District of New Jersey

CAMDEN, N.J. -  A Mt. Laurel, New Jersey, woman today admitted evading taxes on income she generated by using her position as a Burlington Coat Factory vice president to approve payments to her shell recruitment company, U.S. Attorney Paul J. Fishman announced.

Barbara Ames, 53, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging her with one count of tax evasion.

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

In 2007, Barbara Ames was hired by Burlington Coat Factory as Vice President of Talent Acquisition. Ames was responsible for recruiting and hiring all executive management positions within Burlington Coat Factory, including store management, corporate management and field management. As part of her job duties, Ames was responsible for working with vendors and suppliers associated with her position. Burlington Coat Factory used outside companies, or “headhunters,” to identify and recruit qualified applicants for open positions. Ames had sole authority to approve payments to headhunters working on behalf of Burlington Coat Factory.

In 2008, Ames established L. Castillo LLC using her mother’s name and Social Security number. Ames admitted that between 2008 and 2012, she performed headhunting services under the name of L. Castillo on behalf of Burlington Coat Factory. Afterwards, Ames generated invoices from L. Castillo and submitted those invoices to Burlington Coat Factory for payment.

Ames admitted she used her authority at Burlington Coat Factory to approve the L. Castillo invoices.  From Aug. 4, 2008 through Nov. 2, 2012, Ames caused Burlington Coat Factory to issue approximately 46 checks, totaling $466,290, to pay L. Castillo invoices. Ames later used these funds for personal expenditures.

Ames admitted that, from 2009 through 2012, she failed to include her income from L. Castillo, which caused a tax loss of $143,877.

The charge to which Ames pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 1, 2016.

U.S. Attorney Fishman credited special agents of the IRS, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.

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: John O. Poindexter III Esq., Moorestown

NEWARK, N.J. – Vericare Management Inc., a behavioral health services provider, agreed today to pay more than $1 million to resolve allegations that it violated the False Claims Act by falsely billing federal health care programs for services that were not medically necessary, U.S. Attorney Paul J. Fishman announced.

Vericare, which is headquartered in San Diego, California, provides psychiatric and psychological services focused on geriatric patients in long-term care and skilled nursing facilities in New Jersey, California, and Texas, among other states.

According to the contentions of the United States contained in the settlement agreement:

From Jan. 1, 2012, through Dec. 31, 2014, Vericare sought and obtained “standing orders” or other agreements with 128 facilities under which Vericare’s clinicians performed evaluations on all new admissions to the facility. These evaluations were conducted regardless of whether a physician provided a patient-specific order indicating that such an evaluation was medically necessary. Vericare improperly submitted claims to the United States pursuant to these standing orders or other agreements for diagnostic interviews, evaluations, and examinations.

These allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.

The settlement also resolves allegations that Vericare incorrectly submitted claims to Medicare for certain nursing facility evaluation and management services which were not supported by the patient’s medical record. This component of the settlement resulted from Vericare’s self-disclosure of this issue to the U.S. Attorney’s Office. As a result of Vericare’s decision to self-disclose this issue, the company was required to pay significantly less than the treble damages and penalties that the United States may seek under the False Claims Act.

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s settlement.

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

U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $640 million 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. The qui tam case is captioned United States ex rel. Bart Rossi v. Vericare, Civil Action No. 13-6884 (D.N.J.).

Defense counsel for Vericare:

Michael Kendall Esq., Boston, Massachusetts

 

Counsel for relator:

Lisa M. Fittipaldi Esq., Warren, New Jersey

TRENTON, N.J. – A Lancaster County, Pennsylvania, man was sentenced today to 30 months in prison for his role in transporting goods stolen through a string of commercial burglaries throughout northern and southern New Jersey, U.S. Attorney Paul J. Fishman announced.

Eliezer Medina, 37, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiracy to transport stolen goods in interstate commerce. Judge Cooper imposed the sentence today in Trenton federal court.

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

From November 2013 through August 2014, Medina conspired with his brother, José Medina, 39, to steal money by burglarizing stores in New Jersey, New York, Pennsylvania, and elsewhere, and then transport the stolen money across state lines. He admitted burglarizing at least three stores in Paramus, New Jersey, and Pennsauken, New Jersey, and to stealing approximately $625,000. The burglaries followed the same general pattern, including advance surveillance, disabling of the alarm systems and the use of pry-bars and vertical cuts to gain access to the stores’ safes.

In addition to the prison term, Judge Cooper sentenced Medina to two years of supervised release. He must also forfeit $625,000.

U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the FBI in Philadelphia Branch, under the direction of Special Agent in Charge William F. Sweeney Jr., with the investigation leading to today’s sentencing. He also thanked the Paramus, New Jersey; Wayne, New Jersey; and Pennsauken Township, New Jersey, police departments; the N.J. State Police; and the Lancaster City, Pennsylvania; East Lampert, Pennsylvania; Manor Township, Pennsylvania; Manheim Township, Pennsylvania; and East Hempfield, Pennsylvania, police departments for their work on the case.

The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the General Crimes Unit in Newark.

José Medina remains charged by complaint with conspiracy to transport stolen goods in interstate commerce. The charges and allegations in the complaint are merely accusations, and the defendant remains innocent unless and until proven guilty.

Defense counsel: John Yauch Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – Fourteen leaders, members and associates of the New Jersey Grape Street Crips, a violent street gang operating in and around Newark, were charged by indictment today with racketeering, violent crimes in aid of racketeering, drug trafficking, firearms offenses and related crimes, U.S. Attorney Paul J. Fishman announced.

Today’s third superseding 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. The charges are the result of a long-running DEA and FBI investigation, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Overall, 71 defendants have been charged with federal and state charges.

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

The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark, including the area of 6th Avenue and North 5th Street and public-housing complexes at Pennington Court, Oscar Miles, the Millard Terrell Homes, the John W. Hyatt homes and the former James Baxter Terrace complex.

Gang leaders, members and associates routinely engaged in acts of intimidation and violence to avenge attacks or perceived slights against the gang, silence individuals who were perceived to be cooperating with law enforcement and protect their drug trafficking activities. Members frequently used social media, including Instagram and YouTube, to disseminate the rules of the gang, intimidate witnesses and other members of the community, and promote the gang’s reputation for violence and drug-trafficking.

In October 2013, Kwasi Mack, a/k/a “Welchs,” 26, of Belleville, New Jersey, and Corey Batts, a/k/a “C-Murder,” a/k/a “Cee,” 30, of Newark, two Grape Street Crips leaders, plotted to kill a gang rival (Victim 3). After Batts missed an opportunity to shoot and kill Victim 3, Mack ordered Batts to have junior gang members patrol the Oscar Miles housing complex in case the gang rival returned to the area. Several weeks later, Batts and other gang members allegedly shot and nearly killed the gang rival and an innocent woman in broad daylight in Newark.

Also in October 2013, Mack and other Grape Street Crips members, including Justin Carnegie, a/k/a “Dew Hi,” a/k/a “Dew,” a/k/a “D,” 28, Rashan Washington, a/k/a “Shoota,” 25, and Aaron Terrell, a/k/a “Push,” 24, all of Newark, allegedly committed a shooting in retaliation for the murder of a fellow gang member.

Carnegie and Ahmed Singleton, a/k/a “Gangsta-Moo,” a/k/a “Gangsta,” a/k/a “Mooshie,” 26, of Newark, frequently carried and stock-piled firearms in furtherance of the gang’s activities and talked about harming individuals who were perceived to be cooperating with law enforcement. In May 2010, Carnegie stored a loaded Romarm SA Cugir 7.62x39 assault rifle, an American Industries Calico M100 .22LR carbine, 7.62x39 caliber ammunition, .22 caliber ammunition and $2,952 in Orange, New Jersey.

In March 2015, during the lawful wiretap of a cell phone used by Singleton, law enforcement agents intercepted Singleton detailing his efforts to intimidate a witness who took the witness stand to testify against him. Singleton was facing trial for aggravated assault in connection with a shooting. He bragged about how he had “beat trial” by intimidating the main witness and getting the state charges against him dismissed.

Numerous gang members — including Washington, Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax” a/k/a “Wax,” 28, Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” 31, Jamar Hamilton, a/k/a “Gunner,” 27, Tyquan Clark, a/k/a “Tah,” 28, and James Gutierrez, a/k/a “Bad News,” 24, — sold thousands of “clips” of crack-cocaine in the area of 6th Avenue and North 5th Street (a clip is slang for a package containing 10 doses). To protect their territory, the Grape Street Crips 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.

Also, Hanee Cureton, a/k/a “City,” 30, Khalil Stafford, a/k/a “Stod,” a/k/a “Homicide,” 31, and Lateef Grimsley, a/k/a “Bird,” 26, distributed kilogram quantities of heroin in and around Newark. Cureton controlled a heroin mill located inside a Newark apartment that was used exclusively to package heroin for street-level distribution. Law enforcement agents later recovered several kilograms of heroin, glassine envelopes, cutting agents and blenders from the apartment.

The chart below summarizes the offenses charged in the third superseding indictment and the maximum and minimum penalties faced by each of the charged defendants. The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, 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 Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos, 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, Elizabeth M. Harris and Barry Kamar of the District of New Jersey’s 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.

Count

Offense

Defendant(s)

Max Penalties

1

Racketeering Conspiracy

Kwasi Mack, a/k/a “Welchs,” “The Prince,” “Mini Me,” 26, Belleville

 

Corey Batts, a/k/a “C-Murder,” “Cee,” 30, Newark

 

Hakeem Vanderhall, a/k/a “Keem,” “Sugar Bear,” 31, East Orange

 

Eric Concepcion, a/k/a “Eddie Arroyo,” “E-Wax,” “Wax,” 28, Clifton

 

Justin Carnegie, a/k/a “Dew Hi,” “Dew,” “D,” 28, East Orange

 

Ahmed Singleton, a/k/a “Gangsta-Moo,” “Gangsta,” “Mooshie,” 26, Newark

 

Jamar Hamilton, a/k/a “Gunner,” 26, Tottowa

 

Tyquan Clark, a/k/a “Tah,” 28, Newark

 

Rashan Washington, a/k/a “Shoota,” 25, Newark

 

Hanee Cureton, a/k/a “City” 30, Springfield

 

Khalil Stafford, a/k/a “Stod,” “Homicide,” 31, Newark

 

James S. Gutierrez, a/k/a “Bad News,” 24, Newark

Life imprisonment;

$250,000 fine

2

Conspiracy to Commit Murder in Aid of Racketeering

Kwasi Mack

 

Corey Batts

10 years in prison; $250,000 fine

3

Attempted Murder in Aid of Racketeering

Kwasi Mack

 

Corey Batts

10 years in prison; $250,000 fine

4

Attempted Murder in Aid of Racketeering

Kwasi Mack

 

Corey Batts

10 years in prison; $250,000 fine

5

Conspiracy to Assault with a Dangerous Weapon in Aid of Racketeering

Kwasi Mack

 

Corey Batts

3 years in prison; $250,000 fine

6

Assault with a Dangerous Weapon in Aid of Racketeering

Kwasi Mack

 

Corey Batts

20 years in prison; $250,000 fine

7

Assault with a Dangerous Weapon in Aid of Racketeering

Kwasi Mack

 

Corey Batts

20 years in prison; $250,000 fine

8

Use of a Firearm in Furtherance of a Crime of Violence

Kwasi Mack

 

Corey Batts

Life imprisonment; 10-year mandatory minimum; $250,000 fine

9

Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence

Kwasi Mack

 

Corey Batts

20 years in prison; $250,000 fine

10

Assault with a Dangerous Weapon in Aid of Racketeering

Kwasi Mack

 

20 years in prison; $250,000 fine

11

Conspiracy to Assault with a Dangerous Weapon in Aid of Racketeering

Kwasi Mack

 

Justin Carnegie

 

Rashan Washington

 

Aaron Terrell, a/k/a “Push” 24, Newark

3 years in prison; $250,000 fine

12

Conspiracy to Possess a Firearm in Furtherance of a Crime of Violence

Kwasi Mack

 

Justin Carnegie

 

Rashan Washington

 

Aaron Terrell

20 years in prison; $250,000 fine

13

Use of a Firearm in Furtherance of a Crime of Violence

Kwasi Mack

Life in prison; 25-year mandatory minimum; $250,000 fine

14

Conspiracy to Distribute Heroin

Kwasi Mack

 

Life in prison;10-year mandatory minimum; $10,000,000 fine

Corey Batts

 

Life in prison; 20-year mandatory minimum; $10,000,000 fine

15

Distribution, and Possession with Intent to Distribute, Heroin

Corey Batts

 

30 years in prison; $2,000,000 fine

16

30 years in prison; $2,000,000 fine

17

30 years in prison; $2,000,000 fine

18

Use of a Firearm in Furtherance of a Drug-Trafficking Crime

Kwasi Mack

Life in prison; 25-year mandatory minimum; $250,000 fine

19

Use of a Firearm in Furtherance of a Drug-Trafficking Crime

Corey Batts

Life in prison; 25-year mandatory minimum; $250,000 fine

20

Conspiracy to Distribute Crack-Cocaine

Hakeem Vanderhall

 

Eric Concepcion

 

Jamar Hamilton

 

Tyquan Clark

 

Rashan Washington

 

James S. Gutierrez

Life in prison;10-year mandatory minimum; $10,000,000 fine

21

Continuing Criminal Enterprise

Hakeem Vanderhall

 

Eric Concepcion

 

Jamar Hamilton

 

Tyquan Clark

 

Rashan Washington

Life in prison; 20-year mandatory minimum

22

Conspiracy to Distribute Heroin

Justin Carnegie

 

Ahmed Singleton

Life in prison;10-year mandatory minimum; $10,000,000 fine

23

Conspiracy to Distribute Heroin

Hanee Cureton

 

Khalil Stafford

 

Lateef Grimsley, a/k/a “Bird,” 26, Newark

Life in prison;10-year mandatory minimum; $10,000,000 fine

24

Distribution of Heroin

Khalil Stafford

 

Life in prison;10-year mandatory minimum; $10,000,000 fine

25

Distribution of Heroin

Hanee Cureton

 

Life in prison;10-year mandatory minimum; $10,000,000 fine

26

Felon-in-Possession of a Firearm

Kwasi Mack

10 years in prison; $250,000 fine

27

Felon-in-Possession of a Firearm

Corey Batts

10 years in prison; $250,000 fine

CAMDEN, N.J. – John Montague, a former Gloucester County, New Jersey-based financial advisor was sentenced today to 63 months in prison for defrauding his clients of more than $900,000 by having them make investment checks payable to himself, which he then diverted to his personal use, U.S. Attorney Paul J. Fishman announced.

Montague, 60, of Mantua, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of wire fraud. Judge Hillman imposed the sentence today in Camden federal court.

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

Montague was licensed to sell mutual funds, variable annuities, and insurance premiums but at no time was he licensed to sell corporate or municipal securities, direct participation programs, or options.  Montague engaged in a scheme to defraud his clients by soliciting and inducing them to purchase investment vehicles that Montague knew he could not sell.  Montague described the investment vehicles to his clients as guaranteed investments that promised a rate of return of approximately 6 percent. Montague instructed his clients to make their investment checks payable to him, and he then deposited them into his personal bank accounts. To maintain the clients’ confidence in the investments, Montague issued periodic “dividend” checks to his clients.

In addition to the prison term, Judge Hillman sentenced Montague to three years of supervised release and ordered him to pay $788,716 in restitution.

U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, with the investigation leading to today’s sentencing.

The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – Two members of the Grape Street Crips gang today admitted their roles in conspiracies to distribute heroin and crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced.

Larry Coleman, a/k/a “LA,” 28, of Newark, pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of conspiracy to distribute heroin. Tauheed Satchell, a/k/a “Tah,” 26, also of Newark, pleaded guilty before U.S. District Judge Jose L. Linares to a separate information charging him with one count of conspiracy to distribute crack-cocaine and one count of possessing a firearm as a previously convicted felon.

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

Coleman admitted that from December 2014 through May 20, 2015, he conspired with others to distribute 20 bricks of heroin. Satchell admitted that from April 2014 through May 2015, he conspired with others to distribute 28 grams of crack-cocaine. Satchell, who was convicted in March 2009 of distributing a controlled substance on school property, also admitted possessing an AMT .380 9mm Kurz Backup semi-automatic pistol and six hollow point bullets.

The conspiracy to distribute heroin charge to which Coleman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. The conspiracy to distribute crack-cocaine charge to which Satchell pleaded guilty carries a mandatory minimum of five years in prison, a maximum potential penalty of 40 years in prison and a $5 million fine. The unlawful possession of a firearm charge to which Satchell pleaded guilty carries a maximum potential penalty of 10 years in prison. Sentencing for Coleman and Satchell is set for Feb. 16, 2016 and Feb. 1, 2016, respectively.

In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged by criminal complaints with drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running investigation led by the DEA and FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.

Other defendants who have recently pleaded guilty include Bernard Anderson, a/k/a “BA,” 32, and Dennis Wright, a/k/a “Hersh,” a/k/a “Coyote,” 32, both of Newark, who pleaded guilty to heroin distribution charges on Oct. 21, 2015, and Oct. 13, 2015, respectively. Monesha Johnson, a/k/a “Smoove,” 36, and Willie Brooks, a/k/a “Animal,” 24, both of Newark, pleaded guilty to conspiracy to distribute crack-cocaine on Oct. 6, 2015. Antonio Foye, a/k/a “Steel,” 29, of Newark pleaded guilty to possession of a firearm as a previously convicted felon and conspiracy to distribute crack-cocaine on Sept. 23, 2015.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the pleas. 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 Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, 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:

Coleman: Adalgiza A. Nunez Esq., Newark

Satchell:  Michael V. Gilberti Esq., Florham Park, New Jersey

NEWARK, N.J. – A husband and wife from Northvale, New Jersey, today admitted using a union health care benefit plan to steal more than $150,000 for their personal use, U.S. Attorney Paul J. Fishman announced today.

Leonard Telesca, 62, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count One of an indictment charging him with conspiracy to embezzle from a health care benefit program. Joann Telesca, 63, pleaded guilty before Judge Salas to Count Two of the indictment charging her with embezzling funds from the benefit program.

According to statements made and documents filed in court:        

Between 2006 and 2011, Leonard and Joann Telesca operated the United International Brotherhood of All Trades, Technologies, Service, Administration, and Medical Workers Union (“All Trades Union”). All Trades Union sponsored a welfare fund to provide health care coverage to union participants, who were recruited over the internet. As administrators of the plan, Leonard and Joann Telesca were required to ensure that the funds were used exclusively for the benefit of union members.

Leonard Telesca admitted that from February 2009 through April 2011, he embezzled $159,598 in benefit funds for personal expenses. According to the indictment, the funds were used for mortgage payments on his residence and other rental property, cruises and luxury hotel stays. Joann Telesca admitted that from September 2009 through March 2010, she used $13,369 in benefit funds to make mortgage payments on a personal rental property in River Vale, New Jersey.

The charges to which Leonard and Joann Telesca pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing for both defendants is scheduled for Feb. 8, 2016.

U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region, and the Employee Benefit Security Administration (EBSA) under the supervision of New York Regional Director Jonathan Kay, with the investigation.

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

Defense counsel:

Leonard Telesca: Brian Neary Esq., Hackensack, New Jersey

Joann Telesca: Assistant Federal Public Defender Kevin F. Carlucci Esq., Newark

CAMDEN, N.J. – A Honduran national appeared in federal court today to face charges that he illegally re-entered the United States after being deported and that he kidnapped a woman in Kansas City, Missouri, and raped her while they traveled to New Jersey, U.S. Attorney Paul J. Fishman announced.

José Amaya-Vasquez, 30, is charged by criminal complaint with one count of kidnaping and one count of illegal re-entry into the United States by an alien after removal. He appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.

According to the complaint:

On June 7, 2014, Amaya-Vasquez was arrested in Kansas City and charged with domestic assault against the victim referenced in the complaint. After he was removed from the United States by immigration authorities on July 7, 2014, Amaya-Vasquez was caught trying to illegally enter the United States on Sept. 9, 2014. He was incarcerated for 30 days and removed from the United States on Oct. 22, 2014. On Feb. 14, 2005, he was again arrested trying to enter the country and failed to make his required July 13, 2005 immigration court appearance.

On May 23, 2015, Amaya-Vasquez met the victim in the parking lot of the Burlington Coat factory in Independence, Missouri. Amaya-Vasquez allegedly entered the victim’s vehicle, threatened her with a knife and instructed her to follow him. The victim’s two-year old child was in the vehicle. The victim followed Amaya-Vasquez to an abandoned house in Kansas City, where he allegedly raped her.

From May 24, 2015 through May 25, 2015, Amaya-Vasquez took the victim and the child towards New York. He stopped at motels in Englewood, Ohio, and Bellmawr, New Jersey, and continued to rape the victim.

On May 26, 2015, officers from the Bellmawr Police Department, acting on information from the Kansas City Police Department, located the victim in the Bellmawr motel. Amaya-Vasquez escaped from the motel as the officers approached. Later that morning, officers from Bellmawr and Mt. Ephraim, New Jersey, arrested Amaya-Vasquez a short distance from the motel. Amaya-Vasquez has been in custody in Camden County since his arrest.

The kidnapping charge carries a maximum potential penalty of life in prison. The illegal re-entry into the United States charge carries a maximum potential penalty of two years in prison.

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

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo, with the investigation leading to the charges. He also thanked the Kansas City Police Department and the Bellmawr Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Jason Richardson of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel:  Assistant Federal Public Defender Maggie Moy Esq., Camden

NEWARK, N.J. – An Irvington, New Jersey, man was sentenced today to 114 months in prison for brandishing a firearm while stealing a car in Newark, U.S. Attorney Paul J. Fishman announced.

Raheem Sylla, 24, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of theft of a motor vehicle by force, violence, and intimidation, and one count of use of a firearm in furtherance of a crime of violence. Judge Salas imposed the sentence today in Newark federal court.

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

During the early morning of Sept. 22, 2014, Sylla and a conspirator allegedly approached a 2000 Chevrolet Tahoe parked on a Newark street. Sylla went to the front driver’s window of the Tahoe, pointed a firearm at the driver’s chest and ordered the driver out of the car. The other conspirator approached the front passenger’s side window of the Tahoe and ordered the other passenger out of the car. Sylla and the other male then entered the car and fled.

In addition to the prison term, Judge Salas sentenced Sylla to three years of supervised release.

U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Special Agent in Charge George P. Belsky; the Newark Police Department, under the direction of director Eugene Venable and Chief Anthony Campos; the Rutgers University Police Department, under the direction of Executive Director of Police Services Kenneth Cop; and the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Carolyn A. Murray; as well as criminal investigators from the U.S. Attorney’s Office in Newark with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Linden, New Jersey, man who was a leader in a boys’ youth organization and a religious education teacher today admitted sexually abusing children and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.

Gregory J. Aker, 46, pleaded guilty before U.S. District Judge Susan G. Wigenton in Newark federal court to an information charging him with possession of child pornography. He is currently in state custody.

According to the documents filed and statements made in court:

Aker was a leader with a boys’ youth organization and a religious education teacher with his church. On Feb. 22, 2014, Aker was arrested by the Linden Police Department for sexual assault and endangering the welfare of two minor children.

After his arrest, law enforcement obtained multiple computers and electronic storage media from Aker’s residence. Today, Aker admitted that the devices belonged to him and contained more than 600 images and dozens of videos of child sexual abuse that he knowingly collected. Aker also admitted sexually abusing more than one child who was known to him on more than one occasion.

The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Aker will be required to register as a sex offender. Sentencing is scheduled for Feb. 23, 2016.

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the New Jersey Regional Computer Forensics Laboratory, the Union County Prosecutor’s Office and the Linden Police Department with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Criminal Division in Newark.

Defense counsel: Jeffrey Hark Esq., Cherry Hill, New Jersey                                                                                                                   

NEWARK, N.J. – Two California men were charged today with conspiracy to distribute methamphetamine, U.S. Attorney Paul J. Fishman announced.

Rigoberto Sandoval-Varela, 30, of Stockton, California, and Mario I. Zavala-Rodriguez, 34, of Palo Alto, California, were charged by complaint with one count of conspiracy to possess methamphetamine with intent to distribute. Sandoval-Varela and Zavala-Rodriguez were arrested in Ontario, California, on Oct. 22, 2015, following an undercover law enforcement investigation. They are scheduled to make their initial court appearances later today in Los Angeles federal court.

According to the complaint:

Earlier this month, an undercover Drug Enforcement Administration (DEA) special agent in New Jersey negotiated with Sandoval-Varela via text message and telephone the purchase of a large quantity of narcotics to be brought from California to New Jersey. Another undercover law enforcement agent later met with Sandoval-Varela and Zavala-Rodriguez on Oct. 21, 2015, in California to conclude the deal. The defendants agreed to provide the undercover agent with large quantities of methamphetamine, heroin, and cocaine in exchange for approximately $765,000. The defendants met with the undercover agent the next day and displayed approximately five pounds of methamphetamine. The defendants fled the scene on foot as other agents approached and were quickly apprehended.

The conspiracy with which both defendants are charged is punishable by a maximum potential penalty of life in prison. 

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA’s Los Angeles Field Office and the State of California Department of Justice, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the U.S. Attorney’s Criminal Division in Newark.

NEWARK, N.J. – Two Indian nationals will appear in federal court today to face charges that they conspired to use commercial airline flights to smuggle foreign nationals into the United States, U.S. Attorney Paul J. Fishman announced.

Nileshkumar Patel, 41, and Harsad Mehta, 65, both of India, are charged by criminal complaint with one count of conspiracy to bring in and harbor aliens. In addition, Patel is charged with six counts and Mehta is charged with four counts of smuggling foreign nationals into the United States for private financial gain.

Both were arrested yesterday by special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) upon their arrival at Newark Liberty International Airport and are expected to appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to the complaint:

HSI received information that a smuggling operation run by Patel and Mehta was attempting to find methods to illegally smuggle foreign nationals from India into the United States. The investigation revealed that the smuggling organization recruited Indian nationals and others to pay fees in exchange for passage to the United States.

Beginning in April 2014, an undercover law enforcement officer posing as a smuggler began meeting with Patel and Mehta in Bangkok, Thailand. Patel and Mehta stated that they were involved in the smuggling business and had multiple Indian nationals that they were looking to smuggle into the United States. Mehta and Patel agreed to transport the Indian nationals from India to Thailand, at which point the undercover law enforcement officer would presumably use contacts to smuggle them into the United States via commercial airline flights.  Patel and Mehta agreed to wire a $10,000 down payment for each individual to be smuggled into the United States and to pay a balance of tens of thousands of dollars for each individual once the foreign nationals arrived in the United States.

Over the ensuing months, Patel and Mehta arranged for six Indian nationals to be brought to Thailand for smuggling into the United States via Newark Liberty International Airport.

The conspiracy charge carries a maximum potential penalty of 10 years in prison. Each substantive charge of smuggling carries a maximum potential penalty of five years in prison.

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

U.S. Attorney Fishman credited special agents of HSI, under the direction of Acting Special Agent in Charge Kevin Kelly in Newark, with the investigation leading to the charges.

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

NEWARK, N.J. - The former executive director of the Jersey City Child Development Centers Inc. (JCCDC) in Jersey City, New Jersey, was charged today with stealing more than $200,000 from the organization, U.S. Attorney Paul J. Fishman announced.

Robert E. Mays, 38, of Jersey City, New Jersey, was arrested this morning by federal agents and charged by complaint with one count of embezzlement and theft from JCCDC, an organization which provided early childhood development services and education to under-privileged children in Jersey City. Mays appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

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

Mays was the executive director of JCCDC from Sept. 10, 2013, to May 21, 2014.  JCCDC received $8,020,919 in funds from the Administration for Children and Families (ACF), a division of the U.S. Department of Health and Human Services (HHS), for the benefit of the children who attended the child development programs that were managed by JCCDC. Mays was not authorized to expend JCCDC funds solely for his personal benefit. He allegedly engaged in a scheme to steal and take by fraud more than $200,000 from JCCDC principally by: (1) unilaterally increasing his annual salary from $96,500 to $155,000 without authorization from JCCDC, after two months of his employment with JCCDC; and (2) withdrawing funds from JCCDC bank accounts for his personal benefit without authorization from JCCDC.  Mays allegedly took JCCDC funds intended to benefit children to purchase, among other things, a 2007 Maserati Quattroporte and a fur coat worth thousands of dollars.

The embezzlement count with which Mays is charged carries a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the scheme, as well as mandatory restitution in the full amount of the loss to JCCDC.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and special agents of the Office of the Inspector General, U.S. Department of Health and Human Services, under the direction of Scott J. Lampert, with the investigation leading to today’s arrest. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance in the investigation.

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

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

Defense counsel: Alexander W. Booth Jr., Union City, New Jersey

NEWARK, N.J. –  Attorney General Loretta Lynch recognized 279 Justice Department employees and 33 individuals, including three people in the District of New Jersey, with Attorney General Awards at a ceremony today in Washington, D.C. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.  

“The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch.  “They have put in long hours, made immense sacrifices, and, in some cases, placed themselves in harm’s way.  They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible.  And their outstanding work is an inspiration to public servants everywhere.”

In the District of New Jersey, the following individuals were recognized for the following award: Assistant U.S. Attorneys Leticia Vandehaar and David Feder and Auditor Barbara Radey received the Attorney General’s Award for Distinguished Service in connection with their work on the Department of Justice’s historic settlement with Bank of America regarding fraud in the sale of residential mortgage backed securities (RMBS) by BofA subsidiary Merrill Lynch.

“Merrill Lynch continued to buy and package mortgage loans in the run-up to the financial crisis, selling them off in securities, knowing full well that a substantial number of those loans were defective,” U.S. Attorney Paul J. Fishman said. “The tireless work of Leticia, David and Barbara as part of the RMBS Working Group led to a record-breaking settlement, which included the resolution of our office’s imminent multibillion-dollar suit.”

As part of the RMBS Working Group, AUSAs Vandehaar and Feder, with the assistance of Radey, conducted a Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) investigation into misrepresentations made by Merrill Lynch to investors in 72 RMBS throughout 2006 and 2007. The investigation revealed that Merrill Lynch regularly told investors the loans it was securitizing were made to borrowers who were likely and able to repay their debts.  Merrill Lynch made these representations even though it knew, based on the due diligence it had performed on samples of the loans, that a significant number of those loans had material underwriting and compliance defects – including as many as 55 percent in a single pool.  Merrill Lynch rarely reviewed the unsampled loans to ensure that the defects observed in the samples were not present throughout the remainder of the pools.  Merrill Lynch also disregarded its own due diligence and securitized loans that the due diligence vendors had identified as defective.

As a result of the District of New Jersey’s investigation of Merrill Lynch and other investigations conducted by Working Group members across the country, BofA agreed in August 2014 to a $16.65 billion global settlement – at that time, the largest civil settlement with a single entity in American history – to resolve federal and state claims against BofA and its former and current subsidiaries, including Merrill Lynch and Countrywide Financial Corporation.  As part of this global resolution, the bank agreed to pay a $5 billion penalty – the largest FIRREA penalty ever – and provide billions of dollars of relief to struggling homeowners.

Vandehaar, Feder, and Radey share this award with the other Working Group members who investigated cases resolved by the global settlement with BofA, as well as those who investigated cases resolved in a similar settlement between the Department of Justice and Citibank.

 

NEWARK, N.J. – A Hardyston, New Jersey, man was charged today with exchanging images of child sexual abuse with an offender living in Maryland, U.S. Attorney Paul J. Fishman announced.

Marshall M. Cohen, 48, is charged by complaint with one count of distributing images of child sexual abuse. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and remains in federal custody.

According to the complaint:

In December 2014, a law enforcement investigation revealed than an individual living in Maryland (the “Maryland Offender”) produced images of child sexual abuse depicting a two-year old girl to whom he was believed to have had access. The Maryland Offender disseminated the images to Cohen in exchange for other images of child sexual abuse in Cohen’s possession. Today, law enforcement officers executed a search warrant at Cohen’s Hardyston address where he allegedly admitted receiving and sending images of child sexual abuse.                 

The child pornography distribution charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, as well as the New Jersey Regional Computer Forensics Laboratory, the Sussex County Prosecutor’s Office and the Hardyston Police Department with the investigation leading to the charge.

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

NEWARK, N.J. – A Newark federal grand jury today indicted two Essex County men for their respective roles in a scheme that allegedly defrauded credit card companies of hundreds of thousands of dollars, U.S. Attorney Paul Fishman announced.

Richard Adebayo, 38, of East Orange, New Jersey, and Amos Peter Agbajaife, 37, of Newark, are each charged with one count of conspiracy to commit wire fraud, eight counts of wire fraud, and one count of aggravated identity theft. They were originally charged by complaint on Sept. 16, 2014. Adebayo was arrested in 2014 and Agbajaife remains at large.

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

From March 2014 to April 2014, Adebayo and Agbajaife fraudulently obtained personal identifying information, including dates of birth, Social Security numbers, and passwords, of credit card holders. They used the information to fraudulently obtain replacement credit cards in the victims’ names and then used the cards to purchase high-value items from retail stores.

Adebayo was carrying a laptop computer when he was arrested. A forensic analysis of the computer allegedly revealed the stolen identities, including names, Social Security numbers, dates of birth, addresses, bank account information, and credit card information of at least 70 victims.  Law enforcement confirmed that approximately $350,000 in fraudulent charges was incurred on the credit cards of the victims.

Each count of wire fraud and conspiracy to commit wire fraud carries a maximum potential penalty of 30 years in prison and a fine of up to $1 million. The count of aggravated identity theft carries a mandatory term of two years in prison, which must run consecutively to any term of imprisonment imposed for other counts of the indictment

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg and Special Assistant U.S. Attorney Erica Liu of the U.S. Attorney’s Office General Crimes Unit in Newark.

Defense counsel for Adebayo: Michael D’Alessio Esq., West Orange, New Jersey

NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to five years of probation for conspiring to traffic turtle species designated as threatened under New Jersey state law, U.S. Attorney Paul J. Fishman announced.

Patrick Elfers, 48, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to violate the Lacey Act, which prohibits the interstate sale of wildlife with a market value of more $350 that has been taken or possessed in violation of any state law or regulation. Judge Chesler imposed the sentence today in Newark federal court.

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

New Jersey’s Endangered and Nongame Species Act prohibits the taking, possession, transportation, exportation or sale of spotted turtles, North American wood turtles and Eastern box turtles, among other species. New Jersey has designated the North American wood turtle as threatened because it is a vulnerable species that could become endangered. The spotted turtle and Eastern box turtle are listed as species of special concern.

Elfers admitted that, from December 2011 through March 2014, he possessed various turtle species, including spotted turtles, North American wood turtles and Eastern box turtles, at his home in Jersey City without the required permits under New Jersey State law. He advertised the turtles on wildlife trade websites to prospective purchasers in New Jersey and elsewhere. Elfers also shipped turtles to purchasers in New York State by tying them in tube socks to restrict their movement and packing them in boxes that were neither designed nor appropriate for the shipment of live animals.

As part of his probationary term, Elfers is prohibited from residing with wildlife of any kind and his computer will be monitored for any online wildlife trade activity. Judge Chesler also fined Elfers $30,450 for the care and housing of the 40 turtles Elfers forfeited as part of his plea agreement. The mandatory forfeiture included 27 Eastern box turtles, one Florida box turtle, three three-toed box turtles, five Gulf Coast box turtles and four North American wood turtles.

U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction Resident Special Agent in Charge Preston Fant, with the investigation leading to today’s sentencing.

The Government is represented by Assistant United States Attorney Kathleen P. O'Leary of the U.S. Attorney's Office Health Care and Government Fraud Unit in Newark.

Defense counsel:  James R. Lisa Esq., Newark                                                                                                                    

NEWARK, N.J. – A Philadelphia man was sentenced today to 126 months in prison for trying to deliver 1.7 kilograms of pure methamphetamine in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced.

Aaron Vega-Castelo, 29, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine. Judge Arleo imposed the sentence today in Newark federal court.

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

On Dec. 11, 2013, Vega-Castelo was stopped while driving a blue Jeep on the New Jersey Turnpike in Elizabeth. Law enforcement found four plastic food storage-style containers of methamphetamine hydrochloride and two shoeboxes containing approximately $110,000 in cash in the back seat area of his vehicle. Vega-Castelo admitted that at the time he was stopped by law enforcement, he was on his way to deliver the drugs and cash to other individuals near an Ikea in Elizabeth.

DEA testing of the seized methamphetamine revealed that it had a net weight of 1.79 kilograms and substance purity of 95.1 percent, which results in 1.7 kilograms of pure methamphetamine hydrochloride.

In addition to the prison term, Judge Arleo sentenced Vega-Castelo to five years of supervised release.

U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the Narcotics and Organized Crime Drug Enforcement Task Force Unit in Newark.

Defense counsel: Eric M. Mark Esq., Newark, New Jersey

NEWARK, N.J. – A disbarred New York attorney was indicted for allegedly engaging in a real estate investment fraud conspiracy that defrauded more than 15 victims of $5 million from 2009 to the present, U.S. Attorney Paul J. Fishman announced today.

Pasquale Stiso, a/k/a “Pat Stiso,” 54, of New Rochelle, New York, is charged by indictment with one count of conspiracy to commit wire fraud, seven substantive counts of wire fraud, and three counts of money laundering. The indictment was returned Oct. 14, 2015, by a federal grand jury sitting in Newark. Co-defendant Paul Mancuso previously pleaded guilty in federal court to conspiring with Stiso to commit wire fraud.

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

From 2009 through the present, Mancuso held himself out as an investor, broker, and developer of various purported investments. Mancuso obtained from his victims substantial investments for various projects that, in fact, either did not exist at all or in which Mancuso had no actual involvement. Stiso held himself out as an individual who was working with Mancuso on various purported projects. Many of the victims of Stiso and Mancuso’s schemes lost all or substantially all of the money they invested with Mancuso and Stiso. Many lost all or most of their life savings in the various schemes to defraud.

Stiso and Mancuso falsely represented to some victims that they would purchase event tickets, such as tickets to sporting events and concerts, at a lower or wholesale rate, and then resell them to members of the public at an inflated rate, creating profits for their investors. In reality, Stiso and Mancuso did not buy tickets with their victims’ money.

In one of the real estate schemes, Stiso and Mancuso falsely represented to victims that they were investors in a real estate development project in Valley Cottage, New York, and that investor money would be used to purchase an interest in real property. The real property interest would then be resold at an increased price, creating profits for their investors. In reality, Stiso and Mancuso did not invest in any such real estate project with their victims’ money. Instead, they engaged in monetary transactions designed to funnel, and in many instances launder, the victims’ investments for their own benefit, including to pay illegal gambling debts. Stiso and Mancuso were heavily involved in illegal gambling pursuits and they both owed substantial sums of money to one of their bookmakers.

The charge of wire fraud conspiracy and the substantive counts of wire fraud each carry a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Each money laundering count carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s indictment.

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

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

Defense counsel: Henry E. Klingeman Esq., Newark

TRENTON, N.J. – A former international legal advisor and New York-licensed attorney was sentenced today to 72 months in prison for using a sham accounting firm to defraud a foreign nation of more than $3.5 million, U.S. Attorney Paul J. Fishman announced.

Bobby Boye, a/k/a “Bobby Ajiboye,” a/k/a “Bobby Aji-Boye,” 52, of Mahwah, New Jersey, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit wire fraud. Judge Wolfson imposed the sentence today in Trenton federal court.

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

As part of his employment as an international legal advisor for the victim nation, which is referred to in the information as “Country A,” Boye served on a committee responsible for reviewing and evaluating bids, solicited in February 2012, for a multimillion-dollar contract to provide legal and tax accounting advice to Country A.  In order to secure the lucrative contract for himself, Boye created a sham New York law and accounting firm called Opus & Best Law Services LLC (Opus & Best) that, unbeknownst to Country A, was secretly controlled by Boye.

In March 2012, Boye caused Opus & Best to submit by email a bid for the contract with Country A.  The bid documents contained multiple, material misrepresentations and omissions, including:  (1) a false claim that Opus & Best was founded in 1985 and was registered as a legal and accounting services provider in Europe, the Middle East and Africa; (2) a fraudulent listing of several purported employees of Opus & Best; and (3) a reference to prior consulting work purportedly performed by Opus & Best for another foreign country. In reality, Boye created Opus & Best for the purpose of submitting the fraudulent bid documents. Opus & Best employed no one other than Boye, let alone the professionals identified in the bid, and had never provided consulting services to the foreign country listed as a reference. The bid documents failed to disclose that Boye’s affiliation with Opus & Best created a conflict of interest and rendered him a third-party beneficiary of the proposed contract.

Unaware that Opus & Best was a sham firm secretly controlled by Boye, and relying on the recommendation of Boye, Country A awarded the contract to Opus & Best in June 2012.  Under the terms of the consulting contract, Boye was one of the two project coordinators acting on behalf of Country A and had authority to receive and approve invoices for payment.

Between June 2012 and December 2012, Country A wired more than $3.5 million to Opus & Best’s New York business checking account, which was controlled by Boye. He used a substantial part of the money to purchase four properties in New Jersey for more than $1.5 million in cash, three luxury vehicles (a 2012 Bentley for $172,000, a 2012 Range Rover for $100,983, and a 2011 Rolls Royce for $215,000), and two designer watches for almost $20,000.

In addition to the prison term, Judge Wolfson ordered Boye to serve three years of supervised release and pay $3,510,000 in restitution.

U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office in Woodland Park, New Jersey, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark and Assistant U.S. Attorney Barbara Ward of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov

Defense counsel:  K. Anthony Thomas, Assistant Federal Public Defender, Newark

Defendant Operated Army of More Than 13,000 Infected Computers and Administered Two Criminal Online Forums for Computer Hackers

NEWARK, N.J. – A Ukrainian citizen is scheduled to appear in Newark federal court today after being extradited from Italy to face charges that he participated in an international conspiracy to hack into the computer networks of individual users and corporations to steal log-in credentials and payment card data, U.S. Attorney Paul J. Fishman announced.

Sergey Vovnenko, a/k/a “Sergey Vovnencko,” “Tomas Rimkis,” “Flycracker,” “Flyck,” “Fly,” “Centurion,” “MUXACC1,”  “Stranier,” and “Darklife,” 29, most recently of Naples, Italy, is charged by indictment with one count of wire fraud conspiracy, one count of unauthorized computer access, and four counts of aggravated identity theft. Vovnenko will appear today before U.S. Magistrate Judge Mark Falk. An arraignment has been scheduled for 2:00 p.m., Oct. 19, 2015, before U.S. District Judge Esther Salas in Newark federal court.

Vovnenko was arrested on June 13, 2014, following an international investigation led by the U.S. Secret Service in coordination with Italian law enforcement. He had been detained by the Italian authorities pending the resolution of extradition proceedings, which he contested for more than 15 months.

“As described in the indictment, Vovnenko commandeered thousands of computers to create a virtual army of hacked computers that he and his conspirators used to break into other networks and steal valuable information,” U.S. Attorney Fishman said. “Thanks to the work of our law enforcement partners here and in Italy, he is now in America to answer for his alleged crimes.”

“Over the course of our 150-year history, the Secret Service has evolved into an agency recognized worldwide for its investigative expertise and innovative approaches in detecting, investigating and protecting our nation’s critical financial infrastructure,” Secret Service Director Joseph P. Clancy said. “This case demonstrates the continued commitment of our cyber investigators and showcases the successful results of partnering with our international law enforcement colleagues. Our investigative reach will continue to expand beyond geographical borders despite the perceived anonymity these cybercriminals mistakenly think they enjoy.” 

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

From September 2010 through August 2012, Vovnenko and his conspirators operated an international criminal organization that hacked into the computers of individual users and companies located in the United States and elsewhere. They used that access to steal data, including, user names and passwords for bank accounts and other online services, as well as debit and credit card numbers and related personal identifying information.

To steal this data, Vovnenko operated a “botnet” – more than 13,000 computers infected with malicious computer software – programmed to gain unauthorized access to computers and to identify, store, and export information from hacked computers. A number of the infected computers were located in New Jersey. After stealing this data, Vovnenko and his conspirators used that information to illegally access and withdraw money from bank accounts and to incur unauthorized charges.

Vovnenko was also a high-level administrator of several online criminal forums and used his position to traffic in the data he stole as part of the conspiracy. These forums featured electronic bulletin boards, which members used to publicly communicate with all members and also send private messages directly to individual members. The public and private discussions on these forums typically pertained to criminal activity, including the purchase, sale, and use of stolen log-in credentials and payment card data, as well as discussions related to cybercrime activity such as malicious computer hacking. For example, in August 2012, one of the forums offered various illicit products for sale, including access to compromised computer servers located in the United States. A price was listed for each product, and customers could click an “order” button and purchase the product using “credits” associated with their accounts.

The maximum potential penalties for each count are as follows:

 

Count

Violation

Maximum Penalty

1

Wire Fraud Conspiracy

30 years in prison and a fine of the greater of $1 million or twice the gain or loss from the offense

2

Unauthorized Computer Access

Five years in prison and a fine of the greater of $250,000 or twice the gain or loss from the offense

3-6

Aggravated Identity Theft

Mandatory two years (consecutive to any other imposed sentence) in prison and a fine of the greater of $250,000 or twice the gain or loss from the offense

 

U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Joseph P. Clancy, and special agents from the Newark Division, under the direction of Special Agent in Charge Carl Agnelli, with the ongoing investigation leading to today’s charges.

He also thanked the Department’s Office of International Affairs in Washington and its attaché in Rome; the Office of the U.S. Ambassador to the Italian Republic and the Republic of San Marino, John R. Phillips; and the Italian Ministry of Justice and Italian law enforcement officials for their extraordinary support.

 The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit.

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

CAMDEN, N.J. – The owners of a marketing and sales company admitted paying thousands of dollars in cash bribes to a New Jersey physician in return for patient referrals to their clients, U.S. Attorney Paul J. Fishman announced.

Daniel Gilman, 62, of Ocean Grove, New Jersey, and Kenneth Robberson, 46, of Wall, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to separate informations charging them each with one count of conspiracy to pay kickbacks.

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

Gilman and Robberson were principles of Promed Practice Consultants LLC (“Promed”), a company specializing in marketing and sales services for testing laboratories. As identified in the information, “Company 1,” a blood testing laboratory, and “Company 2,” a DNA testing laboratory, were two of Promed’s clients. Gilman and Robberson received monthly commission checks from Company 1 and Company 2 for referrals, which were equal to 10 percent of the reimbursements paid to the companies by various payors, including Medicare.

From March 2014 through May 2015, Gilman and Robberson paid a physician, identified in the information as “CC-1,” thousands of dollars in return for patient lab referrals to Company 1 and Company 2. After receiving the commission checks from Company 1 and Company 2, Gilman and Robberson would identify CC-1’s patient referrals to those companies and pay CC-1 corresponding kickbacks in cash. Altogether, Gilman and Robberson paid CC-1 approximately $25,000 in cash bribes.

Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.

The kickback conspiracy charge to which Gilman and Robberson pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 11, 2016.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s pleas.

The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million 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:       

Gilman: Vincent C. Scoca Esq., Bloomfield, New Jersey

Robberson: Edward J. Dimon Esq., Toms River      

CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 240 months in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.

Gerrett Conover, 50, of Woolwich Township, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count Three of the indictment against him, distribution of child pornography. Judge Hillman imposed the sentence today in Camden federal court. Conover has been in custody since his arrest.

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

On Sept. 16, 2012, Conover was intercepted at the United States border on his way from Canada into New York and was found in possession of a laptop containing images of sexually exploited children. Agents obtained a search warrant for Conover’s home in Woolwich Township and seized various computers and other media containing additional images of child sexual abuse. The search also uncovered materials allegedly establishing Conover’s involvement in the Boy Scouts between 1990 and 2000.

At his guilty plea proceeding, Conover admitted that he knowingly distributed images of children engaged in sexually explicit conduct.

In addition to the prison term, Judge Hillman sentenced Conover to lifetime supervised release.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation. He also thanked HSI Offices in Boston; Messina, New York; Los Angeles; and San Bernardino, California; as well as Customs and Border Protection in Ogdensburg, New York, for their roles.

The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: Jerome Brown Esq., Philadelphia

CAMDEN, N.J. – A Camden man was sentenced today to 168 months in prison for his role in a conspiracy to sell 22 guns without a license, U.S. Attorney Paul J. Fishman announced.

Marcus Rutling, a/k/a “Fresh,” 33, of Camden, and Saluda, South Carolina, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.

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

Between April 8, 2013, and July 28, 2014, Marcus Rutling and his brother, Joseph Rutling, 24, of Camden, conspired with others to illegally sell firearms without a license, including handguns, shotguns and an assault rifle. They obtained the firearms from pawn shops, gun stores and other sources in South Carolina and brought them to New Jersey, at times using Amtrak trains to transport the guns. Marcus Rutling personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Joseph Rutling personally sold or participated in the sale of at least 15 firearms, including handguns, shotguns and an assault rifle, also to an ATF cooperating witness. On at least five occasions, Joseph Rutling sold ammunition with the firearms.

In addition to the prison term, Judge Bumb sentenced Marcus Rutling to three years of supervised release. Joseph Rutling also pleaded guilty to his role in the conspiracy and is scheduled for sentencing on Oct. 30, 2015.

U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon, New Jersey, police departments, for their work in the case.

The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.

Defense counsel: Justin Loughry Esq., Camden

NEWARK, N.J. – The owner of a company that sold maintenance and cleaning supplies was sentenced today to 31 months in prison for paying bribes to a Union County official and to defrauding the county of more than $120,000 in connection with the purchases, U.S. Attorney Paul J. Fishman announced.

Richard Greer, 56, of Marlboro, New Jersey, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging one count of conspiracy to commit mail fraud. Judge Walls imposed the sentence today in Newark federal court.

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

From 2006 to 2011, Greer owned and operated Positive Attitude LLC, a commercial vendor that sold, among other products, maintenance and cleaning supplies to Union County. Aniello Palmieri, 59, of Toms River, New Jersey, was the director of the Division of Facilities Management for Union County and oversaw the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various bureaus of the division.

Greer made cash bribe payments to Palmieri of $500 per month in exchange for ensuring continued Union County business for Positive Attitude. Greer generated fictitious invoices to Union County for many industrial cleaning products to cover the monies paid to Palmieri, often including a profit for himself above the kickback he paid to Palmieri. Positive Attitude received $120,000 to $200,000 in fraudulent proceeds from the fictitious invoices. Greer used the mails to facilitate this scheme by having Union County send the checks in payment for these purchases to his company in Marlboro.

In addition to the prison term, Judge Walls sentenced Greer to three years of supervised release and ordered restitution of $185,000.

On Oct. 2, 2013, Palmieri and Frank Donald Vicendes III, 50, of Berkeley Heights, a Union County vendor, admitted to engaging in a similar bribery scheme and to defrauding Union County of more than $120,000 in connection with sale of supplies to Union County. Palmieri and Vicendes entered their guilty pleas to mail fraud before Judge Walls in Newark federal court. Palmieri was sentenced Oct. 6, 2015, to 70 months in prison. Vicendes is scheduled to be sentenced Oct. 21, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to today’s sentencing. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John J. Hoffman and Elie Honig, director of the N.J. Division of Criminal Justice, for their work in this investigation.

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

Defense counsel: Marc A. Agnifilo Esq., New York

NEWARK, N.J. – A Kissimmee, Florida, man today admitted preparing fraudulent income tax returns for himself and his clients, resulting in tax losses of over $320,000, U.S. Attorney Paul J. Fishman announced.

Sixto Rodriguez, 52, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count 1 and Count 6 of a second superseding indictment charging him with filing a false tax return on behalf of himself for tax year 2007 and aiding and assisting in the filing of a false and fraudulent tax return on behalf of another for tax year 2009.

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

From 2007 through 2012, Rodriguez operated a tax preparation business in Teaneck, New Jersey, by the name of 1-2-3 Taxes. Rodriguez personally met with clients, prepared their individual income tax returns and filed the returns with the IRS.

Rodriguez admitted to inflating education credits, charitable donations, unreimbursed business expenses and rental losses that he knew his clients had not actually incurred. Rodriguez also admitted reporting only $1,600 of the $237,179 his business made in 2007. Altogether, Rodriguez caused tax losses of $321,061.

Both the false filing charges to which Rodriguez pleaded guilty carry a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 8, 2016.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorneys Daniel Shapiro and David M. Eskew of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Miles Feinstein Esq., Clifton, New Jersey

NEWARK, N.J. – The former Director of the Division of Facilities Management for Union County, New Jersey, was sentenced today to 70 months in prison for his role in defrauding the county of more than $120,000 in connection with the purchasing of supplies, U.S. Attorney Paul J. Fishman announced.

Aniello Palmieri, 59, 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 honest services mail fraud. Judge Walls imposed the sentence today in Newark federal court.

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

From January 2006 to September 2010, Palmieri was the Director of the Division of Facilities Management for Union County, overseeing the purchasing of building materials, tools, hardware, janitorial supplies and other supplies used by the various Bureaus of the Division of Facilities Management.

During the same time period, his codefendant, Frank Donald Vicendese, III, 50, of Berkeley Heights, New Jersey, owned and operated Viva Group LLC, a commercial maintenance and construction business that sold, among other products, hardware, tools and accessories to counties in New Jersey.

Vicendese generated fictitious invoices to Union County through Palmieri for many hardware items. Palmieri then provided county payment vouchers to Vicendese, who signed and returned the vouchers to Palmieri. Palmieri approved the vouchers for payment by falsely verifying that the products were received by Union County, when in fact, the products were not received. Vicendese then compensated Palmieri with cash, gift cards and valuable items, including a Bowflex physical fitness machine, Panasonic Hard Drive Camcorder, and a Canon PowerShot Digital Camera, in exchange for Palmieri’s official action and assistance in the scheme. Viva Group received between $120,000 and $200,000 in fraudulent proceeds from the fictitious invoices.

In addition to the prison term, Judge Walls sentenced Palmieri to three years of supervised release. Vicendese, who pleaded guilty in October 2013, is scheduled to be sentenced on Oct. 21, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent, with the investigation leading to today’s sentencing. He also thanked the N.J. Attorney General’s Office under the direction of Acting Attorney General John J. Hoffman, and Eli Honig, Director of the New Jersey Division of Criminal Justice, for their work in this investigation.

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

Defense counsel:

Palmieri: Anthony Iacullo Esq., Nutley, New Jersey

Vicendese: John P. McDonald Esq., Somerset, New Jersey

A Filipino national today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Paul J. Fishman of the District of New Jersey, Special Agent in Charge George P. Belsky of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Newark Field Division and Acting Special Agent in Charge Kevin Kelly of the U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Newark Field Office made the announcement.

Kirby Santos, 38, of the Republic of the Philippines, pleaded guilty before U.S. District Judge Noel L. Hillman of the District of New Jersey to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.

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

Santos admitted that from 2008 through October 2013, he and co-conspirators he met in the Philippines or through an online forum agreed to ship firearms parts from the United States to the Philippines.  Santos and others used credit cards and other forms of payment to purchase firearms parts from suppliers in the United States.  Knowing that they would not ship to the Philippines, Santos arranged for the suppliers to send the firearms parts to the addresses of conspirators in Toms River, New Jersey, and Lynwood, Washington, in order to make the purchases appear to be domestic sales.

At the direction of Santos, the co-conspirators, including Abelardo Delmundo, 53, of Toms River, would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos.  To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items.  Upon receiving the firearms parts, Santos paid Delmundo and other conspirators in the form of cash or wire transfers to others at their direction.

During the course of the nearly five-year long conspiracy, Santos and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.

Santos made his initial appearance in federal court on April 22, 2015, after being charged by criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.  Santos was arrested in Guam on March 31, 2015, by special agents of ICE-HSI and ATF.

The conspiracy charge to which Santos pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.  Sentencing is scheduled for Jan. 20, 2016.

Delmundo pleaded guilty to his role in the conspiracy on Apr. 30, 2015, and sentencing is scheduled for Dec. 10, 2015.

The case was investigated by ICE-HSI and ATF.  The case is being prosecuted by Assistant U.S. Attorney Matthew T. Smith of the District of New Jersey and Trial Attorney Nathan M. F. Charles of the National Security Division’s Counterintelligence and Export Control Section.

Santos Plea Agreement

CAMDEN, N.J. – A Filipino national today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, U.S. Attorney Paul J. Fishman announced.

Kirby Santos, 38, of the Republic of the Philippines, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.

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

Santos admitted that from 2008 through October 2013, he and conspirators he met in the Philippines or through an online forum agreed to ship firearms parts from the United States to the Philippines. Santos and others used credit cards and other forms of payment to purchase firearms parts from suppliers in the United States. Knowing that they would not ship to the Philippines, Santos arranged for the suppliers to send the firearms parts to the addresses of conspirators in Toms River, New Jersey, and Lynwood, Washington, in order to make the purchases appear as domestic sales.

At the direction of Santos, the conspirators, including Abelardo Delmundo, 53, of Toms River, New Jersey, would then repackage the firearms parts, falsely label the contents of the package and export the firearms parts to the Philippines for ultimate delivery to Santos. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, Santos paid Delmundo and other conspirators in the form of cash or wire transfers to others at their direction.

During the course of the nearly five-year long conspiracy, Santos and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to the Philippines without the required export license.

Santos made his initial appearance in federal court on April 22, 2015, after being charged by criminal complaint with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.  Santos was arrested in Guam on March 31, 2015, by special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

Delmundo pleaded guilty to his role in the conspiracy on Apr. 30, 2015 and is scheduled for sentencing on Dec. 10, 2015.

The conspiracy charge to which Santos pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 20, 2016.

The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State and is one of the principal export control laws in the United States.

U.S. Attorney Fishman credited special agents of DHS-HSI Cherry Hill, New Jersey, under the direction of Acting Special Agent in Charge Kevin Kelly, and ATF special agents, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden and Trial Attorney Nathan M. F. Charles of the National Security Division’s Counterintelligence and Export Control Section.

Defense counsel: Timothy Anderson Esq., Red Bank, New Jersey

CAMDEN, N.J. - Two Philadelphia men today admitted their roles in a conspiracy to extort victims to load prepaid debit cards with funds that were stolen as part of the scheme, U.S. Attorney Paul J. Fishman announced.

Alpeshkumar Patel, 31, and Vijaykumar Patel, 40, each pleaded guilty before U.S. District Judge Renée Marie Bumb to separate informations charging them with conspiracy to commit wire fraud. 

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

Alpeshkumar Patel and Vijaykumar Patel admitted that from September 2013 through March 2014, they were part of a conspiracy to steal money using reloadable debit cards. First, conspirators would purchase reloadable Green Dot Cards, and register them in names other than their own. The conspirators contacted victims by phone and used threats or deceit to induce them to put money on MoneyPak cards, which are used along with assigned PIN codes to add funds to Green Dot Cards.

Alpeshkumar Patel and Vijaykumar Patel admitted that they obtained the Green Dot Cards and used them to purchase money orders. Afterwards, they deposited the funds into bank accounts associated with the scheme.

Phone numbers and IP addresses connected with the conspiracy were tied to approximately 2,500 Green Dot Cards that were funded in excess of $5.8 million.

The conspiracy to commit wire fraud charge to which Alpeshkumar Patel and Vijaykumar Patel pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for both defendants is scheduled for Jan. 15, 2016.

U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the Joint Terrorism Task Force, under the direction of FBI Special Agent in Charge Richard M. Frankel in Newark, and FBI Special Agent in Charge William F. Sweeney Jr. in Philadelphia, as well as special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly in Newark, with the investigation leading to today’s pleas.

The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense Counsel:

Alpeshkumar Patel: Alyssa A. Cimino Esq., Fairfield, New Jersey

Vijaykumar Patel: James A. Plaisted Esq., Roseland, New Jersey

NEWARK, N.J. – Two members of the Grape Street Crips gang admitted their roles in a two-year conspiracy to distribute crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced today.

Monesha Johnson, a/k/a “Smoove,” 35, of Newark, New Jersey, pleaded guilty today before U.S. District Judge Jose Linares in Newark federal court to an information charging her with one count of conspiring to distribute crack-cocaine. Willie Brooks, a/k/a “Animal,” 24, also of Newark, pleaded guilty yesterday before Judge Linares to a separate information charging him with one count of conspiring to distribute crack-cocaine.

In May 2015, over the course of three weeks, 50 alleged members and associates of the Grape Street Crips were charged in criminal complaints that alleged drug-trafficking, physical assaults and witness intimidation. The charges are the result of a long-running investigation led by the DEA and FBI, in conjunction with the Essex County Prosecutor’s Office, the Newark Police Department and Essex County Sheriff’s Office Bureau of Narcotics. Over the course of the entire investigation, 71 defendants have been charged with federal and state charges.

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

Johnson and Brooks both admitted that between May 2013 and May 4, 2015, they conspired with others to distribute 28 grams of crack-cocaine in and around the area of 6th Avenue and North 5th Street, in Newark.

The drug distribution conspiracy charge to which Johnson and Brooks pleaded guilty carries a statutory minimum of five years in prison and maximum potential penalty of 40 years in prison. Sentencing for Johnson and Brooks is scheduled for Jan. 15, 2016 and Dec. 15, 2015, respectively.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski, and special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, for the investigation leading to the pleas. 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 Director Eugene Venable and Chief Anthony Campos; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their work.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto, Elizabeth M. Harris, 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:

Johnson: Timothy Anderson Esq., Red Bank, New Jersey

Brooks: John P. McDonald Esq., Somerville, New Jersey

NEWARK, N.J. – After spending 16 years as a fugitive from justice, a man was sentenced today to 96 months in prison for his role in a conspiracy to launder almost $700,000 in illegal drug proceeds, U.S. Attorney Paul J. Fishman announced.

Reinaldo Jimenez, 49, most recently of Madrid, Spain, was previously convicted at trial by a federal jury in 1998 of one count of conspiracy to commit money laundering. Jimenez fled the country before his sentencing and lived abroad as a fugitive for 16 years. He was captured in California in 2014. U.S. District Judge Jose L. Linares imposed the sentence today in Newark federal court.

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

From October 1996 through March 14, 1997, Jimenez knowingly laundered nearly $700,000 in drug proceeds collected by co-defendants in New Jersey and elsewhere. Jimenez took possession of the cash in $15,000 bundles wrapped in newspaper and scotch tape and then made numerous small deposits into personal, family and business accounts to avoid triggering mandatory reporting requirements. Jimenez then wired the laundered funds to cartel contacts in Columbia and Venezuela.

In addition to the prison term, Judge Linares sentenced Jimenez to three years of supervised release.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office, General Crimes Unit, in Newark.

Defense counsel: Assistant Public Defender K. Anthony Thomas Esq., Newark

NEWARK, N.J. – A Florida man was sentenced today to 76 months in prison for his participation in a drug distribution conspiracy operating out of a residential housing complex in East Orange, New Jersey, U.S. Attorney Paul J. Fishman announced.

Rafael José Santiago-Soto, 30, previously pleaded guilty before U.S. District Judge Esther Salas to conspiring to distribute methylone, a Schedule I controlled substance. Judge Salas imposed the sentence today in Newark federal court.

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

Santiago-Soto participated in a drug distribution conspiracy that spanned several months from 2012 through 2013. In March 2013, the Drug Enforcement Administration (DEA) conducted an investigation resulting in the seizure of more than six kilograms of methylone from an apartment leased by Santiago-Soto, which was being operated as a drug packaging mill.   

In addition to the prison term, Judge Salas sentenced Santiago-Soto to three years of supervised release. 

U.S. Attorney Fishman praised special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to today’s sentencing.

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

Defense counsel: Jason Foy Esq., Hackensack, New Jersey  

NEWARK, N.J. – A Brooklyn, New York, man was sentenced today to 188 months in prison for using the internet to contact minors to get them to engage in criminal sexual conduct and for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced. 

Alexander Nayda, 26, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct and one count of possession of child pornography.

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

Nayda admitted at his plea hearing that between August 2013 and February 2014 he used the internet to induce a 14-year-old girl to engage in criminal sexual conduct, including having intercourse with Nayda on multiple occasions and taking pictures of her genitals for him. Nayda also admitted to enticing seven or eight other underage girls located in several different states to have sexual intercourse with him. In at least one instance, the victim stated that Nayda refused to stop the sexual act when she objected to his advances. Nayda also admitted to using online chat applications to get multiple girls to self-produce images and videos of child sexual abuse to send to him. In one instance, Nayda chatted online with an individual whom he believed to be an 11-year-old girl. Nayda attempted, on multiple occasions, to meet with the 11-year-old for sexual contact. When the girl stated that she wasn’t allowed out after dark, Nayda responded, “How does 3:30 sound?” Nayda also asked many of his victims if they could introduce him to even younger children.

In addition to the prison term, Judge Hayden sentenced Nayda to lifetime supervised release. As part of his guilty plea, Nayda must forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit.

Defense counsel: Tony Mirvis Esq. Brooklyn, New York

CAMDEN, N.J. – Two Camden men were sentenced to prison in connection with their roles as set workers in a large-scale drug trafficking organization (DTO) that distributed cocaine base, cocaine, and/or heroin, U.S. Attorney Paul J. Fishman announced today.

Marqueis Thomas Randall, a/k/a “Marty,” 23, was sentenced to 100 months in prison; Elquinzie Lewis, 23, was sentenced Sept. 29, 2015, to 48 months in prison. Randall previously pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court 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 and 100 grams or more of heroin, and one count of being a previously convicted felon in possession of a firearm. Lewis previously pleaded guilty before Judge Kugler to a superseding information charging him with using a communications facility to further a drug trafficking crime.

In April 2013, seven alleged members of the drug trafficking organization were charged by criminal complaint with conspiring to distribute cocaine base, cocaine, and heroin. The five remaining defendants are scheduled for trial on Jan. 11, 2016.

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

The organization controlled an area that includes the area of Eighth and Tulip Streets, a retail shopping plaza in the 700 block of Morgan Boulevard, and areas within the Crestbury Apartments public housing project, located in the 2500 block of South Eighth Street. The investigation into the organization involved physical surveillance, confidential informants, telephone wiretaps, controlled drug purchases, and record checks. In one recorded conversation from the wiretap, one of the alleged leaders told Lewis: “My thing is loyalty. You rolling with us, you got loyalty. You all right. You rolling with us that mean everybody you see got your back a hundred percent, like that’s what I mean by loyalty. It’s bigger than what’s just going on.”

In addition to the prison term, Judge Kugler sentenced Randall to five years of supervised release and sentenced Lewis to one year of supervised release.

The charges and allegations against the remaining defendants are merely accusations, and the defendants are considered innocent unless and until proven guilty.

The government is represented by Special Assistant U.S. Attorney Erin M. Fay and Assistant U.S. Attorney Jason Richardson of the Camden office.

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 City 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 leading to today’s sentencings. 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 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.

NEWARK, N.J. – U.S. Attorney Paul J. Fishman, in conjunction with the U.S. Department of Justice’s Bureau of Justice Assistance (BJA), today announced a $932,805 grant to the N.J. State Parole Board to help reduce the recidivism of individuals reentering their communities after incarceration.

The funds were awarded as part of the Second Chance Act (SCA) Two-Phase Adult Reentry Demonstration Program, which is designed to help jurisdictions develop and implement collaborative strategies to reduce recidivism for medium to high risk parolees. The $932,805 will support a reentry program for 100 parolees from pre to post-release, with an emphasis on improved housing and supportive services.

In April 2008 the SCA was passed with bipartisan support and was backed by a broad spectrum of leaders in law enforcement, corrections, courts, behavioral health and other areas. The Second Chance Act represents a federal investment in strategies to reduce recidivism and increase public safety, as well as to reduce corrections costs for state and local governments. Since 2009, more than 600 Second Chance Act grant awards have been made to government agencies and nonprofit organizations from 49 states for reentry programs serving adults and juveniles. The Second Chance Act’s grant programs are funded and administered by the U.S. Department of Justice’s Office of Justice Programs.

For additional information about SCA programs, visit https://www.bja.gov/.

TRENTON, N.J. – A San Bernadino, California, man was sentenced today to 72 months in prison for his role in 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.

Anthony J. Brooks, 46, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with conspiracy to distribute heroin. Judge Sheridan imposed the sentence today in Trenton federal court.

In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders, Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Nineteen of the defendants have pleaded guilty.

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

Between November 2013 and March 2014, Brooks shipped through the U.S. Postal Service packages from California containing large quantities of heroin and cocaine to conspirators in New Jersey, including an individual who supplied heroin to the Britt-Young DTO. The conspirators in New Jersey then transported and packaged the narcotics and distributed them to others. Brooks admitted that he shipped more than one kilogram of heroin and 1.5 kilograms of cocaine from California to New Jersey.     

In addition to the prison term, Judge Sheridan sentenced Brooks to serve four years of supervised release.

U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing.

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

Defense Counsel: Ryan Clark Esq., Freehold, New Jersey

NEWARK, N.J. – An Orange, New Jersey, man was sentenced today to 53 months in prison for illegally possessing a firearm and conspiring with others to smuggle contraband, including marijuana and tobacco, into a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.

Muhammad Subpunallah, 34, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with illegal possession of a firearm and to an information charging him with one count of conspiring to smuggle contraband into the Essex County Correctional Facility. Judge Hayden imposed the sentence today in Newark federal court.

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

On Oct. 11, 2011, Subpunallah had a loaded .38 caliber Cobra firearm in his waistband while standing near Broad and Market streets in Newark. He had previously been convicted of robbery in Essex County Superior Court. After Subpunallah was arrested and detained on the illegal possession of a firearm, he engaged in a conspiracy to smuggle contraband into the Essex County Correctional Facility. From September 2013 to February 2014, Subpunallah directed a relative, Vladimir Sauzereseteo, 41, of East Orange, New Jersey, to deliver contraband, including marijuana and tobacco, to Brian Kapalin, 68, of Maplewood, New Jersey, a lawyer, who then smuggled the contraband into the Essex County Correctional Facility in exchange for a cash fee. Subpunallah sent inmates to the attorney visitor room to meet with Kapalin and retrieve the contraband.

In January 2014, Subpunallah spoke with Kapalin over a recorded correctional facility phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. Sauzereseteo was then paid $1,650 via Western Union money transfers, which he used to purchase marijuana that he delivered to Kapalin, along with a cash payment for Kapalin’s service. A few days later, Kapalin met the inmate from the Essex County Correctional Facility in the attorney visitor room and delivered the marijuana.

In addition to the prison term, Judge Hayden sentenced Subpunallah to serve three years of supervised release.

U.S. Attorney Fishman credited officers with the Newark Police Department, under the direction of Director Eugene Venable and Chief Anthony Campos; special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge George P. Belsky; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and investigators with the Internal Affairs Division of the Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s sentencing.

The government is represented by Special Assistant U.S. Attorney Andrew Tyler and Assistant U.S. Attorneys Cari Fais of the Criminal Division, General Crimes Unit; Robert Frazer, of the Organized Crime/Gangs Unit; and Rahul Agarwal of the Special Prosecutions Division, in Newark.

Defense counsel: David Holman Esq., Assistant Federal Public Defender, Newark

Also Admits Failure to Collect More Than $100,000 in Payroll Taxes

TRENTON, N.J. – The head of an engineering consulting firm in Wall Township, New Jersey, today admitted that in order to reduce his payroll costs, he launched a scheme in which several of his employees fraudulently collected unemployment benefits while he paid the remaining portion of their salaries, U.S. Attorney Paul J. Fishman announced.

Lino DeAlmeida Jr., 68, of Point Pleasant, New Jersey, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to defraud the N.J. State Division of Unemployment Insurance (NJUI) and one count of failing to collect Social Security, Medicare, and income payroll taxes.

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

DeAlmeida operated an engineering consulting firm, Consolidated Construction Management Services (CCMS) in Wall Township. In late 2011, DeAlmeida told his four employees that due to financial difficulties, he could not continue paying their salaries. He proposed a scheme in which the employees would claim to have been terminated from CCMS and seek unemployment benefits from the NJUI. In return, he promised to continue to pay them “under the table” for the remaining portion of their salaries that would not be covered by the benefits. Three of the CCMS employees agreed to the scheme and submitted false applications with the NJUI.

DeAlmeida’s employee conspirators received a total of $130,363 in benefits between July 2011 and January 2013 while receiving CCMS checks from DeAlmeida. In addition, DeAlmeida failed to pay payroll taxes of $109,068 on the undisclosed wages of $790,860 he and his conspirators received during the scheme.

The conspiracy to defraud the NJUI charge to which DeAlmeida pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The failure to collect payroll taxes charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 5, 2016.

U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s plea.

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

Defense counsel: Jeffrey D. Smith Esq., Teaneck, New Jersey

NEWARK, N.J. – U.S. Attorney Paul J. Fishman, in conjunction with the U.S. Office of Community Oriented Policing Services (COPS), today announced federal funding awards to four state and city law enforcement agencies in the District of New Jersey that investigate gang activity and heroin distribution through statewide collaboration.

COPS will award over $18 million nationally through the COPS Anti-Gang Initiative (CAGI), the COPS Anti-Heroin Task Force Program (AHTF), and the COPS Anti-Methamphetamine Program, including $2,107,166 for New Jersey law enforcement agencies. The list of this year’s grantees includes:

CAGI Grants:

Agency Name

Award Amount

Essex County Prosecutor’s Office

$594,023

Jersey City

$750,000

New Jersey Department of Law and Public Safety

$659,916

 

AHTF Grants:

Agency Name

Award Amount

New Jersey Department of Law and Public Safety

$103,227

“These grants provide much-needed funding to several important law enforcement initiatives to battle the ongoing problems of gang violence and illegal drug trafficking. Providing our local law enforcement partners with more than $2 million in federal funding specifically targeted to these areas will give them additional tools to push back against the relentless threat of drugs and gangs. These awards are especially important, as they are being used to target gangs that have a nationwide footprint.”

The CAGI provides funds directly to law enforcement agencies with a multijurisdictional partnership composed of federal, state, and local partners. Primary consideration was given to agencies that target gangs of national significance. The AHTF provides funds to agencies that use statewide collaboration to investigate heroin or unlawful prescriptive opioid distribution.

For the entire list of grantees and additional information about the CAGI, the AHTF, and the COPS Anti-Methamphetamine Program, visit the COPS website at www.cops.usdoj.gov.

NEWARK, N.J. – Newark was chosen one of five cities that will join the Department of Justice’s Violence Reduction Network (VRN), a comprehensive approach to reducing violent crime in communities around the country, U.S. Attorney Paul J. Fishman announced.

Newark was added to the program along with Little Rock, Arkansas; West Memphis, Arkansas; Compton, California; and Flint, Michigan. They join the inaugural sites of Detroit; Chicago; Camden, New Jersey; Wilmington, Delaware; and Oakland and Richmond, California.

“The selection of Newark as a VRN city will enable us to build on the success we’ve already achieved in Camden over the past year,” U.S. Attorney Fishman said, “and I'm pleased that my colleagues in Washington appreciate the strength of our federal, state, county, and local partnerships. This program ensures that federal resources are carefully targeted to the areas where they will provide the greatest benefit, allowing us to work with our local partners in ensuring we continue to create safe, thriving communities for all our citizens.”

Today’s announcement was made by Deputy Attorney General Sally Q. Yates and Assistant Attorney General Karol V. Mason of the Office of Justice Programs (OJP) before an audience of U.S. Attorneys, police chiefs, sheriffs, mayors, local leaders from the 10 sites and Department of Justice representatives at the second annual VRN Summit in Detroit, Michigan.

Through the VRN, the Justice Department enlists tactical and operational expertise available from the Bureau of Justice Assistance, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service (USMS), the Drug Enforcement Administration (DEA), the Executive Office of the United States Attorneys, the Community Oriented Policing Services Office and the Office on Violence Against Women.

Deputy Attorney General Yates cited the progress reported by the current VRN sites in their first year. In Camden, for example, the FBI assisted the local police display wanted felons’ information on digital billboards, resulting in the arrest of two felons The ATF helped the Camden County Police Department acquire National Integrated Ballistic Information Network (NIBIN) equipment and training. NIBIN has allowed the county to initiate eTrace, an Internet-based firearms tracing and analysis tracking process to enhance criminal investigations.

In addition to announcing the five new VRN sites, Deputy Attorney General Yates announced Smart Policing grant awards totaling more than $2 million to law enforcement agencies to develop innovative, data-driven approaches to crime.

For more VRN information visit: www.bja.gov/Programs/VRN.html

NEWARK, N.J. – A native of Romania who was arrested in Spain will make his initial court appearance and be arraigned tomorrow following his extradition to face charges that he participated in a large-scale lucrative ATM skimming scheme targeting New Jersey bank customers, U.S. Attorney Paul J. Fishman announced.

Alin Dumitru Carabus, 41, will appear tomorrow afternoon before U.S. Magistrate Judge Leda D. Wettre in Newark federal court. He is charged by indictment with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and possession of 15 or more counterfeit access devices. One of the other individuals charged in the indictment, Robert Mate, was previously apprehended in Spain and extradited to the United States. The third individual charged in the indictment, Ionut Vasile Ciurba-Stana, has been apprehended in Spain, and a request for extradition is pending. 

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

Carabus participated in an extensive scheme to steal bank customer account information, commonly referred to as “ATM skimming,” by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme was organized by Marius Vintila, 33, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and affected thousands of bank customers.

Vintila and Bogdan Radu designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs, and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs. After the account information was stolen, the stolen data was used to create thousands of false and fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.

The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 16 individuals have been charged in connection with this scheme. Twelve have pleaded guilty, and one individual, Dinu Horvat, was convicted after a week-long trial.

Carabus is charged with four counts, as described below, which carry the following maximum penalties and fines:

Count

Offense

Maximum Penalty

Maximum Fine

1

Conspiracy to commit bank fraud

Thirty years in prison

$1 million

2

Aggravated identity theft

Mandatory, consecutive penalty of two years in prison

$250,000, or twice the gross pecuniary gain or loss from the offense

5

Conspiracy to possess 15 or more counterfeit access devices

Five years in prison

$250,000, or twice the gross pecuniary gain or loss from the offense

6

Possession of 15 or more counterfeit access devices

Ten years in prison

$250,000, or twice the gross pecuniary gain or loss from the offense

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Carl Agnelli, along with special agents of U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI) in Newark, under the direction of Acting Special Agent in Charge Kevin Kelly, with the investigation leading to the charges.

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

Defense counsel: Christopher Patella Esq., Bayonne, New Jersey

Settlement Provides Over $27 Million to Ensure Equal Lending Services to Predominantly Black and Hispanic Communities

The Justice Department and Consumer Financial Protection Bureau (CFPB) filed a consent order today to resolve allegations that Hudson City Savings Bank (Hudson City) engaged in a pattern or practice of “redlining” predominantly Black and Hispanic neighborhoods in its residential mortgage lending practices.  “Redlining” is the discriminatory practice by banks or other financial institutions to deny or avoid providing credit services to a consumer because of the racial demographics of the neighborhood in which the consumer lives.  This resolution represents the Justice Department’s largest residential mortgage redlining settlement in its history.  

The settlement, which is subject to court approval, was filed in conjunction with the agencies’ complaint in the U.S. District Court for the District of New Jersey.  The complaint alleges that Hudson City violated the Fair Housing Act and Equal Credit Opportunity Act (ECOA), which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending practices.  Specifically, the complaint alleges that from at least 2009 to 2013, Hudson City failed to serve the credit needs of majority-Black-and-Hispanic neighborhoods throughout its major market areas, including in New Jersey, New York City and its surrounding counties, and the Philadelphia and Bridgeport, Connecticut, metropolitan areas.  Hudson City has agreed to settle this matter without contested litigation. 

“This case should send a message to lenders throughout the country that the Justice Department will not tolerate racial discrimination in the extension of credit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “A lending institution must treat all potential borrowers equally, regardless of their race or the racial composition of their neighborhood, when deciding to offer its loan services.  We encourage all lenders to proactively identify responsible lending opportunities that exist in predominantly minority neighborhoods within their lending areas.”

“Hudson City Savings Bank structured its business operations to systemically avoid providing credit services in predominantly minority neighborhoods,” said U.S. Attorney Paul J. Fishman of the District of New Jersey.  “There is no room for such behavior in our banking system.  In addition to paying $25 million for a loan subsidy program, today’s settlement agreement will require the bank to take a number of concrete steps to ensure that they improve access to responsible and affordable credit to qualified borrowers in Black and Hispanic neighborhoods.”

“We allege that Hudson City's redlining practices illegally cut off opportunities for consumers in predominantly Black and Hispanic neighborhoods to get a mortgage and achieve the dream of homeownership,” said CFPB Director Richard Cordray.  “Without access to affordable credit, neighborhoods deteriorate in the long shadow cast by unfair lending.  Today's action seeks to remove the redline by bringing $27 million in mortgage subsidies and outreach programs, along with new bank branches to the communities who should have had access from the beginning.”

The lawsuit originated from a joint investigation with the CFPB that commenced in March 2015. 

Under the terms of the proposed settlement, Hudson City will invest $25 million in a loan subsidy fund to increase the amount of credit the bank extends to majority-Black-and-Hispanic neighborhoods across its market areas.  In order to make residential mortgage loans available to residents of minority neighborhoods that were not adequately served by Hudson City, the bank will further invest $2.25 million in advertising, outreach, financial education, and community partnership efforts and open two full-service branches in these neighborhoods.  The settlement will require Hudson City to further develop robust internal controls to ensure compliance with fair lending obligations, provide fair lending training to its employees, senior management, and the Board of Directors, and create a comprehensive long-term plan to increase lending in previously redlined areas.  Hudson City will further pay a civil monetary penalty of $5.5 million.

The Justice Department’s enforcement of fair lending laws and the Servicemembers Civil Relief Act is conducted by the Housing and Civil Enforcement Section in the Civil Rights Division.  Since 2010, the Civil Rights Division has provided approximately $1.3 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and the SCRA.  The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.

The Civil Rights Division, the U.S. Attorney’s Office for the District of New Jersey, and the Consumer Financial Protection Bureau are members of the Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.  For more information on the task force, visit www.StopFraud.gov.

A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at http://www.justice.gov/fairhousing.

Settlement Provides Over $27 Million to Ensure Equal Lending Services to Predominantly Black and Hispanic Communities

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey, the U.S. Department of Justice Civil Rights Division, and the Consumer Financial Protection Bureau (CFPB) filed a consent order today to resolve allegations that Hudson City Savings Bank (Hudson City) engaged in a pattern or practice of redlining predominantly Black and Hispanic neighborhoods throughout its major market areas with respect to the extension of residential mortgage credit.  This resolution represents the Justice Department’s largest residential mortgage redlining settlement in its history.

The settlement, which is subject to court approval, was filed in conjunction with the agencies’ complaint in the U.S. District Court for the District of New Jersey.  The complaint alleges that Hudson City violated the Fair Housing Act and Equal Credit Opportunity Act (ECOA), which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending practices.  The complaint alleges that from at least 2009 to 2013, Hudson City failed to serve the credit needs of majority-Black-and-Hispanic neighborhoods throughout its lending footprint, including in New Jersey, New York City and its surrounding counties, the Bridgeport, Connecticut, and Philadelphia, Pennsylvania, metropolitan areas, and the City of Camden.  Hudson City has agreed to settle this matter without contested litigation.

“Hudson City Savings Bank structured its business operations to systemically avoid providing credit services in predominantly minority neighborhoods. There is no room for such behavior in our banking system,” U.S. Attorney Fishman said. “In addition to paying $25 million for a loan subsidy program, today’s settlement agreement will require the bank to take a number of concrete steps to ensure that they improve access to responsible and affordable credit to qualified borrowers in Black and Hispanic neighborhoods.”

“This case should send a message to lenders throughout the country that the Justice Department will not tolerate racial discrimination in the extension of credit,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, said.  “A lending institution must treat all potential borrowers equally, regardless of their race or the racial composition of their neighborhood, when deciding to offer its loan services.  We encourage all lenders to proactively identify responsible lending opportunities that exist in predominantly minority neighborhoods within their lending areas.”

“We allege that Hudson City's redlining practices illegally cut off opportunities for consumers in predominantly Black and Hispanic neighborhoods to get a mortgage and achieve the dream of homeownership,’ CFPB Director Richard Cordray said. “Without access to affordable credit, neighborhoods deteriorate in the long shadow cast by unfair lending. Today’s action seeks to remove the redline by bringing $27 million in mortgage subsidies and outreach programs, along with new bank branches to the communities who should have had access from the beginning.”

The lawsuit originated from a joint investigation with the Consumer Financial Protection Bureau that commenced in March 2015.

Under the terms of the proposed settlement, Hudson City will invest $25 million into a loan subsidy fund to increase the amount of credit the bank extends to majority-Black-and-Hispanic areas across its market areas.  To enable the bank to make residential mortgage loans available to residents of minority neighborhoods that were not adequately served by Hudson City, the bank will further invest $2.25 million into advertising, outreach, financial education, and community partnership efforts and open two full-service branches in these neighborhoods.  The settlement will require Hudson City to develop robust internal controls to ensure compliance with fair lending obligations, provide fair lending training to employees, senior management, and the Board of Directors, and create a comprehensive long-term plan to increase lending in previously redlined areas.  Hudson City will pay a civil monetary penalty of $5.5 million.

The Justice Department’s enforcement of fair lending laws and the Servicemembers Civil Relief Act is conducted by the Housing and Civil Enforcement Section in the Civil Rights Division.  Since 2010, the Civil Rights Division has provided approximately $1.3 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and the SCRA.  The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at http://www.justice.gov/fairhousing.

The government is represented by Assistant U.S. Attorneys Michael E. Campion and Svetlana Eisenberg of the District of New Jersey, and Trial Attorney Ronald Lee, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.

The Civil Rights Division, the U.S. Attorney’s Office for the District of New Jersey, and the Consumer Financial Protection Bureau are members of the Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.  For more information on the task force, visit www.StopFraud.gov

WASHINGTON – El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor [Consumer Financial Protection Bureau (CFPB)] radicaron una orden de consentimiento hoy para resolver alegatos de que Hudson City Savings Bank (Hudson City) exhibió un patrón o una práctica de excluir delimitando (“redlining” en inglés) vecindarios predominantemente negros e hispanos en sus prácticas de otorgamiento de préstamos hipotecarios residenciales.  Excluir delimitando es la práctica discriminatoria ejercida por bancos u otras instituciones financieras de negar o evitar brindar servicios de crédito a un consumidor debido a la situación demográfica racial del vecindario en el que vive el consumidor. Esta resolución representa el acuerdo conciliatorio más grande asociado con exclusión delimitada  hipotecaria residencial realizado por el Departamento de Justicia.  

El acuerdo conciliatorio, el que está sujeto a la aprobación del tribunal, fue radicado en conjunto con la demanda de las agencias en el Tribunal Federal de Distrito para el Distrito de Nueva Jersey. La demanda alega que Hudson City violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)], que prohíben a las instituciones financieras discriminar debido a raza, color u origen nacional en sus prácticas de otorgamiento de préstamos hipotecarios.  Específicamente, la demanda alega que desde al menos 2009 hasta 2013, Hudson City dejó de atender las necesidades de crédito de vecindarios con mayoría negra e hispana en las principales áreas de su mercado, incluidas Nueva Jersey, la ciudad de Nueva York y los condados que las rodean, y las áreas metropolitanas de Filadelfia y Bridgeport, Connecticut. Hudson City ha aceptado resolver este caso sin litigio controvertido.

“Este caso debe transmitir un mensaje a prestamistas de todo el país de que el Departamento de Justicia no tolerará la discriminación racial en el otorgamiento de crédito”, indicó la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, líder de la División de Derechos Civiles.  “Una institución de préstamos debe tratar a todos los potenciales prestatarios de manera igualitaria, independientemente de su raza o la composición racial de su vecindario, al decidir ofrecer sus servicios de préstamo.  Instamos a todos los prestamistas a que identifiquen proactivamente oportunidades de otorgamiento de préstamos responsables que existan en vecindarios predominantemente minoritarios en sus áreas de actuación”.

“Hudson City Savings Bank estructuró sus operaciones comerciales de modo a sistemáticamente evitar brindar servicios de crédito en vecindarios predominantemente minoritarios”, señaló el Fiscal Federal Paul J. Fishman del Distrito de Nueva Jersey. “No hay lugar para ese tipo de comportamiento en nuestro sistema bancario.  Además de pagar 25 millones de dólares por un programa de subsidios crediticios, el acuerdo de hoy exigirá que el banco tome una serie de pasos concretos para garantizar que se mejore el acceso a crédito responsable y asequible a prestatarios calificados en vecindarios negros e hispanos”.

“Alegamos que las prácticas de exclusión delimitada discriminatorias de Hudson City recortaron ilegalmente las oportunidades de consumidores de vecindarios predominantemente negros e hispanos de obtener un préstamo hipotecario y cumplir su sueño de la casa propia”, dijo el Director de la CFPB Richard Cordray.  “Sin acceso a crédito de precio razonable, los vecindarios se deterioran bajo la sombra lanzada por el otorgamiento injusto de préstamos.  La acción de hoy busca eliminar este tipo de discriminación al proveerles a estas comunidades que tendrían que haber tenido acceso a hipotecas desde un principio, 27 millones de dólares en subsidios hipotecarios y programas de extensión, junto con nuevas sucursales bancarias”.

La demanda se originó a partir de una investigación conjunta con la CFPB iniciada en marzo de 2015.

Bajo los términos del acuerdo conciliatorio propuesto, Hudson City invertirá 25 millones de dólares en un fondo de subsidios para hipotecas para incrementar la cantidad de crédito que el banco otorga a vecindarios con mayoría negra e hispana en todas las áreas de su mercado. A fin de que los préstamos hipotecarios residenciales estén disponibles a residentes de vecindarios minoritarios que no fueron atendidos adecuadamente por Hudson City, el banco investigará, además, 2,25 millones de dólares en publicidad, extensión, educación financiera e iniciativas e asociación comunitaria, y abrirá dos sucursales de servicios integrales en estos vecindarios.  El acuerdo exigirá que Hudson City desarrolle fuertes controles internos adicionales para garantizar el cumplimiento de sus obligaciones de otorgamiento justo de préstamos, brinde capacitación sobre el otorgamiento justo de préstamos a sus empleados, altos ejecutivos y a la Junta de Directores, y cree un plan integral de largo plazo para incrementar el otorgamiento de préstamos en las áreas anteriormente excluídas por delimitación.  Asimismo, Hudson City pagará una multa civil de 5,5 millones de dólares.

La coacción asociada a las leyes de otorgamiento justo de préstamos y la Ley de Reparación Judicial Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act] por parte del Departamento de Justicia es realizada por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde 2010, la División de Derechos Civiles ha proporcionado alrededor de 1,3 mil millones de dólares en reparación monetaria a prestatarios individuales y comunidades afectadas, al hacer valer la Ley de Vivienda Justa, la ECOA y la SCRA. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso sobre la coacción asociada a la ECOA destacan los logros del departamento en el tema del otorgamiento justo de préstamos y están disponibles en www.justice.gov/crt/publications/.

La División de Derechos Civiles, la Fiscalía Federal para el Distrito de Nueva Jersey y la Oficina para la Protección Financiera del Consumidor son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama fundó la Fuerza de Tarea de Coacción contra el Fraude Financiero para generar una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de agencias federales, autoridades regulatorias, inspectores generales y fuerzas del orden público estatales y locales quienes, trabajando juntos, ponen en uso un conjunto poderoso de recursos de coacción penal y civil.  La fuerza de tarea está trabajando para mejorar las iniciativas en todo el poder ejecutivo federal y, junto con asociados estatales y locales, investigar y enjuiciar delitos financieros importantes, garantizar un castigo justo y eficaz para quienes cometen delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar ganancias para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visite www.StopFraud.gov.

Para obtener una copia de la demanda, así como información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia en http://www.justice.gov/fairhousing.

NEWARK, N.J. - A Middlesex County, New Jersey, man was sentenced today to 87 months in prison for his role in two bank robberies, U.S. Attorney Paul J. Fishman announced.

Peter Greer, 41, of New Brunswick, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with two counts of bank robbery. Judge Hayden imposed the sentence today in Newark federal court.

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

Greer admitted using intimidation to rob the Valley National Bank in Newark on Sept. 27, 2012. Greer entered the bank, approached the bank teller and provided a note that said “give me the money in hundred dollar bills.” The teller complied and Greer fled the bank with the money. Greer also admitted to using intimidation to rob the rob Sovereign Bank, located in Newark on Oct. 31, 2012.  Greer entered the bank, approached the bank teller and provided a note that said “I have a gun, give me money.” This time the teller did not comply, and Greer fled the bank without any money.

In addition to the prison term, Judge Hayden sentenced Greer to three years of supervised release and ordered him to pay restitution of $18,094.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to charges. He also thanked the Passaic Police Department and the Passaic County Sheriff’s Department for their contribution to the case.

The government is represented by Assistant U.S. Attorney Meredith Williams of the Criminal Division in Newark, N.J.

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

NEWARK, N.J. - The former CFO and co-founder of a now-defunct South Carolina public charter operator today admitted using phony documents and inflated revenue figures to defraud a New Jersey bank and other financial institutions out of millions of dollars, U.S. Attorney Paul J. Fishman announced.

Robert Keilman, 70, of Marlboro, New Jersey, pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud affecting a financial institution and to commit bank fraud.

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

Keilman was one of the founding members of Southern Sky Air & Tours d/b/a Myrtle Beach Direct Air & Tours, commonly referred to as Direct Air. From January 2010 through September 2011, Keilman was Direct Air’s chief financial officer. Direct Air offered airline services in a number of cities, including Newark, New Jersey.    

Keilman acknowledged that U.S. Department of Transportation regulations required charter operators like Direct Air to protect passengers financially by posting a security or by keeping passenger payments for future flights in a designated depository or escrow account with an approved bank. Pursuant to this regulation, Direct Air set up an escrow account with a bank headquartered in Wayne, New Jersey. According to Keilman, Direct Air and the bank agreed that money in the escrow account for future flights would not be released to Direct Air until after the flights were completed. Additionally, Direct Air would have to submit a request for payment along with summary reports detailing the flights purportedly flown.

Keilman admitted that, from 2010 through September 2011, he conspired with others, including a pair of Direct Air executives identified in court documents as “Executive 1” and “Executive 2,” to engage in a “double-dipping” scheme wherein they submitted release requests for passenger payments designated as “membership fees” prior to the completion of the flights, and then after the flights were completed, submitted release requests for the same funds.

Keilman admitted that he, Executive 1, Executive 2 and others also submitted release requests containing inflated passenger revenue figures, causing the bank to release millions of dollars in revenues for fictitious passengers. In addition, Keilman stated that he, Executive 1, Executive 2 and others concealed the shortfall in Direct Air’s bank account by sending fraudulent financial statements to creditors.

The conspiracy to commit wire and bank fraud charge to which Keilman pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 6, 2015.

Fishman credited Special Agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Todd Damiani, for the investigation leading to today’s plea.      

The case is being prosecuted by Assistant U.S. Attorney Andrew Kogan and Deputy Chief Scott B. McBride of the U.S. Attorney’s Office’s Economic Crimes Unit, and by Trial Attorneys L. Rush Atkinson and Carol L. Sipperly of the U.S. Department of Justice’s Criminal Division, Fraud Section.

Defense counsel: Gina L. Simms Esq., Washington, D.C.; Michael Baldassare Esq., Newark, N.J.

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted to failing to file federally required currency transaction reports in connection with his check-cashing business, U.S. Attorney Paul J. Fishman announced.

Louis Sclafane, 83, of Bayonne, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with causing a domestic financial institution to fail to file Currency Transaction Reports (CTR), which are required for U.S. currency transactions in excess of $10,000 conducted by or on behalf of a single person on the same day, totaling $381,595 over a year and a half.

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

Sclafane was the owner and sole proprietor of Advance Financial (AF), a check-cashing establishment located in Bayonne. Sclafane oversaw the day-to-day operations of AF, such as cashing checks for its customers and withdrawing currency from bank accounts associated with AF. 

Between Sept. 29, 2010 and April 2012, Sclafane cashed at least 20 checks over $10,000 each without filing CTRs with the U.S. Treasury, despite being required to do so by the Federal Bank Secrecy Act.

The charge of causing a financial institution to fail to file CTRs for the purpose of evading the reporting requirements of the Bank Secrecy Act, to which Sclafane pleaded guilty, carries a maximum potential penalty of 10 years in prison and a maximum fine of $500,000.  Sentencing is scheduled for Jan. 6, 2016.

U.S. Attorney Fishman credited special agents of the IRS Criminal Investigations Division, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark; special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.

Defense counsel: Perter Carter Esq., Assistant Federal Public Defender, Newark

Also Admits Role in Fraudulent $20,000 Home Rehabilitation Loan Scheme

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted using excessive force during an arrest, falsifying records in an attempt to conceal his conduct and helping a relative fraudulently obtain a home rehabilitation loan, U.S. Attorney Paul J. Fishman announced.

Domenico Lillo, 45, of Bayonne, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an indictment charging him with one count of deprivation of civil rights under color of law and one count of falsifying records to impede a civil rights investigation. Lillo also pleaded guilty to an information charging him with assisting in the filing of a false report to the U.S. Department of Housing and Urban Development (“HUD”) in connection with a federally funded home rehabilitation loan worth $20,000.

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

On the early evening of Dec. 27, 2013, Lillo and other police officers from the Bayonne Police Department went to an address in Bayonne to execute a Sussex County arrest warrant. Lillo admitted that he struck the subject of the warrant in the head with a flashlight while the individual was handcuffed and not resisting arrest, which resulted in bodily injury. Lillo also admitted that he falsified a Bayonne Police Department Use of Force Report related to the arrest with the intent to impede an investigation into the case.

In addition, Lillo admitted that on May 10, 2012, he aided a relative in preparing and submitted a fraudulent HUD application to get a federally funded rehabilitation loan on a home Lillo co-owned.

The excessive force charge to which Lillo pleaded guilty carries a maximum penalty of 10 years in prison. The charge of falsifying records to impede an investigation carries a maximum penalty of 20 years in prison. The charge of making false reports to HUD carries a maximum penalty of one year in prison. Sentencing is scheduled for Jan. 6, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Appeals Division.

Defense counsel: Frank Arleo Esq. and Thomas Cammarata Esq., West Orange, N.J.

NEWARK, N.J. – The U.S. Department of Justice Office on Violence Against Woman today awarded more than $550,000 in grants to two New Jersey organizations that provide housing assistance to victims of sexual assault, domestic or dating violence and stalking, U.S. Attorney Paul J. Fishman announced.

Jersey Battered Women’s Services (JBWS) Inc. of Morristown, New Jersey, was awarded a $305,576 grant and 180 Turning Lives Around Inc. of Hazlet, New Jersey, was awarded a $255,284 grant. Both grants were made through the Transitional Housing Grant Assistance program.

The primary purpose of the Transitional Housing Assistance Program is to provide aid to victims of sexual assault, domestic violence, dating violence, and stalking who are homeless, or in need of transitional housing, or other housing assistance, including short-term housing assistance and supportive services; and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient. The program also focuses on supporting a holistic, victim-centered approach to provide transitional housing services that move individuals into permanent housing. It is critical that successful transitional housing programs provide a wide range of flexible and optional services that reflect the differences and individual needs of victims and that allow victims to choose the course of action that is best for them.

JBWS will partner with Literacy Volunteers of Morris County for ESL instruction, the Women’s Center for computer classes, the Health Careers Program at the County College of Morris for access to high-earning career tracks, the Northwest New Jersey Community Action Partnership (NORWESCAP) for financial literacy, Child & Family Resources for child care referral as well as parenting education, and the Greater Morristown YMCA for afterschool and summer camp care. These partnerships will provide a broader range of supportive services needed and requested by clients. Housing and supportive services will be co-located in a cluster model facility for 11 families. The project will provide at least 30 victims the tools necessary to become self-sufficient and achieve long-term safety.

180 Turning Lives Around is a non-profit organization located in Monmouth County, New Jersey, a county encompassing both some of the richest and some of the poorest municipalities in the state. Monmouth County, with a population of 629,735, has had either the 2nd or 3rd highest number of domestic violence reports out of New Jersey’s 21 counties during the past five years. 180 will partner with Long Branch Concordance and contracted service providers to support 10 families in the 180 agency owned scattered site townhomes. 180 Turning Lives Around will limit its use of Transitional Housing Assistance Grant Program funds to supportive services. Funds for housing are designated from the U.S. Department of Housing and Urban Development.

For more information about this grant, contact the Office on Violence Against Women,  Outreach and Communications Division, at (202) 307-6026.