District of New Jersey
Press releases recorded for this federal judicial district.
Mortgage Broker Sentenced to A Year in Prison for Trading on Inside Information Stolen from Prominent New York Law FirmRead the Press Release
TRENTON, N.J. – The middleman in a five-year insider trading scheme was sentenced today to 12 months in prison for receiving numerous trading tips from a law firm source and passing the tips on to his broker-dealer to trade, yielding net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Frank Tamayo, 43, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Tamayo, a mortgage broker, admitted that from 2009 to 2013, he obtained material nonpublic information from his friend and former law school classmate, Steven Metro, 42, of Katonah, New York. Metro was then the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, a law firm specializing in mergers and acquisitions. The inside information divulged by Metro to Tamayo concerned mergers, acquisitions, or tender offers in which the firm represented a party or financial advisor. As the firm’s managing clerk, Metro did not personally work on most these transactions. Instead, Metro stole the information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After stealing material information, Metro would personally meet Tamayo at bars, coffee shops, or other locations near their Manhattan workplaces. Tamayo admitted that during these meetings, Metro gave him the names and ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once public. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and then commit the information to memory.
Tamayo would then meet with his broker-trader Vladimir Eydelman, 44, of Colts Neck, New Jersey, who was employed first at Oppenheimer & Co. and later at Morgan Stanley. Tamayo and Eydelman met at locations near Eydelman’s workplace, including the large clock in New York City’s Grand Central Terminal. Tamayo admitted that during these meetings, he would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo put the paper or napkin into his mouth and chewed it until it was destroyed.
Using the stolen information, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any options positions once the relevant deal was publicly announced and the stock price rose.
Tamayo admitted he reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for the inside information.
By exploiting the material information that Metro stole from the firm, Tamayo, Metro and Eydelman netted more than $5.6 million in illicit profits over the course of the five-year insider trading scheme.
In addition to the prison term, Judge Shipp sentenced Tamayo to three years of supervised release, fined him $15,000, and ordered him to pay restitution of $1,056,969.69
Metro and Eydelman have both pleaded guilty to their roles in the scheme. On Sept. 14, 2016 Metro was sentenced to 46 months in prison. Eydelman is scheduled for sentencing on Sept. 30, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Defense counsel: A. Ross Pearlson Esq. and Matthew E. Beck Esq., West Orange, New Jersey
Member of Grape Street Crips Street Gang Sentenced to Five Years in Prison on Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – A member of the New Jersey set of the Grape Street Crips gang was sentenced today to 60 months in prison for conspiring to distribute crack-cocaine, U.S. Attorney Paul J. Fishman announced.
Max LaRue, a/k/a “Max,” 27, previously pleaded guilty before U.S. District Judge José Linares Judge Linares to an information charging him with one count of conspiracy to distribute crack-cocaine. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in these cases and statements made in court:
The Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. LaRue other members of the gang operated a continuing criminal enterprise in the area of 6th Avenue and North 5th Street in Newark. The enterprise allegedly sold crack-cocaine to other distributors of the drug, including other members of the gang. LaRue was a distributor who was a member of the gang and obtained crack-cocaine from the criminal enterprise.
To protect their gang and drug territory, the Grape Street Crips used “community guns” that were easily accessible to gang members. Law enforcement agents seized numerous firearms, including a .410-caliber assault rifle, a .45-caliber Thompson semi-automatic carbine, a 7.62-caliber assault rifle, and numerous semi-automatic handguns.
In addition to the prison term, Judge Linares sentenced LaRue to four years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for 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, police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Anthony Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Michael J. Pappa Esq., Hazlet, New Jersey
Connecticut Man Admits Conspiring to Conceal Income in Undeclared Panamanian Bank AccountRead the Press Release
Will Pay $1.3 Million in Penalties, Restitution
TRENTON, N.J. – A Weston, Connecticut, man who used a Panamanian bank account to conceal more than $1.5 million in income from the sale of duty-free alcohol and tobacco products pleaded guilty today to one count of conspiring to conceal assets and income from the IRS, U.S. Attorney Paul J. Fishman and Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Saul Hyatt, 53, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to conceal assets in an undeclared bank account held in Panama for his benefit.
“The Panamanian banking system is not a haven to hide profits made from U.S. businesses,” U.S. Attorney Fishman said. “When U.S. taxpayers use foreign bank accounts to hide their assets, we will investigate and prosecute them to the fullest extent of the law.”
“The Department continues to vigorously pursue and prosecute those who conceal their assets and income in offshore accounts in an effort to evade paying their fair share of taxes,” Principal Deputy Assistant Attorney General Ciraolo said. “Nearly eight years after the IRS announced its first offshore voluntary disclosure program, individuals who fail to disclose their interests in foreign accounts and report income earned on these accounts should be well aware that there are significant consequences for this criminal conduct.”
“Concealing income and assets offshore is not tax planning,” Special Agent in Charge Jonathan D. Larsen of IRS-Criminal Investigation, Newark Field Office, said. “Plain and simple, this is international tax fraud. The facts in this case are clear. Mr. Hyatt earned income through the sale of duty-free alcohol and tobacco products and intentionally had over $1.6 million of profits wired into an undeclared offshore bank account in Panama. Today’s plea shows how determined we are at the IRS and Department of Justice in uncovering this type of international tax fraud and putting a stop to it.”
According to documents filed in this case and statements made in court:
Hyatt conspired with another individual in the United States and others to conceal his assets and income derived from the sale of duty-free alcohol and tobacco products. He used a registered Panamanian corporation, Centennial Group, to buy and sell the duty-free products. The alcohol shipped through a customs-bonded warehouse in the Foreign Trade Zone in Fort Lauderdale, Florida. The tobacco products, Chinese-brand cigarettes sold under the names “Chung Hwa” and “Double Happiness,” passed through a customs-bonded warehouse in North Bergen, New Jersey. From 2006 to 2012, Hyatt directed that $1,627,832 in profits from the sale of duty-free alcohol and tobacco products be wired to his undeclared bank account in Panama. Hyatt repatriated money from the Panamanian bank account to buy a Mercedes Benz SL 550R automobile and to pay for $19,000 in interior design goods and services.
Americans are required to report to the IRS on Schedule B of a U.S. Individual Income Tax Return any financial interest in, or signature authority over, a financial account in a foreign country by identifying the country where the account was maintained. They are also required to report all income earned from foreign financial accounts and, if the accounts have an aggregate value of more than $10,000 at any time during the calendar year, file with the Department of the Treasury a Report of Foreign Bank and Financial Accounts (FBAR).
The count to which Hyatt pleaded guilty carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice his gain from the offense. Because he failed to file an FBAR report, he is obligated to pay $854,466 in penalties for failing to disclose the account and has agreed to file true and accurate tax returns. He must also pay restitution to the IRS of $521,986. Sentencing is scheduled for Jan. 6, 2017.
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Ciraolo credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in‑Charge Jonathan D. Larsen, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Healthcare and Government Fraud Unit, and Trial Attorney Michael C. Vasiliadis of the Department of Justice Tax Division.
Defense counsel: Dennis Kainen Esq.
Bergen County, New Jersey, Sentenced to 51 Months in Prison for Multimillion-Dollar Investment Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 51 months in prison for conspiring to defraud 15 victims of more than $3 million, U.S. Attorney Paul J. Fishman announced.
Paul Mancuso, 50, of Glen Rock, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to one count of conspiracy to commit wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Aug. 21, 2014, a federal grand jury in Newark indicted Mancuso on one count of conspiracy to commit wire fraud and five counts of wire fraud. It also charged Pasquale Stiso, 55, of West Harrison, New York, with one count of conspiracy to commit wire fraud and one count of wire fraud.
Since 2009, Mancuso posed as a real estate investor, broker and developer, as well as a “hard money” lender for other investments. Stiso, a disbarred New York attorney, held himself out as an individual working with Mancuso on various investment projects.
Mancuso admitted that he and Stiso fraudulently obtained financing for projects that did not exist or in which they had no actual involvement. Some of the purported projects touted by Mancuso, Stiso, and other conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shopping center, and the “flipping” of a piece of real estate in Matawan.
Victims lost all of their investments in Mancuso’s schemes. Instead of funding the purported projects, Mancuso and Stiso used the money for personal expenses and to finance their involvement in illegal gambling.
In addition to the prison term, Judge Martini sentenced Mancuso to three years of supervised release and ordered him to pay restitution of $3,266,250.
Stiso was tried and convicted of all 10 counts of a superseding indictment charging him with one count of conspiracy to commit wire fraud, six substantive counts of wire fraud, and three counts of money laundering following a seven-day trial before U.S. District Judge William J. Martini. He was sentenced in June 2016 to 43 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and criminal investigators from the U.S. Attorney’s Office for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Anthony Mahajan of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Stacy Ann Biancamano Esq., Newark
Former Letter Carrier Sentenced to One Year in Prison for Scheme to Steal and Cash Hundreds of Postal Money OrdersRead the Press Release
NEWARK, N.J. – A Little Egg Harbor, New Jersey, man was sentenced today to 12 months in prison for his role in a scheme to steal and convert hundreds of blank U.S. Postal Service money orders, resulting in nearly $200,000 in losses, U.S. Attorney Paul J. Fishman announced.
Jonel Normil, 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to embezzle, convert to his use and the use of others U.S. Postal Service money orders. Judge Arleo imposed the sentence today in Newark federal court.
According to the documents filed in this case, other cases, and statements made in court:
Normil was employed as a letter carrier with the U.S. Postal Service in Cape May Court House, New Jersey. He also picked up and dropped off mail at the U.S. Post Office in Stone Harbor, New Jersey.
Normil admitted that he used his position as a letter carrier to steal hundreds of U.S. Postal Service money orders from the Stone Harbor and Cape May Court House post offices. Normil gave the stolen money orders to other conspirators, who made them look legitimate and imprinted them with dollar values of $900 or $1,000 before depositing them into bank accounts or cashing them at post offices in New Jersey, New York, and Georgia.
In addition to the prison term, Judge Arleo sentenced Normil to three years of supervised release.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: H. Robert Boney Esq., Mays Landing, New Jersey
Florida Man Who Admitted Defrauding Multiple Factoring Businesses for over $800,000 Gets More Than Four Years in PrisonRead the Press Release
NEWARK, N.J. - A Seminole, Florida, man was sentenced today to 51 months in prison for using phony invoices to defraud multiple factoring businesses, including one based in Bergen County, New Jersey, U.S. Attorney Paul Fishman announced.
Karl Stehlin, a/k/a “Mark Sawyer,” 61, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of an indictment charging him with wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stehlin admitted that from June 2014 through September 2014, he defrauded a Bergen County factoring business that purchased accounts receivable in return for short term financing. Stehlin created a bogus Idaho-based company, Sawyer Express Transportation Inc., and emailed accounts receivable invoices to the factoring company for transportation services that were never provided. As a result, Stehlin was able to defraud the factoring company out of $220,000 in advance payment on those invoices.
During his plea hearing, Stehlin also admitted using the same methods to defraud a Glendale, California, factoring business out of $127, 953.34 and a Las Vegas factoring business out of $524,025.28.
In addition to the prison term, Judge Martini ordered Stehlin to serve three years of supervised release and pay restitution of $837,618.29.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI Tampa Division, under the direction of Special Agent in Charge Paul Wysopal, for their assistance.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit and Acting Chief Barbara Ward of the Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
Brooklyn, New York, Man Sentenced to One Year in Prison for Role in Multi-State $3.4 Million Burglary SpreeRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was sentenced today to one year and one day in prison on multiple counts in connection with a multimillion-dollar, multi-state burglary spree, U.S. Attorney Paul J. Fishman announced.
Anthony “T.J.” Hanks, 37, was convicted in November 2015 of one count of conspiracy to transport stolen property in interstate commerce and three counts of interstate transportation of stolen property; his cousin, Daniel “Tokyo” Gatson, 44, was also convicted of conspiracy to transport stolen property in interstate commerce and 11 counts of interstate transportation of stolen property. They were convicted following a three-week trial before U.S. District Judge William J. Martini, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
The conspiracy, led by Gatson, was responsible for 27 burglaries and attempted burglaries in six states, stealing $3.4 million in cash and valuables.
Typically, Hanks, Gatson and others would identify homes in affluent residential neighborhoods and conduct surveillance of the target residences, looking for indications that no one was home.
Before robbing a target residence, they would cut wires running to and from the residence, including phone, cable, and alarm connections. Then, while wearing masks and gloves, they would forcibly break in to the target residence, usually by smashing through the front door, while a getaway driver remained nearby in a rented minivan, often maintaining contact with one of the burglars inside the target residence by cell phone.
In addition to the prison term, Judge Martini sentenced Hanks to three years of supervised release and ordered to pay $2.1 million in restitution. Gatson was sentenced in June 2016 to 25 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; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, with the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorney Joshua Hafetz of the Criminal Division in Newark.
Defense counsel:
Hanks: Peter S. Gordon Esq., Forest Hills, New York
Gatson: Michael Pedicini Esq., Chatham, New Jersey
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, FBI Director James B. Comey, U.S. Attorney Preet Bharara of the Southern District of New York, U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Director-in-Charge William Sweeney of the FBI's New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI's Newark Field Office and Commissioner James O’Neill of the New York Police Department (NYPD) announced that Ahmad Khan Rahami, aka Ahmad Rahimi, has been charged in the U.S. District Court for the Southern District of New York and the U.S. District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on Sept. 17, 2016, and Sept. 18, 2016.
Rahami, 28, of Elizabeth, New Jersey, is charged in a complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Rahami will first be transported by the U.S. Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the U.S. District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Assistant Attorney General Carlin and U.S. Attorneys Bharara and Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force.
The prosecution in the Southern District of New York is being handled by Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney and James M. Donnelly, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Rahami Ahmad Khan NY Complaint
Rahami Ahmad Khan NJ Complaint
Ahmad Khan Rahami Charged in Manhattan and New Jersey Federal Courts with Executing Bombings in New York City and New JerseyRead the Press Release
Attorney General of the United States Loretta E. Lynch, Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman for the District of New Jersey, U.S. Attorney Preet Bharara for the Southern District of New York, Federal Bureau of Investigation (“FBI”) Director James B. Comey, Assistant Director-in-Charge William Sweeney of the FBI New York Field Office, Special Agent in Charge Timothy Gallagher of the FBI Newark Field Office and Commissioner of the Police Department for the City of New York (“NYPD”) James O’Neill announced that Ahmad Khan Rahami, a/k/a “Ahmad Rahimi,” has been charged in the United States District Court for the Southern District of New York and the United States District Court for the District of New Jersey, for conducting and attempting to conduct bombings in New York City and various locations in New Jersey on September 17, 2016, and September 18, 2016.
Rahami, 28, of Elizabeth, New Jersey, is charged in a Complaint filed in the Southern District of New York with one count of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment; one count of bombing and attempting to bomb a place of public use, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of destroying and attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(d), which carries a maximum sentence of 20 years in prison; and use of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), which carries a mandatory minimum consecutive sentence of 30 years in prison, all in connection with Rahami’s alleged detonation of an explosive device and efforts to detonate explosives in New York City.
Rahami is also charged in a Complaint filed in the District of New Jersey with two counts of using and attempting to use weapons of mass destruction, in violation of 18 U.S.C. § 2332a, which carries a maximum sentence of life imprisonment on each count; one count of bombing and attempting to bomb a place of public use and public transportation system, in violation of 18 U.S.C. § 2332f, which carries a maximum sentence of life imprisonment; one count of attempting to destroy property by means of fire or explosive, in violation of 18 U.S.C. § 844(i), which carries a maximum sentence of 20 years in prison; and two counts of using a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction, in violation of 18 U.S.C. § 924(c), each count of which carries a mandatory minimum consecutive sentence of 30 years in prison and, if convicted of both counts, a mandatory sentence of life imprisonment, all in connection with Rahami’s alleged efforts to detonate explosives in Seaside Park, New Jersey, and Elizabeth, New Jersey.
Rahami will first be transported by the United States Marshals Service, pursuant to a writ of habeas corpus ad prosequendum, to the United States District Court for the Southern District of New York to face the charges filed in the Southern District of New York. More than 30 people were injured as a result of the detonation of a bomb in the Chelsea area of New York City.
Mr. Bharara and Mr. Fishman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the FBI’s New Jersey Joint Terrorism Task Force. Mr. Bharara and Mr. Fishman also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.
The prosecution in the Southern District of New York is being handled by that Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis, and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The prosecution in the District of New Jersey is being handled by that Office’s National Security Unit. Assistant U.S. Attorneys Dennis C. Carletta, Francisco J. Navarro, Margaret Ann Mahoney, and James M. Donnelly are in charge of the prosecution, with assistance from Trial Attorney Brian Morgan of the National Security Division’s Counterterrorism Section.
The charges contained in the Complaints are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Major Narcotics Supplier for New Jersey Drug Trafficking Organization Sentenced to 25 Years in PrisonRead the Press Release
TRENTON, N.J. – A Jersey City, New Jersey, man was sentenced today to 300 months in prison for supplying heroin and cocaine to a large-scale drug trafficking organization that operated in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Thomas Shannon, a/k/a “Cuzzo,” 37, was previously convicted of four counts of an indictment charging him with one count of conspiracy to distribute cocaine and more than a kilogram of heroin, one count of possession with intent to distribute heroin and cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of engaging in a monetary transaction in criminally derived property. Shannon was convicted following a two-week trial before U.S. District Judge Peter G. Sheridan, who imposed the sentence today in Trenton federal court.
Between March and May 2014, 21 other individuals, including numerous alleged members of the drug trafficking organization to which Shannon supplied narcotics, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO,” after its leaders, Robert Britt, a/k/a “True,” and Rufus Young, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock.” Of the 22 individuals charged, 21 have been convicted to date.
According to documents filed in this case and the evidence presented at trial:
Between October 2013 and March 2014, Shannon conspired with others to distribute heroin and cocaine in Ocean and Monmouth counties, including to the Britt-Young DTO. Shannon obtained some of his narcotics from conspirators in California, who shipped packages containing large quantities of heroin and cocaine from California to Shannon in New Jersey.
The packages were sent to a residence in Perth Amboy, New Jersey, and received by another conspirator, who then gave the packages to Shannon. Shannon then transported the packages to stash house locations that he controlled in Asbury Park and Long Branch, New Jersey, where he packaged and prepared the narcotics for distribution to other dealers. Shannon packaged some of the heroin in small plastic bags that were “stamped” with brand names or markings to distinguish it from other narcotics sold in or around the Monmouth County area.
To pay for the drug shipments, Shannon and others acting at his direction deposited cash into numerous third-party bank accounts provided by the conspirators in California, who then withdrew the cash at bank branch locations in California.
Shannon used numerous cellular telephones to communicate with his conspirators, including through text messages, and he and his conspirators often spoke in code to disguise the illegal nature of their communications. For example, Shannon and a leader of the Britt-Young DTO referred to cocaine as “Kristine.” Shannon also acquired and possessed firearms in furtherance of the drug trafficking conspiracy, including a Smith and Wesson .38 caliber revolver and a Sturm, Ruger & Co. Inc. .40 caliber handgun.
In addition to the prison term, Judge Sheridan sentenced Shannon to five years of supervised released.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark; officers of the Brick Township Police Department, under the direction of Chief James Riccio: and officers of the Toms River Police Department, under the direction of Chief Mitchell A. Little, with the investigation leading to today’s verdict.
He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato.
He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, and Long Branch police departments for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas Grippo and Brendan Day of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense Counsel: Edward Bertucio Esq., Eatontown, New Jersey
New Jersey U.S. Attorney’s Office and Department of Justice Seek Forfeiture of Six Dogs Seized in Connection with Interstate Dog Fighting VentureRead the Press Release
NEWARK, N.J. – The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, U.S. Attorney Paul Fishman for the District of New Jersey and Assistant Attorney General John Cruden for the Environment and Natural Resources Division of the Department of Justice announced today.
According to the complaint filed yesterday in Newark federal court:
The six pit bull-type dogs were seized on June 1, 2016 from a private residence in Westville, New Jersey, pursuant to a federal search warrant. The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.
The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training. For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights. Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.
Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as “flirt” poles,” which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.
Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found. Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.
Five of the six dogs were found in pens located in the yard. The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains. The sixth dog was confined in an elevated cage with a wire fence bottom.
Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling. Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey, and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.
The charges and allegations against Love are merely accusations, and he is presumed innocent unless and until proven guilty.
Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
Department of Justice and U.S. Attorney’s Office Seek Forfeiture of Six Dogs Seized in Connection with Interstate Dog Fighting VentureRead the Press Release
The United States filed a civil forfeiture complaint seeking the possession of six pit bull-type dogs which were allegedly involved in an interstate dog fighting venture in violation of the federal Animal Welfare Act, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division and U.S. Attorney Paul Fishman for the District of New Jersey.
According to the complaint filed yesterday in Newark, New Jersey, federal court:
The six pit bull-type dogs were seized on June 1, from a private residence in Westville, New Jersey, pursuant to a federal search warrant. The residence was owned by the family of Justin Love, 36, of Glassboro, New Jersey, who was arrested the same day and charged by criminal complaint with violating the Animal Welfare Act.
The condition of a majority of the dogs, including scarring and aggression towards other dogs, was consistent with dog fighting and related training. For example, one of the female dogs, subsequently identified as “Momba,” had severe scarring and showed signs of other serious injuries consistent with her participation in dog fights. Her physical condition also indicated that she was used for breeding, which was further corroborated by intercepted phone conversations allegedly involving Love.
Other indications of unlawful dog fighting were found on the Westville property, including paraphernalia such as flirt poles, which are used to condition a dog and foster natural hunting instincts, and a spring pole, which is used to strengthen a dog’s neck and jaw muscles.
Injectable medication, syringes, sterile gel, and topical and oral antibiotics were also found. Dog fighters often attempt to treat their dogs themselves rather than seek veterinary attention, which might raise suspicion regarding the cause of injuries.
Five of the six dogs were found in pens located in the yard. The pens were made of metal fencing and separated by thick metal slats, and some of the dogs were secured inside the pens with chains. The sixth dog was confined in an elevated cage with a wire fence bottom.
Dog fighting is a violent contest in which two dogs—bred and conditioned for fighting—are released by their owners or handlers in a controlled environment to attack each other and fight for purposes of entertainment and gambling. Fights average one to two hours in length and end when one dog withdraws, when a handler “picks up” his dog and forfeits the match, or when one or both dogs die. Persons engaged in dog fighting exclusively use pit bull-type dogs due to their short coat, compact muscular build, and the aggressive temperament that some exhibit toward other dogs.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting. Once the dogs are forfeited or surrendered to federal authorities, they can be evaluated and placed for adoption.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five victories.
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorney Sarah Devlin and Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Section of the District of New Jersey and the Justice Department’s Wildlife and Marine Resources Section Trial Attorneys Mary Hollingsworth and Assistant Section Chief Meredith Flax.
The charges and allegations against Love are merely accusations and he is presumed innocent unless and until proven guilty.
Civil forfeiture cases are “in rem” proceedings—or proceedings against things. In this case, the complaint is brought against the six dogs, not its owner or any other person.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
Former Jersey City Police Officer Admits Conspiracy to Commit Fraud and Accept Corrupt Payments, as Well as Filing A False Tax ReturnRead the Press Release
NEWARK, N.J. – A former Jersey City police officer today admitted accepting more than $230,000 in corrupt payments, in violation of the Jersey City Municipal Code provisions governing off-duty employment, from employers who were operating worksites around the city, U.S. Attorney Paul J. Fishman announced.
Juan Romaniello, 54, of East Hanover, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of conspiracy to commit fraud and accept corrupt payments and one count of filing a false tax return. He was released on $250,000 unsecured bond.
According to documents filed in this case and statements made in court:
Romaniello was a police officer with the Jersey City Police Department (JCPD) from 1988 to 2014. From 2004 to 2014, his duties included serving as the “pick coordinator” for Jersey City’s North District. In that role, it was his job to assign police officers to off-duty details. Under Jersey City’s Municipal Code, police officers could perform off-duty assignments only when the police officer was not on duty. The code mandated that Jersey City control the hiring and compensation process through which employers hired off-duty police officers. Off-duty police officers are not permitted to receive cash payments from the employer, nor can they accept checks or money orders made payable directly to them. The employers are supposed to pay Jersey City, which pays the off-duty police officer after withholding certain fees, taxes and deductions, including an administrative fee payable to the city.
Romaniello agreed with numerous employers to cut Jersey City out of the process to hire and pay off-duty police officers. He permitted employers to operate at worksites without the presence of a police officer when it was required by law for public safety reasons, such as ensuring that obstructions at construction sites did not pose a danger to vehicular or pedestrian traffic. Sometimes Romaniello actually provided the public safety services, but did not notify Jersey City. On most occasions, Romaniello collected payments in cash, money orders and checks payable to him, directly from the employers, depriving Jersey City of money that it would have received otherwise and avoiding reporting requirements to Jersey City and the IRS. The JCPD is cooperating in the investigation.
Under terms of the plea agreement, Romaniello will forfeit approximately $297,000, a substantial part of which were monies that he obtained through this corrupt and fraudulent activity and which he kept at his residence. In addition, for tax years 2009 to 2013, Romaniello did not report to the IRS $201,340 of ill-gotten gains. The plea agreement requires him to pay the IRS approximately $90,000 in restitution for unpaid taxes.
The count of conspiracy to commit fraud and accept corrupt payments carries a maximum potential penalty of five years in prison; the tax fraud count carries a maximum of three years in prison. Both counts also carry a fine of the greater of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 10, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys José R. Almonte and Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit.
Defense counsel: Christopher D. Adams Esq., Holmdel, New Jersey
Crack-Cocaine Dealer for New Jersey Grape Street Crips Gang Sentenced to Five Years in PrisonRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 60 months in prison for his role in a drug trafficking conspiracy controlled by the New Jersey set of the Grape Street Crips, U.S. Attorney Paul J. Fishman announced.
Rakeem Hankerson, a/k/a “Rocco,” 25, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with conspiracy to distribute 28 grams or more of crack-cocaine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips gang controlled drug trafficking and other criminal activities in various areas of Newark, including the neighborhood of 6th Avenue and North 5th Street. Hankerson was a member of the New Jersey Grape Street Crips who purchased distribution quantities of crack-cocaine from more senior gang members and sold it to retail level customers on the street.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the 6th Avenue and North 5th Street location used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
Another member of the conspiracy, Christopher Coelho, a/k/a “Brazil,”27, of Newark, was sentenced Sept. 13, 2016, to 10 years in prison and five years of supervised release.
In addition to the prison term, Judge Arleo sentenced Hankerson to four years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s sentencing. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Department of Public Safety and Newark Police Division, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Hankerson: John P. Holliday Esq., Trenton, New Jersey
Coelho: Samuel M. Braverman Esq., Bronx, New York
Clerk Sentenced to 46 Months in Prison for Stealing Material Information from Prominent Law Firm for Use in $5.6 Million Insider Trading SchemeRead the Press Release
TRENTON, N.J. - The former managing clerk for a prominent, international law firm was sentenced today to 46 months in prison for stealing sensitive, confidential information for use in a five-year insider trader scheme that yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Steven Metro, 42, of Katonah, New York, previously pleaded guilty before U.S. District Judge Michael A. Shipp to the first two counts of an indictment charging him with securities fraud and conspiracy to commit securities and tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Metro stole material nonpublic information from his then-employer, Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms. The information related to corporate transactions, such as mergers and acquisitions or tender offers, in which the firm represented a party or financial advisor to the transaction. As the firm’s managing clerk, Metro did not personally work on most of these transactions. Instead, Metro stole the inside information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After obtaining the inside information, Metro would meet his friend, Frank Tamayo, 43, of Brooklyn, New York, at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During these meetings, Metro provided Tamayo material information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and commit the rest of the inside information to memory.
Afterwards, Tamayo would meet Vladimir Eydelman, 44, formerly of Colts Neck, New Jersey, usually at a location near Eydelman’s workplace, such as at the large clock in New York City’s Grand Central Terminal. Tamayo would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s “source,” Eydelman then purchased securities for himself, family members, friends, and/or clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the approximately five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate his law firm source – i.e., Metro – for providing them the inside information.
By exploiting the information that Metro took from the firm, Metro, Tamayo and Eydelman netted more than $5.6 million in illicit profits over five years.
In addition to the prison term, Judge Shipp sentenced Metro to three years of supervised release and fined him $10,000.
Tamayo and Eydelman have both pleaded guilty to their roles in the scheme; Tamayo is scheduled to be sentenced Sept. 15, 2016, and Eydelman is scheduled to be sentenced Sept. 22, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Defense counsel: James R. Froccaro Jr. Esq., Port Washington, New York
Nevada Stock Promoter Admits Role in $33 Million Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – A Henderson, Nevada, man today admitted his role in a stock market manipulation scheme that artificially inflated the stock price of four publicly traded companies through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced.
Nathan Montgomery, 35, pleaded guilty today before U.S. District Judge Jose Linares in Newark federal court to an information charging him with conspiracy to commit securities fraud.
According to the documents filed in this case and statements made in court:
From 2008 through 2010, Montgomery, a penny stock promoter, participated in an extensive “pump-and-dump” scheme in which he and others fraudulently inflated the prices of certain shares in order to sell them later at artificially inflated prices. The scheme involved four public companies: BioNeutral Group Inc. (BONU), NXT Nutritionals Holdings Inc. (NXTH), Mesa Energy Holdings Inc. (MSEH), and Clear-Lite Holdings Inc. (CLRH) (collectively, the “Target Companies”).
As part of the scheme, Montgomery and others first obtained control over large blocks of the free trading shares of the Target Companies. Next, Montgomery and others “pumped” the price of those shares by, among other things, engaging in manipulative trading of the stocks of the Target Companies and disseminating promotional materials encouraging others to purchase them. After pumping the stocks, Montgomery and the other conspirators “dumped” them by selling large volumes of the Target Companies’ stock to victim investors. The target companies’ stock price would then drop, resulting in losses to the victims.
In order to fraudulently inflate the price and volume of the Target Companies’ stocks, Montgomery paid cash kickbacks to Donald Toomer, an investment advisor in Las Vegas, so that Toomer would purchase the Target Companies’ stock on behalf of his clients. The purpose of those purchases was to, among other things, create the false appearance of market interest and demand in the stock; build trading volume that would be attractive to potential investors who would later receive promotional materials about the stock; and generate income to fund the promotional campaigns, including email blasts and newsletters, that occurred in the later phases of the scheme. Additionally, Montgomery and other conspirators engaged in coordinated trading of the Target Companies’ stock using various brokerage accounts that they owned or controlled, including the accounts of friends, family and other third parties.
The scheme collectively generated approximately $33 million in illicit trading proceeds, of which Montgomery received approximately $20 million.
The conspiracy charge to which Montgomery pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Dec. 20, 2016.
On Dec. 15, 2015, Samuel DelPresto of Holmdel, New Jersey, pleaded guilty to one count of conspiracy to commit securities fraud for his role in the scheme. On Dec. 21, 2015, a federal grand jury returned a five-count indictment against Toomer charging him with conspiracy to commit securities fraud and investment adviser fraud and several counts of securities fraud and investment adviser fraud. That matter is currently pending before Judge Linares. A trial date has not yet been set.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to Montgomery’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Counsel: Mark Bailus Esq., Las Vegas, Nevada, Marvin G. Pickholz Esq., New York, William B. Pollard III Esq., New York
Hudson County, New Jersey, Man Sentenced to 22 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – A Hudson County, New Jersey, man was sentenced today to 264 months in prison for posing as a teenage boy, and at times a teenage girl, to solicit underage females online to produce images of themselves engaged in sexually explicit conduct, possessing, and distributing those images to others, U.S. Attorney Paul J. Fishman announced.
Erik Vanderbeck, 49, of Bayonne, New Jersey, was previously convicted of two counts of production of child pornography, one count of distribution of child pornography and one count of possession of child pornography. The jury deliberated approximately one hour following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Vanderbeck allegedly met various underage girls in Internet chat rooms while pretending to be a teenage boy, and at times, a teenage girl. Over the course of their correspondence, Vanderbeck would ask them to send him nude images of themselves. Once Vanderbeck received nude images, he would threaten to post the victim’s nude images online unless she sent more. In some cases, Vanderbeck would send nude images that he had received from certain of his victims to other minors to induce them to self-produce child pornography. When one of the victims threatened to report Vanderbeck to the authorities, he replied, “The cops will never catch me.”
Law enforcement officers executed a search warrant at Vanderbeck’s home in Bayonne on July 22, 2014. They recovered computer equipment belonging to Vanderbeck containing images appearing to be of child pornography. Several of his victims said they produced images of child sexual abuse out of fear and in response to his threats.
In addition to the prison term, Judge Wolfson sentenced Vanderbeck to 10 years of supervised release.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James Ball in Newark, and the Bayonne Police Department, under the direction of Chief Drew Niekrasz, with the investigation leading to the today’s sentencing. He also thanked the Missouri Internet Crimes Against Children Task Force for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Danielle Corcione of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Joshua Markowitz Esq., Lawrenceville
Eight People Charged in Takedown of Camden Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. - Federal and local law enforcement authorities arrested five people this morning and charged three others for their alleged roles in a crack cocaine and heroin trafficking organization operating in Camden, U.S. Attorney Paul J. Fishman announced.
Jason Boyd, 36, Preston Thomas, 30, Julian Dickerson, 24, Derek Stallworth, 20, and Tony Wilson, 24, all of Camden, were arrested today and charged by complaint with drug trafficking conspiracy. They appeared this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court and were detained.
Joseph Boyd, 31, of Camden, Jeffrey Whitaker, 32, of Collingswood, New Jersey, and Nafeez Griffin, 30, of Camden – all of whom are presently incarcerated on other charges – were also charged with drug trafficking conspiracy and will have their initial appearances at a later date.
According to the complaints:
The defendants are members of a drug trafficking organization that, from November, 2015 through September 2016, dealt crack cocaine and heroin in and around Camden, with criminal activities concentrated on the 1100 block of Lansdowne Avenue. Joseph Boyd, Jason Boyd, and Thomas are the alleged leaders and managers of the operation. Whitaker, Stallworth, Wilson, Dickerson, and Griffin staffed the block during assigned shifts and distributed drugs to customers who approached on foot and in vehicles.
The arrests and charges are the result of an investigation that began in late 2015 and involved controlled purchases of crack cocaine and heroin and multiple authorized wiretaps of phones used by members of the conspiracy.
The drug trafficking conspiracy count carries a maximum potential penalty of 20 years in prison and a $5 million fine.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation leading to the charges.
He also thanked the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Atlantic County, New Jersey, Man Charged with Using Telephone Dating Services to Defraud Multiple Women Across Several StatesRead the Press Release
CAMDEN, N.J. - An Atlantic County man who was previously sentenced for wire fraud was charged today with using telephone dating services to lure and defraud multiple women after he escaped from a halfway house and later, while being on federal supervised release, U.S. Attorney Paul J. Fishman announced.
Patrick Giblin, 52, formerly of Ventnor, New Jersey, is charged by complaint with one count of wire fraud. He made his initial appearance today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court and was detained.
Giblin was previously sentenced in April 2007 to 115 months in federal prison on wire fraud charges related to a similar scheme to defraud women. Giblin was sentenced again on Oct. 2, 2015 to 24 months in prison for violating the terms of his supervised release. He was taken into custody today following the completion of this sentence at FCI-Fairton.
According to the complaint:
Between December 2012 and Dec. 16, 2014, Giblin contacted telephone dating services in an attempt to lure and defraud women by preying on their hope of developing a relationship. Giblin used a series of false representations to convince women on these services to loan him money based on the false promise that he would pay them back.
Giblin posted advertisements and messages on the telephone dating services wherein he falsely claimed, among other things, that he was moving to a victim’s location, that he owned oceanfront property in Atlantic City, and that he worked in the casino business.
Giblin fraudulently told the victims he needed to borrow money for bills, car repairs, moving expenses, and other phony expenditures. He received money from the women via interstate wire services such as Western Union and Moneygram. The complaint – which only includes a sample of the victims involved in the scheme – discusses eight separate victims in five different states and Canada, who lost a total of over $7,000 to Giblin. The investigation remains ongoing.
During the course of the scheme, Giblin, who was on federal supervised release for previously defrauding over 50 women for over $200,000 in losses, unlawfully fled New Jersey for Colonie, New York, where he continued to receive money until his arrest by the U.S. Marshals on Dec. 16, 2014. Giblin has been in federal custody since that time.
Giblin faces a statutory maximum term of imprisonment of 20 years and a $250,000 fine if convicted.
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. Fishman also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, for its assistance in this case.
The charge and allegations against Giblin are merely accusations, and he is considered innocent unless and until proven guilty.
The government is represented by Deputy Attorney in Charge Matthew J. Skahill and Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley, Esq.South Jersey Man Sentenced to 15 Months in Prison for Hiring Illegal Immigrants, Failing to Collect Payroll TaxesRead the Press Release
CAMDEN, N.J. - A Sicklerville, New Jersey, man was sentenced today to 15 months in prison for his role in a conspiracy to evade payroll taxes on cash wages paid to illegal immigrants employed at his dry cleaning business, U.S. Attorney Paul J. Fishman announced.
Phillip Hui, 38, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Hui and Kathy Lei, 36, of Williamstown, New Jersey, owned New Eastern Cleaners in Voorhees Township, New Jersey. Lei, along with two other individuals, owned a house on South Main Street in Williamstown.
Hui knew he was required to verify that all of his employees were eligible to work in the United States, either as U.S. citizens or immigrants who had work authorization from Immigration and Customs Enforcement. However, at various times in 2012 and 2013, Hui and Lei hired foreign nationals B generally from Mexico or Guatemala B who did not have legal status in the United States. While working at New Eastern Cleaners, the undocumented immigrants lived in the South Main Street house.
At various times, Hui or Lei paid the undocumented immigrants in cash. They were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Their rent was part of the employment compensation. Hui also admitted that he would transport them or arrange their transportation between the South Main Street house and New Eastern Cleaners.
Hui admitted that when Lei filed Employer's Quarterly Federal Tax Return, Form 941, for all tax quarters in 2012 and the first three quarters in 2013, she only reported wages paid to legal employees of New Eastern Cleaners. She failed to report the wages and pay employment taxes for at least 13 undocumented immigrant employees in 2012 and at least 14 undocumented immigrant employees in 2013.
By filing the false tax forms in 2012 and 2013, Lei and Hui failed to pay the IRS employment taxes of at least $97,104 for the undocumented immigrant employees.
In addition to the prison term, Judge Kugler sentenced Hui to three years of supervised release and ordered him to pay restitution of $98,864. On May 2, 2016, Lei pleaded guilty to the same charges and is scheduled to be sentenced Oct. 14, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel:
Hui: Jeffrey Zucker Esq., Camden,
Lei: Michael Engle Esq., Philadelphia
Senior Member of Drug Trafficking Organization Indicted for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A federal grand jury returned an indictment today against a senior member of a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Robert Britt, 44, a/k/a “True,” of Asbury Park, New Jersey, is charged in a one-count indictment with conspiracy to distribute one hundred grams or more of heroin.
According to documents filed in this case:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties. In furtherance of the conspiracy, Britt used various hotel rooms and apartments to store, process, and package heroin for distribution to others. Britt and others also used numerous cellular telephones and coded language to discuss drug transactions, including requests for specific types and quantities of narcotics.
In April 2013, prior to beginning a term of incarceration, Britt transferred the day-to-day operations and certain heroin customers to Rufus Young, 43, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock,” of Asbury Park.
Even while in prison, Britt maintained a hands-on role in the heroin distribution business. Britt spoke with Young using a concealed contraband cell phone that Britt maintained in violation of prison rules and regulations. During those conversations, Britt instructed Young on how to operate their drug business, including methods for developing new heroin customers, avoiding detection by law enforcement, and identifying new suppliers.
Between March and May 2014, 21 other members of the drug trafficking organization, all of whom have since been convicted, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO” after its two leading members.
On May 25, 2016, a federal jury convicted Thomas Shannon, a major supplier of narcotics to the Britt-Young DTO, of various offenses relating to the conspiracy.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark and Assistant U.S. Attorney J. Brendan Day of the Criminal Division in Trenton.
Defense Counsel: Alyssa A. Cimino, Esq., Fairfield, New Jersey
Pennsylvania Man Sentenced to Two Years in Prison for Conspiring with Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A West Reading, Pennsylvania, man was sentenced today to 24 months in prison for his role in a conspiracy to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
Cory Leshner, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Leshner and 12 others – including Scarfo, a member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.
Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies on behalf of Scarfo and Pelullo as part of the scheme to defraud FPFG. Leshner said that Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money included the proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Leshner also said that he was a law school student during the scheme. Leshner graduated from law school in 2010 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Scarfo, Pelullo, and the Maxwells were convicted at trial on July 3, 2014, and sentenced to prison. Scarfo and Pelullo were sentenced to 30 years in prison. William Maxwell was sentenced to 20 years in prison and John Maxwell to 10 years in prison.
In addition to the prison term, Judge Kugler sentenced Leshner to three years of supervised release and ordered to pay restitution of $14.2 million.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Michael C. Mikulka, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky in Newark. He also thanked the FBI under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorney Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
New York Man Pleads Guilty to Role in $1 Million Stolen Identity Refund SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a scheme to obtain stolen identity information and use it to file phony tax returns with the IRS, U.S. Attorney Paul J. Fishman announced.
Jhan Luis Mejia Marcelino, 27, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Mejia admitted that from January 2013 through May 2014, he and others obtained stolen personal identifying information, including names and Social Security numbers, of victims located in New Jersey, Puerto Rico, and elsewhere. Afterwards, Mejia and others used the information to file fraudulent federal tax returns. Mejia admitted that, once they received the refunds, they converted the checks to cash or other proceeds for their own benefit, causing losses of over $1 million to the U.S. Treasury.
The conspiracy offense is punishable by a maximum potential penalty of five years in prison. The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison. Both counts are punishable by a $250,000 fine, or twice the gain or loss resulting from the offense. The aggravated identity fraud charge is punishable by a mandatory two-year sentence to be served consecutively to any other term imposed.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
Florida Man Admits Role in $65 Million Stolen Identity Income Tax Refund SchemeRead the Press Release
NEWARK, N.J. – A Miami man today admitted that he was responsible for depositing over $4.7 million in fraudulently obtained tax refund checks as part of a massive stolen identity income tax scheme, U.S. Attorney Paul J. Fishman announced.
Roberto Diaz, 47, formerly of Demarest, New Jersey, 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 theft of government funds, one count of theft of government funds, and one count of aggravated identity theft.
According to documents filed in the case and statements made in court:
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Afterwards, they completed Individual Income Tax Return 1040 Forms using the fraudulently obtained information and made it appear that the “taxpayers” listed on the fraudulent returns were entitled to refunds. They also directed the U.S. Treasury Department to issue refunds to locations they could control or access in various ways.
At his plea hearing, Diaz admitted that he received fraudulently obtained refund checks and deposited them into banks accounts he controlled or were in the names of his associates or their companies. Diaz also admitted that he and others conspired to bribe a mail carrier to intercept refund checks before they were delivered to the people who had their identity stolen as part of the scheme.
Diaz admitted that during the course of the conspiracy, he was responsible for depositing or causing the deposit of over $4.7 million in fraudulently obtained tax refund checks.
Diaz is facing potential penalties of five years in prison for the conspiracy charge and 10 years in prison for the theft of government funds charge, both of which are also punishable by a $250,000 fine or twice the gain or loss resulting from the offense. For the aggravated identity theft charge, Diaz is facing a mandatory two years in prison which must run consecutive to any other term imposed. Sentencing is scheduled for Jan. 27, 2017.
Diaz was previously charged in September 2012 along with 13 other defendants in multiple, separate criminal complaints. The $65 million scheme involved more than 8,000 fraudulent income tax returns and losses to the United States of over $12 million.
By tracing the specific IP addresses from which the returns were submitted, law enforcement officers identified that only a handful of IP addresses were responsible for filing the fraudulent returns. During the course of the investigation, law enforcement identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently claimed refunds before they were delivered to members of the conspiracy.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt; the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division, and Zach Intrater, Deputy Chief of the Economic Crimes Unit.
Defense counsel: Paul Brickfield, River Edge, New Jersey
New York Woman Gets over 13 Years in Prison for Glen Rock, New Jersey, Bank Robbery, Defrauding Elderly Victim of $198,750Read the Press Release
NEWARK, N.J. – A White Plains, New York, woman was sentenced today to 162 months in prison for robbing a Glen Rock Savings Bank and fraudulently using an elderly victim’s checks to steal $198,750, U.S. Attorney Paul J. Fishman announced.
Michelle Cantatore, 53, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of bank robbery and one count of wire fraud. Cantatore had also previously admitted robbing two other banks in Connecticut. These robberies were taken into consideration at today’s sentencing.
According to documents filed in this case and statements made in court:
Cantatore admitted fashioning a paintball gun to look like an actual firearm and using it to rob the Glen Rock Savings Bank on Feb. 15, 2015. Cantatore entered the bank wearing a wig and sunglasses and, while brandishing the paintball gun, shouted to everyone in the bank: “Put your hands up. This is for real. This is a robbery. I have a gun.”
Cantatore fled the bank after taking money from the vault and a teller station. Law enforcement later tracked her to a hotel room in Atlantic City, New Jersey.
At her plea hearing, Cantatore also admitted robbing a Greenwich Bank and Trust in Riverside, Connecticut, and a JP Morgan Chase Bank in Darien, Connecticut, on Jan. 30, 2015 and Feb. 24, 2015, respectively. In both instances she used an altered paintball gun to threaten the victims.
Cantatore also admitted stealing $198,750 from a sick an elderly man by taking his checks, writing them out to accounts she controlled, and cashing them without his knowledge.
In addition to the prison term, Judge Salas sentenced Cantatore to three years of supervised release and ordered her to pay restitution of $406,703.13.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Glen Rock Police Department, under the direction of Lt. Daniel Dour; the N.J. State Police, under the direction of Col. Rick Fuentes, the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, and the New York office of the FBI with the investigation. He also thanked the Paramus, Paterson, Roxbury and Wayne police departments for their roles.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S Attorney’s Office Criminal Division of in Newark.
Defense counsel: Kathleen Theurer Esq.
Medical Equipment Company and Two Executives Pay More Than $12 Million to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – U.S. Healthcare Supply LLC and two executives have agreed to pay the United States more than $12.2 million to resolve allegations that they violated the federal False Claims Act by using a fictitious entity to make unsolicited telephone calls to Medicare beneficiaries in order to sell them durable medical equipment.
U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division announced the settlement today.
U.S. Healthcare Supply, based in Milford, New Jersey, has agreed to pay $5 million plus interest and Jon P. Letko, its owner and president, has agreed to pay $1 million plus interest. His brother, Edward J. Letko, the owner and president of Oxford Diabetic Supply Inc., a medical equipment supplier that allegedly also participated in the scheme, has agreed to pay $6 million plus interest.
“Cold-calling people to sell them expensive medical equipment is prohibited for a reason: unsuspecting patients shouldn’t be coerced into making medical decisions about devices and equipment – which they may not even need – on the basis of a sales pitch,” U.S. Attorney Fishman said.
The settlement announced today resolves allegations that U.S. Healthcare Supply and Oxford Diabetic Supply set up and controlled an entity called Diabetic Experts Inc., which they used to make unsolicited telephone calls to suspected Medicare beneficiaries in order to sell them durable medical equipment. The companies submitted claims to Medicare for the equipment that they sold based on these unsolicited calls, in violation of the Medicare Anti-Solicitation statute.
“We will continue to hold health care providers accountable for attempting to circumvent Medicare statutes and regulations that help prevent the submission of claims for medically unnecessary services and supplies,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “Arrangements which clearly disregard program requirements in order to enhance the financial interests of health care providers will not be tolerated.”
U.S. Attorney Fishman and Principal Deputy Assistant Attorney General Mizer 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, with the investigation leading to today’s settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark and Trial Attorney John Henebery of the Justice Department’s Civil Division.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.31 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only and there has been no determination of liability.
Defense counsel: Joseph F. Savage Jr. Esq., Boston, and Jura C. Zibas Esq., New York
Heroin Supplier for Grape Street Crips Gang Sentenced to 15 Years in PrisonRead the Press Release
NEWARK, N.J. – A narcotics supplier for the New Jersey Grape Street Crips was sentenced today to 180 months in prison for distributing hundreds of grams of heroin in and around Newark, U.S. Attorney Paul J. Fishman announced today.
Gabriel Henderson, 36, of Newark, previously pleaded guilty before the U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute heroin. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Henderson admitted that between December 2014 and May 2015, he conspired with others to distribute brick quantities of heroin to members and associates of the Grape Street Crips. Henderson and his conspirators sold heroin in and around the Pennington Court public-housing complex located on Pennington Street and the John W. Hyatt public-housing complex located on Hawkins Street, both in Newark.
In addition to the prison term, Judge Salas sentenced Henderson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for 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; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry 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: Howard B. Brownstein, Union City, New Jersey
Cumberland County, New Jersey, Man Charged with Possessing Dogs for Dog FightingRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man allegedly connected to and living with an individual involved in a dog fighting conspiracy was arrested today for possessing dogs for the purpose of dog fighting, U.S. Attorney Paul Fishman, District of New Jersey, and Assistant Attorney General John Cruden, DOJ Environment and Natural Resources Division, announced.
Robert A. Elliott, Sr., 47, of Millville, New Jersey, was charged by complaint with two counts of possessing pit bull-type dogs for dog fighting ventures in New Jersey and elsewhere. He is expected to appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.
According to documents filed in this case and statements made in court:
The federal Animal Welfare Act makes it a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport dogs intended for use in dog fighting.
On June 1, 2016, Frank Nichols and other individuals were charged by complaint with violations of the federal Animal Welfare Act pertaining to dog fighting. That day, law enforcement officers executed a search warrant on a residence on a multi-acre property in Millville where Nichols lived. Another defendant, Robert Elliott, also lived at the residence.
During the search of the residence, law enforcement officers seized 13 live pit bull-type dogs. Seven of the dogs were kept on heavy chains in a wooded area behind the house. The dogs were spaced so that they could not reach one another. Two additional dogs were housed individually in pens in the wooded area near the chained dogs. Law enforcement officers found three more dogs in shipping crates in the unfinished basement. One of the 13 dogs, who appeared ill, was found in a crate in a room on the first floor.
Several of the dogs had scars and other signs of injury, and all of the dogs had untreated veterinary conditions. Law enforcement also found other indications that the dogs were used in dog-fighting ventures, such as:
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Break sticks, which are used to pry open a dog’s mouth in order to release a hold that the dog has on another dog;
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A stand often called a “rape rack” (or “breeder stand” as referred to by defendant Robert Elliott) designed to hold a female dog off the ground and immobilize her while a male dog mounts her. The device is used where the female dog is too dog-aggressive to mate otherwise;
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A box containing veterinary medications, a skin stapler, numerous needles and syringes, catheters, IV bags and tubing, sutures, and suture removing tools;
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Testosterone boosting supplements, which are often used by dog fighters to increase muscle mass and aggression of dogs before a fight;
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Dog pedigrees and printouts of dogs from dog fighting registries, including pedigrees related to the pit bull-type dogs found at his residence
Elliott claimed ownership of several of the dog fighting paraphernalia found in his home and indicated that he and his family owned 10 of the 13 pit bull-type dogs found at his residence.
The counts of possession of an animal for participation in an animal fighting venture each carry a maximum potential penalty of up to five years in prison.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.”
Operation Grand Champion is a continuing investigation by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge William G. Squires; Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and the FBI, under the direction of Special Agent in Charge Timothy Gallagher, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Jihee Suh and Kathleen O’Leary of the District of New Jersey, and the Justice Department’s Environmental Crimes Section Trial Attorneys Ethan Eddy and Shennie Patel.
The Humane Society of the Unites States is assisting with the care of the dogs seized by federal law enforcement.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless proven guilty.
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Alleged Getaway Driver in Robbery of Hawthorne, New Jersey, TD Bank Charged in Federal CourtRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man is scheduled to appear in federal court today in connection with the robbery of a TD Bank in Hawthorne, New Jersey, on Feb. 17, 2016, U.S. Attorney Paul J. Fishman announced.
Alejandro Ortiz, 20, of Haskell, New Jersey, is charged by complaint with one count of bank robbery. He is expected to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
Robert Somers 44, of Little Falls, New Jersey, is charged in the same complaint. He was arrested and appeared in court before U.S. Magistrate Judge Leda Dunn Wettre on Aug. 26, 2016. He remains in federal custody.
According to the complaint:
On Feb.17, 2016, the TD Bank was robbed by a man, later identified as Somers, who was wearing a hooded sweatshirt, hat with red stripe, dark pants, and gloves. Somers was also holding a newspaper, which covered the bottom portion of his face. After Somers entered the bank, he allegedly handed a teller a note that read, in sum and substance, “this is a hold up,” and made similar verbal statements.
The teller handed Somers cash. Somers demanded more money and a second teller handed him additional cash. Afterwards, Somers fled the bank in a car allegedly driven by Ortiz. Later that evening, Ortiz was pulled over by law enforcement and arrested. The clothes that Somers had worn during the robbery were recovered from Ortiz’s vehicle.
The charge of bank robbery carries a maximum penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited Special Agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Hawthorne Police Department, under the direction of Chief Richard McAuliffe; the Pennsylvania State Police, under the direction of Colonel Tyree C. Blocker; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes with the investigation leading to the charges.
The charge and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Karen D. Stringer of the U.S. Attorney’s Office in Newark.
New York Man Admits Role in Conspiracy to Distribute 22 Kilograms of HeroinRead the Press Release
TRENTON, N.J. – A Bronx, New York, man today admitted driving to Clifton, New Jersey, to pick up a suitcase filled with 22 kilograms of heroin, U.S. Attorney Paul J. Fishman announced.
Emmanuel Gonzalez, 32, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute a kilogram or more of heroin.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Sauro D. Estevez Figueredo, 48, of Miami, and Alberto Mora, 52, of Morriston, Florida, parked at an intersection near a store in Clifton. That afternoon, Gonzalez and Edwin Alamo Jr., 21, of Bronx, drove to the tractor trailer and left with a suitcase given to them by Mora.
Subsequent traffic stops later revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl still remaining at the tractor trailer.
The drug distribution conspiracy charge to which Gonzalez pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is set for Dec. 15, 2016. The charges against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Meredith Williams of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
Defense Counsel: James Murphy Esq., Princeton, New Jersey
Grape Street Crips Member Charged with Double Murder, Two Attempted Murders in Connection with Racketeering ConspiracyRead the Press Release
NEWARK, N.J. – A federal grand jury today returned an indictment charging a Summit, New Jersey, man with racketeering-related murder and attempted murder charges – including a double homicide during the evening rush-hour in March 2014 – and added additional murder charges against several other members and leaders of the New Jersey Grape Street Crips, U.S. Attorney Paul J. Fishman announced.
Ahmad Manley, a/k/a “Fresh,” a/k/a “Moddi G,” 30, was arrested today and charged in a fifth superseding indictment with RICO conspiracy and drug trafficking. Manley was previously charged by the Essex County Prosecutor’s Office with the March 2014 double murder and had been out on bail. He is scheduled to have an initial appearance at 2:00 p.m. tomorrow before U.S. Magistrate Judge James B. Clark III in Newark federal court.
The indictment also charges, for the first time, second-in-command Kwasi Mack, a/k/a “Welchs,” a/k/a “The Prince,” a/k/a “Mini Me,” 27, of Belleville, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 31, of Newark, with a 2006 shooting that left one rival gang member dead and another wounded. In addition, Tony Phillips, a/k/a “Blue,” 25, also of Newark, was added to counts charging two attempted murders that took place in October 2013. Finally, the indictment added a murder in aid of racketeering count against the leader of the enterprise, Corey Hamlet, a/k/a “C-Blaze,” a/k/a “Blaze,” a/k/a “Blizzie,” a/k/a “Castor Troy,” 39, of Belleville, New Jersey, as well as Batts and Phillips for a May 2013 murder.
According to the indictment returned today:
On March 3, 2014, Manley and Hamlet, the long-time leader of the New Jersey Grape Street Crips, were riding in Manley’s Jeep Cherokee when they pulled alongside a car being driven by an individual referred to in the indictment as “Victim 6.” Although Hamlet aimed a firearm at Victim 6 and the car’s other occupants, Victim 6 pulled off before any shots were fired. A short time later, Manley found Victim 6, and a car chase ensued. The chase concluded when Victim 6’s car crashed into other civilian vehicles at the intersection of Irvine Turner Boulevard and Spruce Street in Newark. Numerous shots fired from Manley’s Jeep Cherokee at Victim 6’s vehicle struck Victim 6 and killed “Victim 7,” a passenger in Victim 6’s car. In addition, “Victim 8” – an innocent bystander who was a passenger in one of the civilian vehicles that had crashed at the intersection – was shot through the head and killed.
The double murder was part of an on-going feud between the Grape Street Crips and a rival (referred to in the indictment as “Victim One”) that resulted in numerous other murders and attempted murders, several of which are charged in today’s indictment.
In August 2013, Hamlet authorized Batts and others to murder Victim One. In October 2013, Hamlet met with Victim One at the Mall at Short Hills in Millburn, New Jersey, in a meeting that had been set-up by “Victim Five,” a member of the New Jersey Grape Street Crips who was a close associate of Victim One and who attempted to broker a truce between Hamlet and Victim One.
After the Short Hills meeting, Hamlet used a social media account to post a report from the Essex County Prosecutor’s Office purportedly indicating that Victim One had provided a statement to law enforcement. Just three days after Hamlet’s social media post, Batts, Manley, Phillips, and another gang member – acting on Hamlet’s orders – repeatedly shot and nearly killed Victim One and “Victim Four,” a bystander who was inside Victim One’s car.
Following the attempted murder of Victim One, Hamlet and other gang members perceived that Victim Five had been disloyal by attempting to put an end to the feud between Hamlet and Victim One. In November 2013, Aaron Terrell, 25, and Rashan Washington, 26, both of Newark, murdered Victim Five. Acting on Hamlet’s orders, Washington lured Victim Five into a Jeep Cherokee and then purposely left Victim Five alone, while Terrell shot Victim Five once in the head.
On the racketeering conspiracy charge, Hamlet, Mack, Manley, Batts, and Phillips face a potential maximum sentence of life in prison and a mandatory minimum term of 10 years in prison. Manley also faces a potential life sentence for the drug trafficking charges. On the murder in aid of racketeering charges, Hamlet, Batts, and Phillips face a mandatory sentence of life in prison.
In total, the fifth superseding indictment charges 15 alleged members and associates of the gang with five murders, three attempted murders, and numerous other crimes committed as part of the racketeering conspiracy. Today’s indictment follows the coordinated takedown in May 2015 of 50 alleged members and associates of the Grape Street Crips who were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, for 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; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit 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.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defense counsel: TBD
Member of Newark, New Jersey, ‘South Side Cartel’ Gang Pleads Guilty to Racketeering, Carjacking, Robbery and Drug ChargesRead the Press Release
A Newark, New Jersey, man pleaded guilty today to his role in a violent and long-running racketeering conspiracy perpetuated by the “South Side Cartel,” a set of the Bloods street gang based in Newark, 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.
Malik Lowery, aka Leek, 35, pleaded guilty before U.S. District Judge Esther Salas in the District of New Jersey to multiple counts of a second superseding indictment charging him with racketeering, racketeering conspiracy, carjacking, robbery affecting interstate commerce and conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin and 280 grams or more of crack cocaine. Lowery is scheduled to be sentenced on Dec. 6, 2016.
In pleading guilty to the racketeering charges, Lowery admitted that he was involved in the murder of a South Side Cartel member on Oct. 20, 2007; committing an armed carjacking with fellow South Side Cartel members on Jan. 3, 2008; and robbing a drug dealer on Feb. 3, 2008, among other acts.
The South Side Cartel was once known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise. The gang is a subset of the Bloods street gang that has operated primarily from two apartment buildings, dubbed the “Twin Towers,” located on Hawthorne Avenue in Newark. Local law enforcement has made repeated narcotics and gun-related arrests at these buildings from 2002 to 2010. Many of the South Side Cartel members have tattoos depicting these buildings and the gang’s initials. At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or are serving prison sentences for gang-related crimes.
Lowery and his co-defendants, Mark Williams, aka B.G., and Farad Roland, aka B.U., represent the last of the gang’s active members. On Aug. 10, 2016, Williams pleaded guilty to racketeering and related charges before Judge Salas. Roland is scheduled to begin trial in September 2017 on five murder charges.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Newark Division, Newark Police Department and Essex County Prosecutor’s Office investigated the case. Trial Attorney Robert Feitel of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys Robert Frazer and Courtney Howard of the District of New Jersey’s Organized Crime/Gangs Unit in Newark are prosecuting the case.
Member of Newark’s ‘South Side Cartel’ Gang Pleads Guilty to Racketeering, Carjacking, Robbery and Drug ChargesRead the Press Release
NEWARK, N.J. – A Newark man today admitted his role in a violent and long-running racketeering conspiracy perpetuated by the “South Side Cartel,” a set of the Bloods Street gang based in Newark, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced.
Malik Lowery, a/k/a “Leek,” 35, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to multiple counts of a second superseding indictment charging him with racketeering, racketeering conspiracy, carjacking, Hobbs Act Robbery and conspiracy to distribute, and to possess with intent to distribute, one kilogram or more of heroin and 280 grams or more of crack cocaine.
According to documents filed in this case and statements made in court:
As part of the racketeering charges, Lowery admitted his role in the Oct. 20, 2007, murder of a member of the South Side Cartel that took place on Bragaw Avenue in Newark. Lowery also admitted to committing an armed carjacking with fellow South Side Cartel members on January 3, 2008, and to the robbery of a drug dealer on Feb. 3, 2008, among other acts.
Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang's members were officially brought into the Bloods gang in 2002 and 2003. The gang’s center of activities were apartments located inside buildings dubbed “the Twin Towers,” located at 496-500 Hawthorne Avenue, the location of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of the South Side Cartel members had tattoos showing these buildings and the logo of “SSC” representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. Lowery and his co-defendants, Mark Williams, a/k/a “B.G.” and Farad Roland, a/k/a “B.U.” represent the last of the gang’s active members. Co-founded by Amin Roland and Farad Roland between 2003 and 2010, the South Side Cartel was generally known among law enforcement and the FBI as the most violent street gang operating in Newark, committing numerous murders, shootings, robberies and other violent acts in furtherance of the enterprise.
Lowery faces a sentence of 25 to 30 years in federal prison, according to the terms of the plea agreement. Sentencing is scheduled for Dec. 6, 2016.
On Aug. 10, 2016, Williams pleaded guilty to racketeering and related charges. The criminal case against Roland is pending before Judge Salas, who has scheduled the trial for September 2017. Roland is charged with five death-penalty eligible murders. On Feb. 9, 2015, the Government announced in court that then-U.S. Attorney General Eric Holder had authorized and directed that the death penalty be sought against Roland.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose; and prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Robert Frazer and Courtney Howard of the Organized Crime/Gangs Unit in Newark, and Trial Attorney Robert Feitel of the Criminal Division’s Capital Case Section.
Defense counsel: John Azzarello Esq., Morristown, New Jersey, Anthony Ricco, New York, New York
New Jersey U.S. Attorney’s Office Closes Investigation into the Death of Jerame C. ReidRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman announced today that following a thorough federal investigation, there is insufficient evidence to pursue criminal charges in connection with the fatal shooting of Jerame C. Reid. On Dec. 30, 2014, Mr. Reid was killed by Bridgeton Police Officer Braheme Days following a traffic stop of a car in which Mr. Reid was a passenger. Representatives from the New Jersey U.S. Attorney’s Office met today with Mr. Reid’s family to inform them of the decision.
Following Mr. Reid’s death, the New Jersey U.S. Attorney's Office and the FBI, in consultation with the Civil Rights Division of the Department of Justice, opened a criminal investigation into whether that shooting violated federal law. Viewing the evidence as whole, the government determined that federal charges are not warranted.
The federal criminal statute that enforces Constitutional limits on uses of force by law enforcement officers is 18 U.S.C. § 242. A violation of Section 242 requires the government to prove beyond a reasonable doubt that the defendant was acting under color of law, that he deprived a victim of a right protected by the Constitution or laws of the United States, that the deprivation resulted in bodily injury and/or death, and that he acted willfully.
There is no dispute that Officer Days, who was on duty as a police officer for the Bridgeton Police, acted under color of law when he shot Mr. Reid and that the shots resulted in Mr. Reid’s death. However, criminal prosecution is appropriate only if there is sufficient evidence to establish beyond a reasonable doubt that any of the shots fired by Officer Days were unreasonable and that he fired those shots with the requisite willful criminal intent.
As the U.S. Supreme Court has explained, the use of force must be judged from the perspective of a reasonable officer on the scene, rather than with the “20/20 vision of hindsight.” Allowance must be made for the fact that law enforcement officials are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving. The use of deadly force is justified when the officer has probable cause to believe that the suspect poses a threat of serious physical harm, either to the officer or to others.
In addition, the law requires that the government prove that the shooting was done willfully: mistake, fear, misperception, or even poor judgment does not constitute willful conduct prosecutable under the statute.
To make the proper assessment under these standards, federal agents and prosecutors evaluated the physical, forensic, ballistic and crime scene evidence, medical and autopsy reports, the officers’ personnel records, audio and video recordings, internet postings, any relevant leads, as well as the extensive prior investigation conducted by the Cumberland County Prosecutor’s Office to which investigators were given full access. FBI agents and federal prosecutors interviewed the driver of the vehicle, who had given several prior statements about the events that evening, spoke to Mr. Reid's family members, and pursued various leads in an effort to investigate and evaluate every possible source of relevant information. The audio and video from the police dashboard camera, as well as the physical and forensic evidence provided federal prosecutors with a benchmark against which to measure the credibility of the witness’s accounts, including that of Officer Days.
Investigators compared individual witness accounts to the physical and forensic evidence, to other credible witness accounts, and to each witness’s own prior statements made throughout the investigations. Investigators also re-interviewed certain witnesses in an effort to clarify aspects of their testimony, to evaluate their accounts and to obtain more detailed information. In so doing, investigators assessed the witnesses’ demeanor, tone, bias, and ability to accurately perceive or recall the events of Dec. 30, 2014.
The death of Mr. Reid arose out of a traffic stop of a car in which he was a passenger. During the stop, police officers discovered a firearm in the glove compartment of the car. Officer Days and Officer Roger Worley then drew their firearms and ordered Mr. Reid and the driver not to move. The driver complied, while Mr. Reid continued to reach toward the console area between the passenger and driver front seats. Eventually, Mr. Reid forced his way out of the passenger side door against the repeated directives of Officer Days. Mr. Reid was shot as he exited the car in the direction of Officer Days. Although Officer Worley also fired his weapon, only the shots fired by Officer Days struck Mr. Reid.
While in hindsight it is clear that Mr. Reid was unarmed, Officer Days stated that he feared that Mr. Reid either had a firearm or was attempting to grab one from him. In order to bring a federal criminal charge in these circumstances the government would have to prove beyond a reasonable doubt that Officer Days did not fear for his own life and safety, but rather shot and killed Mr. Reid for malicious or improper reasons. The government does not believe it can carry that burden beyond a reasonable doubt. As a result, the New Jersey U.S. Attorney’s Office will not pursue criminal charges against Officer Days.
Enforcer for Atlantic City “Dirty Block” Gang Sentenced to Life in Prison for Role in Heroin Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man who was an enforcer and street level dealer for a gang that used threats, intimidation and violence to maintain control of the illegal drug trade in Atlantic City was sentenced today to life in prison, U.S. Attorney Paul J. Fishman announced.
Malik Derry, a/k/a “Lik,” 25, was previously convicted of conspiracy to distribute one kilogram or more of heroin, possessing and discharging firearms in furtherance of the conspiracy and using a communications device in furtherance of a drug trafficking crime. He was convicted after a six-week trial before U.S. District Judge Noel L. Hillman, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence presented at trial:
Malik Derry was an enforcer and a street level seller for “Dirty Block,” a/k/a “Crime Fam,” “3.6.6.12,” or “3.6,”, which was led by his brother Mykal Derry, a/k/a “Koose,” 36, of Atlantic City. The gang used force, gun violence and intimidation to control the lucrative drug trafficking area of the Stanley Holmes public housing complex, Brown’s Park and the surrounding area.
The evidence at trial showed that Malik Derry, Mykal Derry, enforcer Shaamel Spencer, 32, of Atlantic City, and other members of the gang routinely carried loaded handguns and engaged in at least eight drug related shootings between October 2010 and February 2013, including the shooting of a teenager on April 17, 2011, which left the teenager paralyzed.
Additional testimony established that Mykal Derry and Malik Derry planned and carried out the shooting murder of a rival drug dealer in Atlantic City on the evening of Feb. 10, 2013. Mykal Derry told members of his gang that he wanted them to “put him down” (referring to an order to shoot the rival dealer) when they saw him. Malik Derry shot the victim in the head from close range while riding a bicycle past him as the victim stood in front of an Atlantic City restaurant.
The murder weapon, a stolen .380 caliber semi-automatic handgun, was later recovered from the drop ceiling in an apartment located on Green Street in Atlantic City, which, at the time, was shared by Mykal Derry and his girlfriend, Kimberly Spellman, 34, of Egg Harbor Township, New Jersey. Atlantic City police detectives also found 18 “bricks” of heroin (approximately 900 individual packets of heroin) and drug packaging materials inside the apartment.
The evidence presented by the government at trial consisted of recordings of hundreds of telephone calls and text messages between Mykal Derry, Malik Derry, and over 19 other members of the gang, physical evidence including the recovery of twenty firearms, ballistics evidence from shooting scenes, crime scene evidence from eight different shooting scenes in Atlantic City, recovery of substantial quantities of heroin and drug packaging materials, approximately $40,000 in drug proceeds, the testimony of dozens of FBI agents and Atlantic City police detectives, ballistics experts, a narcotics expert, and two cooperating witnesses who had previously pleaded guilty to federal drug trafficking offenses.
In addition to the prison term, Judge Hillman sentenced Malik Derry to serve a term of 10 years of supervised release.
Mykal Derry was sentenced on Jan. 7, 2016 to life in prison. He was previously convicted at trial of conspiracy to distribute one kilogram or more of heroin, distributing heroin, maintaining a place for the purposes of storing and distributing heroin, possessing, brandishing and discharging firearms in furtherance of the drug conspiracy and using a communications device in furtherance of a drug trafficking crime.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Diane M. Ruberton; the Atlantic City Police Department, under the direction of Chief Henry White; and the South Jersey Safe Streets Violent Incident and Gang (Safe Streets) Task Force, with the investigation leading to today’s sentencing.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Northfield Police Department; the Vineland Police Department; the Brigantine Police Department; and the Millville Police Department.
The government is represented by Assistant U.S. Attorneys Patrick Askin and Justin Danilewitz of the U.S. Attorney’s Office in Camden and Special Assistant U.S. Attorney Edmund Mallqui-Burgos of the Atlantic County Prosecutor’s Office.
Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey.
Five Members and Associates of New Jersey Grape Street Crips Indicted for Drug Trafficking, Firearms PossessionRead the Press Release
NEWARK, N.J. – Five Newark men associated with the New Jersey set of the Grape Street Crips were charged today in three separate indictments with drug distribution and firearms offenses, U.S. Attorney Paul J. Fishman announced.
Marvin Eure, a/k/a “Man Man,” 22, is charged in a two-count indictment with heroin distribution and possessing firearms as a previously convicted felon. Louis Coston, a/k/a “Real Rell,” 26, is charged in a separate two-count indictment with conspiracy to distribute one kilogram or more of heroin and one count of heroin possession with intent to distribute.
Ahmad Mann, a/k/a “P.O.,” a/k/a “P-Easy,” 37, Milton Latham, a/k/a “Murder,” 42, and Vincent J. Carter, a/k/a “Vince,” a/k/a “Vin,” 61, are charged in a third indictment with conspiracy to distribute 100 grams or more of heroin. In addition, Latham is charged with unlawful possession of a firearm as a previously convicted felon, and Mann is charged with three counts of heroin possession with intent to distribute.
According to the indictments:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Coston and Ahmed Singleton, 26, a/k/a “Gangsta-Mu,” a/k/a “Mooshie,” both members of the New Jersey Grape Street Crips, allegedly sold prolific quantities of heroin to both Newark residents and out-of-town customers. Mann, Latham, and Carter allegedly worked together to distribute brick quantities of heroin in and around the Pennington Court, Hyatt Court, and Riverview public housing complexes in Newark, New Jersey.
Eure was a long-time member of the New Jersey Grape Street Crips who, after a violent dispute with the group’s leadership, formed a rival gang with various associates. In August 2012, Eure allegedly sold a Remington Arms 870 Magnum shotgun and a 7.62 caliber SKS rifle to a confidential informant working with the FBI. On Oct. 24, 2014, Eure also distributed heroin at the Kemsco Village housing complex in Newark.
To date, 37 members and associates of the New Jersey Grape Street Crips have pleaded guilty to drug trafficking, firearms and other charges. The leadership and senior members of the gang are awaiting trial on a racketeering indictment that includes four murders, three attempted murders, and numerous other crimes.
Eure faces a potential sentence of 10 years in prison for the firearms charge and a potential sentence of 20 years in prison for heroin distribution. Coston faces a mandatory minimum term of 10 years in prison and a potential maximum of life in prison for the heroin conspiracy charge, as well as a potential 20-year sentence for the heroin distribution charge.
Mann, Latham, and Carter face a mandatory minimum term of five years in prison for the heroin distribution charge. Mann faces a 20-year sentence for each of the three heroin distribution counts. Latham faces a 10-years sentence for the firearms charge.
Eure, Coston, Mann, and Latham remain in custody. Carter is out on bail.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and special agents of the FBI, under the direction of Acting Special Agent in Charge Timothy Gallagher, for the investigation leading to the charges. U.S. Attorney Fishman also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony A. Ambrose, and the Essex County Sheriff’s Office, under the direction of Armando B. Fontoura, for their work on the investigation.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Camden, New Jersey, Woman Admits Sex Trafficking of MinorRead the Press Release
TRENTON, N.J. – A Camden, New Jersey, woman pleaded guilty today in federal court to sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.
Aja M. Easley, 22, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging her with one count of sex trafficking of a minor. Easley, Aaron J. Gray, 29, of Camden, and Kenneth A. Mertz, 35, of Collingswood, were previously charged in a criminal complaint with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor. Gray was also charged in the complaint with being a felon in possession of a firearm.
According to the documents filed in this case and statements made in court:
Easley admitted that on March 2, 2015, she communicated with the victim, a minor, using a popular social media website. Easley told the victim she was “worried about” the victim because of a previous assault by the victim’s ex-boyfriend. She offered the victim money, food, clothing, and shelter, and met the victim at the Camden Transportation Center. There, Easley told the victim about a “dating website,” and said that the victim could make money through the website by going on “dates.” Easley and the victim later met Gray and Mertz at a residence in Camden. Easley, Mertz, and Gray agreed to advertise the minor online for commercial sex acts and drove the minor to a motel in Cherry Hill for that purpose.
At the motel, Gray and Easley convinced the victim to engage in commercial sex acts. Using her cellular telephone, Easley took provocative photos of the victim, and uploaded them to an online advertisement that she had created advertising the victim for commercial sex acts. After the advertisement was online, Easley used her cellular telephone to communicate with multiple individuals who responded to the advertisement. Gray gave the victim instructions on what to do when the respondents arrived. Easley instructed the victim to tell the individuals, regardless of her real age, that she was 21 years old. Easley also instructed the victim how much time each individual could spend with the victim at the motel and how much each individual owed the victim. Easley also told the victim that if any trouble arose, Gray was outside the motel with a firearm. While at the motel in Cherry Hill, the victim engaged in sex acts in exchange for money with multiple individuals, which the defendants split between themselves and the victim.
The next day, at a motel in Mount Laurel, New Jersey, at the defendants’ direction, the victim again engaged in sex acts in exchange for money with multiple individuals who responded to the advertisement. Later that evening, the defendants told the victim that they were taking the victim to Atlantic City, New Jersey, to meet another person who had responded to the advertisement and was willing to pay $1,200 for an entire evening with the victim.
On the way to Atlantic City, the defendants agreed to let the victim stop at a residence in Gloucester City, New Jersey. The victim went inside and contacted the police, leading to the defendants’ arrest.
The count to which Easley pleaded guilty carries a statutory mandatory minimum of 10 years in prison, a statutory maximum of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for Nov. 22, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and members of the Mount Laurel Police Department, under the direction of Police Chief Dennis Cribben, and the Gloucester City Police Department, under the direction of Acting Police Chief Michael Morell, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney J. Brendan Day of the Office’s Criminal Division in Trenton.
The pending charges and allegations against Gray and Mertz are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense counsel: Joshua Markowitz Esq., Lawrenceville, New Jersey
Prime Contractor Employee at U.S. Military Bases Admits $1.4 Million Fraud and Taking KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix- Lakehurst (Ft. Dix) admitted today his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Paul J. Fishman announced.
James Conway, 45, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks.
According to documents filed in this case and statements made in court:
From September 2009 to August 2015, Conway secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which purported to provide construction services. Using his position as regional manager for a construction contractor, Conway steered subcontracts to Walsh Construction for jobs at PICA and Ft. Dix. To conceal his ownership of Walsh Construction, Conway signed the subcontracts as Keith Walsh, the purported owner or vice president of Walsh Construction. There was, in fact, no person by that name who owned or was the vice president of Walsh Construction.
Conway used Walsh Construction to obtain payments from the construction contractor by submitting invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix. Many of the invoices and bills included charges for work that Walsh Construction only partially did, or for work that was not performed at all by Walsh Construction, causing losses of $1.4 million.
Conway also accepted kickbacks totaling $180,345, from four subcontractors who served as subcontractors to the contractor on various construction projects at PICA and Ft. Dix knowing that the subcontractors expected, in return, to obtain favorable treatment from Conway.
The wire fraud charge to which Conway pleaded guilty carries a maximum potential penalty of 20 years in prison. The charge for accepting unlawful kickbacks to which Conway pleaded guilty carries a maximum potential penalty of 10 years in prison. Both charges carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for Nov. 30, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes and Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Morris County, New Jersey, Husband and Wife Sentenced to Prison for Falsifying Thousands of Medical Diagnostic Reports as Part of $4.8 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – Two Rockaway, New Jersey, residents who owned a mobile diagnostic testing company were each sentenced today to over six years in prison for receiving more than $4.8 million from Medicare and private insurance companies for diagnostic testing and reports that were never interpreted by a licensed physician, U.S. Attorney Paul J. Fishman announced.
Kirtish N. Patel, 54, and Nita K. Patel, 53, were sentenced to 100 and 78 months in prison, respectively. Both defendants previously pleaded guilty before U.S. District Judge William H. Walls to separate informations charging them each with one count of health care fraud. Judge Walls imposed the sentences today in in Newark federal court.
According to the documents filed in the case and statements made in Court:
From 2006 through June 2014, Kirtish and Nita Patel owned and operated Biosound Medical Services Inc. and Heart Solutions (collectively, “Biosound”), of Parsippany, New Jersey, which were mobile diagnostic companies and approved Medicare providers. The companies provided mobile diagnostic testing, including ultrasounds, echocardiograms and nerve conduction studies that were used to diagnose heart defects, blood clots, abdominal aortic aneurysms and other serious medical conditions.
Biosound technicians would travel to the office of a primary care physician in the New York and New Jersey area to conduct diagnostic testing. Biosound was responsible for sending the tests to a “reading physician” – an appropriate specialist who would interpret the results. After the reading physician prepared a report, Biosound was responsible for providing it to the referring physician. Biosound was paid millions of dollars by Medicare and other payors for the diagnostic testing, the reading physician’s interpretation of the results and the reports.
Kirtish Patel admitted to, from October 2008 through June 2014, fraudulently interpreting and writing diagnostic reports produced by Biosound despite having no medical license and knowing that the reports would be used by the referring physicians to make important patient treatment decisions. Nita Patel admitted assisting her husband in forging physician signatures on the fraudulently produced reports to make them appear legitimate. Kirtish and Nita Patel Patel also admitted falsely representing to Medicare that the neurological testing performed by Biosound was being supervised by a licensed neurologist.
More than 10,000 diagnostic reports generated by Biosound between October 2008 and June 2014 were never actually reviewed or interpreted by a physician. Kirtish and Nita Patel were paid more than $4.8 million by Medicare and private insurance companies for the fraudulent reports, which they used for personal expenses, including multiple residences and luxury vehicles.
Judge Walls also ordered Kirtish and Nita Patel to serve three years of supervised release, forfeit $4,803,875.40, and pay restitution of $4,803,875.40.
Pursuant to a civil judgment entered in July 2016, U.S. District Judge Stanley R. Chesler ordered Nita and Kirtish Patel, Biosound Medical Services and Heart solutions to pay the United States $5 million in damages and $2.75 million in civil monetary penalties.
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, and the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.31 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:
Kirtish Patel: Anthony Fusco Jr. Esq. and Shay Deshpande Esq., Passaic, New Jersey
Nita Patel: Frank Arleo Esq., West Orange, New JerseySenior Officers of Italian Oil Tanker Admit Concealing the Discharge of Oily Waste at SeaRead the Press Release
NEWARK, N.J. – Two senior engineering officers employed by an Italian shipping company admitted today they deliberately concealed their 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, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiring to violate the Act to Prevent Pollution from Ships. 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.
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.
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 admitted making false statements and instructing lower-level crew members to make false statements during the January 2015 inspection.
The charges to which Curatolo and Maimone pleaded guilty each carry a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss resulting from the offenses. Sentencing for both is scheduled for Nov. 21, 2016.
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 guilty pleas.
The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary of the U.S. Attorney’s Office Health Care and Government Fraud Unit and Kelly Graves of the U.S. Attorney’s Office General Crimes Unit in Newark, and Trial Attorney Brandy Parker 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
Camden, New Jersey, Man Sentenced to 151 Months in Prison for Narcotics Distribution Conspiracy, Firearms PossessionRead the Press Release
CAMDEN, N.J. – Another Camden man was sentenced this week to over 12 years in prison for his role in a large-scale drug trafficking organization that distributed hundreds of grams of cocaine base, cocaine and heroin, U.S. Attorney Paul J. Fishman announced today.
Fuquan Pulliam, 26, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base, 500 grams or more of cocaine, and 100 grams or more of heroin, as well as one count of being a felon in possession of a firearm. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Pulliam admitted that, from January 2012 through April 2013, he stored, packaged and distributed cocaine and heroin for sale in the area of 8th and Tulip Streets and the Crestbury Apartments. Pulliam also admitted that during that time, he and others within the drug trafficking organization sold 2,328 grams of cocaine base, 675 grams of cocaine and 926 grams of heroin.
Pulliam – a previously convicted felon – was arrested in April 2013 and found with numerous firearms in his possession.
In April 2013, seven members of the drug trafficking organization, including Pulliam, were charged by criminal complaint with conspiring to distribute cocaine base, cocaine, and heroin. All of the defendants have pleaded guilty. Co-defendant Carl Wiles was sentenced to 148 months in prison on Aug. 8, 2016.
In addition to the prison term, Judge Kugler sentenced Pulliam to five years of supervised release.
The government is represented by Special Assistant U.S. Attorney Erin M. Fay and Special Litigation Counsel Jason Richardson.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, Philadelphia Division, under the direction of FBI Special Agent in Charge William F. Sweeney Jr.; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Police Department, under the direction of Chief Scott Thomson; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Camden Collaborative Crime Commission (“C4”), with the investigation.
He also thanked the Philadelphia Police Department, the N.J. Parole Board, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the N.J. Division of Criminal Justice, the Voorhees Police Department, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the Camden County Sheriff’s Office, the Woodbury Police Department and the Pennsauken Police Department for their roles in the case.
This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
Defense counsel: Justin Loughry Esq.
Former Somerset County High School Teacher Admits 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 today admitted soliciting a boy to engage in sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David M. Adams, 30, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
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.
The charge to which Adams pleaded guilty carries a maximum penalty of life in prison, a mandatory minimum prison sentence of 10 years in prison and a $250,000 fine. Adams will be required to register as a sex offender. Sentencing is scheduled for Nov. 30, 2016.
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 the guilty plea. 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
Camden, New Jersey, Man Gets More Than 12 Years in Prison for Narcotics Distribution Conspiracy, Firearms PossessionRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 148 months in prison for his role in a large-scale drug trafficking organization that distributed hundreds of grams of cocaine base, cocaine and heroin, U.S. Attorney Paul J. Fishman announced.
Carl Wiles, 26, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute 28 grams or more of cocaine base, 500 grams or more of cocaine, and 100 grams or more of heroin, as well as one count of being a felon in possession of a firearm. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Wiles admitted that from January 2012 through April 2013, he stored, packaged and distributed cocaine and heroin for sale in the area of 8th and Tulip Streets and the Crestbury Apartments. Wiles also admitted that during that time, he and others within the drug trafficking organization sold 2,328 grams of cocaine base, 675 grams of cocaine and 926 grams of heroin.
Wiles – a previously convicted felon – was arrested in April 2013 and found with numerous firearms in his possession, including handguns, assault rifles and a shotgun.
In April 2013, seven members of the drug trafficking organization, including Wiles, were charged by criminal complaint with conspiring to distribute cocaine base, cocaine, and heroin. All of the defendants have pleaded guilty.
In addition to the prison term, Judge Kulgler sentenced Wiles to five years of supervised release.
The government is represented by Special Assistant U.S. Attorney Erin M. Fay and Special Litigation Counsel Jason Richardson.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, Philadelphia Division, under the direction of Special Agent in Charge William F. Sweeney Jr.; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Camden County Police Department, under the direction of Chief Scott Thomson; the N.J. State Police, under the direction of Col. Rick Fuentes; and the Camden Collaborative Crime Commission (“C4”), with the investigation.
He also thanked the Philadelphia Police Department, the N.J. Parole Board, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the N.J. Division of Criminal Justice, the Voorhees Police Department, the Gloucester County Prosecutor’s Office, the Salem County Prosecutor’s Office, the Camden County Sheriff’s Office, the Woodbury Police Department and the Pennsauken Police Department for their roles in the case.
This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
Defense counsel: Ed Borden Esq.
Audubon, N.J., Woman Conspired with Then-Boyfriend to Produce Sexually Explicit Images of Two ChildrenRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted conspiring with her former boyfriend to produce sexually explicit images of two children, U.S. Attorney Paul J. Fishman announced.
Janine Kelley, 35, of Audubon, N.J., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of conspiring with her former boyfriend, Alexander Capasso, 42, of Collingswood, New Jersey, to engage in the sexual exploitation of two children by producing sexually explicit images of them.
According to documents filed in this case and statements made in court:
Kelley, a registered nurse, entered into a sexual relationship with Capasso in or about 2011, during which Capasso expressed an interest in engaging in sexual conduct with children. From November 2011 through October 2012 Kelley took, and allowed Capasso to take, recorded images of her engaged in sexually explicit conduct with two children. Kelley also took, or allowed Capasso to take, images of Capasso engaged in sexually explicit conduct with one of the minor children.
The conspiracy count to which Kelly pleaded guilty carries a minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a fine of up to $250,000. Sentencing is scheduled for Nov. 18, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge William Sweeney, and the Washington, D.C., Field Office, under the direction of Assistant Director in Charge Paul M. Abbate, with the investigation leading to today’s guilty plea.
Capasso was indicted by a federal grand jury in Camden on July 6, 2016, for allegedly possessing and distributing images of child sex abuse and also for conspiring to sexually exploit two minor children. The charges and allegations contained in that indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Associate of Decavalcante Crime Family Sentenced to 30 Months in Prison for Distributing CocaineRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante organized crime family of La Cosa Nostra was sentenced today to 30 months in prison for his role in distributing more than 500 grams of cocaine, U.S. Attorney Paul J. Fishman announced.
Mario Galli, 24, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of distribution of more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
Galli was arrested and charged by complaint in March 2015, along with nine members of the DeCavalcante crime family. He admitted that between Dec. 12, 2014, and March 2015, in conjunction with other family associates, he sold more than one-half a kilo of cocaine to an undercover FBI agent for at least $78,000.
In addition to the prison term, Judge Walls sentenced Galli to three years of supervised release and fined him $1,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the N.J. State Commission of Investigation, under the direction of Acting Executive Director Lee C. Seglem; the Waterfront Commission of New York Harbor, under the direction of Executive Director Walter M. Arsenault; and the Union County Prosecutor’s Office, under the direction of Acting Union County Prosecutor Grace H. Park.
The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Defense counsel: James N. Butler Jr. Esq., Asbury Park, New Jersey
Previously Convicted Felon from Union County, New Jersey, Charged with Illegally Possessing FirearmsRead the Press Release
NEWARK, N.J. – An Elizabeth, New Jersey, man who allegedly sold guns to an undercover federal agent was arrested this morning and charged with possessing firearms as a previously convicted felon, U.S. Attorney Paul J. Fishman announced.
Daniel Bigelow, 27, is charged by complaint with one count of being a felon in possession of a firearm. He made his initial appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
After obtaining information that he was illegally selling firearms in New Jersey, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted controlled purchases with Bigelow. On April 12, 2016, Bigelow allegedly sold a Hi-Point Model 995 9mm rifle and a .357 Smith and Wesson revolver to an undercover federal agent. At the time, Bigelow had at least one prior felony conviction in Union County Superior Court.
The felon-in-possession of a firearm charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited ATF special agents, under the direction Special Agent in Charge George P. Belsky in Newark, with the investigation. He also thanked the Elizabeth Police Department for their work in the case.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Passaic County, New Jersey, Man Charged with String of Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic, New Jersey, man has been arrested and charged in connection with a spree of bank robberies in Hudson, Union, and Passaic counties last month, U.S. Attorney Paul J. Fishman announced today.
Quentin Morales, a/k/a “Quinton Morales,” 25, is charged by criminal complaint with four counts of bank robbery and one count of attempted bank robbery. He appeared Aug. 3, 2016, before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. Prior to his arrest Morales was one of Newark FBI’s most wanted bank robbers.
According to the complaint, Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank*
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
*attempted bank robbery
At each bank, Morales presented a note demanding cash from bank tellers. During the July 13, 2016, robbery, for example, Morales handed the teller a note which stated: “You are being robbed. Give me all your large bills. No alarms. No dye packs. You got 10 seconds.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
Each bank robbery or attempted 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 N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Passaic County, New Jersey, Man Charged with String of Bank RobberiesRead the Press Release
NEWARK, N.J. – A Passaic, New Jersey, man has been arrested and charged in connection with a spree of bank robberies in Hudson, Union, and Passaic counties last month, U.S. Attorney Paul J. Fishman announced today.
Quentin Morales, a/k/a “Quinton Morales,” 25, is charged by criminal complaint with four counts of bank robbery and one count of attempted bank robbery. He appeared Aug. 3, 2016, before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained. Prior to his arrest Morales was one of Newark FBI’s most wanted bank robbers.
According to the complaint, Morales robbed, or attempted to rob, the following New Jersey banks:
Bank
Location
Date
Wells Fargo Bank
Kearny, New Jersey
June 24, 2016
Capital One Bank*
Elizabeth, New Jersey
June 27, 2016
Wells Fargo Bank
Kenilworth, New Jersey
June 30, 2016
Wells Fargo Bank
Linden, New Jersey
July 6, 2016
Wells Fargo Bank
Clifton, New Jersey
July 13, 2016
*attempted bank robbery
At each bank, Morales presented a note demanding cash from bank tellers. During the July 13, 2016, robbery, for example, Morales handed the teller a note which stated: “You are being robbed. Give me all your large bills. No alarms. No dye packs. You got 10 seconds.” On at least two occasions, Morales said he had a gun and urged bank tellers to hurry. He was apprehended on Aug. 2, 2016, by officers of the N.J. State Parole Board.
Each bank robbery or attempted 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 N.J. State Parole Board and the Kearny, Elizabeth, Kenilworth, Linden, Clifton, Union Township and Newark police departments, as well as the Essex County Prosecutor’s Office for their efforts in the investigation and apprehension of Morales.
The government is represented by Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Former Teacher and Summer Camp Employee Arrested on Charges of Production and Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, man was arrested and charged today for producing and distributing images of child sexual abuse and enticing a minor to engage in criminal sexual activity, U.S. Attorney Paul J. Fishman announced.
Colin M. Skeele, 30, of Florham Park, New Jersey, was arrested by agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). He is charged by complaint with two counts of production of child pornography, one count of enticement of a minor to engage in criminal sexual activity, and one count of distribution of child pornography. Skeele appeared in before U.S. Magistrate Court Judge Joseph A. Dickson today and was detained without bail.
According to documents filed in this case and statements made in court:
Skeele worked as a counselor at a boys’ summer camp in Hardwick, New Jersey, and as a teacher at a parochial school located in Boonton, New Jersey, and a parochial school located in Stirling, New Jersey.
In 2011, Skeele became Facebook friends with an underage boy he met while working as a counselor at a summer camp. The investigation revealed Facebook messages between the boy and Skeele in which Skeele offered to pay him money to take sexually explicit photographs and send them to Skeele. In one instance, Skeele paid the boy $100 to send nude images of himself. Skeele later sent at least one pornographic image of that boy to another boy that had also attended the summer camp.
In February 2012, Skeele communicated online with individuals located in the Philippines to purchase live child sexual abuse shows, which Skeele viewed via an online video chat service. Instant messages obtained during the investigation revealed that Skeele used an online fund transfer service to purchase live child sexual abuse videos involving children as young as 1 year old.
Anyone with information regarding possible victims of this activity is urged to contact the Department of Homeland Security in Newark: 973-776-5500.
The two counts of producing child pornography each carry a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. The count of enticement of a minor to engage in criminal sexual activity carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison and a $250,000 fine. The charge of distributing child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the ICE-HSI, under the direction of Special Agent in Charge Terrence S. Opiola, with the investigation leading to today’s charges and arrest.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Criminal Division.
The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Anthony P. Alfano Esq., Lyndhurst, New Jersey
Downtown Newark Heroin and Oxycodone Dealer Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A Newark man today admitted 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 in Newark federal court to a superseding information charging him with conspiracy to distribute 100 grams or more of heroin.
According to documents filed in this case and statements made in court:
Between February 2013 and August 7, 2013, Baron conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Over the course of the conspiracy, Baron and others sold drugs out of Ballas Boutique to a confidential source more than 35 times. The majority of the sales were audio and video recorded.
Additionally, 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 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.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2016.
Vaughn previously 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.
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 plea.
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: Frank Arleo, Esq.