District of New Jersey
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Collects $89.4 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
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.
Middletown, New Jersey, Investment Manager Charged with Using Ponzi Scheme to Steal $5.3 MillionRead the Press Release
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.
Real Estate Brokers and Client Charged with Defrauding Banks in ‘Shotgun’ Loan SchemeRead the Press Release
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.
Owner of Toms River, New Jersey, Accounting Business Gets 37 Months in Prison for Swindling Clients Out of Tax RefundsRead the Press Release
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
Grape Street Crips Gang Member, Two Others Indicted for Alleged Murder During Home-Invasion RobberyRead the Press Release
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.
New York Doctor Charged with Taking Bribes in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
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
Member of Large-Scale ATM Skimming Scheme Sentenced to 57 Months in Prison for Role in Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States was sentenced today to 57 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
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
Leader of Violent Bloods Street Gang Admits Racketeering ConspiracyRead the Press Release
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
Two Securities Traders Charged in Scheme That Netted $26 Million in Illicit ProfitsRead the Press Release
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.
Ten People Charged for Their Roles in Violent Heroin Trafficking Conspiracy Operating in Trenton, New JerseyRead the Press Release
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
Middlesex County, New Jersey, Man Sentenced to 63 Months in Prison for Trying to Import More Than 500 Grams of HeroinRead the Press Release
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
Member of DeCavalcante Crime Family Admits Use of Interstate Facility to Commit MurderRead the Press Release
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
Essex County, New Jersey, Man Sentenced to Five Years in Prison for Role in Oxycodone Distribution RingRead the Press Release
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
Seven New Jersey Members of Violent, International Street Gang Sentenced to Prison for Racketeering-Related ChargesRead the Press Release
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 New Jersey MS-13 Members Sentenced to Prison for Racketeering-Related ChargesRead the Press Release
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.
Owner of Parsippany-Based Diagnostic Testing Facility Sued for Submitting False Claims to Federal Health Care ProgramsRead the Press Release
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.).
Middlesex County, New Jersey, Man Charged with Racketeering and Related OffensesRead the Press Release
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
Essex County, New Jersey, Man Charged with Bank Robbery Spree in Essex and Hudson CountiesRead the Press Release
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
Pennsylvania Man Sentenced to 30 Months in Prison for Stealing More Than $480,000 as Part of Interstate Burglary SchemeRead the Press Release
TRENTON, N.J. – A Lancaster, Pennsylvania, man was sentenced today to 30 months in prison for his role in a string of commercial burglaries in New Jersey, New York, and Pennsylvania, U.S. Attorney Paul Fishman announced.
Jose Medina, 40, previously pleaded guilty before U.S. District Judge Mary L. Cooper to a superseding information charging him with one count of conspiracy to transport stolen goods in interstate commerce and one count of transportation of stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Jose Medina admitted that from October 2012 through August 2014, he conspired with his brother, Eliezer Medina, 38, of Ronks, Pennsylvania, and others to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and thereafter transporting the stolen money across state lines.
The conspiracy involved at least 22 burglaries and caused over $480,000 in losses. When committing the burglaries, the conspirators would typically scout the target store in advance, disable the alarm system, and use pry-bars, electrical saws, and other tools to gain access to the stores and safes.
In addition to the prison term, Judge Cooper sentenced Jose Medina to two years of supervised release. He must also forfeit $487,364.44.
Eliezer Medina previously pleaded guilty to his role in the scheme and was sentenced on Oct. 28, 2015 to 30 months in prison.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Timothy Gallagher, and special agents of the FBI in Philadelphia, under the direction of Special Agent in Charge Michael Harpster, with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
Defense counsel: Angelo Servidio, Esq.
Former Somerset County High School Teacher Sentenced to 127 Months in Prison for Enticing Boy to Engage in Criminal Sexual Conduct OnlineRead the Press Release
NEWARK, N.J. – A Branchburg, New Jersey, man who previously worked as a high school music teacher was sentenced today to 127 months in prison for soliciting a boy to engage in sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David M. Adams, 30, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Adams admitted that, between May 2014 and September 2014, he used the internet, including Skype, to induce a victim who was less than 18-years-old to engage in sexually explicit conduct. In exchange for allowing Adams to view the conduct on Skype, Adams paid the victim using PayPal and other means.
During that time, Adams was a music teacher at Eisenhower Middle School in Roxbury, New Jersey. Subsequently, Adams was a music teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.
In addition to the prison term, Judge Walls sentenced Adams to lifetime 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 Acting Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing. He also thanked the Branchburg Police Department and the Somerset County Prosecutor’s Office for their assistance in this case.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michael Baldassare Esq. and Dillon Malar Esq., Newark
Recruiter Admits Scheme to Fraudulently Maintain Immigration Status and Obtain Work Authorizations for Foreign Clients Through ‘Pay to Stay’ New Jersey CollegeRead the Press Release
NEWARK, N.J. – The chief executive officer and managing director of two Middlesex County, New Jersey, companies today admitted recruiting foreign nationals to enroll at a “pay to stay” New Jersey college in order to fraudulently maintain his clients’ student visa status and obtain full-time work authorizations without having to attend classes, U.S. Attorney Paul J. Fishman announced.
Tejesh Kodali, 45, of Edison, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit visa fraud.
On April 5, 2016, 22 brokers, recruiters, and employers, including Kodali, were charged with enrolling foreign nationals in the University of Northern New Jersey, a purported for-profit college located in Cranford, New Jersey (UNNJ). The UNNJ was created in September 2013 by Homeland Security Investigations (HSI). It was not staffed with instructors or educators, had no curriculum, and conducted no actual classes or education activities. It operated solely as a storefront location staffed by federal agents posing as school administrators.
According to the documents filed in this case and statements made in court:
Kodali – an Indian citizen and lawful permanent resident in the United States – was the director of operations of Promatrix Corp. and Blue Cloud Techs Corp., which were purported international student recruiting and consulting companies located in Edison.
UNNJ represented itself as a school that, among other things, was authorized to issue a document known as a “Certificate of Eligibility for Nonimmigrant (F-1) Student Status - for Academic and Language Students,” commonly referred to as a Form I-20. This document, which certifies that a foreign national has been accepted to a school and would be a full-time student, typically enables legitimate foreign students to obtain an F-1 student visa. With the visa, they can enter or remain in the United States while they make normal progress toward the completion of a full course of study at a Student and Exchange Visitor Program (SEVP) certified institution.
Kodali told his foreign national clients that for a fee, they could enroll at UNNJ without having to attend any classes and that their enrollment would enable them to fraudulently maintain their nonimmigrant status. With full knowledge that the recruits were not bona fide students and would not attend any courses, earn credits, or make academic progress toward any legitimate degree at UNNJ, Kodali caused Forms I-20 to be issued to the foreign nationals.
Kodali also caused the foreign nationals to be reported in government databases as legitimate foreign students. In order to deceive immigration officials, Kodali and his foreign clients obtained and created fraudulent student documents, including attendance records and transcripts.
After enabling them to maintain their student visa status, Kodali also conspired to secure fraudulent work authorizations for some of their foreign clients. He admitted that his intention was to profit from the scheme by outsourcing these foreign individuals through Promatrix and Blue Techs as information technology consultants with various businesses in the United States for commissions. In total, Kodali and his conspirators fraudulently maintained and attempted to obtain 37 student visas and/or work authorizations.
The conspiracy to commit visa fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing for Kodali is scheduled for March 13, 2017.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, under the leadership of Director Sarah R. Saldaña; HSI Newark, under the leadership of Special Agent in Charge Terence S. Opiola; U.S. Immigration and Customs Enforcement, Counterterrorism and Criminal Exploitation Unit, under the leadership of Unit Chief Roland Burbano; U.S. Citizenship and Immigration Services, Fraud Detection and National Security Section, under the leadership of Associate Director Matthew Emrich; the Student and Exchange Visitor Program, under the leadership of Deputy Assistant Director Louis M. Farrell; U.S. Citizenship and Immigration Services, Vermont Service Center, Security Fraud Division, under the leadership of Associate Center Director Bradley J. Brouillette; U.S. Department of State, Bureau of Consular Affairs, Office of Fraud Prevention Programs, under the leadership of Director Josh Glazeroff; and the FBI, Joint Terrorism Task Force, under the leadership of FBI Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
He also thanked the Accrediting Commission of Career Schools and Colleges (ACCSC), under the leadership of Executive Director Michale S. McComis, and the N.J. Office of Higher Education, under the leadership of Secretary of Higher Education Rochelle R. Hendricks, for their assistance. In addition, U.S. Attorney Fishman thanked the N.J. Motor Vehicle Commission and the New York State Department of Motor Vehicles, as well as the U.S. Attorney’s Offices for the Central District of California, Eastern District of New York, Eastern District of Virginia, Southern District of New York, Central District of Illinois, Peoria Division, and the Northern District of Georgia for their help.
The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Patrick Papalia Esq., Hackensack, New Jersey
Ocean County, New Jersey, Woman Admits Role in $1 Million Medicare Fraud That Deceived Seniors into Unnessesary DNA TestsRead the Press Release
TRENTON, N.J. – A Point Pleasant, New Jersey, woman today admitted that she wrongfully accessed protected health information and paid kickbacks to healthcare professionals on behalf of a $1 million Medicare fraud scheme involving the purported non-profit The Good Samaritans of America, U.S. Attorney Paul J. Fishman announced.
Sheila Kahl, 44, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging her with one count of conspiring to commit health care fraud and one count of conspiring to wrongfully access individually identifiable health information and pay illegal remunerations to health care professionals.
“Instead of helping seniors navigate federal benefit programs, The Good Samaritans of America was merely a front for an elaborate Medicare scheme that subjected elderly victims to unnecessary genetic testing, all in an effort to score commission payments from clinical labs,” U.S. Attorney Fishman said. “In addition to wrongfully accessing the victims’ private medical information for personal gain, Kahl helped pay healthcare professionals thousands of dollars in kickbacks to fraudulently authorize the tests.”
“This conspiracy involved stealing private medical information and used particularly callous scare tactics to convince elderly and vulnerable Medicare beneficiaries to submit to medically unnecessary DNA testing,” said Special Agent in Charge Scott J. Lampert, U.S. Department of Health and Human Services – Office of Inspector General. “Today’s plea resulted from joint law enforcement action to detect and block a planned multi-state expansion of this deplorable scam against the program and its enrollees.”
According to documents filed in the case and statements made in court:
From July 2014 through December 2015, Seth Rehfuss, 42, of Somerset, New Jersey, Kahl, and others used The Good Samaritans of America to gain access to low-income senior housing complexes. Rehfuss and others claimed that The Good Samaritans of America was a “trusted non-profit” that assisted senior citizens in navigating federal benefit programs. In reality, The Good Samaritans of America was a front to present information about genetic testing. Kahl, Rehfuss and others even used advertisements for free ice cream to ensure attendance at the presentations.
In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing. In addition, Rehfuss claimed that the genetic testing allowed for “personalized medicine.”
As part of the scheme, Seth Rehfuss and others frequently took DNA swabs in the community rooms where the presentations took place or made arrangements to visit the senior citizen’s apartment on another day to take the DNA swab. Regardless of the timing or location of the swabbing, the DNA swab was collected without the involvement of any healthcare provider and without any determination by a healthcare provider that such testing was medically necessary or appropriate.
In order to get the tests authorized, Rehfuss used advertisements on Craigslist to recruit healthcare providers for the scheme. After entering into contractual relationships with The Good Samaritans of America, the healthcare providers received requisition forms that often included a patient’s personal information, Medicare information, medication lists and diagnosis codes.
The healthcare providers were paid thousands of dollars per month by Kahl and Rehfuss to sign their names to requisition forms authorizing testing for patients they never examined and were in no way involved in the patients’ care or treatment. In order to keep the scheme going, Kahl used fraudulent email accounts to access the individually identifiable health information of the senior citizens, specifically the results of the DNA analysis.
Kahl, Rehfuss and others caused the Medicare program to pay more than $1 million to two clinical laboratories. Rehfuss obtained over a hundred thousand dollars and distributed commissions to Kahl of tens of thousands of dollars.
The investigation revealed that Rehfuss and others were actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
The healthcare fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy to wrongfully access individually identifiable health information and to pay kickbacks charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 14, 2017.
Rehfuss was originally charged for his role in the scheme on Dec. 2, 2015. The pending charges against Rehfuss are merely allegations, and he is considered innocent unless and until proven guilty.
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 Lampert, as well as investigators from the U.S. Attorney’s Office for the District of New Jersey, the U.S. Marshals Service Asset Forfeiture Program, the Cape May County Department of Consumer Affairs, and the Cape May County Office of Aging with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Office Health Care and Government Fraud Unit.
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: Stacy A. Biancamano, Esq.
Newark, New Jersey, Man Admits Posing as Law Enforcement Officer During Home Invasion of Paterson, New Jersey, ResidenceRead the Press Release
NEWARK, N.J. – A Newark, New Jersey, man today admitted trying to rob a Paterson, New Jersey, residence while dressed in a Passaic County Sheriff’s uniform, U.S. Attorney Paul J. Fishman announced.
Clemente R. Carlos, 29, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit Hobbs Act robbery.
According to documents filed in this case and statements made in court:
Carlos admitted that on Aug. 12, 2015, he conspired with Jason Thompson, 33, of Paterson, and another individual to rob a Paterson home because they believed the resident kept cash proceeds from his distribution business at that location. Carlos and Thompson both dressed in Passaic County Sherriff’s uniforms in order to gain entry into the residence, while the third individual waited outside in a getaway vehicle.
During the robbery, one of the conspirators broke open a piece of furniture in search of the cash proceeds. In addition, the conspirators threatened to kill the residents if they did not comply with their instructions during the robbery. Carlos admitted that during the robbery one victim was physically restrained.
The Hobbs Act conspiracy charge to which Carlos pleaded guilty carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 4, 2017.
Thompson was charged by complaint on July 21, 2016 with Hobbs Act robbery conspiracy and being a felon in possession of a firearm. The allegations against him are merely accusations, and he is 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, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s guilty plea. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Gary Cutler Esq., Newark
Gloucester County, New Jersey, Woman Sentenced to 33 Months in Prison for $600,000 Embezzlement/Money Laundering SchemeRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, woman was sentenced today to 33 months in prison for embezzling more than $600,000 from dormant TD Bank customer accounts, U.S. Attorney Paul J. Fishman announced.
Telisha Trent, 43, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging her with one count of bank fraud and one count of money laundering. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From Aug. 9, 2014, through Sept. 11, 2015, Trent used her position as a financial services representative and bank teller at a TD Bank branch in Sewell, New Jersey, to identify dormant checking and savings accounts, primarily held by elderly TD Bank customers. Trent would research the account holder in order to assess the risk of whether the account holder would notice that the funds in the account were removed. She would steal the money in the dormant account by transferring the funds to accounts she controlled or have a cashier’s check issued in her name.
Trent then transferred the funds through a series of accounts that she controlled in order to hide her fraud. To avoid detection, Trent closed the dormant accounts. Trent admitted obtaining $608,000 in cash from eight TD Bank customers in New Jersey, Connecticut, and Ohio. She admitted to spending the money on home renovations, lavish trips, two BMW sedans, items for her children, and other items.
After the fraud was discovered, TD Bank reimbursed the victims for the money and funds stolen by Trent.
In addition to the prison term, Judge Bumb sentenced Trent to five years of supervised release and ordered to pay $608,483 in restitution.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by R. Stephen Stigall, U.S. Attorney in Charge of the Camden Office.
Defense counsel: James Conley Esq., Haddon Heights, New Jersey
Jewelry Store Owner Sentenced to Two Years in Prison for Role in International, $200 Million Credit Card Fraud ScamRead the Press Release
TRENTON, N.J. – A New Jersey jewelry store owner who used his business to further one of the largest credit card fraud schemes ever charged by the Justice Department was sentenced today to 24 months in prison, U.S. Attorney Paul J. Fishman announced.
Vinod Dadlani, 53, of Lyndhurst, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Dadlani was indicted in October 2013 as part of a conspiracy – led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others – to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Since then, 19 people, including Dadlani, have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrowed or spent as much as they could without repaying the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
Many of these debts were incurred at Dadlani’s Jersey City, New Jersey, jewelry store, among many other locations. During his guilty plea proceeding, Dadlani admitted he worked with other conspirators who came to his store and allowed them to swipe cards he knew did not legitimately belong to them. Dadlani would then split the proceeds of the phony transactions with the conspirators.
The scope of the criminal fraud enterprise required Dadlani’s conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses for the false identities.
In addition to the prison term, Judge Thompson sentenced Dadlani to two years of supervised release and ordered him to pay forfeiture of $411,000.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James V. Buthorn, Newark Division, special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, and the U.S. Social Security Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S.
Attorney Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Vincent Sarubbi Esq., Haddonfield, New Jersey
Four New Jersey Members of Violent, International Street Gang Sentenced to Life in Prison for Racketeering-Related ChargesRead the Press Release
NEWARK, N.J. – Five members of the New Jersey branch of the international street gang “La Mara Salvatrucha,” or “MS-13”– including the branch’s founding member – were 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.
Santos Reyes-Villatoro, a/k/a “Mousey,” 43, of Bound Brook, New Jersey, Julian Moz-Aguilar, a/k/a “Humilde,” 29, of Plainfield, New Jersey, and Hugo Palencia, a/k/a “Taliban,” 24, of Plainfield, were each sentenced today to life plus 10 years in prison. Mario Oliva, a/k/a “Zorro,” 30, and Esau Ramirez, a/k/a “Panda,” 25, both of Plainfield, were sentenced Nov. 27, 2016 to life plus 10 years in prison and 169 months in prison, respectively.
All five defendents were previously convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler, who imposed the sentences this week in Newark federal court. Reyes-Villatoro, Oliva, Moz-Aguilar, and Palencia were each convicted of racketeering conspiracy, murder in aid of racketeering, use of a firearm in a violent federal crime, and murder resulting from a federal firearm crime. Ramirez was convicted of racketeering conspiracy and conspiracy to commit murder in aid of racketeering.
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. All of the defendants were members of the “Plainfield Locos Salvatruchas” (PLS) clique of MS-13 that was founded by Reyes-Villatoro and operated in Union, Somerset, and Middlesex Counties. Reyes-Villatoro, Oliva and Roberto Contreras, a/k/a “Demonio,” 28, of Bound Brook, all served as “First Word,” or leader, of PLS.
From 2007 through September 2013, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives. On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of PLS, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield train station. There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang.
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 Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13. Palencia pulled over, provided a firearm to another MS-13 member and instructed him to shoot at one of the individuals. The MS-13 member shot into the crowd, killing a bystander.
On Jan. 10, 2011, Moz-Aguilar, 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 8, 2011, Cruz Flores, a/k/a “Bruja,” 30, of Bound Brook, murdered a victim who was caught socializing with 18th Street gang members. Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began searching for him.
Jose Garcia, a/k/a “Chucky” and “Diabolico,” 24, of Plainfield, recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield.
After several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests.
According to evidence presented at trial, members of PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.
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. Contreras, Garcia, and Flores await 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 long, close 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.
Four MS-13 Members Sentenced to Life and a Fifth to 169 Months in Prison for Racketeering-Related ChargesRead the Press Release
Five New Jersey gang members were sentenced to prison today and Monday of this week for conspiring to participate in racketeering activities and committing murders on behalf of the racketeering enterprise known as La Mara Salvatrucha, or MS-13, 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 announced.
Santos Reyes-Villatoro, aka “Mousey,” 43, of Bound Brook, New Jersey, Julian Moz-Aguilar, aka “Humilde,” 29, of Plainfield, New Jersey, and Hugo Palencia, aka “Taliban,” 24, of Plainfield, were each sentenced today to life plus 120 months in prison. Mario Oliva, aka “Zorro,” 30, and Esau Ramirez, aka “Panda,” 25, both of Plainfield, were sentenced Nov. 27, 2016 to life plus 120 months in prison and 169 months in prison, respectively.
All five defendants were previously convicted following a 16-week trial before U.S. District Judge Stanley R. Chesler of the District of New Jersey. Reyes-Villatoro, Oliva, Moz-Aguilar and Palencia were each convicted of racketeering conspiracy, murder in aid of racketeering, use of a firearm in a violent federal crime and murder resulting from a federal firearm crime. Ramirez was convicted of racketeering conspiracy and conspiracy to commit murder in aid of racketeering.
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. All of the defendants were members of the Plainfield Locos Salvatruchas (PLS) clique of MS-13 that was founded by Reyes-Villatoro and operated in Union, Somerset and Middlesex Counties. Reyes-Villatoro, Oliva and Roberto Contreras, aka “Demonio,” 28, of Bound Brook, all served as leaders, or First Word, of PLS.
According to the trial evidence, from 2007 through September 2013, MS-13 members from PLS committed five murders in furtherance of MS-13’s objectives. On Feb. 9, 2009, Reyes-Villatoro, acting as the leader of PLS, drove Moz-Aguilar and other MS-13 members through the streets of Plainfield searching for rival gang members, eventually stopping at the Plainfield train station. There, Moz-Aguilar used a firearm previously provided by Reyes-Villatoro to murder a victim who was believed to be a member of the Latin Kings, a rival gang.
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 Nov. 11, 2010, Palencia drove another MS-13 member to the area around Barack Obama Academy in Plainfield, where they encountered students challenging MS-13. Palencia pulled over, provided a firearm to another MS-13 member and instructed him to shoot at one of the individuals. The MS-13 member shot into the crowd, killing a bystander.
On Jan. 10, 2011, Moz-Aguilar, 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 8, 2011, Cruz Flores, aka “Bruja,” 30, of Bound Brook, murdered a victim who was caught socializing with 18th Street gang members. Flores and another MS-13 member cut his throat, beat him with a bat and stabbed him in the back 17 times. An MS-13 member involved in this murder fled New Jersey and was driven to Maryland soon after law enforcement began searching for him.
The evidence presented at trial also showed that Jose Garcia, aka “Chucky” and “Diabolico,” 24, of Plainfield, recruited and hired MS-13 members from the Maryland-based Pinos clique to come to New Jersey and murder a woman in exchange for $40,000. The Pinos clique members were arrested by authorities as they pulled into Plainfield, before the murder could occur. In addition, after several MS-13 members were arrested in July 2011, Ramirez and Garcia used phones from inside the Union County, New Jersey, jail to order the murder of three witnesses believed to be cooperating with police and responsible for their arrests. Members of PLS also were responsible for an attempted murder of suspected Latin King members near a car wash in Plainfield; the attempted murder of suspected Latin King members in January 2009; a machete attack in May 2011 and another in June 2011 on the train tracks passing through Plainfield; an attempted murder shooting in Plainfield in May 2011; and several other violent crimes, including extortion, robbery and several weapons offenses.
The defendants were originally charged in a 26-count indictment returned by a federal grand jury in September 2013. Currently, 13 of the 14 individuals charged in that indictment have been convicted, and one defendant remains a fugitive. Contreras, Garcia and Flores await sentencing.
The FBI’s Newark Field Office, 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 provided substantial assistance in the investigation. The Somerset County, New Jersey, Prosecutor’s Office; Middlesex County, New Jersey, Prosecutor’s Office; U.S. Attorney’s Offices of the Eastern District of Virginia and the District of Maryland; Plainfield Police Department; Union County Police Department; Union County Sheriff’s Office; Elizabeth, New Jersey, Police Department; North Plainfield, New Jersey, Police Department; Union County Department of Corrections; Prince George’s County, Maryland, Police Department; and the U.S. Marshals Service also provided assistance in this matter. Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the District of New Jersey are prosecuting this case.
Two New York Men Charged with Conspiracy to Commit Human Trafficking and Other Crimes for Roles in New Jersey Chicken Slaughterhouse BusinessRead the Press Release
NEWARK, N.J. – Two New York men were arrested today for allegedly forcing employees to work for them at a Halal chicken slaughterhouse in Middlesex County, U.S. Attorney Paul J. Fishman announced.
Mohammad Abdul Wahid, 54, of Queens, New York, and Mohammed Iqbal Kabir, 42, of Bronx, New York, are charged by complaint with one count each of conspiracy to commit forced labor (human trafficking); conspiracy to harbor undocumented persons for financial gain; and violating the Fair Labor Standards Act. The defendants appeared before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and both were released on $75,000 unsecured bond each, with home confinement and electronic monitoring.
“The Department of Justice is committed to working with our law enforcement partners to seek justice on behalf of vulnerable victims of human trafficking,” Vanita Gupta, head of the Civil Rights Division, said. “The Civil Rights Division commends the District of New Jersey, as one of our six Phase II Anti-Trafficking Coordination Teams (ACTeam), for its leadership on the front lines of shared efforts to hold human traffickers accountable.”
“This is precisely the kind of case the ACTeams were designed to investigate and prosecute,” U.S. Attorney Fishman said. “The criminal complaint against these defendants describes conduct that is as inhumane as it is illegal. By bringing to bear the resources of multiple law enforcement agencies with expertise on human trafficking, we can work more effectively to combat these kinds of crimes.”
According to documents filed in this case and statements made in court:
From July 2011 through January 2016, Wahid owned and operated a Halal chicken slaughterhouse business in Perth Amboy, New Jersey. The business operated pursuant to Halal practices, which meant that the live poultry was slaughtered by Muslim individuals. The poultry would then be cleaned and prepared for sale by other employees. During the time that the facility was operational, Wahid and Kabir allegedly employed undocumented persons. The employees were paid approximately $290 a week in cash and would typically work 70 to 100 hours a week, working six or seven days a week. The employees were not paid more if they worked more hours, nor were they given overtime pay. The employees lived in a boarding house in front of the business, for which Wahid allegedly deducted $40 a week from the employees’ pay checks. The boarding house did not have heat or hot water and was infested with insects.
The defendants also employed two Muslim individuals to slaughter the chickens and forced them to continue working at the slaughterhouse. When these two victims complained about the hours they were working and the conditions of the facility (no gloves, masks or proper soap), the defendants allegedly threatened to call the police. The victims were afraid of being arrested and deported and they continued to work until health inspectors closed the business.
The human trafficking charge with which the defendants are charged carries a maximum penalty of 20 years in prison and a $250,000 fine. The harboring undocumented persons for financial gain carries a maximum penalty of 10 years in prison and a fine of $250,000. The violations of the Fair Labor Standards Act carry a maximum of six months in jail and a fine of $10,000.
This case was developed through the efforts of the New Jersey Anti-Trafficking Coordination Team (ACTeam). The District of New Jersey is one of six federal districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies. This case was developed through the collaborative interagency efforts of the U.S. Attorney’s Office, Department of Labor, Department of Homeland Security, FBI, IRS, and Department of Agriculture, with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark. AUSA Williams also serves as the U.S. Attorney’s Human Trafficking coordinator for the District of New Jersey.
U.S. Attorney Fishman credited the Department of Homeland Security, New Jersey Division, under the direction of Special Agent in Charge Terence S. Opiola; the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael Mikulka; the FBI, New Jersey Division, under the direction of Special Agent in Timothy Gallagher; the Department of Labor, Wage and Hour, New Jersey division, under the direction of Special Agent in Charge Charlene Rachor; the U.S. Department of Labor - Wage and Hour Division, Northern New Jersey, under the direction of Director John Warner; IRS-Criminal Investigation, New Jersey Division, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Agriculture, under the direction of Special Agent in Charge William Squires Jr., with the investigation leading to today’s charges.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Defense counsel:
Wahid: Mohammed Gangat Esq., New York
Kabir: Carol Gillen Esq., Assistant Federal Public Defender, Newark
Two Men Charged with Conspiracy to Distribute CocaineRead the Press Release
NEWARK, N.J. – Two men appeared in federal court today to face distribution conspiracy and possession charges after law enforcement found over two kilograms of cocaine and heroin in their possession, U.S. Attorney Paul J. Fishman announced.
Hasan J. Johnson, 37, of Chester, Pennsylvania, and Jose D. Martinez, 50, of Palisades Park, New Jersey, are each charged by complaint with one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. Martinez is also charged with one count of possession with intent to distribute 500 grams or more of cocaine and 100 grams or more of heroin. Both defendants were arrested last night and appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the complaint:
On Nov. 28, 2016, Johnson – who was observed by law enforcement officers leaving a residence in Palisades Park with a bag – was pulled over after committing several traffic violations. During the ensuing stop, Johnson gave consent to search the vehicle. Afterwards, law enforcement officers allegedly found approximately one kilogram of cocaine in the bag.
Later that night, law enforcement obtained a search warrant for the Palisades Park residence. When they entered the New Jersey Residence they found Martinez in possession a package containing another kilogram of cocaine, as well as 694 grams of heroin.
Both the conspiracy and possession charges carry a mandatory minimum penalty of five years in prison, a potential maximum penalty of 40 years in prison, and a $5 million fine.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Narcotics/OCDETF Unit in Newark.
U.S. Attorney Fishman credited the Drug Enforcement Administration (DEA)’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to the charges.
Former Executive of Fabric Company Admits Stealing Nearly $1 Million from EmployerRead the Press Release
NEWARK, N.J. – A former vice president of a Secaucus-based fabric company pleaded guilty today to stealing nearly a $1 million in goods from his employer and selling it for his own profit, U.S. Attorney Paul J. Fishman announced.
Javan Smith, 72, of Delray Beach, Florida, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
From 1992 to 2014, Smith was an employed as vice president of distribution for a fabric company and worked at the company’s Secaucus warehouse. Starting in 2010, Smith engineered a scheme to steal merchandise and sell it “off the books” to several of his employer’s customers for less than what they would pay if they purchased the items legitimately.
Smith made side arrangements in which a customer would place orders for a certain amount of merchandise, receive far more than the amount on the purchase orders, and then pay Smith for his role in getting the stolen goods. In other cases, the customer would place an order for merchandise, have the merchandise delivered, and then – with Smith’s help – would cancel the order and receive a refund. The customer kept the merchandise and paid a portion of the refund to Smith. Overall, Smith’s scheme caused approximately $945,000 in losses to his employer.
The conspiracy charge to which Smith pleaded guilty carries a maximum potential penalty of 10 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, with the investigation.
The government is represented by Assistant U.S. Attorneys Lakshmi Herman and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Evan Goldman Esq., Hackensack, New Jersey
Two Men Given Multi-Year Prison Sentences for Scheme to Rob Drug Dealers at GunpointRead the Press Release
CAMDEN, N.J. – Two 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.
Robert Smith, a/k/a “Born,” 43, of Trenton, New Jersey, and Derrick Adams, a/k/a “Little D,” 30, of Florence and Willingboro, New Jersey, were sentenced today by U.S. District Judge Noel L. Hillman to 360 and 120 months in prison, respectively.
Following a one-week jury trial in April 2016, Smith was convicted of conspiracy to commit robbery, conspiracy to distribute five or more kilograms of cocaine, possessing a firearm in connection with a crime of violence and a drug trafficking crime, and possessing a firearm as a previously-convicted felon. Adams pleaded guilty in November 2015 to conspiracy to commit robbery and conspiracy to distribute five or more kilograms of cocaine.
According to documents filed in this case and the evidence admitted at trial:
In January 2014, the conspirators planned a gunpoint robbery of a drug stash house in order to steal kilograms of cocaine from dealers at the location. During the investigation, Smith was recorded discussing his willingness, if necessary, to kill the occupants of the stash house. Smith and Adams, in text message conversations and recorded communications, discussed their plan to rob the stash house while posing as law enforcement.
Special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) arrested Smith, Adams, and four other conspirators when they arrived at a meeting location in Maple Shade, New Jersey, on Jan. 30, 2014. After searching the conspirators and their vehicles, the agents recovered five firearms – including a sawed-off shotgun and two stolen handguns – as well as numerous rounds of ammunition, a ballistics vest, masks, gloves, and zip ties.
In addition to the prison terms, Judge Hillman also ordered Smith and Adams to each serve five years of supervised release.
Three other conspirators, Daquon Basnight, 25, Jamiil McFarlane, 24, and Morris Muse, 36, all of Trenton, New Jersey, were previously sentenced before Judge Hillman. A sixth conspirator, Sean Forman, 43, of Willingboro, New Jersey, awaits sentencing.
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 Burlington City and Burlington Township police departments, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Howard Wiener of the U.S. Attorney’s Office Criminal Division in Camden.
Union President from Ocean County, New Jersey, Gets over Three Years in Prison for Embezzling $350,000 in Union FundsRead the Press Release
TRENTON, N.J. – The founder of the United Security and Police Officers of America (USPOA) was sentenced today to 37 months in prison for embezzling hundreds of thousands of dollars in union funds for his personal use, U.S. Attorney Paul J. Fishman announced.
Assane Faye, 61, of Toms River, New Jersey, was previously convicted of all counts of an indictment charging him with two counts of embezzling union funds and seven counts of mail fraud arising from unemployment insurance fraud. Faye was convicted following a three-week trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
According to the documents filed in this case and the evidence presented at trial:
As the founder, national president, and director of the USPOA, as well as a signatory on the USPOA checking account, Faye was obligated to hold and disperse funds of the USPOA solely for the benefit of the union and its members.
Yet in Feb. 2010, without approval of the USPOA Executive Board, Faye put a woman identified in the indictment as “Individual 1,” whom with he had a prior romantic relationship, on the USPOA payroll for $800 a week, purportedly to act as a USPOA organizer in New York. She received additional allowances of $1500 for monthly medical coverage, as well as disbursements for mileage, tolls, parking and vehicle tune-ups. Individual 1 had limited ability to communicate in English, lacked labor organizing experience, and did not own a personal vehicle. As such, Faye’s representations to the Executive Board of her organizing successes were fictional. In addition, Faye had access to both Individual 1’s personal data and bank accounts.
For three and one half years, the union dispersed over $244,000 to Individual 1 while she performed no services for the union. Individual 1 testified that, for at least six months of every year she was on the payroll, she resided in her home country of Senegal. During that time, Faye withdrew approximately $180,000 of her union salary and expense payments for his personal use.
In addition, Faye submitted to the USPOA inflated reimbursement vouchers purportedly for mileage and wear and tear on his personal car, even though he was using rental vehicles. Faye even submitted false vouchers when he traveled outside the United States to Paris, Dubai, China and Milan.
Lastly, despite controlling and collecting disbursements from the USPOA operating account, between April 5, 2010 and June 30, 2010, Faye also committed seven counts of mail fraud by misrepresenting his employment status and fraudulently collecting over $7,000 in unemployment payments from New Jersey’s Unemployment Insurance Division.
In addition to the prison term, Judge Sheridan sentenced Faye to three years of supervised release and ordered him to pay restitution of $350,000.
U.S. Attorney Fishman credited the Department of Labor, Office of Inspector General (OIG), under the supervision of Acting Supervisory Agent in Charge Jonathan Mellone, and the Office of Labor Management Standard (OLMS) under the supervision of District Director Andriana Vamvakas for the investigation and trial support leading to today’s sentence.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Office’s Organized Crime and Gang Unit in Newark.
Defense counsel: Andrea Bergman and Lisa Van Hoeck, Federal Public Defenders
Justice Department Files Suit Against Bernards Township, New Jersey, over Denial of Zoning Approval for MosqueRead the Press Release
The Justice Department filed a lawsuit today against Bernards Township, New Jersey, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque on land it owns. The land is located in a zone that, at the time of the Islamic Society’s zoning request, permitted the construction of places of worship as a matter of right.
The complaint, filed in U.S. District Court for the District of New Jersey, alleges that Bernards Township’s denial of approval for the mosque discriminated against the Islamic Society based on its religion and the religion of its members; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise. The complaint also alleges that the township violated RLUIPA by amending its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
“Sixteen years ago, Congress passed RLUIPA unanimously – with diverse religious and ideological support – because it recognized the fundamental right of all religious communities to build places of worship free from discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “No congregation or community should ever face unlawful barriers to practicing their religion and observing their faith.”
“As alleged in the complaint, Bernards Township has treated the Islamic Society of Basking Ridge differently than other houses of worship,” said U.S. Attorney Paul Fishman of the District of New Jersey. “RLUIPA ensures that municipalities must treat religious land use applications like any other land use application. But here, township officials kept moving the goalposts by using ever-changing local requirements to effectively deny this religious community the same access as other faiths.”
RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Bernards Township ComplaintJustice Department Files Suit Against Bernards Township, New Jersey, over Denial of Zoning Approval for MosqueRead the Press Release
NEWARK, N.J. – The Justice Department filed a lawsuit today against Bernards Township, New Jersey, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque on land it owns. The land is located in a zone that, at the time of the Islamic Society’s zoning request, permitted the construction of places of worship as a matter of right.
The complaint, filed in U.S. District Court for the District of New Jersey, alleges that Bernards Township’s denial of approval for the mosque discriminated against the Islamic Society based on its religion and the religion of its members; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise. The complaint also alleges that the township violated RLUIPA by amending its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
“As alleged in the complaint, Bernards Township has treated the Islamic Society of Basking Ridge differently than other houses of worship,” U.S. Attorney for New Jersey Paul J. Fishman said. “RLUIPA ensures that municipalities must treat religious land use applications like any other land use application. But here, township officials kept moving the goalposts by using ever-changing local requirements to effectively deny this religious community the same access as other faiths.”
“Sixteen years ago, Congress passed RLUIPA unanimously – with diverse religious and ideological support – because it recognized the fundamental right of all religious communities to build places of worship free from discrimination,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, said. “No congregation or community should ever face unlawful barriers to practicing their religion and observing their faith.”
RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743 or the District of New Jersey Civil Rights Complaint Hotline at (855) 281-3339.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Jamaican Resident Admits Role in Fake Lottery ScamRead the Press Release
NEWARK, N.J. – A resident of Jamaica, West Indies, today admitted swindling elderly residents of the United States by falsely telling them they had won millions of dollars in Jamaican lotteries, U.S. Attorney Paul J. Fishman announced.
Ricardo Reid, 31, pleaded before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an indictment charging him with one count of conspiracy to commit mail and wire fraud.
According to documents filed in this case and statements made in court:
From 2011 to 2016, Reid purchased mailing lists that contained addresses and other information of elderly individuals and then solicited these individuals by tricking them into believing they had won millions in lotteries and sweepstakes. He also told the elderly individuals that in order to redeem these fictitious winnings, they had to pay registration fees and other fees and taxes. Reid told the victims that the calls were from officials of the United States, such as the IRS, and from lottery or bank officials.
Reid admitted that he used aliases like “Robert Gates,” “Mr. Bogohazian,” and “Damien Boswel,” and used call forwarding and Voice Over Internet Protocol services to make and receive calls, masking his phone number and location.
The conspiracy county to which Reid pleaded guilty carries a maximum prison term of 20 years and a fine of up to $250,000. Sentencing is scheduled for Feb. 27, 2017 .
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola; and 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 guilty plea.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: K. Anthony Thomas Esq., Assistant Federal Public Defender, Newark
Senior Officer of Italian Oil Tanker Sentenced to Eight Months in Prison for Concealing Discharge of Oily WasteRead the Press Release
NEWARK, N.J. – A senior engineering officer employed by an Italian shipping company was sentenced today to eight months in prison for deliberately concealing a vessel’s discharge of oily waste into the sea, U.S. Attorney Paul J. Fishman announced.
Girolamo Curatolo, 50, of Custonaci, Sicily, the chief engineer of an oil tanker, the M/T Cielo di Milano, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to violate the Act to Prevent Pollution from Ships. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The vessel, owned by D’Amico Shipping Italia S.p.A. and managed by D’Amico Societa di Navigazione S.p.A., visited ports in New Jersey multiple times, as well as ports in Maryland and Florida.
Curatolo admitted that the crew had intentionally bypassed required pollution prevention equipment by discharging oily waste from the engine room through its sewage system into the sea. He also admitted that he falsified the vessel’s Oil Record Book, a required log regularly inspected by the U.S. Coast Guard.
Curatolo admitted he made false statements to the Coast Guard during its inspection of the M/T Cielo di Milano in January 2015, instructing lower-level crew members to make false statements and destroying the vessel’s sounding log – which records the contents of storage tanks aboard the vessel, including those containing oily waste – by ripping the pages out and burning it in the vessel’s boiler after the Coast Guard had boarded the vessel.
In addition to the prison term, Judge Wigenton sentenced Curatolo to one year of supervised release and ordered him to pay a $5,000 fine.
Danilo Maimone, 31, of Furci Siculo, Sicily, the ship’s first assistant engineer, pleaded guilty to an information charging him with conspiring to obstruct justice. Maimone admitted concealing the discharge of oily waste as well as causing a false Oil Record Book to be presented to the Coast Guard during its inspection of the vessel. He also admitted making false statements and instructing lower-level crew members to do the same during the January 2015 inspection. Maimone is scheduled for sentencing on Jan. 18, 2017.
U.S. Attorney Fishman credited special agents of the U.S. Coast Guard Investigative Service, under the direction of Special Agent in Charge Richard D. Cox, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Kelly Graves of the U.S. Attorney’s Office General Crimes Unit in Newark, and Trial Attorneys Brandy Parker and John Cashman of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division.
Defense counsel:
Curatolo: Michael G. Chalos Esq. of New York
Maimone: Ronald A. Sarachan Esq. of Philadelphia
Middlesex County, New Jersey, Man Sentenced to 41 Months in Prison for Thefts from Barnes & NobleRead the Press Release
Used ‘Booster Bag’ to Steal Hundreds of Thousands of dollars in Merchandise
TRENTON N.J. – A Middlesex County, New Jersey, man was sentenced today to 41 months in prison for shoplifting Barnes and Noble merchandise, selling the goods on eBay and failing to report the illicit proceeds to the IRS, U.S. Attorney Paul J. Fishman announced.
Dominick James Izzo, 50, of Piscataway, New Jersey, and Port Orange, Florida, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of transportation of stolen goods and one count of tax evasion.
According to the documents filed in this case and statements made in court:
Izzo admitted that he stole merchandise from Barnes & Noble stores in New Jersey, Florida and elsewhere using a “booster bag” lined with aluminum to evade anti-theft alarms. He then listed the stolen merchandise on eBay using nominee seller accounts to conceal his identity. Izzo accepted payment for the stolen merchandise from purchasers via nominee PayPal accounts. Once Izzo received funds via domestic wire transfer from the purchasers, he shipped the stolen merchandise from New Jersey and Florida to the purchasers in several different states.
For the tax years 2009, 2010 and 2011, Izzo admitted he intentionally failed to report $399,485 in income he received from the sale of stolen merchandise from Barnes & Noble and other businesses. Izzo owed the government $67,360.
In addition to the prison term, Judge Wolfson sentenced Izzo to three years of supervised release and ordered to pay restitution of $207,000.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Andrew Leven and Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense Counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Downtown Newark Heroin and Oxycodone Dealer Sentenced to 40 Months in Prison for Drug Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 40 months in prison for distributing large quantities of heroin in and around downtown Newark, U.S. Attorney Paul J. Fishman announced today.
Jarez Baron a/k/a “Little Bro,” 28, of Newark, pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with conspiracy to distribute 100 grams or more of heroin. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between February 2013 and Aug. 7, 2013, Baron conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Baron and others sold drugs out of this location to a confidential source more than 35 times. The majority of the sales were audio and video recorded.
Law enforcement intercepted conversations of Baron and his conspirators pursuant to court orders. The intercepted conversations revealed that Baron and other employees sold drugs for Lamont Vaughn, 33, of Newark, at Ballas Boutique.
On Aug. 7, 2013, law enforcement officers executed arrest and search warrants at Ballas Boutique and at Vaughn and Baron’s home in Newark. Among the items recovered were dozens of oxycodone pills, two firearms, and a large amount of cash.
In addition to the prison term, Judge Linares sentenced Baron to three years of supervised release.
Vaughn pleaded guilty on June 22, 2016, to conspiracy to distribute 100 grams or more of heroin and oxycodone and to being a felon in possession of two firearms. He was sentenced Oct. 5, 2016, to 65 months in prison.
Another co-defendant, Felicia Holt, 30, of Newark, pleaded guilty on March 11, 2014, to an information charging her with one count of conspiracy to distribute heroin and was sentenced Nov. 17, 2016, to 45 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the N.J. State Police Street Gangs North Unit with the investigation leading to today’s sentencing.
The government is represented by Special Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Baron: Frank P. Arleo Esq., West Orange, New Jersey
Vaughn: pro se
Holt: Joseph Rubino Esq., Union, New Jersey
Member of Large-Scale ‘ATM Skimming’ Scheme Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States today admitted his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Alin Carabus, 42, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of an indictment charging him with conspiracy to commit bank fraud.
According to documents filed in this and other cases as well as statements made in court:
Carabus admitted he was part of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.
Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs.
The stolen data was used to create thousands of fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 23, 2017.
The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Carabus, Vintila and Radu, have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field
Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division in Newark.
Defense Counsel: Joseph M. Corazza Esq., Sparta, New Jersey
City of Passaic Mayor Admits Taking $110,000 in Corrupt Payments from DevelopersRead the Press Release
NEWARK, N.J. – The mayor of the City of Passaic, New Jersey, today admitted taking $110,000 in corrupt payments from developers doing business in the city, U.S. Attorney Paul J. Fishman announced.
Alex D. Blanco, 44, of Passaic, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging him with one count of soliciting and accepting corrupt payments in connection with City of Passaic business.
“The conduct admitted by Mayor Blanco demonstrates an aggressive and appalling greed,” U.S. Attorney Fishman said. “By soliciting these payments from developers, he took for himself federal money that was intended to help provide housing for the city’s poorest residents. We expect our public officials to behave differently.”
“Public corruption is one of the FBI's top priorities,” Special Agent in Charge Timothy Gallagher of the FBI Newark Division said. “Today's guilty plea by Passaic Mayor Alex Blanco is indicative of how diligently the FBI and our law enforcement partners work corruption matters. We will continue to investigate allegations of public corruption thoroughly to ensure any person who misuses their public office for private gain is held accountable.”
“The mayor’s guilty plea is a testament to the hard work and dedication of our special agents and their law enforcement colleagues—job well done,” Special Agent in Charge Terence S. Opiola, Homeland Security Investigations, Newark Field office, said.
According to documents filed in this case and statements made in court:
From 2010 through 2012, two developers were seeking to build eight low-income residential units on property they owned in Passaic. After the Passaic City Council and the Passaic Zoning Board of Adjustment granted approval, Blanco – who has been mayor since November 2008 – had an intermediary approach the developers in July 2011. The developers were told they were expected to provide a sizable payment to the mayor to ensure that the project would proceed.
A short time later, the Passaic City Council approved the release of $216,400 in Housing and Urban Development (HUD) funds to the developers, money that had been earmarked for the project. In early September 2011, Blanco arranged for a meeting with the developers at which he solicited and agreed to accept $75,000. The next day, he arranged for a meeting with one of the developers in Clifton, New Jersey, and asked for the corrupt payment in cash, but was told by the developer that the developer had brought signed, blank checks, which could be made out to payees of Blanco’s choosing. Blanco obtained those checks – totaling $65,000 – once the payee lines had been filled in, arranged for them to be cashed, and pocketed the cash proceeds.
About eight days later, Blanco arranged for another meeting in Passaic with one of the developers and solicited and accepted two additional checks totaling $40,000, proceeds of which were ultimately provided to Blanco in cash. In March 2012, Blanco accepted cash proceeds from an additional $5,000 check solicited on his behalf. Much of the $110,000 in corrupt payments was derived from the HUD monies that had been released to the developers in 2011.
The charge to which Blanco pleaded guilty carries a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss caused by the offense. Sentencing is scheduled for Feb. 23, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Opiola, with the investigation leading to today’s guilty plea. He also thanked special agents of the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and José R. Almonte of the U.S. Attorney’s Office Special Prosecutions Division in Newark and Assistant U.S. Attorney James M. Donnelly of the Criminal Division in Newark.
Defense attorneys: Joseph A. Hayden Jr. Esq., and Aidan P. O’Connor Esq., Hackensack, New Jersey
Twelve Men Charged in ‘ATM Skimming’ Conspiracy Targeting Multiple New Jersey Bank LocationsRead the Press Release
NEWARK, N.J. – Twelve men were charged as part of a scheme that used secret card-reading devices and pinhole cameras installed on PNC and Bank of America ATMs to steal at least $428,581, U.S. Attorney Paul J. Fishman of the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Criminal Division announced today.
Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, a/k/a “Marcel Enescu Cismas,” 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, of Glendale; Stefan Dumitru, 28, of Astoria, New York; 39, an unidentified defendant known as “Zoltan Nagy,” 39 of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Vasilica Adrian Hanganu, 35, of Bayside; Florian Calin Crainic, 46, of Des Plaines, Illinois; Gabriel Mares, 43, of College Point, New York; and his brother Florin Mares, 48, of College Point, are each charged by complaint with one count of conspiracy to commit bank fraud.
All of the defendants were arrested yesterday and this morning, with the exception of Nagy, who is still at large. Those who were apprehended, with the exception of Crainic, appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Crainic was scheduled to appear today in Illinois federal court.
According to the complaint:
The scheme, which was allegedly led by Rusu, sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey. The “skimming” equipment included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards.
The conspirators then transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts. For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.
The conspirators are alleged to have stolen at least $428,581 from Bank of America.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola in Newark, as well as the U.S. Secret Service’s Boston and New York field offices and the East Longmeadow, Cambridge, and Medford, Massachusetts, police departments with the investigation. They also thanked the Middlesex County, Massachusetts, DA’s office; the U.S. Attorney’s Office of the Eastern District of New York and the U.S. Attorney’s Office, District of Massachusetts Springfield Division, as well as the Bank of America Security and Fraud Section, the PNC Bank Security Division and TD Bank, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Twelve Men Charged in ‘ATM Skimming’ Conspiracy Targeting Multiple New Jersey Bank LocationsRead the Press Release
NEWARK, N.J. – Twelve men were charged as part of a scheme that used secret card-reading devices and pinhole cameras installed on PNC and Bank of America ATMs to steal at least $428,581, U.S. Attorney Paul J. Fishman of the District of New Jersey and Assistant Attorney General Leslie R. Caldwell of the Criminal Division announced today.
Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, a/k/a “Marcel Enescu Cismas,” 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, of Glendale; Stefan Dumitru, 28, of Astoria, New York; 39, an unidentified defendant known as “Zoltan Nagy,” 39 of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Vasilica Adrian Hanganu, 35, of Bayside; Florian Calin Crainic, 46, of Des Plaines, Illinois; Gabriel Mares, 43, of College Point, New York; and his brother Florin Mares, 48, of College Point, are each charged by complaint with one count of conspiracy to commit bank fraud.
All of the defendants were arrested yesterday and this morning, with the exception of Nagy, who is still at large. Those who were apprehended, with the exception of Crainic, appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Crainic was scheduled to appear today in Illinois federal court.
According to the complaint:
The scheme, which was allegedly led by Rusu, sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey. The “skimming” equipment included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards.
The conspirators then transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts. For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.
The conspirators are alleged to have stolen at least $428,581 from Bank of America.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola in Newark, as well as the U.S. Secret Service’s Boston and New York field offices and the East Longmeadow, Cambridge, and Medford, Massachusetts, police departments with the investigation. They also thanked the Middlesex County, Massachusetts, DA’s office; the U.S. Attorney’s Office of the Eastern District of New York and the U.S. Attorney’s Office, District of Massachusetts Springfield Division, as well as the Bank of America Security and Fraud Section, the PNC Bank Security Division and TD Bank, for their assistance in this case.
The government is represented by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Twelve Individuals Charged in ATM Skimming ConspiracyRead the Press Release
Twelve individuals were charged with allegedly executing a scheme to defraud customers of Bank of America and PNC Bank through conduct known as “ATM skimming,” according to complaints that were unsealed following the arrest of the majority of the defendants, announced Assistant Attorney General Leslie R. Caldwell of the Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey
Bogdan Viorel Rusu, 36, of Howard Beach, New York; Marcel Peckham, aka Marcel Enescu Cismas, 43, of Little Neck, New York; Catalin Mihai Dragomir, 32, of Glendale, New York; Eduard Vasilica Ticu, 28, also of Glendale; Stefan Dumitru, 28, of Astoria, New York; an unidentified defendant, known as Zoltan Nagy, 39, of Bayside, New York; Silvester Florentin Papp, 24, of Ridgewood, New York; Joel Abel Garcia, 34, of Bronx, New York; Gabriel Mares, 43, of College Point, New York; Florian Calin Crainic, 46, of Des Plaines, Illinois; Florin Mares, 48, also of College Point; and Vasilica Adrian Hanganu, 35, also of Bayside, are each charged by complaint with one count of conspiracy to commit bank fraud. All of the defendants have been arrested, with the exception of Nagy, who remains at large.
According to the complaint, the co-conspirators – led by Rusu – sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Between March 2015 and July 2016, the co-conspirators allegedly installed electronic equipment at ATMs at several banks across New Jersey. The “skimming” equipment allegedly included pinhole cameras and electronic devices capable of recording bank customer information encoded on the magnetic stripe of credit and debit cards. The co-conspirators allegedly transferred the stolen card data to counterfeit bank cards and subsequently used that data to withdraw cash from the compromised accounts using various means. For example, on one occasion in January 2016, one of the defendants used counterfeit ATM cards encoded with stolen bank account information at four different Bank of America locations on the same day.
The co-conspirators are alleged to have stolen at least $428,000 from Bank of America customers in New Jersey.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston and New York Field Offices; East Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section, PNC Bank Security Division and TD Bank. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kelly Graves of the District of New Jersey are prosecuting the case.
Miami-Dade County, Florida, Man Charged with Conspiracy to Commit Health Care FraudRead the Press Release
NEWARK, N.J. – A Florida man has been charged in connection with his role in establishing fake medical facilities in New Jersey and billing insurance companies for services that were never performed, U.S. Attorney Paul J. Fishman announced.
Eduardo Arango Chong, 21, of Hialeah, Florida, was arrested Nov. 15, 2016, and will appear today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. He was charged by complaint, along with Osmaro Ruiz, 31, of Homestead, Florida, with one count of conspiracy to commit health care fraud. Ruiz remains at large. Another conspirator, Raymel Betancourt, 25, was charged with healthcare fraud in a separate complaint in June 2015.
According to the complaint:
From September 2014 through June 26, 2015, the defendants allegedly established fictitious health service providers in Union County, New Jersey, and elsewhere. These “phantom providers” repeatedly submitted false claims to insurance companies for medical services, including injections and physical therapy services, that were never actually performed. They allegedly submitted claims for more than $6 million and the insurance companies paid hundreds of thousands of dollars to the phantom providers.
The defendants allegedly recruited people with legitimate health insurance policies from real companies, offering them money in exchange for allowing the phantom providers to use this information.
The fake providers also used health insurance information for individuals who were not aware that fraudulent claims were being submitted on their behalf. The conspirators logged on to an electronic healthcare network used by medical practices to check patient insurance coverage. They used valid member IDs and then entered a series of consecutive potential member IDs until one of the numbers was linked to someone with a valid health insurance plan and accepted by the network.
Checks and proceeds issued by the insurance companies were cashed or deposited into bank accounts established by the conspirators.
The counts of conspiracy to commit health care fraud with which the defendants are charged carry a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the Criminal Division.
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 $1.29 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 charges and allegations in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
High-Ranking Ms-13 Member Sentenced to 13 Years in PrisonRead the Press Release
NEWARK, N.J. – A high-ranking member of the international street gang “Mara Salvatrucha” (also known as MS-13) was sentenced today to 13 years in prison for participating in a racketeering conspiracy, which included acts of extortion, drug distribution, and conspiracy to commit murder, U.S. Attorney Paul J. Fishman announced today.
Joel Antonio Cortez, a/k/a “Pee Wee,” 42, who is currently serving a state prison sentence in California, was sentenced today by U.S. District Court Judge Stanley R. Chesler to 156 months in prison. Cortez previously pleaded guilty to one count of racketeering conspiracy.
According to documents filed in this case and statements made in court:
Cortez and Amilcar Romero, a/k/a “Chi Chi,” 47, served as the top deputies to Jose Juan Rodriguez-Juarez, 34, the alleged leader of MS-13’s “national program,” which was an effort to bring all local MS-13 sets, or “cliques,” operating in the United States under a single, cohesive leadership structure.
By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the east coast of the United States to join the national program. Both are also alleged to have ordered acts of violence, including Cortez’s authorization of a November 2013 murder plot in Hudson County. Law enforcement learned of the murder plot during the course of the investigation and arrested the New Jersey-based conspirators before it could be completed. Cortez and Romero also ordered east coast-based gang members to collect money on behalf of the gang by force and violence.
In addition, Romero and Cortez collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.
Cortez is currently serving a 22-year prison sentence imposed in California State court in 2004 for second-degree robbery. Cortez’s federal sentence will run concurrently with his state sentence.
Romero previously pleaded guilty to one count of racketeering conspiracy. He was sentenced by Judge Chesler to five years in prison, which will be served consecutively to a 44-year prison sentence imposed by California state court in 1997 for attempted murder.
Rodriguez-Juarez pleaded guilty to one count of racketeering conspiracy and one count of conspiracy to distribute controlled substances. He has yet to be sentenced.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. The investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office. U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for its 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.
Defense counsel:
Cortez: Howard B. Brownstein, Esq., Union City, New Jersey
Romero: John P. McDonald Esq., Somerville, New Jersey
Rodriguez-Juarez: E. Alexander Jardines, Esq., Union City, New Jersey
Four Gang Members Charged with Armed Robbery of New Jersey Bar, Violent Kidnapping of Taxi DriverRead the Press Release
NEWARK, N.J. – Four 18th Street gang members from Bergen County, New Jersey, and Rockland County, New York, were charged today with various offenses arising from their armed robbery of a Hawthorne, New Jersey, bar and the violent carjacking of a taxi that took place shortly afterwards, U.S. Attorney Paul J. Fishman announced.
Wilbur Jonathan Barahona, 20, of Ridgewood, New Jersey, Guillermo Carillo-Iraheta, 19, of Suffern New York, Juan Chiliseo-Vega, 19, of Suffern, and Jostin Reyes, 21, of Waldwick, New Jersey, were charged by complaint with conspiracy to commit Hobbs Act Robbery, carjacking, use of a firearm during a crime of violence, and kidnapping. All four appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
Balmore Carillo-Iraheta, 19, of Suffern, and Oscar Avalos-Cortez, 22, of New City, New York, are also charged in the same complaint with conspiracy to commit Hobbs Act robbery. They had their initial appearances before U.S. Magistrate Judge Mark Falk on Nov. 1, 2016 and U.S. Magistrate Judge James B. Clark on Nov. 10, 2016, respectively. All six defendants, with the exception of Avalos-Cortez, have been detained. Avalos-Cortez was released on a $150,000 unsecured bond.
According to the complaint:
On Dec. 25, 2016, Barahona, Guillermo Carillo-Iraheta, Chiliseo-Vega, Reyes, Balmore Carillo-Iraheta, and Avalos-Cortez robbed a bar at gunpoint in Hawthorne, New Jersey, while Avalos-Cortez operated the getaway vehicle.
Later that evening, Barahona, Guillermo Carillo-Iraheta, Chiliseo-Vega, and Reyes robbed a taxicab driver at gunpoint, hit the taxicab driver in the head with a beer bottle, and sliced his throat with a knife before leaving him on the side of the New York State Thruway near Woodbury, New York. The taxicab driver survived.
The kidnapping charge carries a maximum potential penalty of life imprisonment. The carjacking charge carries a maximum potential penalty of 25 years in prison. The conspiracy charge carries a maximum potential penalty of up to 20 years in prison. The charge of brandishing a weapon in connection with the carjacking offense carries a mandatory penalty of seven years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Ridgewood and Hawthorne Police Departments, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
New Jersey Cardiac Monitoring Company Agrees to Pay over $1.35 Million to Resolve Claims It Paid Illegal Kickbacks to Physicians,Read the Press Release
NEWARK, N.J. – MedNet Inc., a Ewing, New Jersey-based remote cardiac monitoring company and a subsidiary of BioTelemetry Inc., has agreed to pay more than $1.35 million to resolve allegations that it paid kickbacks to induce physicians to use the company’s cardiac monitoring services, U.S. Attorney Paul J. Fishman announced today.
According to settlement agreement:
From March 15, 2006, through Jan. 31, 2014, before BioTelemetry acquired MedNet, MedNet entered into “fee-for-service” or “direct-bill” agreements with certain hospital and physician clinic customers. MedNet charged a fee to the customers for certain services that the company performed in connection with event monitoring and telemetry, two types of cardiac monitoring services. MedNet allowed the customers to bill Medicare directly for these same services and retain the reimbursements they received from Medicare, which exceeded the fee that MedNet charged them.
These agreements resulted in a net profit to MedNet’s customers who submitted claims to Medicare in accordance with the agreements, primarily for services that MedNet — and not the customers — performed. The government contends that MedNet entered these agreements and provided this remuneration to these customers in order to induce referrals from those customers for MedNet’s services.
The government alleges that the remuneration MedNet provided in connection with the agreements was illegal remuneration under the Anti-Kickback Statute. As a result, MedNet caused to be submitted to Medicare false claims for cardiac monitoring services provided to patients of its customers.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
The settlement is the culmination of an investigation conducted by 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, and the FBI, under the direction of Newark Special Agent in Charge Timothy Gallagher.
The government is represented by Assistant U.S. Attorneys Bernard J. Cooney and Nicole F. Mastropieri 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 claims settled by this agreement are allegations only, and there has been no determination of liability.
Florida Man Admits Defrauding Bergen County, New Jersey, Company Out of More Than $1.5 MillionRead the Press Release
TRENTON, N.J. – A Windermere, Florida, man today admitted using phony invoices to fraudulently obtain over $1.5 million from a factoring company in Bergen County, New Jersey, U.S. Attorney Paul J Fishman announced.
Jerry Guidice, 57, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
In July 2015, Guidice had a trucking company he owned enter into an agreement with a Bergen County factoring company. Pursuant to the agreement, the trucking company would assign some of its accounts receivable to the factoring company in return for short-term financing.
However, Guidice sought to defraud the factoring company by emailing fraudulent invoices for trucking services that were never actually performed by his company. As a result of the invoices, the factoring company transferred more than $1.5 million to Guidice’s company from September 2015 through February 2016.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Christopher Atcachunas Esq., Orlando, Florida
Two Burlington County, New Jersey, Pharmacists Charged with Illegally Distributing Oxycodone, Other Pain Killers from Medford, New Jersey, ‘Pill Mills’Read the Press Release
CAMDEN, N.J. – Two pharmacists were arrested today and charged 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.
Michael Ludwikowski, 44, of Medford, and David Goldfield, 58, of Medford Lakes, New Jersey, were charged in a 16-count indictment with conspiracy to illegally distribute and dispense oxycodone and other Schedule II controlled substances, maintaining a drug-involved premises, and multiple substantive counts of illegal distribution. Ludwikowski was also charged with using his cellphone in furtherance of the conspiracy. Both defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
“There is a real opioid epidemic in the United States, one that’s responsible for personal tragedy, widespread suffering, and enormous financial loss,” U.S. Attorney Fishman said. “Doctors, pharmacists, and other health care professionals have a unique opportunity to address this epidemic by ensuring prescription opiates are dispensed only for legitimate medical purposes. Instead, Ludwikowski and Goldfield allegedly chose to exacerbate the problem by selling opiates to customers with fake prescriptions or to individuals whom they knew to be addicts.”
“Opioid and prescription drug abuse is sweeping the country. By allegedly participating in a conspiracy to distribute oxycodone within our community, the defendants engaged in a behavior that ultimately contributes to this epidemic,” said Special Agent in Charge Timothy Gallagher. “Today's arrests are not only a victory for the FBI and our partners, but for everyone who confronts the tragic outcomes of opioid addiction and abuse.”
Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration (DEA)’s New Jersey Division said, “Unfortunately, this is another alleged case of two pharmacists violating the public trust. They should have been doing their part to help in the reduction of the opioid epidemic we are facing. Instead, based on the charges, they have played a part in adding to the epidemic.”
According to documents filed in this case and statements made in court:
From March 2008 through August 2013, Ludwikowski, the owner of both Olde Medford Pharmacy and Medford Family Pharmacy, and his employee, Goldfield, knowingly distributed and dispensed oxycodone and other controlled substances to individuals, including addicts, who presented phony prescriptions.
Ludwikowski ordered tens of thousands of dosage units of oxycodone, among other products, from a large national distributor. The distributer established thresholds for the quantity of controlled substances that it supplied to certain pharmacies. These thresholds could not be exceeded unless a pharmacy provided sufficient justification for an increase. As part of the conspiracy, Ludwikowski fraudulently requested and received increases to the thresholds of oxycodone supplied to his pharmacies, even though he knew they were not going to be used for legitimate medical reasons.
In some instances, the customers presented fraudulent prescriptions that had been blatantly “washed,” or “bleached,” 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. Ludwikowski and Goldfield even allegedly ignored concerns raised by an employee who pointed out an obviously altered prescription.
Customers who used the fraudulent prescriptions generally paid in cash and provided gifts to Ludwikowski and Goldfield. In some instances, these customers filled fraudulent prescriptions for oxycodone multiple times a week.
In furtherance of the scheme, Ludwikowski and another pharmacist he employed – referred to in the indictment as “Pharmacist 3” – reached an agreement with a physician –referred to in the indictment as “Doctor 1” – to “steer” Doctor 1’s patients to Ludwikowski’s pharmacies. In a text message from Pharmacist 3 to Ludwikowski on Jan. 11, 2013, Pharmacist 3 wrote: “I talked to [Doctor 1] and he is going to direct all of his patients to us he is the pain doc in Cherry Hill.”
Following that exchange, Ludwikowski received a voicemail from an individual referred to in the indictment as “Individual 3” who claimed to be a patient of Doctor 1 and was looking for a monthly supplier. After Ludwikowski passed along his number to Pharmacists 3, Individual 3 was able to fill prescriptions for oxycodone and other controlled substances at Olde Medford Pharmacy or Medford Family Pharmacy.
In another instance, a Pennsylvania resident referred to in the indictment as “Individual 4” informed Ludwikowski that he was “in a bit of a pickle” because he had been unable to fill a prescription written by Doctor 1 in Pennsylvania, but had heard that Ludwikowski would be able to help. Subsequently, Individual 4 was able to acquire oxycodone and other controlled substance prescriptions from Ludwikowski’s pharmacies.
The conspiracy charge and each substantive count of illegal distribution of oxycodone and other Schedule II controlled substances 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. The count of using a telephone in furtherance of the drug trafficking crimes carries a maximum penalty of four years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of maintaining a drug-involved premises each carry a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Gallagher; the DEA New Jersey Division, under the direction of Special Agent in Charge 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.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Individuals in District of New Jersey Receive Attorney General AwardsRead the Press Release
NEWARK, N.J. – Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
In the District of New Jersey, three individuals – Counsel to the U.S. Attorney John M. Fietkiewicz and Assistant U.S. Attorneys Dennis C. Carletta and Peter W. Gaeta – were honored with awards.
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” Attorney General Lynch said. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
“I’m enormously proud of the three attorneys from our office who are being honored with these awards,” U.S. Attorney Paul J. Fishman, District of New Jersey, said. “John, Dennis and Peter exemplify the outstanding professionalism and commitment to justice we strive for every day. These awards honor them, but also all of the men and women in our office, who work so hard every day on behalf of the people of New Jersey and across the country.”
In the District of New Jersey, the following individuals were recognized for the following awards:
The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct.
Fietkiewicz is recognized for his sustained, outstanding leadership and invaluable contributions to ensure that department prosecutors carry out their duties in compliance with the highest ethical standards. With superior dedication and effort, he has gone to extraordinary lengths to advise and train innumerable department prosecutors, providing the tools and resources necessary to perform their work in the most ethical and professional way possible. With his considerable experience and exceptional judgment, he is leading the district in successfully addressing the overlap between the legal and ethical duty of disclosure, one of the most important professional responsibility issues facing federal prosecutors in decades. His unfailing commitment to upholding and inspiring others to the highest standards of professionalism has been a model to his peers within and outside the department. He worked closely with Claudia Flynn during her service at the department, and he embodies the integrity, professionalism and strength of character that marked Flynn’s life and work.
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.
The award recognizes, from the U.S. Attorney’s Office of the District of New Jersey, Assistant U.S. Attorneys Carletta and Gaeta.
In December 2011, the FBI opened a five-year investigation into ABN Universal Inc. Early investigative techniques revealed the U.S.-based owner and operator of ABN was Alexander Brazhnikov. Through an exhaustive use of human sources, video surveillance, forensic reconstruction, grand jury subpoenas, search warrants, Title III surveillance of emails and computer analysis, the investigation revealed that ABN was procuring dual-use microelectronics from U.S.-based manufacturers on behalf of Russian companies directly associated with the Russian military and intelligence services. Moreover, employees of ABN were devaluing the price of exported products to Russia and using front company addresses in Moscow, an offshore virtual private network and an international network of shell companies to conceal the intended end-users from U.S. law enforcement. The investigative team worked diligently to overcome each of these obfuscation techniques to ultimately reveal the totality of Brazhnikov’s criminal offenses. As a result of the investigation, in June 2014, an arrest warrant for Brazhnikov was issued for his illegal smuggling of export controlled U.S.-sourced goods to Russia and for conducting $65 million in money laundering. In June 2015, Brazhnikov pleaded guilty to conspiracy to smuggle goods from the U.S., conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act. Brazhnikov also admitted to smuggling microelectronics to Russian defense contractors known to supply the Russian military and intelligence services, to include two Russian nuclear warhead design institutes. As a result of his guilty plea, the District Court of New Jersey issued a money judgment against Brazhnikov for $65 million.