District of New Jersey

NEWARK, N.J. – An Elizabeth, New Jersey, man today admitted robbing seven New Jersey banks at gunpoint and attempting to rob an eighth bank at the time of his arrest on July 30, 2012, U.S. Attorney Paul J. Fishman announced.

Claude Williams, 63, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to Count One, Count Fourteen and Count Fifteen of an indictment charging him with conspiracy to commit bank robbery, bank robbery and using a firearm during a crime of violence.

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

Williams admitted that, between Sept. 26, 2011 and July 30, 2012, he robbed seven banks and attempted to rob an eighth bank, all at gunpoint. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweatshirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.

Williams admitted robbing, or attempting to rob, the following New Jersey banks:

Date

Bank

Location

Sept. 26, 2011

Financial Resources Federal Credit Union

Somerset

Nov. 21, 2011

Somerset Savings Bank

Somerville

Feb. 27, 2012

Provident Bank

Piscataway

April 17, 2012

Provident Bank

Clifton

May 22, 2012

Provident Bank

Piscataway

June 20, 2012

Fulton Bank

Metuchen

July 12, 2012

Unity Bank

Middlesex

July 30, 2012

Unity Bank

North Plainfield

Prior to the July 12, 2012 robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car and crouch down to hide. After noting the license plate number, the officer followed the car. During today’s hearing, Williams admitted that he exited the getaway car, walked toward the officer’s car and pointed his firearm at the officer, forcing the officer to leave the scene.

On July 30, 2012, Williams was arrested after law enforcement observed him driving in the vicinity of the Unity Bank in North Plainfield on July 27, 2012 and July 28, 2012. He admitted today that he planned to rob the bank at gunpoint.

The conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The armed bank robbery charge carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for Nov. 16, 2015.

Andrea Dorsey, 56, of Plainfield New Jersey, who admitted that she served as a lookout and getaway driver for three of the robberies, was sentenced to 87 months in prison on March 13, 2014. Teresa Webb, 45, of Plainfield, who admitted that she was the getaway driver for one of the robberies, was sentenced to 54 months in prison on May 30, 2013.

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 today’s plea. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their roles.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Courtney M. Oliva of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel:  Kenneth W. Kayser Esq., Irvington

Download Williams Claude Indictment

NEWARK, N.J. – The U.S. Attorney’s Office today reached an Americans with Disabilities Act (ADA) settlement with a Linden-based electronics store to ensure equal access for individuals with disabilities at its retail store, on the internet, and through telephone orders, U.S. Attorney Paul J. Fishman announced.

The announcement comes as the Department of Justice marks the 25th anniversary of the ADA. The Justice Department, including the nation’s U.S. Attorneys, plays a critical role in enforcing the ADA, ensuring equal opportunity and full participation for persons with disabilities.

The agreement resolves an ADA complaint filed by a deaf individual who alleged that Westpark Electronics LLC, d/b/a Abe’s of Maine, would not do business with her over the telephone using a telecommunications relay service. The U.S. Attorney’s Office determined that Abe’s of Maine refused to accept multiple relay calls from the complainant in violation of the ADA. Since the commencement of the investigation, Abe’s of Maine has worked cooperatively to develop and amend its policies and practices to comply with the ADA and the Department of Justice’s implementing regulations.

Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public. The ADA requires sales establishments, such as Abe’s of Maine, to take steps to communicate effectively with customers who are disabled.  For individuals who are deaf or hard of hearing, the ADA requires business to provide auxiliary aids and services, such as the use of relay services, to ensure effective communication.

The agreement requires Abe’s of Maine to accept relay calls, amend its policies, and provide training to its staff to ensure that disabled individuals receive equal access to Abe’s of Maine’s goods and services. The agreement also requires Abe’s of Maine to post and distribute an announcement to its employees stating its willingness to accept relay calls. Abe’s of Maine has also paid a $1,000 civil penalty to the U.S. Treasury.

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.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

This government is represented by Assistant U.S. Attorney Michael E. Campion of the U.S. Attorney’s Office Civil Division in Newark.

NEWARK, N.J. – A previously convicted felon from Irvington, New Jersey, was sentenced today to 92 months in prison for unlawfully possessing a loaded semiautomatic handgun, U.S. Attorney Paul J. Fishman announced.

Terrell Haywood, 26, previously pleaded guilty before U.S. District Judge William J. Martini to an indictment charging him with being a felon in possession of a firearm. Judge Martini imposed the sentence today in Newark federal court.

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

On April 26, 2014, in Newark, Haywood knowingly possessed a loaded Springfield Armory Ultra Compact Semi-Automatic .45 caliber handgun that was loaded with nine rounds of ammunition. As law enforcement officers from the Essex County Prosecutor’s Office observed Haywood crossing a street, they observed a bulge in his jacket pocket that was consistent with the presence of a handgun. Haywood was searched and found with the handgun, as well as various drugs, including marijuana and prescription pills.

In addition to the prison term, Judge Martini sentenced Haywood to three years of supervised release.

U.S. Attorney Fishman credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, with the investigation leading to today’s sentencing.  He also thanked the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for their role in the investigation.

The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Martin Goldman Esq., West Caldwell, New Jersey

NEWARK, N.J. – A Mauritius man was sentenced today to 13 months in prison for sexually abusing a sleeping woman aboard a cruise ship, U.S. Attorney Paul Fishman announced.

Karan Seechurn, 26, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of abusive sexual contact. Judge Salas imposed the sentence today in Newark federal court.

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

Seechurn was employed by a cruise line and was responsible for restocking the minibars located in passengers’ rooms. In order to conduct this duty, he was provided with a key that gave him access to passengers’ rooms. Seechurn admitted that on Dec. 23, 2014, while he was off-duty, he entered a passenger’s room and encountered a sleeping woman. Seechurn admitted that he touched the passenger’s genitalia while she was asleep. 

In addition to the prison term, Judge Salas sentenced Seechurn to one year of supervised release.

The federal government has special maritime jurisdiction over sexual abuse cases, such as those that occur on cruise ships.

U.S. Attorney Fishman credited special agents of the FBI, 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 Meredith Williams of the U.S. Attorney’s Office General Crime Unit in Newark.

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

CAMDEN, N.J. – A former employee of The Vacation Ownership Group LLC of Pleasantville, New Jersey, was sentenced today to 30 months in prison for conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced.         

Joseph Saxon, 42, of Brigantine, New Jersey, previously pleaded guilty before U.S. District Court Judge Noel L. Hillman to a superseding information charging him with one count of conspiracy to commit mail and wire fraud. Judge Hillman imposed the sentence today in Camden federal court.

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

 The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing, New Jersey, and Egg Harbor Township, New Jersey, and claimed to offer to owners of timeshares consulting services that included cancelling, purchasing and upgrading the timeshares.

In 2010, Saxon started working at the VO Group and was trained by VO Group co-owner Adam Lacerda, 31, of Egg Harbor Township, New Jersey, to call customers using prepared scripts. The defendant called customers and gave them the false impression that he was working for a bank or lending institution. After hearing Saxon’s false representations, some customers sent checks to the VO Group. For example, Saxon falsely told one victim that Saxon was working with the bank that held the victim’s timeshare mortgage and that the bank wanted to settle the loan for a fraction of the price. The victim then mailed a check for $5,925 to the VO Group. Saxon admitted causing more than $120,000 in losses.

In addition to the prison term, Judge Hillman sentenced Saxon to three years of supervised release.

Lacerda, who was previously convicted at trial for his role in the scheme, was sentenced to 27 years in prison on June 25, 2015.

U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents from 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, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.

The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.

Defense counsel: David S. Rudenstein Esq., Philadelphia

CAMDEN, N.J. – Two Texas men who were convicted along with a member and an associate of the Lucchese organized crime family of La Cosa Nostra (LCN) were sentenced today to prison terms for their respective roles in a racketeering conspiracy and related offenses, U.S. Attorney Paul J. Fishman announced.

William Maxwell, 56, of Houston, Texas, was sentenced to 20 years in prison; his brother, John Maxwell, 63, of Dallas, Texas, was sentenced to 10 years in prison. The Maxwells, along with Nicodemo S. Scarfo, 50, of Galloway, New Jersey, and Salvatore Pelullo, 48, of Philadelphia, were convicted in July 2014 of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before U.S. District Judge Robert B. Kugler, who imposed the sentences today in Camden federal court.

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

Since 1989, Scarfo has been a member of the Lucchese family. As a member, he was required to earn money and participate in the affairs of the Lucchese family. Pelullo was an associate of the Lucchese family.

In April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Scarfo and Pelullo, including the Maxwell brothers.  Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements.

The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo (Scarfo Sr.) the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.

In addition to the prison term, Judge Kugler sentenced each of the Maxwells to three years of supervised release and ordered them to pay restitution $14 million each. Scarfo and Pelullo were each sentenced to 30 years in prison earlier this week.

U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.

The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.

Defense counsel:

William Maxwell: Michael N. Huff Esq., Philadelphia

John Maxwell: Mark W. Catanzaro Esq., Mount Holly, New Jersey

NEWARK, N.J. – Two people were charged today for allegedly participating in a large-scale conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and then use that information to make fraudulent withdrawals from the customers’ bank accounts.

Angel Angulo, 25, of Riverside, California, and Crystal Banuelos, 28, of Bloomington, California, are each charged by indictment with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Agnulo was arrested in California and was scheduled to appear before U.S. Magistrate Judge David Bristow in Riverside federal court. Banuelos remains at large.

According to the indictment:

Angulo, Banuelos, and others allegedly installed on point of sale (POS) terminals at Michaels devices that acquired customers’ bank account and personal identification number (PIN) information. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.

The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.

From April 2011 to May 2011, Angulo, Banuelos and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money from automated teller machines (ATMs) from hundreds of bank accounts. On May 14, 2011, Angulo and Banuelos possessed 179 counterfeit cards in New Jersey. They allegedly stole more than $420,000 from financial institutions and attempted to obtain at least $129,000 more.

The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison served consecutively to any other sentence.

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge David Beach in Philadelphia for the investigation leading to today’s arrest.

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

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

NEWARK, N.J. – A Jersey City, New Jersey, man is charged today with coercing a minor family member to engage in sexually explicit conduct while he photographed the abuse, U.S. Attorney Paul J. Fishman announced.

Felix Restitullo, 40, is charged by complaint with one count of sexual exploitation of a child and one count of possession of child pornography. He appeared this afternoon before U.S. Magistrate Steven C. Mannion in Newark federal court and remains in custody.

According to the criminal complaint:

Restitullo resided with his mother, who acted as caregiver to children, including a girl who is a member of Restitullo’s family. On March 13, 2014, as a result of an ongoing investigation into the sexual abuse of minor children, law enforcement officers interviewed the girl. During the interview, she told the officers that Restitullo had engaged her in sexual acts on prior occasions, which he photographed using a camera.

On March 13, 2014, Restitullo was arrested by the Hudson County Prosecutor’s Office for, among other things, aggravated sexual assault and endangering the welfare of the girl. After the arrest, officers lawfully obtained a camera, multiple computers and electronic storage media belonging to Restitullo from his bedroom. Approximately 13 images of child pornography, believed to be images of the girl’s sexual assault, were found on the storage media. Overall, officers found more than 1,500 images and 200 videos of child pornography, including images of child sexual abuse.

The sexual exploitation of children charge carries a maximum potential penalty of 30 years in prison, a mandatory minimum penalty of 15 years in prison and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS), under the direction of Acting Special Agent in Charge Kevin Kelly, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.

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

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

Defense counsel: Mario Blanch Esq., West New York, New Jersey

TRENTON, N.J. – An Essex County, New Jersey, man today admitted his involvement in two fraud schemes – one involving a $148,000 scheme to defraud a payroll company and another involving the transfer of fraudulent New Jersey birth certificates, U.S. Attorney Paul J. Fishman announced.

George Wright, 48, of Newark, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with mail fraud, aggravated identity theft and transfer of fraudulent documents.

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

From January 2010 through March 2011, Wright purchased stolen identity information, which he used to create fictitious employees of three different companies. Wright contacted a payroll company, falsely purported to represent these three companies, and created several fraudulent business payroll accounts. Payroll checks totaling over $148,000 were then issued in the names of these fictitious employees and sent to addresses he controlled.   

On at least three occasions in August 2013 and September 2013, Wright acquired fraudulent New Jersey birth certificates and sold them for cash.

The mail fraud charge carries a maximum sentence of up to 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense. The aggravated identity theft charge carries a minimum sentence of two years in prison which must run consecutive to the sentence imposed on the mail fraud and a fine of up to $250,000 or twice the gross gain or loss from the offense. The transfer of fraudulent documents charge carries a maximum sentence of up to 15 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense.  Sentencing is scheduled for Nov. 5, 2015.

U.S. Attorney Fishman praised special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Acting Special Agent in Charge Kevin Kelly, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli, with the investigation leading to the arrest and charges.

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 and Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Stacy Biancamano Esq., Chatham, New Jersey 

TRENTON, N.J. – A Somerset County, New Jersey, man was arrested this morning after FBI agents found sexually explicit images of children on his home computer, U.S. Attorney Paul J. Fishman announced.

Cliff Ramsay, 30, of Raritan, New Jersey, is charged by complaint with one count of accessing images of child sexual abuse and one count of possessing images of child sexual abuse. He appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained pending a bail hearing.

According to the criminal complaint filed today and statements made in court:

On Feb. 25, 2015, and Feb. 27, 2015, Ramsay, a middle school music teacher who also gave music lessons to minors at his home, accessed a website known to contain images, videos and other material containing child pornography. After a search warrant was executed at Ramsay’s home earlier today, law enforcement agents found numerous videos and images of child sexual abuse on his computer, including material depicting prepubescent minors engaged in sexually explicit conduct.

Each count charged in the complaint carries a maximum penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest. Fishman also thanked the Somerset County Prosecutor’s Office, under the direction of Geoffrey D. Soriano; the Hunterdon County Prosecutor’s Office, under the direction of Anthony P. Kearns III; the Raritan Police Department, under the direction of Chief Kenneth McCormick; and the Readington Police Department, under the direction of Chief Sebastian Donaruma, for their assistance with this investigation.

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

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

Defense counsel: Joshua D. Altman Esq., Trenton, New Jersey

TRENTON, N.J. – A licensed pediatrician practicing in Jersey City, New Jersey, was sentenced today to 21 months in prison for fraudulently billing Medicaid for more than 1,000 wound repair procedures that were never performed, U.S. Attorney Paul J. Fishman announced.

Badawy M. Badawy, 52, of Bayonne, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count One of an indictment charging him with health care fraud. Judge Thompson imposed the sentence today in Trenton federal court.  

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

Badawy owned and operated Sinai Medical Center of Jersey City LLC, a medical practice focusing on pediatric and family medicine. From January 2004 through December 2008, Badawy submitted thousands of claims to Medicaid for wound repair procedures related to the repair of superficial wounds over 30 centimeters in length on a patient’s face, ears, eyelids, nose or lips as well as the repair of previously closed wounds. Badawy claimed to have performed these treatments on his patients, most of whom were children.

During his plea hearing Badawy admitted that he regularly submitted claims for procedures that were never performed. As a result of his false claims, Badawy received $196,911 in Medicaid payments.

In addition to the prison term, Judge Thompson sentenced Badawy to serve three years of supervised release and fined him $5,000. Badawy must also pay restitution of $196,911.

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 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 sentencing.  

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

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

Two More Conspirators to be Sentenced This Week

CAMDEN, N.J. – An associate of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to 30 years in prison for participating in a racketeering conspiracy and related offenses, U.S. Attorney Paul J. Fishman announced.

Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families, was sentenced today by U.S. District Judge Robert B. Kugler to 360 months in prison. He was convicted in July 2014, along with Nicodemo S. Scarfo, 50, of Galloway, New Jersey, a member of the Lucchese organized crime family; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler in Camden federal court.

Scarfo was sentenced on July 28, 2015, to 30 years in prison. The Maxwells are scheduled to be sentenced July 30, 2015.

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

In April 2007, Pelullo, Scarfo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Pelullo and Scarfo, including the Maxwell brothers.  Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Pelullo and Scarfo through fraudulent legal services and consulting agreements. Pelullo and Scarfo used their illicit gains to fund extravagant purchases.

The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Nicodemo S. Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.

In addition to the prison term, Judge Kugler sentenced Pelullo to five years of supervised release and ordered him to pay restitution of $14 million.

U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.

The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.

Defense counsel: J. Michael Farrell Esq., Wenonah, New Jersey

NEWARK, N.J. – A website owner involved in an illegal sports betting conspiracy with the Genovese Crime Family of La Cosa Nostra was sentenced today to 18 months in prison, U.S. Attorney Paul J. Fishman announced.

Joseph Graziano, 78, of Springfield, New Jersey, previously pleaded guilty before District Judge Claire C. Cecchi to an information charging him with one count of racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.

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

Graziano was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Dominick J. Barone, 45, of Springfield, New Jersey, worked with Graziano in carrying out the daily activities of the website and both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle.

Joseph Lascala, 83, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.

As part of the conspiracy, associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.

To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their La Cosa Nostra status and threats of violence to collect on these debts.

In addition to the prison term, Judge Cecchi ordered Graziano to serve three years of supervised release and pay a $16,000 fine. As part of his plea agreement, Graziano has forfeited $1 million to the United States.

Barone previously pleaded guilty to his role in the scheme and was sentenced to 18 months in prison on June 16, 2015. Charges against Lascala are still pending. The charges and allegations against him are merely accusations and he is presumed innocent unless and until proven guilty.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s sentencing.

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

Defense counsel: Lawrence S. Lustberg Esq., Newark

Three Conspirators to be Sentenced This Week

CAMDEN, N.J. – A member of the Lucchese organized crime family of La Cosa Nostra (LCN) was sentenced today to 30 years in prison for participating in a racketeering conspiracy and related offenses. Three other members of the conspiracy are scheduled to be sentenced later this week.

U.S. Attorney Paul J. Fishman of the District New Jersey and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and made the announcement.

Nicodemo S. Scarfo, 50, of Galloway, New Jersey was sentenced today by U.S. District Judge Robert B. Kugler to 360 months in prison. Scarfo was convicted in July 2014, along with Salvatore Pelullo, 48, of Philadelphia, an associate of the Philadelphia and Lucchese LCN families; William Maxwell, 56, of Houston, a Texas attorney; and John Maxwell, 63, of Dallas, of racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice, after a six-month trial before Judge Kugler in Camden federal court.

“Scarfo and his crew gave new meaning to the term ‘corporate takeover,’ pushing out the legitimate leadersip of a publicly traded company and then looting it,” U.S. Attorney Fishman said. “They used false SEC filings, phony consulting agreements and more traditional mob methods to steal $12 million from the company’s shareholders. That’s a risk that investors should never have to take.”

“Nicodemo Scarfo and his associates tried to take La Cosa Nostra corporate, using traditional, strong-arm mob tactics to take over a publicly traded company and loot it like a personal piggy bank,” Assistant Attorney General Caldwell said.  “The Justice Department will fight organized crime wherever it may surface – from back alleys to public board rooms – to ensure that crime does not pay.”

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

Since 1989, Scarfo has been a member of the Lucchese family.  As a member, he was required to earn money and participate in the affairs of the Lucchese family.

In April 2007, Scarfo, Pelullo and others conspired to take control of FirstPlus Financial Group Inc. (FPFG), a publicly held company in Texas, by using threats of economic harm to intimidate and remove FPFG’s management and board of directors, and to replace them with people beholden to Scarfo and Pelullo, including the Maxwell brothers.  Once the takeover had occurred, FPFG’s new board of directors named William Maxwell as “special counsel” to FPFG and John Maxwell as the company’s CEO, positions that they used to funnel $12 million to themselves, Scarfo and Pelullo through fraudulent legal services and consulting agreements.  Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht, a luxury home, a Bentley automobile and thousands of dollars in jewelry.

The indictment also named as conspirators Scarfo’s father, Nicodemo D. Scarfo, or Scarfo Sr., the imprisoned former boss of the Philadelphia LCN family; and Vittorio Amuso, the imprisoned boss of the Lucchese LCN family. Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark and Scarfo’s wife, Lisa Murray-Scarfo – previously pleaded guilty to various charges related to their roles in the conspiracy.

In addition to the prison term, Judge Kugler sentenced Scarfo to five years of supervised release and ordered him to forfeit his interest in certain properties and to pay restitution of $14 million. Pelullo, William Maxwell and John Maxwell are scheduled to be sentenced later this week.

U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. They also thanked the U.S. Department of Labor-Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations New York Region, the FBI’s Philadelphia Division and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their roles in the case.

The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey and Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section.

Defense counsel: Michael E. Riley Esq., Mount Holly, New Jersey

TRENTON, N.J. – A Brooklyn, New York, man was sentenced today to 132 months in prison for participating in the armed robbery of an electronics store in Paramus, New Jersey, U.S. Attorney Paul J. Fishman announced.

Unique Randolph, 28, previously entered a plea of guilty before U.S. District Judge Joel A. Pisano on May 5, 2014, and his guilty plea was accepted today by U.S. District Judge Anne E. Thompson. Randolph pleaded guilty to Count Six and Count Seven of a superseding indictment charging him with committing a Hobbs Act robbery and using a firearm in furtherance of that robbery. Judge Thompson imposed the sentence today in Newark federal court.

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

On Jan. 16, 2013, Randolph and another man entered a T-Mobile store in Paramus brandishing a firearm, while Carl Williams, 31, also of Brooklyn, waited outside as a lookout and get-away driver. While the other man brandished a firearm, Randolph escorted three store employees and a customer into the backroom. Randolph forced them to lie on the floor, while he used zip-ties to bind their arms and legs. While the two men were looting cell phones, a UPS employee walked into the backroom and then tried to leave to store. The robbers stopped him at gunpoint and brought him into the backroom. While the other conspirator aimed his firearm at the UPS employee, Randolph forced him to lie on the floor and bound his arms and legs. The two men then fled with the stolen cell phones.

In addition to the prison term, Judge Thompson sentenced Randolph to serve three years of supervised release. Williams pleaded guilty to his role in the robbery and is currently scheduled for sentencing on Oct. 5, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Linden, Paramus, and Woodbridge police departments, as well as the New York City and Nassau County police departments and the Kings County District Attorney’s Office in New York for their work in this case.

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

Defense counsel: Damien Conforti Esq., Newark, New Jersey
 

TRENTON, N.J. – A Yardley, Pennsylvania, man was sentenced today to 30 months in prison for using his position at a Freehold, New Jersey, office equipment leasing company to defraud clients out of more than $600,000, U.S. Attorney Paul J. Fishman announced.

Jason Lee Lum, 36, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.

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

Lee Lum was a partner at Company 1, which provided office equipment leasing services. Due to the high cost of leasing office equipment, Company 1 would obtain loans for its clients through a financing company. After a client agreed to lease office equipment, a Company 1 employee would submit the lease agreement paperwork to the financing company in order to obtain a loan for the client. If the financing company approved the loan, it would send the loan proceeds directly to Company 1’s bank account. The client would then receive the leased office equipment and would directly repay the loan to the financing company.

As a partner at Company 1, Lee Lum was responsible for Company 1’s finances and for submitting client loan documentation. From October 2011 through May 2012, Lee Lum forged signatures of existing company clients on loan documents and then submitted the documents to the financing company. The clients had neither approved nor consented to the loan documents being submitted, nor did they obtain office equipment in connection with the fraudulent loan applications. When the financing company approved the fraudulent loan applications, Lee Lum directed the proceeds to be sent to Company 1’s bank account, which he controlled. Lee Lum used the fraudulently obtained loan proceeds to pay personal expenses, company payroll (including his own salary) and to increase the company’s revenue for accounting purposes. Lee Lum sought to conceal his fraud by making payments on the fraudulently obtained loans. When Lee Lum began to fall behind on those payments, the financing company that issued the loans sought payment directly from the Company 1’s clients, whose names were on the fraudulent loans.

In addition to the prison term, Judge Thompson ordered Lee Lum to serve three years of supervised release and pay restitution of $692,797.15.  

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 today’s sentencing.

The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.

Defense counsel: Frederick W. Klepp Esq., Cherry Hill, New Jersey          

NEWARK N.J. – A Nutley, New Jersey, man was sentenced today to 24 months in prison for his role in a massive mortgage fraud scheme involving multiple properties in Elizabeth, New Jersey, U.S. Attorney Paul J. Fishman announced.

Kenneth Sweetman, 34, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiring to commit wire fraud affecting a financial institution. Judge Wigenton imposed the sentence today in Newark federal court.

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

From March 2011 through July 2012, Sweetman, Carmine Fusco, 47, of East Hanover, New Jersey, and others conspired to obtain mortgage loans through fraudulent means. For their roles in the scheme, Sweetman and Fusco formed shell limited liability companies with names similar to licensed title companies. They then opened bank accounts in the shell companies’ names to conceal their identity and control the receipt and distribution of fraudulently obtained mortgage loan proceeds. Sweetman and Fusco also conducted real estate closings even though they were neither licensed attorneys nor title agents. In addition, Sweetman, Fusco and other conspirators submitted false and fraudulent loan applications, supporting documents and closing documents to mortgage lenders. Among other things, these documents included and reflected fraudulent gift loans, false appraisals and documents that misrepresented the owner of properties and the intended disposition of loan proceeds.

Using these methods, Sweetman, Fusco, and others conducted 16 fraudulent real estate transactions, including 11 Elizabeth properties, and obtained more than $5 million in illegitimate proceeds.

In addition to the prison terms, Judge Wigenton ordered Sweetman to serve three years of supervised release and pay $2,233,131.55 in restitution.

Fusco previously pleaded guilty before Judge Wigenton to a separate information charging him with conspiring to commit wire fraud affecting a financial institution. He was sentenced on July 13, 2015 to 27 months in prison and ordered to pay $2,233,131.55 in restitution.

U .S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, under the direction of Special Agent in Charge Richard M. Frankel; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for their roles in the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark, as well as Barbara Ward, Acting Chief of the 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:

Sweetman: Thomas R. Ashley Esq., Newark, New Jersey

Fusco: Vincent C. Scoca Esq., Union City, New Jersey

TRENTON, N.J. – One individual pleaded guilty and another was sentenced today in connection with their roles in a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties, U.S. Attorney Paul J. Fishman announced.

Jason O’Neal, a/k/a “Born,” 42, of Farmingdale, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute heroin. Dawn Rosser, 35, of Lakewood, New Jersey, also appeared before Judge Sheridan today and was sentenced to 32 months in prison. Rosser pleaded guilty on April 21, 2015 to an information charging her with one count of conspiring to distribute heroin.

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. Of those 21 individuals, 17 have pleaded guilty.

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

Between September 2013 and March 2014, O’Neal conspired with Rufus Young and others to distribute heroin in Ocean and Monmouth counties as part of the Britt-Young DTO.  O’Neal admitted that he served as a supervisor and distributed between 100 and 400 grams of heroin in furtherance of the conspiracy. Rosser admitted that between February 2013 and March 2014, she also participated in the conspiracy and distributed between 100 and 400 grams of heroin.

The distribution conspiracy charge to which O’Neal pleaded guilty carries a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for Oct. 20, 2015.

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

U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation.

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

Defense counsel:

O’Neal:  Aidan P. O’Connor Esq., Hackensack, New Jersey

Rosser:  Joseph Accardi Esq., Elizabeth, New Jersey

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and U.S. Department of Justice today announced the results of a four-and-a-half year review of several hotels and casinos in Atlantic City, New Jersey, to determine whether they are being operated in compliance with the Americans with Disabilities Act of 1990 (ADA).

The announcement comes as the Department marks the 25th anniversary of the ADA.  The Justice Department, including the nation’s U.S. Attorneys and the Civil Rights Division, play a critical role in enforcing the ADA, ensuring equal opportunity and full participation for persons with disabilities.

Title III of the ADA prohibits discrimination on the basis of disability by private entities that own or operate places of public accommodation. These prohibitions require, among other things, that a public accommodation ensure that its facilities are readily accessible so that people with disabilities have access to its goods and services.

Settlement agreements were reached with five hotel/casinos that were not in compliance with the ADA: Resorts Casino Hotel, Tropicana Casino and Resort, Sheraton Atlantic City Convention Center Hotel, The Rainforest Café at the former Trump Plaza, and Trump Taj Mahal. The agreements require the hotels and casinos to remedy any violations, enabling people with mobility impairments to fully access these facilities. These include ensuring that they may reserve an accessible guest room through the Internet, that parking is accessible (including by providing van-accessible spaces) and that guest rooms and services, such as buffets, restaurants and bars and public restrooms, are ADA compliant. The agreements require each hotel and casino to implement and/or amend its ADA disability rights policies and to provide training to its staff regarding the ADA’s provisions.

Any member of the public who wishes to file a complaint alleging that a hotel or any other place of public accommodation within the District of New Jersey is not accessible to persons with disabilities may use the Civil Rights Complaint Form available on the U.S. Attorney’s Office, District of New Jersey website at www.justice.gov/usao/nj.  Those interested in finding out more about the ADA in general may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

NEWARK, N.J. – A former registered representative of a broker-dealer offering investment products and services, including variable life insurance and annuities, today admitted using his position to steal more than $650,000 from the company’s clients, U.S. Attorney Paul J. Fishman announced.

Kwen Y. Chun, 58, of Midland Park, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of mail fraud.

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

From September 1998 through June 2014, Chun was employed by the company as a registered agent, with authority to assist clients with withdrawing funds from annuities, applying for deferred annuities, and processing loan requests. Chun diverted funds that belonged to at least eight clients to bank accounts under his control and converted those funds to his own use.    

Chun opened a bank account in the name of one client, using the client’s identification without the client’s knowledge or permission. Based upon false representations to the company that the client was requesting withdrawals and loans, Chun caused the company to wire monies from the client’s insurance policies and annuity accounts into the phony account. Chun also admitted that he caused the company to mail numerous checks to his Midland Park residence based upon false representations to the company that at least three other clients had requested to take loans on their insurance policies, which he then deposited into accounts under his control.

Chun admitted to causing other clients to obtain loans from company insurance policies, or to provide him with checks and cash, which Chun falsely advised he would use to open investment accounts on behalf of those clients. Instead, Chun deposited those loan proceeds into bank accounts under his control. He admitted that he provided one of the company’s clients with fabricated statements that purported to show the interest and balance in the client’s fictitious investment account. Chun also provided two other clients with paperwork that purported to illustrate the benefits that they would receive for their alleged annuity investment.

The mail fraud charge to which Chun pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Nov. 2, 2015.

U.S. Attorney Fishman praised inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; criminal investigators with the U.S. Attorney’s Office in Newark; the N.J. Bureau of Securities, Office of the N.J. Attorney General, under the direction of Acting Attorney General John J. Hoffman; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, for the investigation leading to today’s guilty plea. 

The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.

Defense counsel: Joshua P. Cohn Esq., Saddle Brook, New Jersey

NEWARK, N.J. – A Middlesex County doctor with practices in Jersey City, New Jersey, was sentenced today to 21 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Anthony DelPiano, 55, of Monmouth Junction, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of accepting bribes. Judge Chesler imposed the sentence today in Newark federal court.

Including DelPiano, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $11 million through forfeiture.

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

DelPiano admitted that from October 2005 through March 2013, he accepted bribes in return for referring patient blood specimens to BLS and was paid approximately $2,300 per month. In return for a total of $189,175 in bribes, DelPiano’s referrals generated at least $1,752,603.24 in lab business for BLS.

In addition to the prison term, Judge Chesler sentenced DelPiano to one year of supervised release and fined him $10,000. DelPiano must also forfeit $207,500 as part of his plea agreement.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Andrew Leven; Assistant U.S. Attorney Joseph N. Minish; Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark; and Assistant U.S. Attorney Barbara Ward, Chief of the office’s Asset Forfeiture and Money Laundering Unit.

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

NEWARK, N.J. – A citizen of the Dominican Republic was sentenced today to 36 months in prison for several crimes related to her effort to re-enter the United States with a phony passport, U.S. Attorney Paul J. Fishman announced.

Angela De Jesus-Concepcion, 36, of Bergenfield, New Jersey, was previously convicted of all three counts of the indictment against her: false claim of U.S. citizenship, use of a U.S. passport obtained by false statement and aggravated identity theft. She was convicted following a one week trial before U.S. District Judge William Walls, who imposed the sentence today in Newark federal court.

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

On March 17, 2012, De Jesus-Concepcion attempted to enter the United States at Newark Airport from the Dominican Republic. At CBP passenger processing she presented a United States passport bearing the name of an identity theft victim and De Jesus-Concepcion’s photograph. She also filled out a customs declaration using the victim’s name and the number of the passport that she was carrying. Customs and Border Protection conducted a secondary inspection and found a New Jersey driver’s license bearing the victim’s name and De Jesus-Concepcion’s photograph along with a Visa debit card in De Jesus-Concepcion’s own name. At trial, it was proven that the passport being carried by De Jesus-Concepcion had been obtained using an earlier version of the New Jersey driver’s license bearing the victim’s name and De Jesus-Concepcion’s photograph and a replacement naturalization certificate, also bearing the victim’s name and De Jesus-Concepcion’s photograph.

In addition to the prison term, Judge Walls sentenced De Jesus-Concepcion to serve three years of supervised release.

U.S. Attorney Fishman credited enforcement officers of U.S. Customs and Border Protection, under the leadership of Robert E. Perez, director of New York Field Operations, for the investigation leading to today’s sentencing. He also thanked the Department of State, Diplomatic Security Service, for its investigation.

The government is represented Assistant U.S. Attorneys Sara F. Merin of the General Crimes Unit and Shirley U. Emehelu of the Economic Crimes Unit in Newark.

Defense counsel: Kathleen Theurer Esq., Jersey City, New Jersey.

NEWARK, N.J. – The leader of an extensive scheme to obtain millions of dollars through fraudulently obtained tax refund checks issued by the U.S. Treasury was sentenced today to 84 months in prison, U.S. Attorney Paul J. Fishman announced.

Julio C. Concepcion, 50, of Passaic, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to steal government funds and one count of theft of government funds. Concepcion also pleaded guilty to a separate information charging him with one count of conspiracy to commit wire fraud in connection with his involvement in a separate mortgage fraud scheme. Judge McNulty imposed the sentence today in Newark federal court.

Concerning the Stolen Identity Refund Fraud (SIRF) scheme, according to documents filed in this case and statements made in court:

Members of the conspiracy, from at least October 2009 through May 2013, obtained the personal identifying information, including the names and Social Security numbers, of other individuals, including residents of Puerto Rico. Conspirators filed with the IRS false and fraudulent income tax returns using the stolen identity information, which generated income tax refund checks to which the members of the conspiracy were not entitled. The funds from these refund checks were then routinely transferred between bank accounts controlled by members of the conspiracy. The SIRF scheme resulted in more than $2.5 million in losses to the U.S. Treasury.     

Julio C. Concepcion admitted to obtaining these fraudulent refund checks and recruiting others to open bank accounts and deposit the checks, sometimes providing them with false identification in order to do so. Concepcion’s two sons, Angel Concepcion-Vasquez, 31, and Julio Concepcion-Vasquez, 32, both of Passaic, and two other defendants, Jose Zapata, 67, of Passaic, and Romy Quezada, 24, of Paterson, New Jersey, each admitted to opening bank accounts into which these fraudulently obtained refund checks were deposited. Reyes Flores-Perez, 33, of Passaic, provided fraudulent identification documents to members of the scheme to further the conspiracy.

Angel Concepcion-Vasquez and Julio Concepcion-Vasquez were each sentenced to 16 months in prison on June 24, 2015. Zapata and Quezada were sentenced to three and two years of probation, respectively, on June 25, 2015. Flores-Perez was sentenced to 26 months in prison on June 29, 2015.

Concerning the mortgage fraud information, according to filed documents and statement made in court:

From January 2008 through March 2010, Concepcion conspired with others to commit wire fraud, specifically mortgage fraud. Once a conspirator purchased properties in New Jersey.  Concepcion and others caused people to purchase the homes and receive mortgages for the homes either by using false identification documents or without the intent to live in the homes or pay off the mortgages.

Concepcion and others were able to cause parties to issue mortgages for the properties in reliance on fraudulent documents and material misrepresentations. The Federal Housing Administration (FHA) insured some of these mortgages.

As a result of these actions, the FHA and parties who approved the mortgages have lost more than $2.5 million.

In addition to the prison term, Judge McNulty ordered Concepcion to serve three years of supervised release and pay restitution of $5,643,695.46.

U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Carl Agnelli; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigations leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Andrew Kogan of the Economic Crimes Unit and Cari Fais and Melissa Wangenheim of the General Crimes Unit.

Defense counsel: Genesis Peduto Esq. North Bergen, North Jersey.

NEWARK, N.J. – A Staten Island, New York, man was sentenced today to 54 months in prison for his role in a large-scale, organized, retail crime scheme involving the theft of tens of millions of dollars’ worth of over-the-counter (OTC) pharmaceuticals and health and beauty aid (HBA) products, U.S. Attorney Paul J. Fishman announced.

Mohammed Abuteer, 27, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to transport stolen goods interstate. Judge McNulty imposed the sentence today in Newark federal court.

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

From 2008 through May 2013, Abuteer participated in an elaborate scheme to steal and resell HBA and OTC, such as Claritin, Zantac, Mucinex, Prilosec, and Crest White Strips. The items were stolen from retail stores including Target, Wal-Mart, and CVS, and military commissaries, some of which were located in New Jersey.

Conspirators known as “boosters” stole HBA and OTC products and sold them to low-level “fences” at a fraction of the retail value. For example, a package of 30-count Crest White Strips, which retailed for approximately $50, would be sold for $11. The fences resold the items to mid-level distributors – including Abuteer, and his brother, Salim Abutair, who was previously charged by complaint with participating in the conspiracy and is now a fugitive in Jordan. The distributors resold the items to higher-level distributors, who then sold the stolen goods to retailers or directly to consumers.

Abuteer maintained an inventory of his stolen product in a large storage unit in Staten Island, where he and others “cleaned” the items by removing security packaging and other labels that identified the retail stores from which the products were stolen. He used the storage unit to arrange for deliveries of merchandise to other conspirators. Abuteer and his brother also maintained several bank accounts from which they paid for the stolen merchandise and where they held their profits. Over the course of Abuteer’s involvement in the conspiracy, he and his brother purchased tens of millions of dollars of stolen HBA and OTC merchandise. Abuteer was arrested in May 2013 while attempting to travel to Jordan. At the time of his arrest, he was carrying $10,000 in cash, and federal agents seized approximately $300,000 worth of stolen items from his storage unit.

In addition to the prison term, Judge McNulty sentenced Abuteer to two years of supervised release and entered a money judgment of $1,301,500, representing the proceeds of the scheme. He also forfeited certain assets previously seized by the government, including approximately $66,000 and a property in Staten Island. Abuteer, an illegal alien, has been out on bail on home detention for the majority of time since his arrest.

U.S. Attorney Fishman credited special agents with the New York field office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Raymond Parmar Jr.; agents of the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires Jr.; and agents of the U.S. Air Force, Office of Special Investigations, under the direction of Detachment Commander Matthew Sarkissian, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the Economic Crimes Unit.

Today’s sentencing is part of efforts underway by President 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. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information on the task force, please visit www.StopFraud.gov

Defense counsel: Michael Chazen Esq., Freehold, New Jersey

TRENTON, N.J. – A Lancaster County, Pennsylvania, man today admitted 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, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiracy to transport stolen goods in interstate commerce.

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

From November 2013 through August 2014, Medina conspired with his brother, Jose Medina, 38, 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.

The conspiracy charge to which Medina pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Medina must pay $625,000 in restitution. Sentencing is scheduled for Oct. 22, 2015.

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 Edward J. Hanko, with the investigation leading to today’s guilty plea. 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.

Jose 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. – A federal grand jury returned a three-count indictment today against the former president and CEO of Concord Chemical Co. Inc. (Concord) for illegally storing hazardous waste and making false statements to the U.S. Environmental Protection Agency (EPA), U.S Attorney Paul J. Fishman announced.

Miguel Castillo, 61, of Hilton Head, South Carolina, was charged with one count of storing hazardous waste at Concord’s Camden, New Jersey, facility in violation of the Resource Conservation and Recovery Act (RCRA) and two counts of making false statements to the EPA.

According to the indictment:

RCRA was enacted in 1976 to address a growing nationwide problem with industrial and municipal waste. RCRA was designed to protect human health and the environment by prohibiting the treatment, storage or disposal of any hazardous waste without a permit. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) authorizes the EPA to remove hazardous waste from industrial sites and hold responsible parties liable for the costs.

Concord manufactured, repackaged and distributed a wide variety of chemical products, including cresylic acid, soaps, waxes, pipe lubricants and emulsions. Some of Concord’s products and the raw materials used to make them were hazardous. Castillo was Concord’s president or CEO from 2003 through August 2011. He also served as the president and director of another company, KW Inc., which repackaged and distributed commercial laundry products while leasing space from Concord’s Camden facility from May 2008 through the fall of 2009. Neither Concord nor KW had a permit to store hazardous waste at the Camden facility.

While Castillo was in charge of Concord, drums containing hazardous waste were stored in the Camden facility basement. In 2004 and 2005, Concord employees attempted to remove those drums but allegedly never finished due to claims by Castillo that Concord could not afford to remove additional drums.

By March 2010, Concord and KW had ceased operations at Concord’s Camden facility. In August 2010, the EPA conducted a site visit and discovered that the facility was devoid of employees, left in a deteriorated condition and filled with drums containing corrosive and ignitable hazardous waste. From October 2010 through March 2011, the EPA removed the hazardous substances from the facility.

On Sept. 1, 2011, the EPA requested information from Castillo in order to identify the parties responsible for EPA’s removal costs. When Castillo responded to the EPA’s requests, he failed to identify himself as Concord’s president and CEO or KW’s president and director.

The illegal storage of hazardous waste charge and each of the false statements charges carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.

U.S. Attorney Fishman credited special agents of the EPA, under the direction Special Agent in Charge Vernesa Jones-Allen, with the investigation leading to today’s charges.

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

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

Two Former Company Executives Plead Guilty to Participating In Bribery Scheme

NEWARK, N.J. – Louis Berger International Inc. (LBI), a New Jersey-based construction management company, admitted to violations of the Foreign Corrupt Practices Act (FCPA) and agreed to pay a $17.1 million criminal penalty to resolve charges that it bribed foreign officials in India, Indonesia, Vietnam and Kuwait to secure government construction management contracts. Two of the company’s former executives also pleaded guilty today to conspiracy and FCPA charges in connection with the scheme.

U.S. Attorney Paul J. Fishman of the District of New Jersey, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Richard M. Frankel of the FBI’s Newark Division made the announcement.

LBI entered into a deferred prosecution agreement (DPA) today and admitted its criminal conduct, including its conspiracy to violate the anti-bribery provisions of the FCPA. LBI has agreed to pay a $17.1 million criminal penalty, to implement rigorous internal controls, to continue to cooperate fully with the department and to retain a compliance monitor for at least three years.

Richard Hirsch, 61, of Manila, Philippines, and James McClung, 59, of Dubai, United Arab Emirates, each pleaded guilty to one count of conspiracy to violate the FCPA and one substantive count of violating the FCPA.Hirsch previously served as the senior vice president responsible for the company’s operations in Indonesia, Thailand, the Philippines and Vietnam.McClung previously served as the senior vice president responsible for the company’s operations in India and, subsequent to Hirsch, in Vietnam.The sentencing hearings for Hirsch and McClung are scheduled for Nov. 5, 2015.

According to admissions in the DPA and statements in the charging documents:

From 1998 through 2010, the company and its employees, including Hirsch and McClung, orchestrated $3.9 million in bribe payments to foreign officials in various countries in order to secure government contracts.To conceal the payments, the conspirators made payments under the guise of “commitment fees,” “counterpart per diems,” and other payments to third-party vendors.In reality, the payments were intended to fund bribes to foreign officials who had awarded contracts to LBI or who supervised LBI’s work on contracts.

Among other factors, in entering into a DPA in this case, the government considered: (1) LBI’s self-reporting of the misconduct; (2) the company’s cooperation, including voluntarily making both U.S. and foreign employees available for interviews, and collecting, analyzing and organizing evidence and information for federal investigators; (3) the company’s extensive remediation, including terminating the officers and employees responsible for the corrupt payments; and (4) the company’s demonstrated commitment to improving its compliance program and internal controls.

This case was investigated by the FBI’s Newark Division and criminal investigators with the U.S. Attorney’s Office, District of New Jersey. The government is represented by Assistant U.S. Attorneys Thomas J. Eicher and Scott B. McBride of the District of New Jersey and Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section.The Criminal Division’s Office of International Affairs also provided assistance.

Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .

TRENTON, N.J. – A Gladwyne, Pennsylvania, man was sentenced today to six months in prison and six months of home confinement for using phony documents and “straw buyers” to fraudulently secure millions of dollars in discounted computer equipment from Hewlett-Packard Co. (HP) and Cisco Systems Inc. (Cisco), U.S. Attorney Paul J. Fishman announced.

Andrew Silverman, 52, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of wire fraud. Judge Shipp imposed the sentence today in Trenton federal court.

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

From January 2008 through May 2012, Silverman exploited HP and Cisco discount programs that provided reduced prices on products used locally within a certain country and were not resold. As the president and owner of DataQ Internet Equipment Corp., which sold computer hardware and software, Silverman was not eligible to receive these discounts.

Silverman admitted that he recruited business owners to pose as buyers interested in securing a large volume of computing products. He directed these straw buyers to falsely tell HP and Cisco that the procured products would be used internally by those individuals’ businesses and not resold. Once negotiations were complete and the straw buyers fraudulently secured the discounts, Silverman sent funds via international wire transfers to the straw buyers to cover the purchase cost. He then had the discounted equipment shipped to destinations other than the straw buyer’s businesses, including to New Jersey and other locations in the United States.

Silverman also admitted he sent multiple emails to HP representatives posing as an individual named “P.B,” regarding the purchase of deeply discounted HP equipment. Silverman created a company called Integrated Data Centers to conduct negotiations with an HP representative so he could fraudulently obtain discounted HP products.

The estimated combined losses to HP and Cisco are $2.5 million.

In addition to the prison term, Judge Shipp ordered Silverman to serve three years of supervised release, pay a $75,000 fine and forfeit $2.5 million in restitution.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Economic Crimes Unit in Newark.

Defense counsel: William Winning and Megan Scheib Esqs., Conshohocken, Pa., and Gerald Krovatin Esq., Newark

NEWARK, N.J. – A Newark man was sentenced today to 168 months in prison for committing six armed robberies of Newark convenience stores – including the same grocery store twice within a week, U.S. Attorney Paul J. Fishman announced.

Larry McRae, 28, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with six counts of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence. Judge McNulty imposed the sentence today in Newark federal court.

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

From June 30, 2012, through Sept. 15, 2012, McRae entered convenience stores in Newark on six different occasions and robbed the store clerks at gunpoint. During the spree, he robbed the same P & T Grocery on Sept. 5, 2012 that he robbed on Sept. 1, 2012. Also, during the Sept. 15, 2012, robbery, he discharged one round from a .357 Magnum handgun as he exited the store. He was apprehended by the Newark Police Department later that morning.

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

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s sentencing. He also thanked the Newark Police Department, under the direction of Police Director Eugene Venable and Chief Anthony Campos, for their work in this case.

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: Donna R. Newman Esq., New York        

NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 120 months in prison for selling 33 firearms to a confidential informant, U.S. Attorney Paul J. Fishman announced.

Bernardo Guzman, 26, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing firearms while being a previously convicted felon. Judge Arleo imposed the sentence today in Newark federal court.

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

Guzman admitted that on Nov. 14, 2013, he met with an individual in the parking lot of a grocery store in Fort Lee, New Jersey, to illegally sell three handguns. Guzman also admitted that from June 2013 through February 2014, he sold approximately 33 firearms and hundreds of rounds of ammunition to a confidential informant. The firearms sold by Guzman consisted of semiautomatic weapons, sawed-off shotguns, assault-style rifles and firearms with high-capacity magazines. Some of the firearms had obliterated serial numbers. All of the weapons and ammunition are now in the custody of law enforcement.

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

The government is represented by Assistant U.S. Attorney Elizabeth M. Harris of the Organized Crime/Gangs Unit of the Criminal Division in Newark.

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; special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Kevin Kelly; and the Jersey City Police Department with the investigation leading to today’s plea.

Defense counsel: Julian Wilsey Esq., Livingston, New Jersey

Newark, N.J. – A Canadian stock promoter today admitted his role in a scheme to artificially inflate the stock price of a publicly traded company through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced.

Mitchell G. Adam, 47, of Vancouver, Canada, pleaded guilty before U.S. District Judge Jose Linares to an information charging him with conspiracy to commit securities and mail fraud. Adam was initially charged by criminal complaint and arrested on May 20, 2015 at the George Bush Intercontinental Airport in Houston.

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

Between July 2013 and November 2013, Adam conspired with Adam S. Gottbetter, 26, of New York, Kenneth David Stevenson, 55, of Vancouver, and others to manipulate the stock of HBP Energy Corp. (HBPE), a developmental stage company based in Houston. Adam and his conspirators obtained and concealed control of a significant portion of free-trading shares of HBPE stock and agreed to fraudulently inflate the price and trading volume of the stocks through a variety of means, including disseminating false or misleading promotional materials to the investing public and engaging in manipulative trading of the stocks to create the appearance of market interest. Afterwards, they planned to sell the stocks at the fraudulently inflated prices or use the fraudulently inflated value of the companies to solicit private investments, thereby profiting at the expense of the investing public.

Adam and the other conspirators recruited a stock promoter and trader who owned a broker-dealer in New York and who claimed to have experience in various manipulative and fraudulent trading strategies. Unbeknownst to Adam and his co-conspirators, however, this individual was cooperating with law enforcement (the “CW”).

During the scheme, the CW informed Adam, Gottbetter and Stevenson that he had developed an algorithmic trading system, or black box, for the purpose of manipulating the price of stocks. The CW explained that he controlled approximately 32 online brokerage accounts that were opened in the names of foreign nominees and that a computer program that he created could trade between those accounts to create the appearance of massive volume in any stock. Adam, Gottbetter and Stevenson directed the CW to use the black box in connection with the HBPE scheme. In addition to using the CW to manipulate HBPE’s stock, Adam, Gottbetter and Stevenson planned an elaborate promotional campaign that would take place after HBPE’s stock was manipulated to a certain level, including international “call rooms,” listing HBPE’s stock on foreign exchanges, a “road show” and other activities. Law enforcement intervened before the HBPE promotion could take place.

The conspiracy count to which Adam pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 27, 2015.

Gottbetter and Stevenson both pleaded guilty for their roles in the scheme. Gottbetter was sentenced to 18 months in prison on May 26, 2015. Stevenson was sentenced to one year of probation on May 28, 2015.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, for the investigation leading to today’s plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office under the direction of Andrew Calamari.

The government is represented by Gurbir S. Grewal, Chief of the U.S. Attorney’s Office Economic Crimes Unit and Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit.

Defense Counsel: Frank A. Rubino, Esq. Coral Gables, Florida

CAMDEN, N.J. – A Pleasantville, New Jersey, man was sentenced today to 110 months in prison for his involvement in a scheme to distribute heroin in around Atlantic County, New Jersey, U.S. Attorney Paul J. Fishman announced.

Nassaun Hines, a/k/a “Bubbles,” a/k/a “Nay,” 30, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to a superseding information charging him with knowingly and intentionally conspiring to distribute 100 to 400 grams of heroin, and possession of a firearm by a previously convicted felon. Judge Rodriguez imposed the sentence today in Camden federal court.

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

From late 2009 and through May 2010, law enforcement officers identified a large-scale, criminal organization that distributed more than one kilogram of heroin throughout the southern New Jersey area. Jamal Reid, 30, of Mays Landing, New Jersey, was the organizer and leader of the ring.

Hines admitted that from January 2009 through May 2010, he sold quantities of heroin in Atlantic County and conspired with others in connection with his drug trafficking activity. Hines admitted that after Reid “fronted” him bulk amounts of heroin, Hines gave the drugs to other members of the conspiracy for distribution and collected payment on Reid’s behalf. In addition, Hines, who is a previously convicted felon, also admitted that he knowingly possessed a firearm on May 15, 2010.

In addition to the prison term, Judge Rodriguez sentenced Hines to serve five years of supervised release.

Reid previously pleaded guilty to Count 1 and Count 2 of a superseding indictment charging him with conspiracy to distribute one kilogram or more of heroin and possessing a firearm as a previously convicted felon. He was sentenced to 154 months in prison on May 28, 2015.

U.S. Attorney Fishman credited special agents of the FBI’s Atlantic City Resident Agency Safe Streets Task Force, under the direction of Special Agent in Charge Richard M. Frankel, which consisted of officers from Atlantic County Prosecutor's Office, Atlantic City Police Department, Northfield Police Department and Pleasantville Police Department; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge George P. Belsky, for the investigation leading to today’s sentencing.

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 F. Renner Esq., Marlton, New Jersey

NEWARK, N.J. – A New York woman was charged today with running a real estate investment scheme that defrauded victims of hundreds of thousands of dollars, U.S. Attorney Paul J. Fishman announced.

Alisa Adler, 54, of New York, is charged by complaint with one count of wire fraud. Adler made her initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court. She was released on unsecured $100,000 bond.

According to the criminal complaint:

From January 2009 through December 2011, Adler took loans and investments from multiple victims and told them that their money would be used to purchase and develop real estate projects through her company, ASG Real Estate Services Group Inc. To induce potential victim investors to give her money, Adler provided them with promotional materials and other documents, and told them that their money would be repaid within a certain amount of time.

Instead, Adler allegedly perpetrated a Ponzi scheme in which she used new investor money to fund principal and interest payments to existing investors and to pay for her own personal expenses. For instance, in May 2010, after soliciting a victim to invest $500,000 to fund a real estate acquisition in or around of Kerkonkson, New York, Adler instead used most of the money to pay other investors and to pay her household bills, transportation costs, meals and entertainment.

The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the amount of the loss caused by the offense.

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to the charge.

The government is represented by Special Assistant U.S. Attorney Andrew R. Tyler of the U.S. Attorney’s Office Criminal Division in Newark.

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

Defense counsel: Jacob Laufer Esq., New York

TRENTON, N.J. – A Hopewell, New Jersey, woman was sentenced today to 37 months in prison for bribing a former Department of Veterans Affairs (VA) supervisory engineer at the VA’s campus in East Orange, New Jersey, in order to fraudulently obtain $6 million in construction contracts, including those reserved for service-disabled, veteran owned small businesses, U.S. Attorney Paul J. Fishman announced.

Donna Doremus, 47, previously pleaded guilty before U.S. District Judge Mary L. Cooper to three counts of a four-count information charging her with one count of bribing a public official, one count of conspiracy to defraud the United States and two counts of making and subscribing to false federal tax returns. Judge Cooper imposed the sentence today in Trenton federal court.

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

The bribes were paid in connection with VA contracts awarded to companies Doremus owned. She also admitted to a conspiracy to defraud the United States by falsely representing that one of her companies was owned and controlled by a service-disabled veteran.

From 2007 to July 2012, Doremus paid approximately $671,000 in bribes to a former VA official, Jarod Machinga, 45, also of Hopewell, in connection with VA contracts awarded to three companies she owned and controlled. In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga directed more than $6 million of VA construction projects to Doremus’ companies.  

One of Doremus’s companies, Tyro General Construction (Tyro), entered into a service-disabled, veteran-owned small business contract with the VA. Congress has established a program whereby certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. Doremus conspired with Machinga to falsely represent to the VA that Tyro was a service-disabled, veteran-owned small business so that Tyro could improperly obtain a lucrative construction contract from the VA. Machinga then used his official position and influence at the VA to award such a contract to Tyro. In total, Tyro was paid more than $3 million by the VA in connection with this service-disabled veteran-owned contract.

For tax years 2009 and 2010, Doremus falsely reported that certain bribe payments she made to Machinga, as well some personal expenditures, were her companies’ business expenses. As a result, she failed to pay $250,374 in federal income taxes that she owed the IRS.    

In addition to the prison term, Judge Cooper ordered Doremus to serve one year of supervised release. Restitution will be determined at a hearing on Aug. 26, 2015. As part of her plea, she agreed to a forfeiture money judgment of $671,975.

On Sept.18, 2013, Machinga pleaded guilty before Judge Cooper in connection with his accepting kickbacks from Doremus and engaging in a scheme to defraud the VA. He was sentenced to 46 months in prison on June 30, 2015.

U.S. Attorney Fishman credited special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; the FBI, under the direction of Special Agent in Charge Richard M. Frankel; and 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. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.

Defense counsel: Michael A. Caudo Esq., Philadelphia

CAMDEN, N.J. – An Atlantic City Police Department Sergeant was arrested by special agents of the FBI this morning for allegedly structuring financial transactions to avoid the filing of currency transaction reports and making false statements to federal agents, U.S. Attorney Paul J. Fishman announced.

Kiyia M. Harris, 39, of Egg Harbor Township, is charged by complaint with one count of structuring and one count of making false statements to FBI agents during two interviews in December 2014.  She is scheduled to make her initial appearance later today before U.S. Magistrate Judge Karen M. Williams in Camden federal court.

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

Harris was engaged in a personal relationship with a convicted drug dealer, D.W., who was on federal probation.  In June 2012, Harris purchased a 1969 Camaro for D.W. in her name and structured the payments for the car in such a manner as to avoid the filing of a Currency Transaction Report (CTR) by the car dealership, and also to obscure D.W.’s involvement in the purchase.  Harris caused $17,825 in cash to be deposited in amounts less than $10,000.  On June 8, 2012, Harris paid $9,999 to the dealership.  By check dated June 11, 2012, which was drawn on one of her personal accounts at TD Bank, Harris paid the balance due on the Camaro.

Some of the monies Harris used to pay for the Camaro were deposited into that same TD bank account on two separate dates at two different TD Bank branches.  On June 11, 2012, Harris deposited at the TD Bank branch in Atlantic City $9,926: $3,926 in cash and a $6,000 check dated June 10, 2012 bearing the notation “loan for auto” from J.E., a friend of D.W. who loaned D.W. some of the monies to purchase the Camaro. The following day Harris deposited an additional $3,900 in cash into the same TD Bank account at the bank branch in English Creek, New Jersey.

CTR forms require disclosure of the identity of the individual who conducted the transaction and the individual or organization for whom the transaction was completed. Many individuals involved in illegal activities are aware of these reporting requirements and take active steps to cause financial institutions, including car dealerships, not to file CTRs in order to avoid detection of the movement of large amounts of U.S. currency or currency obtained from illegal activities, including drug trafficking. These steps are referred to as “structuring” and involve making multiple cash payments, deposits or withdrawals in amounts of $10,000 or less on the same day or consecutive days in order to avoid CTR filings.

Harris was interviewed by special agents from the FBI on two occasions in December 2014 about her relationship with D.W. and suspicious financial transactions. Harris made false statements to agents which were material to an ongoing federal drug trafficking and money laundering investigation.  She falsely told FBI agents that she had never deposited cash into her bank accounts when, in actuality, from January 8, 2007 through November 26, 2014, Harris had deposited more than $120,000 in cash into her accounts.  Harris repeatedly denied having engaged in financial transactions with D.W., when in actuality, Harris had conducted numerous transactions with D.W., including helping him with the purchase of the 1969 Camaro and also paying a $6,500 deposit on a 2012 Harley Davidson motorcycle for D.W. by a check drawn on one of Harris’ personal accounts at T.D. Bank.

Both charges carry a maximum potential penalty of five years in prison and a $250,000 fine on each count.

U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel; the DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry White, with the investigation leading to today’s arrest.

He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.

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

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

Defense counsel:.  James J. Leonard Jr. Esq. of Atlantic City

NEWARK, N.J. – A federal grand jury returned a 23-count indictment today against the owner of a Ridgefield, New Jersey, aircraft parts brokering company for his role in a 19-year conspiracy to launder scrapped jet engine parts and for avoiding taxes related to his aircraft parts business, U.S. Attorney Paul J. Fishman announced.

Gideon Vaisman, 75, of Edgewater, New Jersey, was charged with one count of conspiracy to commit mail and wire fraud, nine counts of mail fraud, four counts of wire fraud, one count of conspiracy to commit fraud involving aircraft parts and eight counts of filing false tax returns. Vaisman was previously arrested on May 13, 2013 and charged by complaint with one count of conspiracy to commit wire fraud.

According to the indictment:

Vaisman owned Integrated Technology Corp. from 1989 through 1998, and Tara Technology Corp. from 1998 onward. Both businesses were located in Ridgefield and bought and sold aircraft parts. From 1990 through 2009, Vaisman orchestrated a scheme to defraud Federal Aviation Administration (FAA) repair stations, aircraft parts brokers, aircraft parts end-users and others by using phony documents to resell jet engine parts obtained from scrap metal dealers.

Vaisman, on behalf of Integrated Technology, and later Tara Technology, directly and indirectly purchased vital jet engine parts called “blades” and “vanes” from scrap metal dealers. Afterwards, Vaisman instructed Tara Technology’s general manager, Carmine Coviello, 63, to use his Suffern, New York-based aircraft parts broker and seller company, Shelby Enterprises, to sand and file the parts in order to conceal that they had been scrapped and, on occasion, rejected for repair by an FAA repair station. FAA regulations mandate that only FAA-certified repair stations or certified airframe and power plant mechanics may perform such work on aircraft parts.

Vaisman, Coviello and others also conducted sham sales of the illegally altered blades and vanes to Integrated Technology and Tara Aviation Ltd., an aircraft parts broker and seller incorporated in Tortola, British Virgin Islands, and located in Guernsey, United Kingdom. Despite being listed under a different owner, Tara Aviation was in fact completely controlled and financed by Vaisman. The sole purpose of these sales, which occurred only on paper, was to generate fraudulent trace paperwork for the parts. Trace paperwork documents the history of an aircraft part and includes information such as the part’s manufacturer, the aircraft on which the part was used and how it was used. The paperwork is also employed in determining whether an aircraft or aircraft part has been subject to severe stress or heat as would occur during a major engine failure, accident or fire. Under Vaisman’s direction and without any knowledge of the history of the scrapped parts, Coviello prepared fraudulent trace paperwork certifying that the parts had not been subjected to excessive stress and heat or deemed unsuitable by an FAA repair station.

Vaisman, Coviello and another conspirator stored the blades and vanes in Tara Technology’s warehouse inventory, ultimately selling them to aircraft brokers, airlines and others on behalf of Tara Aviation using the fraudulent trace paperwork.

The indictment also alleges that although Tara Technology and Tara Aviation acted as a single entity and that Vaisman controlled all of Tara Aviation’s operations, provided financing and had complete authority over its inventory and cash flows, he failed to report $14,236,000 in net income from Tara Aviation on his personal tax returns and those of Tara Technology.

The mail and wire fraud conspiracy and substantive charges each carry a maximum term of 20 years in prison and $250,000 fine, or twice the loss caused by the offense. The conspiracy to commit fraud involving aircraft parts carries a maximum term of 15 years in prison and a $500,000 fine, or twice the gross gain or loss caused by the offense. The tax charges each carry a maximum term of three years in prison and a $250,000 fine or twice the loss caused by the offense.

Coviello previously pleaded guilty to an information charging him with conspiracy to commit wire fraud in relation to the scheme. His sentencing is scheduled for Sept.10, 2015.      

U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, and IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s charges.

The case is being prosecuted by Deputy Chief Scott B. McBride of the U.S. Attorney’s Office’s Economic Crimes Unit in Newark.

The charge and allegations against Vaisman are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Defense counsel: Gerald Krovatin, Esq., Newark

NEWARK, N.J. – Two drug suppliers for the Grape Street Crips street gang today admitted distributing large quantities of heroin and crack-cocaine in and around Newark, New Jersey, U.S. Attorney Paul J. Fishman announced today.

Toma Williams, a/k/a “T-Dubbs,” 38, and Jihad Coles, a/k/a “Half Dead,” 30, both of Newark, pleaded guilty before U.S. District Judges Madeline Cox Arleo and Esther Salas, respectively, in Newark federal court. Williams pleaded guilty today to an information charging him with one count of conspiracy to distribute one kilogram or more of heroin and one count of using a firearm in furtherance of a drug-trafficking crime. Coles pleaded guilty on July 8, 2015 to a separate information charging him with one count of conspiracy to distribute 280 grams or more of 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 were the result of a long-running investigation led by the Drug Enforcement Administration (DEA) and the 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:

Williams admitted that, between March 2014 and Oct. 3, 2014, he conspired with others to distribute kilogram quantities of heroin to members and associates of the Grape Street Crips. During the course of a wiretap investigation of Williams, the DEA learned that Williams was a supplier of heroin to members of the Grape Street Crips operating in and around the area of North 5th Avenue and 6th Street in Newark. In addition, Williams ran a drug-trafficking organization that supplied heroin to other individuals in and around Newark and Jersey City, New Jersey. Following Williams’ arrest, DEA agents discovered a sophisticated secret compartment inside Williams’ car. Inside that secret compartment, Williams had approximately two kilograms of heroin and a loaded semi-automatic firearm, which Williams admitted today he used to protect his supply of heroin and his drug profits.

Coles admitted that, between March 2012 and August 2012, he conspired with others to distribute hundreds of grams of crack-cocaine at the Mildred Terrell Homes public-housing complex located on Riverview Terrace in Newark, New Jersey. As a long-time member of the Grape Street Crips, Coles admitted today that he served as an organizer and leader of the crack-cocaine distribution conspiracy.

The heroin conspiracy charge to which Williams pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. The firearms charge carries a mandatory minimum sentence of five years in prison—which must run consecutive to the sentence imposed for the heroin conspiracy—a maximum sentence of life in prison, and a fine of up to $250,000. The crack-cocaine conspiracy charge to which Coles pleaded guilty carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. Williams and Coles are scheduled to be sentenced on Oct 19, 2015 and Nov. 9, 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 charges. 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 Sheriff 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 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:

Toma Williams: Linda Foster, Esq., Newark

Jihad Coles: David A. Ruhnke, Esq., Montclair, New Jersey

NEWARK, N.J. – A former U.S. Army major and his wife were convicted today on federal charges that they abused their adopted children, who all were less than 4 years old and developmentally delayed, through neglectful and cruel acts, including by breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Paul J. Fishman announced.

Carolyn Jackson, 37, and John E. Jackson, 40, formerly a Major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, who was discharged from the Army in May 2015, were each found guilty of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child following four months of trial before U.S. District Judge Katharine S. Hayden in Newark federal court. The jury deliberated four days before delivering the guilty verdicts.

The case falls under federal jurisdiction because the crimes were committed on a military base.

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

From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.

After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.

As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple.

None of the children, adoptive and biological, remain in the custody of the defendants.

Carolyn and John Jackson each face a maximum potential penalty of 10 years in prison on each of the counts on which they were convicted, as well as a maximum $250,000 fine for each count. Sentencing is scheduled for Oct. 13, 2015.

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 today’s convictions. He also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock, and the Morris County Prosecutor’s Office, under the direction of Prosecutor Fredric M. Knapp.

The government is represented by Assistant U.S. Attorneys Melissa L. Jampol and Joseph B. Shumofsky of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel:

Carolyn Jackson: Rubin Sinins and Herbert Waldman Esqs., Springfield

John Jackson: David Holman and Carol Gillen Esqs., Assistant Federal Public Defenders, Newark

CAMDEN, N.J. – Two New Jersey men were convicted today for their roles in a large-scale conspiracy to ship stolen luxury cars to Hong Kong and elsewhere, U.S. Attorney Paul J. Fishman announced.

Andrew Clarke, 44 of Irvington, New Jersey, and Llewellyn Clarke, 42 of North Plainfield, New Jersey, were convicted on all four counts of a superseding indictment charging them each with one count of conspiracy to transport stolen motor vehicles and three counts of transportation of stolen motor vehicles in interstate and foreign commerce. They were convicted following a three-week trial before U.S. District Judge Robert B. Kugler in Camden federal court. The jury deliberated for about three hours before returning the guilty verdicts.

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

The stolen car exportation ring was investigated by a multi-agency task force led by Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The investigation revealed that the Clarkes were purchasing stolen luxury cars from thieves operating in northern New Jersey and New York. The Clarke brothers then recruited other conspirators to “re-tag” those cars, or have fraudulent vehicle identification numbers placed on the cars to mask the fact that they were stolen, and then had false title documents produced for those cars in New Jersey and Georgia. After the fake documents were created, the Clarkes shipped several of those stolen cars, valued at nearly $1 million, from New Jersey to Hong Kong, while other cars were shipped to Georgia, Maryland and elsewhere. Once overseas or out-of-state, the stolen cars were then re-sold, some to unsuspecting buyers who later learned that their vehicles were in fact stolen.

Both defendants were detained pending their sentencing, which is scheduled for Oct.15, 2015.  Both defendants face up to 35 years in prison as a result of their convictions.

 U.S. Attorney Fishman credited special agents of ICE HSI, under the leadership of Executive Associate Director Peter Edge and Acting Special Agent in Charge Kevin Kelly, and the N.J. State Police, under the direction of Superintendent Col. Rick Fuentes, for the investigation leading to today’s convictions. He also thanked U.S. Customs and Border Protection; the Waterfront Commission of New York Harbor; Essex County Prosecutor Carolyn Murray, Middlesex County Prosecutor Andrew Carey, Hudson County Prosecutor Esther Suarez, and Union County Acting Prosecutor Grace H. Park, the Essex and Hudson County Sheriff’s Departments, the Newark Police Department, the U.S. Coast Guard Investigative Service, the Port Authority of New York and New Jersey, the New Jersey Motor Vehicle Commission, the Georgia Department of Revenue, and the Maryland State Police for their roles.

The government is represented by Assistant U.S. Attorney José R. Almonte and James M. Donnelly of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel:

Andrew Clarke: Brian O’Malley Esq., Haddon Heights, New Jersey

Llewellyn Clarke: Paul Sarmousakis Esq., Avalon, New Jersey

 

A Morris County, New Jersey, doctor was sentenced today to 63 months in prison for accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, as part of a long-running scheme operated by the lab, its president and numerous associates, U.S. Attorney Paul J. Fishman for the District of New Jersey announced.

Frank Santangelo, 45, of Boonton, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with violating the Travel Act, money laundering and failing to file tax returns.  Judge Chesler imposed the sentence today in Newark federal court.

“Santangelo admitted he violated the trust of his patients, who should be able to count on their doctors’ prescribing only tests that are necessary and recommending providers based solely on their qualifications,” U.S. Attorney Fishman said.  “This type of fraud compromises patient care and drives up the cost of health care.”

“Today’s sentencing of Frank Santangelo is the result of a long-term, multi-agency investigation into a complex health care fraud scheme which involved millions of dollars,” said Special Agent in Charge Richard M. Frankel of the Newark Division for the FBI.  “Santangelo’s arrest and sentencing send the message the FBI and its law enforcement partners will continue to zealously investigate these fraud and abuse schemes, which divert critical resources from of our already overburdened health care system and contribute exponentially to the rising cost of health care.”

Including Santangelo, 38 people, 26 of them doctors, have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.

According to documents filed in this and other cases and statements made in court: Santangelo, who has offices in Montville, New Jersey, and Wayne, New Jersey, received more than $1.8 million in bribe payments from BLS for referrals for which the lab was paid more than $6 million by Medicare and various insurance companies.  After receiving more than $800,000 from BLS through sham lease agreements and sham service agreements between 2006 and 2010, Santangelo began receiving bribes from BLS through a third party – often tens of thousands of dollars a month – totaling more than $1 million between 2010 and his arrest in April 2013.

Santangelo acknowledged the authenticity of text messages between himself and BLS president and part owner David Nicoll, 41, of Mountain Lakes, New Jersey in which Santangelo referred to ordering unnecessary tests to increase referrals to BLS in exchange for bribes.  In one text message conversation, Santangelo said he and another doctor had “put our heads together and added a significant amount of testing….The testing is 90 percent legit.”  Santangelo detailed his plan to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.

In another text message conversation, Nicoll wrote to Santangelo about the status of their referral agreement, stating that BLS “really can’t afford the 40-50,000 [dollars] a month if the girls aren’t going to be drawing any blood,” to which Santangelo responded by stating, “U no u can count on me!” and “I never let u down!”

He also pleaded guilty to money laundering, admitting that he used another individual in an attempt to hide the bribes from BLS, and to failing to file tax returns from 2009-2011 and pay taxes owed during that time period.

On April 9, 2013, federal agents arrested David Nicoll; Scott Nicoll, 34, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 36, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo.  David and Scott Nicoll and Nordman are awaiting sentencing.

“Physicians who accept kickbacks in exchange for patient referrals and ordering medically unnecessary blood tests undermine the public’s faith in the medical profession and the financial stability of Medicare,” said Special Agent in Charge Scott J. Lampert for the Department of Health and Human Services Office of Inspector General (OIG).  “OIG will continue to protect both taxpayers and patients by holding physicians accountable for such wrongdoing.”

In addition to the prison term, Judge Chesler sentenced Santangelo to three years of supervised release and fined him $6,250.  Santangelo must also forfeit more than $1.8 million as part of his plea agreement.  The investigation has so far recovered more than $11.5 million through forfeiture.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Frankel; Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish and Chief Jacob T. Elberg of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.

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

NEWARK, N.J. – A Morris County, New Jersey, doctor was sentenced today to 63 months in prison for accepting $1.8 million in bribes to refer millions of dollars in business to Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, as part of a long-running scheme operated by the lab, its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.

Frank Santangelo, 45, of Boonton, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with violating the Travel Act, money laundering and failing to file tax returns. Judge Chesler imposed the sentence today in Newark federal court.

“Santangelo admitted he violated the trust of his patients, who should be able to count on their doctors’ prescribing only tests that are necessary and recommending providers based solely on their qualifications,” U.S. Attorney Fishman said. “This type of fraud compromises patient care and drives up the cost of health care.”

“Today’s sentencing of Frank Santangelo is the result of a long-term, multi-agency investigation into a complex health care fraud scheme which involved millions of dollars,” Richard M. Frankel, FBI Special Agent in Charge, Newark Division, said. “Santangelo’s arrest and sentencing send the message the FBI and its law enforcement partners will continue to zealously investigate these fraud and abuse schemes, which divert critical resources from of our already overburdened health care system and contribute exponentially to the rising cost of health care.”

Including Santangelo, 38 people – 26 of them doctors – have pleaded guilty in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.

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

Santangelo, who has offices in Montville, New Jersey, and Wayne, New Jersey, received more than $1.8 million in bribe payments from BLS for referrals for which the lab was paid more than $6 million by Medicare and various insurance companies. After receiving more than $800,000 from BLS through sham lease agreements and sham service agreements between 2006 and 2010, Santangelo began receiving bribes from BLS through a third party – often tens of thousands of dollars a month – totaling more than $1 million between 2010 and his arrest in April 2013.

Santangelo acknowledged the authenticity of text messages between himself and BLS president and part owner David Nicoll in which Santangelo referred to ordering unnecessary tests to increase referrals to BLS in exchange for bribes. In one text message conversation, Santangelo said he and another doctor had “put our heads together and added a significant amount of testing…. The testing is 90 percent legit.”  Santangelo detailed his plan to send $1 million per month in blood testing referrals to BLS by increasing the number of blood tests being ordered, including medically unnecessary tests.

In another text message conversation, David Nicoll wrote to Santangelo about the status of their referral agreement, stating that BLS “really can’t afford the 40-50,000 [dollars] a month if the girls aren’t going to be drawing any blood,” to which Santangelo responded by stating, “U no u can count on me!” and “I never let u down!”

He also pleaded guilty to money laundering, admitting that he used another individual in an attempt to hide the bribes from BLS, and to failing to file tax returns from 2009-2011 and pay taxes owed during that time period.

On April 9, 2013, federal agents arrested David Nicoll, 41, of Mountain Lakes, New Jersey; Scott Nicoll, 34, of Wayne, New Jersey, a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 36, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo.  David and Scott Nicoll and Nordman are awaiting sentencing.

“Physicians who accept kickbacks in exchange for patient referrals and ordering medically unnecessary blood tests undermine the public’s faith in the medical profession and the financial stability of Medicare,” said Special Agent in Charge Scott J. Lampert, U.S. Department of Health and Human Services Office of Inspector General.  “OIG will continue to protect both taxpayers and patients by holding physicians accountable for such wrongdoing.”

In addition to the prison term, Judge Chesler sentenced Santangelo to three years of supervised release and fined him $6,250. Santangelo must also forfeit more than $1.8 million as part of his plea agreement. The investigation has so far recovered more than $11.5 million through forfeiture.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.

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

CAMDEN, N.J. –The former chief mate of the ocean cargo vessel M/V Murcia Carrier was sentenced today to three months in prison for failing to report the hydraulic oil he ordered dumped into the ocean, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General John C. Cruden for the U.S. Department of Justice Environment and Natural Resources Division announced.

 Valerii Georgiev, 42, a Russian citizen, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of failing to maintain an accurate oil record book in violation of the Act to Prevent Pollution from Ships (APPS). Judge Rodriguez imposed the sentence today in Camden federal court.

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

APPS requires vessels like the M/V Murcia Carrier to maintain a record known as an oil record book in which all transfers and disposals of oil-contaminated waste, including the discharge overboard of such waste, must be fully and accurately recorded.

On April 27, 2014, at the direction of Georgiev, M/V Murcia Carrier crew members dumped several barrels containing hydraulic oil overboard. While Georgiev disputes the number of barrels dumped into the sea, the government believes that approximately 20 barrels of hydraulic oil were dumped overboard. The dumping occurred in international waters off the coast of Florida while the vessel was in transit from Costa Rica to New Jersey. The dumping was not recorded in the ship’s oil record book. When the Coast Guard boarded the vessel, Georgiev denied that the dumping occurred and instructed crew members to do the same.

On June 17, 2015, Norbulk Shipping UK Ltd, a company in Glasgow, United Kingdom, and operator of the M/V Murcia Carrier pleaded guilty to failing to maintain an accurate oil record book and providing false statements with respect to the vessel’s garbage record book.  The company was sentenced to pay a fine of $750,000 and placed on probation for three years.

The case was investigated by U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service. The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Matthew Smith of the U.S. Attorney’s Office, District of New Jersey, and Joel La Bissonniere of the Environmental Crimes Section of the Department of Justice.

Defense counsel: Michael Keith Twersky Esq., Atlantic City, New Jersey.

NEWARK, N.J. – A Teaneck, New Jersey, man was convicted today of failing to register as a sex offender when he moved to New Jersey in the fall of 2013, U.S. Attorney Paul J. Fishman announced.

Richard Joseph, a/k/a “Richard Beltre,” a/k/a “Joseph Richards,” a/k/a “Aaron Joseph,” 42, of Teaneck, New Jersey, who is classified as a Tier III sex offender in New York, was convicted after a bench trial before U.S. District Judge Susan D. Wigenton in Newark federal court of one count of failing to register or update a registration as required by the Sex Offender Registration and Notification Act (“SORNA”).

 SORNA requires that all sex offenders who, among other things, travel in interstate or foreign commerce, must register as a sex offender and keep that registration current in each jurisdiction where the sex offender resides.

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

Joseph was required to register as a sex offender due to his 2002 conviction in New York for rape in the third degree. He first registered as a sex offender in New York using the alias “Richard J. Beltre” in 2006 and knew that he was required to register as a sex offender every time he changed his address. However, when Joseph was released from the custody of the N.Y. State Department Correctional Services in 2013, he failed to report as directed by the N.Y. State Division of Parole and a warrant was issued for his arrest. He was eventually arrested on Oct. 11, 2013, having lived in Bergen County since Sept. 7, 2013. During that time, Joseph failed to register as a sex offender in New Jersey.

Joseph faces a maximum potential sentence of 10 years in prison and a $250,000 fine.  Sentencing is scheduled for Oct. 29, 2015.

U.S. Attorney Fishman credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr., and the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jane H. Yoon of the U.S. Attorney’s Office Criminal Division in Newark.

Defense counsel: Timothy Donohue Esq., West Orange, New Jersey

NEWARK, N.J. – A native of Romania who was arrested in Sweden and extradited to the United States was sentenced today to 121 months in prison for directing a large-scale scheme that stole bank account information through a process commonly referred to as “ATM skimming,” in which conspirators secretly installed card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.

Marius Vintila, a/k/a “Dan Girneata,” 32, previously pleaded guilty before U.S. District Judge William J. Martini to Count One of a superseding indictment, conspiracy to commit bank fraud, and Count Two, aggravated identity theft. Judge Martini imposed the sentence today in Newark federal court.

In July 2013, as federal agents in New Jersey arrested various members of his large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden and subsequently extradited to the United States. Vintila has been held without bail since his arrival in the United States in February 2014.  

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

Vintila was the ringleader of an extensive ATM skimming scheme that targeted thousands of bank customers and defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million.

Vintila and his conspirators constructed sophisticated card-reader devices capable of reading and storing customers’ bank account information as the customers performed routine bank transactions at ATMs. Vintila and his conspirators also concealed pinhole cameras in panels designed to match existing ATM components. Vintila then taught and directed several conspirators to install the devices on ATMs. Once installed, the card-reader devices secretly read identity and account information contained on the magnetic strip of customer ATM cards. The pinhole cameras recorded customer keystrokes as they entered their personal identification numbers.

After the account information was stolen, Vintila and his conspirators used the stolen data to create thousands of fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles and rent multiple self-storage units where he stored skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila also provided other conspirators with fake passports and aliases to use in furtherance of the scheme.

In addition to the prison term, Judge Martini ordered Vintila to serve two years of supervised release and pay restitution of $7,447,270.50. Of the 16 people charged in this scheme, 13 have been convicted.

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

The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.

Defense Counsel: Brian Neary Esq., Hackensack, New Jersey

TRENTON, N.J. – A Monmouth County, New Jersey man was arrested this morning on charges that he received images of child sexual abuse on his home computer, U.S. Attorney Paul J. Fishman announced.

James Paroline, 26, of Red Bank, New Jersey, an assistant at a nursery school (School 1) and as a summer camp counselor at a private school (School 2), both located in Monmouth County, New Jersey, is charged by complaint with two counts of receiving images of child pornography over the Internet. He appeared this afternoon before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was detained pending a bail hearing scheduled for July 9, 2015.

According to the criminal complaint and statements made in court:

On March 1, 2015, and March 2, 2015, Paroline downloaded videos and images depicting child sexual abuse from “Website A,” an online bulletin board and website dedicated to the advertisement and distribution of child pornography. Law enforcement officers discovered the images and videos downloaded from the website, and the recipient’s username and IP address were traced back to Paroline’s residence. His home was searched today and numerous images and videos containing child pornography were found on computer equipment belonging to Paroline.

Each count of receiving child pornography over the Internet carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest.  He also thanked the Red Bank Police Department, under the direction of Chief of Police Darren McConnell, for its assistance in the investigation.

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

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

Defense counsel: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – A citizen of the Republic of Bulgaria today admitted his involvement in a $6 million fraudulent tax return scheme that used personal identifying information stolen from multiple accounting firm networks, U.S. Attorney Paul J. Fishman announced.

Vanyo Minkov, 32, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with one count of conspiring to file false and fraudulent tax returns.

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

In late 2012, Minkov and his conspirators hacked into the networks of at least four accounting firms and stole the 2011 tax filings for over 1,000 of the firms’ clients. Minkov and others then used the stolen information to file fraudulent tax returns in the clients’ names for the 2012 tax year or sold the information to others for the same purpose. To date, the IRS has identified over $6 million in fraudulent claims made in connection with the scheme.

The charge to which Minkov pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 13, 2015.

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, and special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the Justice Department’s Office of International Affairs in Washington, as well as the Supreme Cassation Prosecutor’s Office of the Republic of Bulgaria and its law enforcement partners, for their extraordinary support.

The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

Defense counsel: Jack Arseneault Esq., Chatham, New Jersey. 

CAMDEN, N.J.  – The owners of popular Ocean City, New Jersey, restaurant chain Manco & Manco Pizza today admitted evading taxes, structuring cash payments to avoid reporting requirements and lying to IRS special agents, U.S. Attorney Paul J. Fishman announced.

Charles Bangle, 55, of Somers Point, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to Count 5 of an indictment charging him with evading taxes with respect to his 2010 personal tax returns and Count 30 charging him with structuring financial transactions in 2011 to avoid reporting requirements. Mary Bangle, 54, also of Somers Point, pleaded guilty to Count 7 of the same indictment, which charges her with knowingly making materially false statements to IRS special agents.

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

Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.

Charles Bangle admitted to substantially underreporting his income on his 2010 U.S. individual income tax return, specifically, failing to report additional taxable income that he deposited in cash into his bank account during that year. According to the indictment, by only reporting $127,955 in 2010 and omitting an additional $263,113 in taxable income, Charles Bangle avoided $91,577 in taxes. Charles Bangle also admitted to making cash deposits into his TD Bank account in February of 2011 in increments of less than $10,000 in order to prevent TD Bank from filing a Currency Transaction Report with the U.S. Department of Treasury.

Mary Bangle admitted that she was interviewed by IRS special agents on May 30, 2012 at which time she was asked questions about her personal bank account. Mary Bangle falsely stated that, when cash receipts came into the business, she only retained enough to pay that week’s payroll and some bills, when in fact she retained cash receipts for her personal use. Mary Bangle also lied to agents about the amount of cash deposited into her personal banking account, which was substantially more that the net pay listed on her W-2 forms issued by Manco and Manco Pizza.

The tax evasion count to which Charles Bangle pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss arising out of the offense. The structuring count to which Charles Bangle pleaded guilty carries a maximum potential penalty of ten years in prison and a $250,000 fine or twice the gain or loss from the offense.

The false statements charge to which Mary Bangle pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing for both defendants is scheduled for Oct. 8, 2015.

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 Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden.

Defense counsel:

Charles Bangle:  Vincent Sarubbi Esq., Haddonfield, New Jersey; Laurence S. Shtasel Esq., Philadelphia

Mary Bangle: Rocco Cipparone Esq., Haddon Heights, New Jersey

NEWARK, N.J. – A Long Island City, New York, man was sentenced today to 120 months in prison for his role in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.

Robert Crawford, 40, previously pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging him with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Judge McNulty imposed the sentence today in Newark federal court.

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

Crawford, Melvin Feliz, 48, of Englewood Cliffs, New Jersey, and Irving Olivero-Pena, 42, of Edgewater, New Jersey admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.

In addition to the prison term, Judge McNulty sentenced Crawford to serve five of supervised release. Feliz and Olivero-Pena also pleaded guilty to their roles in the scheme and await sentencing.

U.S. Attorney Fishman credited special agents from the Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, New Jersey, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Brian L. Urbano of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division in Newark.

Defense counsel: Rubin Sinins Esq., Springfield, New Jersey

CAMDEN, N.J. - A Philadelphia man will appear in federal court today to face charges that while on supervised release, he robbed the same Cape Bank in Atlantic City, New Jersey, that he admitted robbing in 2010, U.S. Attorney Paul J. Fishman announced.

Keith Ney, 54, is charged by complaint with one count of bank robbery. He is currently in state custody on related charges. He will appear this afternoon before U.S. Magistrate Judge Joel Schneider in Camden federal court.

According to the complaint:

Ney was previously convicted of two counts of bank robbery on Sept. 16, 2011, and later sentenced to a term of 57 months in prison. During his plea hearing, he admitted robbing the Cape Bank at 1501 Pacific Avenue in Atlantic City and the Citizens Bank at 1234 Market Street in Philadelphia in 2010.

On April 23, 2015, Ney, who had recently finished his prison term and was on supervised release, allegedly entered the same Cape Bank in Atlantic City, approached a teller and produced a demand note that read, “I have a gun give money no one will get shot.” Ney, who was not wearing a mask or disguise, was allegedly captured on the bank’s surveillance system.

After taking the cash, Ney fled the bank on foot. A bank employee exited the bank, approached an Atlantic City police officer who was working a traffic detail and told the officer that the bank had just been robbed. Nay was immediately spotted and taken into custody. After being apprehended, Ney allegedly admitted his involvement in the April 23, 2015 Cape Bank robbery.

The bank robbery count with which Ney is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Ney also faces two additional years in prison as a result of violating the terms of his supervised release.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Edward W. Hanko in Philadelphia; the Atlantic City Police Department under the direction of Chief Henry White; and the Atlantic County Prosecutor’s Office under the direction of Prosecutor James P. McClain with the investigation leading to the charges.

The charge in the complaint is merely an accusation, and Ney is considered innocent unless and until proven guilty.

The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Criminal Division in Camden.

Defense counsel: Edward F. Borden Jr. Esq., Cherry Hill, New Jersey

NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today announced the filing of a civil asset forfeiture action seeking the forfeiture of a full mount taxidermied female tiger (panthera tigris), which the government alleges was imported into the United States in violation of the Endangered Species Act and without a valid importation permit, U.S. Attorney Paul J. Fishman announced.

The tiger — according to the forfeiture complaint, a captive-bred female, born on Sept. 26, 2000 — was seized at the Port of Newark by wildlife inspectors with the United States Fish and Wildlife Service (“USFWS”) when its owner attempted to import the tiger into the United States as part of a household move from France.

According to the complaint filed in Newark federal court:

Tigers (panthera tigris), the largest wild cat in the world, are carnivorous mammals of prehistoric origin characterized by their coat of reddish-orange fur, which is marked by dark stripes. Trophy hunting (until it was banned), and a market for tiger rugs and coats, threatened tigers’ survival. Today, habitat destruction, human population growth, and a demand for tiger parts threaten their survival. For over 27 years, all species of tigers have been classified as endangered under U.S law and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”).  This classification represents the most highly protected species of wildlife, and includes those species that are threatened with extinction or whose survival is or may be affected by trade.

The importation or exportation of endangered species (alive or dead) for any purpose — including non-commercial shipment — is authorized only in exceptional circumstances, and requires an export permit from the originating country and an import permit from USFWS, one of the federal agencies responsible for enforcing the Endangered Species Act.

On Nov. 24, 2014, the tiger was included in a cargo shipment of household goods exported from the Port of Le Havre, in France. The shipment arrived in the United States at the Port of Newark on or about Dec. 3, 2014. The customs broker filed the USFWS declaration form required for the international shipment of wildlife to or from the United States and included a CITES certificate issued by the European Union. The CITES certificate, however, permitted the tiger to be transported only within the European Union and specifically stated that it was “not for use outside the European Community.”

Import and export permits for endangered species of wildlife can be obtained only if the CITES Scientific Authority of the importing country has made a determination that trade in this specimen will not be detrimental to the survival of the species and that the imported wildlife will not be used for commercial purposes. In the United States, the agency authorized to grant or deny a certificate authorizing the import of such wildlife is the USFWS’s Division of Management Authority.

The Endangered Species Act authorizes USFWS to seize any specimen that is illegally imported or exported. On Jan. 2, 2015, USFWS formally refused the shipment of the tiger. On Jan. 9, 2015, the USFWS sent notice of the seizure and its intent to forfeit the tiger to its owner, who now resides in New York City. On April 1, 2015, the owner filed a claim with USFWS contesting the forfeiture. The filing of the claim triggered the government’s obligation to either release the property or bring the forfeiture action in court, where the owner may contest it.

Civil forfeiture cases are “in rem” proceedings — or proceedings against things. In this case, the complaint is brought against the taxidermied tiger, not its owner or any other person.

U.S. Attorney Fishman credited the wildlife inspectors of the U.S. Department of the Interior’s Fish and Wildlife Service for initiating the investigation and detention of the tiger at the Port of Newark.

The government is represented by Special Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office’s Asset Forfeiture and Money Laundering Unit and Assistant U.S. Attorney Kathleen P. O’Leary of the office’s Healthcare and Government Fraud Unit in Newark.