an indictment charging him with conspiracy to commit murder in aid of racketeering and murder in aid of racketeering. He was convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler, who imposed the sentence today in Newark federal court.

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

MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield, New Jersey. Flores was a member of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13 that was founded by Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, and operated in Union, Somerset, and Middlesex Counties.

On May 8, 2011, Flores murdered a victim who was caught socializing with 18th Street gang members. After the gang’s leadership “green-lit” the murder, Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. 

Flores was originally charged in a 26-count indictment returned by a federal grand jury in September 2013. As of today, 13 of the 14 individuals charged in that indictment have been convicted and sentenced. One defendant remains a fugitive.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. He also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for long, close collaboration on the case.

He also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. He also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.

The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark and by Kevin L. Rosenberg, former Trial Attorney in the Organized Crime and Gang Section of the Department of Justice.

Defense counsel: David Ruhnke Esq. and Linwood Jones Esq.

NEWARK, N.J. – Two East Orange, New Jersey, men today admitted their roles in a conspiracy to file false federal income tax returns on behalf of inmates at the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.

Reginald Eaford, 46, and Winfred Moses, 48, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to separate informations charging them each with conspiracy to make and present false, fictitious, and fraudulent claims to the IRS.

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

From 2013 through Aug. 5, 2014, Eaford, Moses, and others conspired to file bogus federal tax returns in order to fraudulently obtain tax refunds.

Eaford was an inmate at the Essex County Correctional Facility from approximately May 20, 2013 through Feb. 12, 2014. As part of the scheme, Eaford, Moses, and others obtained social security numbers, dates of birth, and other information from inmates at the jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.

Afterwards, Eaford and Moses filed false federal income tax returns on behalf of the inmates and had the refund checks sent to the Essex County Correctional Facility or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates. Eaford and Moses admitted that they filed 112 phony tax returns that sought approximately $670,206 in fraudulent refunds.

The conspiracy charge carries a maximum potential sentence of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for March 28, 2017.

U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation.

The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel:       

Eaford: Assistant Federal Public Defender Lisa Mack Esq., Newark, New Jersey

Moses: Leigh-Anne Mulrey Esq., Morristown, New Jersey

NEWARK, N.J. – A Newton, New Jersey, man was sentenced today to 210 months in prison for planning the kidnapping and murder of a woman he met online, U.S. Attorney Paul J. Fishman announced.

Christopher Thieme, 36, of Sussex County, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of attempted kidnapping and one count of murder-for-hire. Judge Wigenton imposed the sentence today in Newark federal court.

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

Thieme admitted that from December 2015 through Jan. 4, 2016, he sought assistance from an associate to kidnap and ultimately murder a woman whom Thieme had previously met through an online dating service. Thieme’s associate alerted law enforcement to Thieme’s plans and cooperated with the investigation into Thieme’s plot.

In early January, at the direction of law enforcement, Thieme’s associate introduced Thieme to an undercover FBI agent posing as a hitman. Thieme explained to the undercover FBI agent that, once the victim was kidnapped, Thieme would empty the victim’s bank accounts and fraudulently sell off her home, the proceeds of which Thieme planned to use to pay for the kidnapping and murder.

In addition to the prison term, Judge Wigenton sentenced Thieme to three years of supervised release and ordered him to pay restitution of $1,034.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked members of the Passaic County Prosecutor’s Office, the New Jersey State Police, the Newton Police Department, the Paramus Police Department, the Paterson Police Department, the Roxbury Police Department, and the Wayne Police Department for their assistance.

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

Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark

The Justice Department announced today that it reached an agreement with Princeton University to resolve a compliance review initiated in May 2014 regarding Princeton’s treatment of students with mental health disabilities and its policies and practices related to requests for reasonable modifications, withdrawals and leaves of absences. 

The agreement details specific steps Princeton will take to strengthen its policies, practices and training to benefit all current and future Princeton students with disabilities.  Under the agreement, Princeton will:

• revise its policies to explicitly describe the types of accommodations students with disabilities may request, including modifications to university policies, rules and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;
• revise the websites for its Office of Disability Services and its Office of the Dean of Undergraduate Students to direct students to relevant policies and procedures related to requesting reasonable accommodations;  
• revise its leave policy and practices, consistent with regulations implementing Title III of the Americans with Disabilities Act (ADA); and
• provide annual training, including references to updated policies, on Title III of the ADA, with a focus on mental health disability discrimination, to all faculty and staff responsible for evaluating and/or deciding requests from students for reasonable accommodations.

“This agreement reflects the critical role that colleges and universities play in fulfilling the ADA’s promise of equal opportunity, full participation, independent living and economic self-sufficiency,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “By working directly with students with disabilities to determine appropriate accommodations, colleges and universities can meet their obligations under the ADA.”

“The ADA, which is one of this country's most comprehensive pieces of civil rights legislation, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life,” said U.S. Attorney Paul J. Fishman of the District of New Jersey.  “Through this agreement, students with disabilities move closer to achieving full equality and integration into places of higher education.” 

For more information please visit the department’s website www.ada.gov.  Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).

The compliance review was conducted jointly by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office of the District of New Jersey.  Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.  Additional information about the U.S. Attorney’s Office of the District of New Jersey is available on its website at www.justice.gov/usao/nj.

Princeton University

NEWARK, N.J. – The Justice Department and the U.S. Attorney’s Office, District of New Jersey, announced today that they have reached an agreement with Princeton University to resolve a compliance review initiated in May 2014 regarding Princeton’s treatment of students with mental health disabilities and its policies and practices related to requests for reasonable modifications, withdrawals, and leaves of absences. 

The agreement details specific steps Princeton will take to strengthen its policies, practices, and training to benefit all current and future Princeton students with disabilities.  Under the agreement, Princeton will:

• revise its policies to explicitly describe: the types of accommodations students with disabilities may request, including modifications to University policies, rules, and regulations; where students may submit each type of accommodation request; and how Princeton will evaluate those requests;

   

• revise the websites for its Office of Disability Services and its Office of the Dean of Undergraduate Students to direct students to relevant policies and procedures related to requesting reasonable accommodations; 

   

• revise its leave policy and practices, consistent with regulations implementing Title III of the Americans with Disabilities Act (ADA); and

   

• provide annual training, including references to updated policies, on Title III of the ADA, with a focus on mental health disability discrimination, to all faculty and staff responsible for evaluating and/or deciding requests from students for reasonable accommodations.

“The ADA, which is one of this country's most comprehensive pieces of civil rights legislation, prohibits discrimination and guarantees that people with disabilities have the same opportunities as everyone else to participate in the mainstream of American life,” U.S. Attorney Paul J. Fishman, District of New Jersey, said.  “Through this agreement, students with disabilities move closer to achieving full equality and integration into places of higher education.”

“This agreement reflects the critical role that colleges play in fulfilling the promise of the ADA: equality of opportunity, full participation, independent living, and economic self-sufficiency,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, said.  “By working directly with students with disabilities to determine appropriate accommodations, colleges and universities can meet their obligations under the ADA.”

For more information or for a copy of the agreement, please visit the department’s website www.ada.gov.  Those interested in finding out more about the ADA may also call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).

The compliance review was conducted jointly by the Civil Rights Division’s Disability Rights Section and the U.S. Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division is available on its websites at www.justice.gov/crt .  Additional information about the U.S. Attorney’s Office/District of New Jersey’s Civil Rights Unit is available on its website at: https://www.justice.gov/usao-nj/civil-rights-enforcement .

The government is represented by Assistant U.S. Attorney Michael E. Campion, chief of the U.S. Attorney’s Office/District of New Jersey’s Civil Rights Unit, and Erin Richmond, trial attorney, U.S. Department of Justice, Civil Rights Division, Disability Rights Section.

NEWARK, N.J. – A Jersey City, New Jersey, man was indicted today on charges that he fraudulently obtained $3.5 million from two investors by falsely representing that his businesses had secured lucrative contracts to sell olive oil to major retailers, U.S. Attorney Paul J. Fishman announced. 

Antonio Fasolino, 60, who was originally charged by complaint with one count of wire fraud in June 2016, is now charged by indictment with three counts of wire fraud and one count of transacting in criminal proceeds. 

According to the indictment:

Fasolino owned several companies that were purportedly involved in the manufacture, sale and distribution of pasta, tomato sauce, olive oil and other food products. In 2012, Fasolino allegedly obtained approximately $3.5 million from two victims by falsely representing that Fasolino’s companies had been awarded lucrative contracts to sell olive oil. In fact, there were never any such contracts, and Fasolino spent the money on himself, including car and mortgage payments, apartment rentals, a wedding, college tuition and credit card payments.

Each count of wire fraud carries a maximum potential penalty of 20 years in prison. The transacting in criminal proceeds count carries a maximum potential penalty of 10 years in prison. Each charge in the indictment is also punishable by a potential $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Fishman credited special agents of the FBI under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen for their roles in the investigation.

The government is represented by Assistant U.S. Attorney Lakshmi Herman and Deputy Chief Zach Intrater of the U.S. Attorney’s Office’s Economic Crimes Unit, and Assistant U.S. Attorney Sarah Devlin of the Assert Forfeiture and Money Laundering Unit.

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

Defense counsel: Alan Silber Esq., Roseland, New Jersey

NEWARK, N.J. – A U.S. immigration manager for an information technology company today admitted that he obstructed federal investigations as part of a scheme to fraudulently obtain foreign worker visas, U.S. Attorney Paul J. Fishman announced.     

Hari Karne, 32, of Hyderabad, India, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to obstruct justice.

According to the information:

SCM Data Inc. and MMC Systems Inc. offered consultants to clients in need of IT support. Both companies recruited foreign nationals, often student visa holders or recent college graduates, and sponsored them for H-1B visas. The H-1B program allows businesses in the United States to temporarily employ foreign workers with specialized or technical expertise in a particular field, such as accounting, engineering or computer science. The U.S. Department of Homeland Security, U.S. Citizenship and Immigrations Services (USCIS) approves and processes applications for residency within the United States, and the U.S. Department of Labor (USDOL) is responsible for the enforcement of labor regulations, including immigration-related employment standards and worker protections. 

Karne’s conspirators recruited foreign workers with purported IT expertise who sought work in the United States. The conspirators then sponsored the foreign workers’ H-1B visas with the stated purpose of working for SCM Data and MMC Systems’ clients throughout the United States. When submitting the visa paperwork to USCIS, the conspirators represented that the foreign workers had full-time positions and were paid an annual salary, as required to secure the H-1B visas.

Contrary to these representations and in violation of the H-1B program, the conspirators paid the foreign workers only when they were placed at a third-party client who entered into a contract with SCM Data or MMC Systems. The conspirators told the foreign workers who were not currently working that if they wanted to maintain their H-1B visa status, they would need to come up with what their gross wages would be in cash and give it to SCM Data and MMC Systems so the companies could issue payroll checks to the foreign workers.

The conspirators then encouraged the foreign workers to submit the bogus payroll checks to USCIS as proof that the workers were engaged in full-time work despite the fact that they were not working for the companies. Once USDOL launched an audit of SCM Data and MMC Systems, the conspirators fabricated leave or vacation slips to USDOL for the time periods that the foreign workers were not working to conceal the fact that they were not paid during those time periods as required by federal law.

Karne – who was a U.S. immigration manger with SCM Private Limited in India, which had service agreements with SCM Data and MMC Systems – admitted that he advised foreign workers to pay SCM Data and MMC Systems in cash the approximate amount they were supposed to be paid by the companies in order to generate false payroll records.

In or before January 2015, MMC Systems stopped paying a person – referred to in the information as “Individual 1” – on a third-party contract. Karne admitted that on Feb. 20, 2015, he instructed Individual 1 to pay MMC Systems in cash so that MMC Systems could issue a check to Individual 1 and falsely claim that MMC Systems had paid Individual 1 wages in January 2015. On Feb. 20, 2015, Karne explained to Individual 1 the importance of having paystubs and employment status because USCIS would inquire about both. 

Karne further admitted that in February 2015 and March 2015, in response to a USDOL audit, he assisted SCM Data and MMC Systems in the preparation of false leave slips for foreign workers that were submitted to the USDOL to conceal the fact that the foreign workers were not paid during those time periods as required by federal law.

Karne faces a maximum potential penalty of five years in prison and a $250,000 fine.  Sentencing is scheduled for April 3, 2016.    

U.S. Attorney Fishman praised special agents of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola, and the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Joyce M. Malliet of the U.S. Attorney’s Office’s National Security Unit in Newark.

Defense Counsel:  Vikas Dhar, Esq.

NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that the District of New Jersey collected $89.4 million in criminal and civil actions in Fiscal Year 2016.  Of this amount, $23.1 million was collected in criminal actions and $66.3 million was collected in civil actions. 

The District of New Jersey also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $672.7 million in cases pursued jointly with these offices.  Of this amount, $317,114 was collected in criminal actions and $672.4 million was collected in civil actions.         

Attorney General Loretta E. Lynch announced Dec. 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016.  The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” Attorney General Lynch said.  “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

“We continue to collect far more in fines, penalties, asset forfeiture, restitution and settlements than we spend in our mission to keep the public safe from violent crime and protect them from financial exploitation,” U.S. Attorney Fishman said. “The money we take in is used to make crime victims whole, provide additional resources to our law enforcement partners and help fund the general treasury.”

During the 2016 fiscal year, significant recoveries in the District of New Jersey included:

• $8.725 million from the sale of a New York condo owned by Garrett Bauer, who was sentenced in June 2012 to 108 months in prison for his role in an insider trading scheme.
• $2.67 million in criminal forfeiture from the owners of two healthcare companies that defrauded Medicaid and Medicare. Paul Mil was sentenced to 54 months in prison and Irina Krutoyarsky to 60 months in prison after pleading guilty to conspiracy to commit healthcare fraud and other crimes.
• $2.3 million in property and funds from various defendants in the Biodiagnostic Laboratory Services LLC case, in which millions of dollars in bribes were paid to physicians over a number of years in exchange for blood sample referrals to the lab.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s office in the District of New Jersey, working with partner agencies and divisions, collected $41.8 million in asset forfeiture actions in FY 2016.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

NEWARK, N.J. – An investment manager with an office in Middletown, New Jersey, will appear in federal court today to face charges that he fraudulently concealed investment losses and diverted at least $5.3 million in investor money for his personal use, U.S Attorney Paul J. Fishman announced.

Vincent P. Falci, 57, of Middletown, was charged with two counts of wire fraud and one count of securities fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to the complaint unsealed today:

Falci controlled a number of investment funds under the names “Saber Funds,” and “Vicor Tax Receivables LLP” (the Vicor Fund). In addition to touting his investment skill and experience, Falci concealed losses from investors and falsely told them that his funds were growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Falci and left previous investments under his control.

The Saber Funds were a collection of investment funds that Falci created and operated, starting in the late 1990s or early 2000s. Falci told investors that the Saber Funds were conservatively invested in securities such as tax liens and that the fund’s investments continued to show positive returns. In reality, Falci redirected investor money to a number of riskier ventures, such as day trading and real estate. Many of these investments lost money, which Falci concealed from the investors.

On Sept. 18, 2015, Falci entered into a consent order with the N.J. Bureau of Securities in which he admitted to violating New Jersey securities laws while operating the Saber Funds. Among other things, Falci admitted to misleading investors and paying himself and family members over $1 million between 2006 and 2009. The order required Falci to pay restitution of $6,742,697.57.

In order to pay the Saber Funds investors the gains he had promised, Falci stole money from the Vicor Fund, which he controlled through his management entity “Vidon Capital Partners LLC” (Vidon). Even after the September 2015 consent order required Falci to divest himself of his controlling interest in all funds and management entities, Falci continued to use his control of the Vicor Fund and Vidon bank accounts to steal money from the Vicor Fund.

Altogether, Falci allegedly stole $5.3 million from the Vicor Fund between January 2015 and May 2016. While most of that money was used to repay prior investors in the Saber Fund, Falci siphoned over $500,000 of investor money to enrich himself and family members.

Each charge in the complaint carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

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

Relatedly, the N.J. Bureau of Securities will today file a motion to enforce the terms of the consent order entered in N.J. Superior Court on Sept. 18, 2015 between the N.J. Bureau of Securities and certain related entities and individuals based on many of the same facts alleged in today’s federal criminal complaint. For information on the motion, contact Lisa Coryell at 973-504-6510.

U.S. Attorney Fishman credited inspectors of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, with the investigation leading to today’s charges. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Bureau Chief Laura H. Posner, for its assistance in the investigation.

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

Defense counsel: Joseph Sorrentino, Staten Island, New York.

NEWARK, N.J. – Two real estate brokers and a client were arrested today and charged in connection with a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Paul J. Fishman announced.

Simon Curanaj (a/k/a Simone Curanaj, Simon Curanovic, and Simone Curanay) 62, of Yonkers, New York; Michael Arroyo, 58, of Bronx, New York; and Rafael Popoteur, 65, of Ridgefield Park, New Jersey, are charged by complaint with one count each of conspiracy to commit bank fraud. They are expected to appear later today before U.S. Magistrate Judge Steven C. Mannion.

According to the complaint:

Curanaj and Arroyo are real estate brokers and Popoteur was one of Curanaj’s clients. From 2012 through January 2014, the three defendants and others allegedly conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on multiple residential properties located in New Jersey and New York.

To get the banks to extend lines of credit they would not have otherwise approved, Curanaj and his conspirators allegedly used the names and personal information of homeowners or straw borrowers, sometimes without their knowledge, to apply for the HELOCs. They made various false representations on loan documents. They then applied for several home equity lines of credit with multiple banks at the same time using the same residential property as collateral. They hid from the lenders the fact that the properties offered as collateral were either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender.

The two representative HELOC shotgun schemes highlighted in the complaint caused a loss of more than $1 million dollars. After receiving the fraudulently obtained home equity lines of credit, Curanaj and his conspirators shared in the illicit proceeds obtained from the banks. 

The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater.

U.S. Attorney Fishman credited special agents of the U.S. Federal Finance Housing Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s General Crimes Unit in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.

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

CAMDEN, N.J. – A Toms River, New Jersey, woman was sentenced today to 37 months in prison for filing false tax returns and using her accounting business to cheat her clients out of their tax refunds, U.S. Attorney Paul J. Fishman announced.

Doreen Gentile, 62, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to Count 2 and Count 27 of an indictment, charging her with mail fraud and filing a false income tax return. Judge Rodriguez imposed the sentence today in Camden federal court.

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

Gentile owned and operated her accounting business, Doreen A. Gentile & Associates, LLC (DAG & Associates), out of her home in Toms River. Gentile admitted that as part of her scheme, she would show her clients a tax return that indicated that they had no tax or refund due, owed a minimal amount of tax, or were due a refund that was far less than the amount to which they were entitled. Gentile then prepared a second set of tax returns, signed without her clients’ permission, that she submitted to the IRS or the State of New Jersey for the full tax refund.

Based on the second set of returns, the IRS or the State of New Jersey issued tax refund checks care of DAG & Associates and mailed them to the DAG & Associates post office box in Toms River. Gentile then deposited the tax refund checks into the DAG & Associates bank account without her clients’ permission. Afterwards, Gentile used the funds to pay for personal expenses.

Gentile also admitted that from 2006 through 2009, she failed to report to the IRS all of her income generated from DAG & Associates, including funds she stole as part of her refund scheme, resulting in tax losses of approximately $188,811.

In addition to the prison term, Gentile must serve three years of supervised release and pay restitution of $1,863,013.

U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, the for investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.

Defense counsel: Christopher O’Malley Esq., Camden

NEWARK, N.J. – Three Newark men were indicted by a federal grand jury today for their alleged roles in an August 2015 home invasion that left one person dead, U.S. Attorney Paul J. Fishman announced.

Aaron Terrell, a/k/a “Push,” 26, Jahad Lemons, a/k/a “JBird,” 26, and Papayaw Mack, a/k/a “GY,” 25, were each charged by indictment with one count of murder during a crime of violence, one count of Hobbs Act robbery conspiracy, one count of Hobbs Act robbery, and one count of using a firearm during a crime of violence.

According to the indictment:

On Aug. 18, 2015, Terrell, Lemons, Mack, and two other individuals – referred to in the indictment as “CC-1” and “CC-2” – allegedly used firearms to rob the apartment of an individual referred to in the indictment as “Victim-1” at a residential building in Newark. They targeted Victim-1 because they believed Victim-1was a heroin trafficker whose residence contained narcotics and related proceeds.

At the residential building, Terrell, Lemons, Mack, CC-1, and CC-2 allegedly surrounded Victim-1, forced him into his apartment, and then proceeded to rob at gunpoint Victim-1 – as well as Victim-2 and Victim-3 who were already inside the apartment – of cash and personal affects. During the course of the robbery, Terrell and CC-2 allegedly discharged their firearms, which killed Victim-1 and seriously wounded Victim-2.

All three men were originally charged by the Essex County Prosecutor’s Office with murder and robbery. On Aug. 26, 2015, Terrell was arrested by the Newark Police Department, while Lemons was arrested in Georgia on October 26, 2015. Mack remains at large. Terrell is also facing separate federal charges in a sixth superseding indictment for his participation in a racketeering conspiracy related to the New Jersey set of the Grape Street Crips, a violent street gang operating in and around Newark.

Each defendant faces a potential sentence of life in prison for the count of murder during a crime of violence. The count of using a firearm during a crime of violence carries a mandatory minimum sentence of 10 years in prison and a potential sentence of life, and that sentence must be consecutive to any other sentence imposed. The Hobbs Act robbery and conspiracy to commit Hobbs Act robbery counts each carry a potential sentence of 20 years in prison. All four counts carry a potential fine of $250,000.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose, for their assistance.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark. 

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. 

Defense counsel:        

Terrell: Michael N. Pedicini Esq.

Lemons: Kathleen M. Theurer Esq.

NEWARK, N.J. – An internal medicine doctor practicing in Staten Island, New York, was charged today with accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Ahmed El Soury, 44, of Monmouth Junction, New Jersey, was indicted by a federal grand jury in Newark. The indictment charges El Soury with one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. El Soury will be arraigned at a later date. 

According to the indictment:

Between March 2011 and April 2013, El Soury allegedly received cash bribes totaling approximately $65,000 from BLS employees and associates. In February 2012, El Soury solicited and received an increase in his monthly bribe payments for having persuaded another health care provider to refer patient blood samples to BLS.

El Soury’s referrals generated approximately $650,000 in lab business for BLS.

The Anti-Kickback and Federal Travel Act counts are each punishable by a maximum potential penalty of five years in prison. The wire fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.

El Soury is the third physician to be indicted in connection with the BLS bribery scheme. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and is scheduled for trial on Jan. 31, 2017 before U.S. District Judge William H. Walls.

The investigation has thus far resulted in 41 guilty pleas – 27 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.

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

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

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

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

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

NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced. 

Robert Mate, a/k/a “Chioru,” a/k/a “Marcel Varga,” 31, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of an indictment charging him conspiracy to commit bank fraud.   

According to documents filed in this and other cases as well as statements made in court:

Mate participated as a high-level member of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.

Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Mate and others then secretly installed the devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions.

Afterwards, the stolen data was used to create thousands of false and fraudulent ATM cards, which Mate and others used to withdraw millions of dollars from customers’ bank accounts.    

The ATM skimming operation in which Mate participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Mate, Vintila and Radu, have been convicted. Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 30, remains at large.

In addition to the prison term, Judge Martini sentenced Mate to five years of supervised release and ordered him to pay restitution of $7,397,270.

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field

Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the office’s Criminal Division. 

Defense Counsel: Angelo Servidio Esq., Nutley, New Jersey

Plea Calls for Prison Sentence of 10 to 12 years

NEWARK, N.J. – A leader of the Sex Money Murder set of the Bloods street gang today admitted his role in a racketeering conspiracy that involved murder, attempted murder, conspiracy to commit murder, and conspiracy to distribute heroin, U.S. Attorney Paul J. Fishman announced.

Rajohn Wilson, a/k/a “1090,” 25, of Newark, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count Two of a 14-count superseding indictment charging him with racketeering conspiracy.

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

The Bloods street gang is organized into subgroups that operate in specific geographic locations. Sex Money Murder is the subgroup that operates primarily in Essex County, New Jersey.

Rajohn Wilson, who served as a “five-star general” of Sex Money Murder, admitted that from 2007 to 2011 he committed a series of violent crimes to advance the gang’s objectives.  He is a younger brother of Narik Wilson, a/k/a “Spaz,” the leader or “O.G.” of the gang.  Rajohn Wilson admitted that he conspired with members of Sex Money Murder on Feb. 4, 2007, and Feb. 16, 2007, to murder rival gang members, and that he and others carried out drive-by shootings of two victims in and around Newark. Wilson also admitted conspiring to distribute more than one kilogram of heroin.

The plea agreement requires Wilson to be sentenced to 10 to 12 years in prison, minus time served in jail on a related case, and five years of supervised release. Sentencing is scheduled for March 23, 2017.

U.S. Attorney Fishman credited special agents of the FBI and the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Newark Department of Public Safety, under the direction of Anthony F. Ambrose, with the investigation leading to today’s guilty plea. He also thanked special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky, for their roles in the investigation.

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

Defense counsel:

Wilson: Howard Brownstein Esq., Union City, New Jersey

Manipulated $10 Billion Worth of Securities in Tens of Thousands of Transactions

NEWARK, N.J. – Two New Jersey-based securities traders were arrested today and charged with orchestrating a massive, long-running market manipulation scheme that netted them more than $26 million in illegal profits between 2014 and 2015, U.S. Attorney Paul J. Fishman announced.

Joseph Taub, 37, of Clifton, New Jersey, and Elazar Shmalo, 21, of Passaic, New Jersey, were each charged by complaint with one count of conspiracy to commit securities fraud. They are scheduled to appear later today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

“As outlined in today’s complaint, Taub, Shmalo and others engaged in a scheme to place numerous buy and sell orders for specifically targeted, lightly traded securities in a coordinated fashion that allowed them to manipulate the price to their advantage,” U.S. Attorney Fishman said. “Over a period of years, they manipulated $10 billion worth of securities in this way, pocketing $26 million in illicit profits at the expense of other investors. The charges we filed today are part of our continuing effort to hold accountable those who would try to illegally tilt the playing field in their own favor.”

“The FBI is diligent in ensuring that anyone intent on corrupting the free market will be brought to justice,” Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division said. “This type of behavior cheats the average investor and has a terrible impact on the securities industry.”

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

From December 2013 to December 2016, Taub, Shmalo, and other conspirators allegedly orchestrated a sophisticated scheme to manipulate the prices of securities of numerous public companies by coordinating trading in dozens of brokerage accounts that the conspirators controlled. The defendants and their conspirators looked for companies whose securities had low trading volumes because it was easier to manipulate their prices. In this way, they injected false information into the market about the supply and demand of these securities, artificially inflating their prices. They then profited by selling at the artificially inflated prices the shares they had accumulated at lower prices.

In 2014 and 2015 alone, Taub, Shmalo and their conspirators engaged in more than 23,000 instances of manipulative trading, buying and selling $10 billion worth of securities and making more than $26 million in illegal profits.

The defendants and their conspirators relied on pre-arranged and coordinated trading among dozens of brokerage accounts they controlled. These accounts were held in the conspirators’ own names, the names of their family members, and the names of entities the conspirators controlled. Many of the accounts were opened in the names of individuals who neither controlled the accounts nor traded the securities held in the accounts (straw account holders). Taub funded many of the accounts that were not in his name and used the straw account holders to conceal the scheme from regulators and law enforcement.

The manipulative trading generally involved two or more trading accounts that bought and sold the same lightly traded stock on the same day during the same period of time. At least one account was primarily used to place multiple smaller orders to create upward or downward price pressure (the “helper account”) and at least one other account was primarily used to buy and sell larger quantities of stock (the “winner account”).  The winner accounts profited by buying and selling at prices affected by the manipulative orders in the helper accounts. The helper and winner accounts were almost always held at different brokerage firms. The helper accounts frequently broke even or lost money, but in conjunction with the winner accounts, the conspirators profited overall.

The trading manipulations usually lasted just a few minutes each, during which time the conspirators sometimes controlled at least 80 percent of the volume of a targeted stock and traded in several accounts simultaneously. Most of the coordinated trading events involved dozens of orders and the purchase and sale of thousands of shares of targeted stocks. The defendants and their conspirators generated a net profit from these events more than 80 percent of the time.

The count of conspiracy to commit securities fraud with which the defendants are charged carries a maximum potential penalty of five years in prison and a fine the greater of $250,000 or twice the gain derived from the offense or twice the loss caused by the offense.   

The U.S. Attorney’s Office is also planning to file a separate civil action seeking forfeiture of brokerage accounts in which the manipulative trades were executed, bank and brokerage accounts funded with proceeds of the scheme, and Taub’s interest in companies in which he invested the proceeds of the scheme. Civil forfeiture cases are “in rem” proceedings –  proceedings against things. The forfeiture claims in this case are based on allegations that the forfeitable property is proceeds of the securities fraud scheme or is property involved in laundering the proceeds of the scheme.

In a separate civil action, the Securities and Exchange commission today filed a complaint in Newark federal court charging Taub and Shmalo with violating and aiding and abetting violations of the antifraud provisions of the securities laws. The complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher, with the investigation which led to today=s charges. He also thanked special agents of IRS-Criminal Investigations, the SEC and investigators from the U.S. Attorney’s Office – District of New Jersey, for their roles in the investigation. 

The government is represented by Assistant U.S. Attorneys Daniel Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark; and Assistant U.S. Attorneys Sarah Devlin and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.

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

TRENTON, N.J. – Federal and local law enforcement authorities today arrested multiple members and suppliers of a drug trafficking organization that allegedly distributed hundreds of grams of heroin in Trenton and the surrounding areas, U.S. Attorney Paul J. Fishman announced.

The alleged leader of the conspiracy, Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi,” 26, of Trenton, was among 10 defendants charged in a complaint unsealed today, six of whom were arrested this morning as part of a coordinated takedown by federal and local law enforcement authorities. Of the remaining four defendants, two are currently incarcerated on pending state charges and parole violations and two remain at large.

Each defendant (see attached chart) is charged with one count of conspiracy to distribute 100 grams or more of heroin. Ishmael Abdullah and Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor,” 22, of Trenton, are also charged with unlawful possession of a firearm by a convicted felon. Those arrested today are scheduled to appear this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court.

“According to the charges, the defendants sold large quantities of heroin out of a residential neighborhood in Trenton, all while keeping firearms on hand to further their drug-trafficking activities,” U.S. Attorney Fishman said. “Today’s arrests, which include the group’s alleged leader, are part of a coordinated effort by federal and local law enforcement to curb the proliferation of heroin in our communities and the senseless violence that it brings.”

“Today, FBI Newark and our law enforcement partners executed ten federal arrest warrants and conducted several searches in the greater Trenton area. These arrests highlight our commitment to combating the opiate and heroin epidemic that affects each and every one of our communities,” stated Timothy Gallagher, Special Agent in Charge of the Newark FBI Field Office.

According to the complaint:

From June 2015 through December 2016, Ishmael Abdullah, Hunter, and other members of their drug trafficking organization (the “Abdullah DTO”) engaged in a heroin distribution conspiracy that operated in the area of Spring and Passaic Streets in Trenton.

Through the authorized interception of telephone calls and text messages, controlled purchases of heroin, the use of confidential sources of information, and other investigative means, law enforcement learned that Ishmael Abdullah was a leader of the conspiracy and was responsible for obtaining significant quantities of heroin from multiple suppliers, including Torres-Mezquita and Sanchez. Ishmael Abdullah and Hunter coordinated the organization’s distribution of heroin to the other conspirators, who sold and stored the drugs.

Members of the Abdullah DTO spoke in code and used stash houses, cars, and temporary prepaid phones to avoid detection by law enforcement. In connection with their narcotics distribution, members of the Abdullah DTO also maintained joint access to firearms.

Members of the Abdullah DTO sold prepackaged “bricks” of heroin, which contained approximately one gram, and “bundles” of heroin, which contained approximately one-fifth of a gram, to various other distributors, sub-dealers, and end users in Trenton and surrounding areas. Discussions about drug quality, consumer satisfaction, pricing, quantity, and the nature of the organization’s drug distribution business, including the storage and accessibility of firearms, were captured on calls and text messages intercepted during the investigation.

“Today's arrests affirm ATF's commitment to protect the public by reducing violent crime in our neighborhoods,” said Special Agent in Charge George P. Belsky, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Newark Field Division. “Investigating, arresting, and prosecuting armed narcotics traffickers remains a top priority for ATF. We will continue to work diligently with our local, state and federal partners to focus our efforts on targeting violent offenders wreaking havoc in our streets.”

Trenton Police Director Ernest Parrey, Jr. stated, “On behalf of the City of Trenton and the Trenton Police Department, I would like to thank all of our law enforcement partners who dedicated their resources in an effort to improve the quality of life for the citizens of our city. This joint investigation and the arrests of these individuals, who plagued city neighborhoods to further their drug trafficking network, is not only a win for law enforcement but a victory for the citizens of this city who have had to live under those brutal conditions.”

The conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a $5 million fine. The firearms charges with which Ishmael Abdullah and Christopher Proctor are charged carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited agents and officers with the Greater Trenton Safe Streets Task Force, including special agents of the FBI, under the direction of Special Agent in Charge Gallagher; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Belsky; officers of the Trenton Police Department, under the direction of Director Ernest Parrey, Jr.; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; and detectives of the Mercer County Prosecutor’s Office, under the direction of Mercer County Prosecutor Angelo J. Onofri, with the investigation.

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

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

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

Defendant

Age

Residence

Ishmael Abdullah, a/k/a “Ish,” a/k/a “Gangsta,” a/k/a “Papi”

26

Trenton

**Keith Hunter, a/k/a “Meech”

24

Trenton

Jose Joaquin Torres-Mezquita, a/k/a “Alex Torres,” a/k/a “Papi,” a/k/a “Pa,” a/k/a “Pop”

30

Philadelphia

Bernadino Guervil, a/k/a “BG”

28

Trenton

**Elijah Abdullah, a/k/a “Uncle E,” a/k/a “E”

21

Trenton

Prince Sarnoe

29

Trenton

*Thomas Rogers, a/k/a “Herb,” a/k/a “T-Rod’

22

Trenton

*Christopher Proctor, a/k/a “Bris,” a/k/a “Bris Broctor”

22

Trenton

Ileana Sanchez, a/k/a “Lilly”

32

Trenton

India Daniels

23

Morrisville, Pennsylvania

* currently incarcerated

** still at large

NEWARK, N.J. – A Sayreville, New Jersey, man was sentenced today to 63 months in prison for his role in a conspiracy to import heroin from India into the United States, U.S. Attorney Paul J. Fishman announced.

Adolphus Nwokedi, 48, was previously convicted on an indictment charging him with one count of conspiring with others to import 100 grams or more of heroin. He was convicted following a three-day trial before U.S. District Judge Esther Salas, who imposed the sentence today in Newark federal court.

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

From Oct. 2013 through Dec. 2013, Nwokedi conspired with an individual in India to ship a parcel containing heroin into the United States. In return for $3,000, Nwokedi agreed to accept the package at his business address in Newark and then deliver it to another conspirator living in Bronx, New York. On Dec. 11, 2013, customs officers at the John F. Kennedy International Airport mail facility intercepted the parcel and found 524 grams of heroin. On Jan. 2, 2014, agents with Homeland Security Investigations conducted a controlled delivery of the parcel. Nwokedi personally accepted the parcel in Newark and was subsequently arrested.

In addition to the prison term, Judge Salas sentenced Nwokedi to four years of supervised release.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys David M. Eskew and Melissa Wangenheim of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark           

NEWARK, N.J. – A member of the DeCavalcante Family of La Cosa Nostra today admitted using a telephone to plan the murder of an organized crime rival, U.S. Attorney Paul J. Fishman announced.

Charles Stango, 72, of Henderson, Nevada, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of knowingly using an interstate facility – the telephone – with the intent to murder a rival. He also pleaded guilty to violating the terms of his supervised release, which he was serving following his imprisonment on racketeering charges in New York.

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

Stango was arrested on April 14, 2015, as part of a sweep of DeCavalcante crime family members that operated in New Jersey and elsewhere.  The DeCavalcante crime family was part of a nationwide criminal organization known variously as the “Mafia” and “La Cosa Nostra,” which operated through entities called “families.”  The DeCavalcante family engaged in numerous criminal activities, including conspiracy to commit murder, distribution of controlled substances, prostitution, extortion, and other crimes of violence.  

Stango admitted today that he used the telephone to plan the murder of a crime family rival (identified in court papers as “Victim 1”). Based on tape recorded evidence uncovered during the investigation, Stango believed that Victim 1 had falsely held himself out to be a “made man” within the family structure.  Stango refused to recognize Victim 1’s alleged new status. Stango also believed that Victim 1 had intentionally insulted a high-ranking family member, which Stango felt deserved the ultimate punishment. He offered up to $50,000 to two assassins to carry out the order. The two assassins were, in fact, undercover FBI agents. Law enforcement officials closed down the investigation to ensure Victim 1’s safety, and he was never harmed.         

Six of Stango’s co-defendants, including his son, Anthony Stango, have pleaded guilty to various crimes – including distribution of significant amounts of cocaine and attempting to set up a prostitution business – to enrich the crew members and the crime family.

The count to which Stango pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000 Sentencing is scheduled for March 28, 2017.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter Arsenault; the Bayonne Police Department, under the direction of Chief Drew Niekrasz; and the N.J. State Commission of Investigation, under the direction of Acting Director Lee C. Seglem, with the investigation leading to today’s guilty plea. He also thanked the FBI’s Las Vegas office and the Union County Prosecutor’s Office for their roles in the investigation.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Assistant U.S. Attorney James Donnelly of the Criminal Division in Newark.

Defense counsel: Chester Keller Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced.

Matthew Policarpio, 29, of Newark, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with conspiracy to distribute oxycodone. Judge Salas imposed the sentence today in Newark federal court. His federal prison term will be served consecutively to his five-year state prison term for car theft.

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

Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Policarpio as a member of the drug trafficking organization.

Policarpio admitted that from Feb. 5, 2014, to Aug. 13, 2014, he personally purchased pills containing oxycodone from conspirators and then sold the pills to others. He admitted that in one instance, he arranged to buy 180 pills containing oxycodone from conspirators on June 12, 2014.  He traveled to a pharmacy in East Orange, New Jersey, with conspirators and gave them $450, which they used to purchase 180 Endocet pills from the pharmacy. The pills were then provided to Policarpio, who resold them.

Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, has a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence. The Endocet pills obtained and re-sold by Policarpio each contained 10 milligrams of oxycodone.

In addition to the prison term, Judge Salas sentenced Policarpio to three years of supervised release. His federal prison term will be served consecutively to the five-year state prison term he is now serving for car theft.

U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.  This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF).  The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Defense counsel: Jef Henninger Esq., Tinton Falls, N.J

NEWARK, N.J. – Seven members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” (MS-13) have been sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion, and plots to kill witnesses, U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced today.

Franklin Mejia, a/k/a “Frankbo,” 25, and his brother, Kelvin Mejia, a/k/a “Machete,” 24, both of Plainfield, were each sentenced today to 150 months in prison. Ruben Portillo-Fuentes, a/k/a “Sombra,” 24, of Plainfield, of Plainfield, was sentenced today to 121 months in prison, and Julio Adalberto Orellana-Carranza, a/k/a “Player,” 28, also of Plainfield, was sentenced today to 72 months in prison. Jose Romero-Aguirre, a/k/a “Conejo,” 29, of North Plainfield, New Jersey, was sentenced today to 66 months in prison.

Franklin Mejia, Kelvin Mejia, Portillo-Fuentes, and Orellana-Carranza each previously pleaded guilty before U.S. District Judge Stanley R. Chesler to racketeering conspiracy.  Romero-Aguirre previously pleaded guilty to conspiracy to commit murder in aid of racketeering.

Roberto Contreras, a/k/a “Demonio,” 28, of Bound Brook, New Jersey, was sentenced on Dec. 1, 2016, to 180 months in prison. Jose Garcia, a/k/a “Chucky,” 24, of Plainfield, was sentenced on Dec. 5, 2016, to 240 months in prison.

Contreras and Garcia were two of eight defendants convicted following a 16-week trial before Judge Chesler. Contreras was convicted of racketeering conspiracy and accessory after the fact to murder in aid of racketeering. Garcia was convicted of racketeering conspiracy, murder-for-hire conspiracy, travel in interstate commerce with intent to commit murder, and two counts of conspiracy to commit murder in aid of racketeering.

Judge Chesler imposed all the sentences in Newark federal court.

According to the documents filed in this case, statements made in court, and the evidence presented at trial:

MS-13 is a national and transnational gang with branches, or “cliques,” operating throughout the United States, including in Plainfield. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13. From 2007 through 2011, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives, as well as numerous other violent crimes, including extortion, robbery and several weapons offenses.

In late-2010 into early-2011, Garcia arranged for MS-13 members from Maryland to come up to Plainfield to kill a woman in exchange for money. Garcia agreed to split the $40,000 murder-for-hire proceeds with the Maryland gang members. On Jan. 10, 2011, four Maryland MS-13 members drove to Plainfield to carry out the hit. They were arrested shortly before they were to meet Garcia.

On Jan. 10, 2011, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant. Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.

On May 7, 2011, Portillo-Fuentes approached an individual sitting outside a residence in Plainfield. Seeking to intimidate the individual and establish MS-13’s control over the area, Portillo-Fuentes fired a handgun at the individual, striking him the chest. The victim survived.

On May 8, 2011, Garcia and another MS-13 member assaulted a suspected member of the 18 Street gang at a park in Plainfield. During the assault, Garcia placed a gun to the victim's head and threatened to kill the victim.

On June 11, 2011, Orellana-Carranza sought to complete a “mission” to kill a rival gang member that had been assigned by PLS's leadership. Garcia assisted Orellana-Carranza by arranging for Kelvin Mejia to supply Orellana-Carranza with a handgun. After retrieving the weapon, Orellana-Carranza went out in search of an 18th Street gang member to kill, but was unsuccessful.

On June 15, 2011, Portillo-Fuentes attacked a member of the 18th Street gang with a machete on a busy street in Plainfield. After spotting the rival, Portillo-Fuentes jumped out of a vehicle and swung a machete at the individual’s head and neck areas. The victim sustained a large, deep gash.

Later that evening, Kelvin Mejia, Franklin Mejia, and a PLS associate robbed two individuals in the same park where Garcia had placed a gun to another victim’s head in May 2011. Franklin Mejia was armed with a handgun; the other two individuals carried handguns. The PLS members ordered the victims to the ground and robbed them of cell phones and ecstasy pills. During the robbery, Franklin Mejia fired a shot near one of the victims’ head. The bullet missed the victim’s head but grazed the individual’s hand. The victims were then ordered to leave the park.

On June 24, 2011, Garcia, Kelvin Mejia, Franklin Mejia, and others plotted to rob an elderly woman who ran an underground liquor store at her residence in Plainfield. That evening, a PLS member went to the woman’s home to rob her. He fired a single shot through the woman’s window when she refused to let him enter the residence, and then fled. Later, in July 2011, Garcia and Kelvin Mejia again plotted to rob the woman to raise bail money for PLS members who had been arrested.

On June 4, 2011, Franklin Mejia and another gang member attacked a PLS associate with a machete on the train tracks in Plainfield because they believed the victim had been associating with a rival gang. The victim survived. On July 2, 2011, Franklin Mejia and Kelvin Mejia sought to obtain a firearm so that Franklin Mejia could kill an older PLS member who was protecting the machete attack victim. Law enforcement officers thwarted the plot.

Kelvin Mejia and Franklin Mejia also distributed cocaine together. Through wiretaps and lawfully intercepted recordings, law enforcement officers intercepted conversations in which Kelvin Mejia and Franklin Mejia arranged drug deals. On July 2, 2011, law enforcement officers searched the Mejias’ residence in Plainfield and seized a small quantity of cocaine.

Law enforcement officers arrested numerous members of PLS in early July 2011. From the Union County Jail, some of the jailed PLS members, including Garcia, Orellana-Carranza and the Mejia brothers, plotted to kill at least three individuals they believed had cooperated with the authorities. To carry out the plot, the jailed PLS members enlisted Romero-Aguirre, who was still free at the time. Romero-Aguirre subsequently instructed PLS members outside the jail to kill the suspected cooperators. Law enforcement officers discovered the plan and intervened before anyone was harmed.

The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. As of today, 13 of the 14 individuals charged in that indictment have been convicted. One defendant remains a fugitive. Flores is awaiting sentencing.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris; and Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. They also thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for its collaboration on the case.

They also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Michael H. Robertson, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Andrew C. Carey, for their roles. They also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland, as well as the Plainfield Police Department, Union County Police Department, Union County Sheriff’s Office, Elizabeth Police Department, North Plainfield Police Department, Union County Department of Corrections, Prince George’s County, Maryland, Police Department and the U.S. Marshal’s Service for their assistance.

 The government is represented by Assistant U.S. Attorneys James M. Donnelly and      J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark and by Kevin L. Rosenberg, of the Organized Crime and Gangs Section of the Department of Justice.

Defense counsel:

Reyes-Villatoro: Anthony Iacullo Esq. and David Glazer Esq.

Oliva: Henry Klingeman Esq. and Kenneth Kayser Esq.

Moz-Aguilar: John Whipple Esq.

Palencia: Joseph Rubino Esq. and Kelley Sharkey Esq.

Ramirez: Michael Koribanics Esq.

Seven members of the New Jersey branch of the international street gang La Mara Salvatrucha, or MS-13, have been sentenced to prison for their roles in a violent criminal enterprise that included murder, extortion and plots to kill witnesses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey.

Franklin Mejia, aka Frankbo, 25, and his brother, Kelvin Mejia, aka Machete, 24, both of Plainfield, New Jersey, were each sentenced today to 150 months in prison.  Ruben Portillo-Fuentes, aka Sombra, 24, of Plainfield, was sentenced today to 121 months in prison; Julio Adalberto Orellana-Carranza, aka Player, 28, also of Plainfield, was sentenced today to 72 months in prison; and Jose Romero-Aguirre, aka Conejo, 29, of North Plainfield, New Jersey, was sentenced today to 66 months in prison.  Franklin Mejia, Kelvin Mejia, Portillo-Fuentes and Orellana-Carranza each previously pleaded guilty before U.S. District Judge Stanley R. Chesler of the District of New Jersey to racketeering conspiracy.  Romero-Aguirre previously pleaded guilty to conspiracy to commit murder in aid of racketeering. 

Two other co-defendants were previously sentenced.  Roberto Contreras, aka Demonio, 28, of Bound Brook, New Jersey, was sentenced on Dec. 1, 2016, to 180 months in prison.  Jose Garcia, aka Chucky, 24, of Plainfield, was sentenced on Dec. 5, 2016, to 240 months in prison.  Contreras and Garcia were convicted following trial before Judge Chesler.  Contreras was convicted of racketeering conspiracy and accessory after the fact to murder in aid of racketeering.  Garcia was convicted of racketeering conspiracy, murder-for-hire conspiracy, travel in interstate commerce with intent to commit murder and two counts of conspiracy to commit murder in aid of racketeering.

According to the plea agreements and evidence presented at trial, MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Plainfield.  All of the defendants were members of the Plainfield Locos Salvatruchas (PLS) Clique of MS-13 that operated in Union, Somerset and Middlesex Counties in New Jersey.  Santos Reyes-Villatoro, aka Mousey, founder of the gang, and Mario Oliva, aka Zorro, both of Bound Brook, New Jersey, and Contreras all served as “First Word,” or leader, of PLS.  From 2007 through 2011, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives, along with other attempted murders and violent attacks, including the following.

According to evidence presented at trial and to admissions made in connection with plea agreements, on Feb. 27, 2010, Oliva drove a female member of MS-13 to an empty parking lot in Piscataway, New Jersey, and murdered her because she was suspected of working with law enforcement.  Oliva then fled New Jersey with the assistance of Contreras and hid from law enforcement with the MS-13 Pinos Clique in Oxon Hill, Maryland.  

On Jan. 10, 2011, four Maryland MS-13 members drove to Plainfield and were arrested shortly before meeting with Garcia to carry out a murder-for-hire they had arranged with him.  Also on Jan. 10, 2011, Contreras and other MS-13 members were in a car when they spotted a suspected 18th Street gang member in front of a restaurant.  Contreras stopped the vehicle and an MS-13 member exited, approached the suspected rival gang member and shot him in the head.  

On May 7, 2011, Portillo-Fuentes approached an individual sitting outside a residence in Plainfield and fired a handgun at the individual, striking him the chest, in order to intimidate the victim and establish MS-13’s control of the area.  The victim survived.  On May 8, 2011, Garcia and another MS-13 member assaulted a suspected member of the 18th Street gang at a park in Plainfield.  During the assault, Garcia placed a gun to the victim's head and threatened to kill the victim.  

In addition, Orellana-Carranza was assigned a “mission” to kill a rival gang member by PLS’s leadership.  Garcia assisted Orellana-Carranza by arranging for Kelvin Mejia to supply Orellana-Carranza with a handgun.  After retrieving the weapon, on June 11, 2011, Orellana-Carranza went out in search of an 18th Street gang member to kill, but was ultimately unsuccessful.  

Also according to admissions and trial evidence, on June 15, 2011, Portillo-Fuentes spotted a member of the 18th Street gang on a busy street in Plainfield, jumped out of a vehicle and swung a machete at the individual’s head and neck areas.  Later that evening, Kelvin Mejia, Franklin Mejia and a PLS associate robbed two individuals in a park, while all three were armed with guns.  During the robbery, Franklin Mejia fired a shot near one victim’s head, missing the victim’s head but grazing their hand.

The plea agreements and trial evidence established that on June 24, 2011, Garcia, Kelvin Mejia, Franklin Mejia and others plotted to rob an elderly woman who ran an underground liquor store at her residence in Plainfield.  That evening, a PLS member fired a single shot through the woman’s window when she refused to let him enter the residence, and then fled.  In July 2011, Garcia and Kelvin Mejia again plotted to rob the woman to raise bail money for PLS members who had been arrested.

According to admissions and evidence presented at trial, on June 4, 2011, Franklin Mejia and another PLS member attacked a PLS associate with a machete on the train tracks in Plainfield because they believed the victim had been associating with a rival gang.  The victim survived.  On July 2, 2011, Franklin Mejia and Kelvin Mejia sought to obtain a firearm so that Franklin Mejia could kill an older PLS member who was protecting the machete attack victim.  Law enforcement officers thwarted the plot.

Evidence at trial demonstrated that in July 2011, numerous PLS members were in custody at the Union County Jail, during which time Garcia and Esau Ramirez, aka Panda, along with other jailed members, plotted to kill at least three individuals they believed had cooperated with the authorities.  On Aug. 1, 2011, Ramirez instructed Romero-Aguirre, who was free at the time, to “work as fast as possible” in eliminating the suspected cooperators.  Romero-Aguirre subsequently instructed PLS members outside the jail to kill the suspected cooperators.  Law enforcement officers discovered the plan and intervened before anyone was harmed.

According to evidence presented at trial, PLS members were also responsible for at least two attempted murders of suspected Latin King members and machete attacks in May 2011 and June 2011 on the train tracks passing through Plainfield.

To date, 13 of the 14 individuals charged in this case have been convicted.  One defendant remains a fugitive.  One defendant, Cruz Flores, aka Bruja, awaits sentencing.

The FBI’s Newark Division; U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations; and ICE Homeland Security Investigations investigated the case.  The Union County Prosecutor’s Office assisted in the investigation.  The Somerset County, New Jersey, Prosecutor’s Office ; the Middlesex County, New Jersey, Prosecutor’s Office; the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland; the Plainfield Police Department; Union County Police Department; Union County Sheriff’s Office; Elizabeth, New Jersey, Police Department; North Plainfield Police Department; Union County Department of Corrections; Prince George’s County, Maryland, Police Department; and the U.S. Marshals Service also provided assistance.  Former Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the District of New Jersey are prosecuting the case. 

NEWARK, N.J. – A Morris County, New Jersey, man and his diagnostic testing company are being sued by the government for knowingly submitting false claims to Medicare for thousands of diagnostic testing services he did not render, U.S. Attorney Paul J. Fishman announced today.

Vijay Patel, 59, of Parsippany, New Jersey, owner and operator of Mobile Diagnostic Testing of NJ LLC of Parsippany, New Jersey, pleaded guilty Dec.15, 2014, to a criminal information charging him with health care fraud related to this conduct. Today’s civil complaint alleges Vijay Patel violated the False Claims Act.

According to the complaint:

Patel had an associate who was a cardiologist and also a participant in the Medicare program. From around 2009 through 2012, the cardiologist’s Medicare contractor had placed him on so-called “pre-payment review,” which was initiated to ensure that the doctor was submitting claims within established rules and regulations, and which required him to submit documentation, including medical records, to support the services being billed to Medicare. Under pre-payment review, claims for reimbursement that did not have the documentation necessary to support the services being billed are rejected by the Medicare contractor.

From August 2011 through December 2012, Patel and the cardiologist defrauded Medicare by submitting claims to Medicare for diagnostic testing services that the doctor had performed in December 2010 through September 2012, enabling him to evade Medicare’s pre-payment review. Patel submitted the cardiologist’s claims through his company and his brother’s company, Biosound Medical Services Inc. (Biosound), as if Mobile Diagnostic and Biosound had performed the services instead of the doctor. Once Patel received the Medicare reimbursement money paid to the two companies for diagnostic testing services the cardiologist had performed, Patel transferred a portion of the payment to the doctor and kept a substantial portion for himself.  

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, New York Region, with the investigation leading to the filing of today’s complaint.

The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Bernard J. Cooney of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

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

The case is captioned United States v. Vijay Patel, et al. (D.N.J.).

NEWARK, N.J. – A New Brunswick, New Jersey, man appeared in federal court today to face racketeering and other charges in connection with multiple brothels that employed illegal aliens throughout New Jersey, U.S. Attorney Paul J. Fishman announced.

Wilmer Chavez Romero, a/k/a “Charmin,” 27, is charged by indictment with one count each of racketeering, racketeering conspiracy, assault with a dangerous weapon in aid of racketeering, and conspiracy to harbor aliens resulting in death; two counts of using a firearm for a violent crime; and two counts of murder in aid of racketeering. He was arraigned today before U.S. District Judge William H. Walls in Newark federal court. Trial is scheduled for Jan. 3, 2017.

According to the indictment:

Chavez Romero allegedly served as an enforcer for an enterprise that provided prostitution services in Cumberland, Essex, Mercer, Middlesex, Monmouth and Ocean counties. The purpose of the enterprise, which primarily employed illegal aliens in brothels throughout New Jersey, was to promote prostitution, assist illegal aliens to enter the United States, harbor illegal aliens, and to commit murder, assault, and robbery. The enterprise expanded its territory and reputation through the use of intimidation, violence, threats of violence, assaults, and murder. Chavez Romero acted at the direction of the leaders of the enterprise, identified in the indictment as “Individual 1” and “Individual 3.” 

The leaders oversaw brothels in New Brunswick, Trenton, Orange, Asbury Park, Lakewood, and Bridgeton. Individual 1, Chavez Romero and others allegedly threatened, committed, attempted to commit, and assisted in the commission of murder, assault, and robbery. The purpose of these alleged crimes was to thwart rival brothels, exact revenge, punish enterprise members and associates who had been disloyal, and silence people they believe were cooperating with law enforcement.

Chavez Romero allegedly committed robbery, burglary, assault, and murder in furtherance of the enterprise and conspired to conceal, harbor and shield from detection aliens for the purpose of commercial advantage and private financial gain. In relation to this, two people were murdered.

The racketeering and racketeering conspiracy charges are both punishable by life in prison. The assault with a dangerous weapon in aid of racketeering charge is punishable by a maximum potential penalty of 20 years in prison. The charges of murder in aid of racketeering, use of a firearm during a violent crime, and conspiracy to harbor aliens resulting in death are all punishable by a potential penalty of death or life imprisonment. All counts in the indictment are punishable by a $250,000 fine.

U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to the charges.

 The government is represented by Assistant U.S. Attorneys Sharon Ashe and Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.

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

Defense counsel: Kevin F. Carlucci Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Newark, New Jersey, man was charged today with robbing five banks from late October 2016 through November 2016, U.S. Attorney Paul J. Fishman announced.

Jermaine Mason, a/k/a “Asim Harris,” 39, is charged by criminal complaint with five counts of bank robbery. Prior to his arrest, Mason was on federal supervised release for a federal bank robbery conviction after he robbed several banks in 2006 and 2007. His initial appearance will be scheduled at a later date.

According to the complaint filed today, Mason robbed the following New Jersey banks:

Bank

Location

Date

Kearny Bank

Harrison

Oct. 21, 2016

PNC Bank

Jersey City

Nov. 3, 2016

Popular Community Bank

Newark

Nov. 17, 2016

Provident Bank

Jersey City

Nov. 18, 2016

Provident Bank

Kearny

Nov. 29, 2016

At each bank, Mason either presented a note demanding cash from bank tellers or verbally demanded money. For example, during the Nov. 3, 2016 robbery, Mason handed the teller a note which read: “I’m not going play [sic] with you. You get one chance. $100 [and] $50 bills pass to me – stack!” Likewise, during the Nov. 17, 2016 robbery, he handed the teller a note reading: “Hand me the money. $100 bills or we [are] going [to] have a problem!”

Mason was apprehended on Nov. 30, 2016, by officers of the Jersey City Police Department, agents from the FBI, and the U.S Marshals.

Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the charges. He also thanked the U.S. Marshals, the Kearny, Jersey City, Harrison, and Newark police departments, as well as the Hudson County and Essex County Prosecutor’s Offices for their efforts in the investigation and apprehension of Mason.

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

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