District of New Jersey

NEWARK, N.J. – A member of a massive, international counterfeit goods conspiracy was sentenced today to 46 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.

Ming Zheng, a/k/a “Uncle Mi,” 48, of New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with a conspiracy to launder money. Judge Salas imposed the sentence today in Newark federal court.

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

From November 2009 through February 2012, Zheng’s co-defendants ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods – primarily handbags, and footwear, and perfume – from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million. 

Zheng was a money launderer who was introduced to undercover special agents (collectively, the UCs) by co-defendants who were running the counterfeiting operation. Conspirators obtained cash from the UCs, purportedly the proceeds of gambling and other unlawful activities. These other conspirators then provided the money to Zheng. For every $50,000 in cash the UCs provided, Zheng and others would return approximately $42,500 – via wire transfers from banks in China – into a bank account set up by the UCs. When other conspirators received money from the UCs to be laundered, one of the conspirators would then contact Zheng, who in turn contacted a Chinese-based conspirator, and transferred the money to locations in China. Then the money (less the laundering fee) was transferred from Fujian, China, to a bank in Guangzho, China, where it was subsequently withdrawn and physically transported via courier to a bank in Hong Kong. The final transfer was from the bank in Hong Kong to the UCs’ bank account. Zheng was therefore instrumental in each of the money laundering transactions – he received the cash from other conspirators and caused it to be transferred overseas in furtherance of the laundering process.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement,  Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.

14-200                                          

Defense counsel: Stacey Van Malden Esq., Bronx, N.Y.

TRENTON, N.J. – A Jersey City, N.J. police officer today admitted stealing more than half a million cigarettes from a trailer and extorting $20,000 from a drug courier who turned out to be an undercover FBI agent, U.S. Attorney Paul J. Fishman announced.

Mario Rodriguez, 39, of Jersey City, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with transportation of stolen goods and extortion under color of official right.

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

On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, N.J., to break into a trailer, steal cigarettes and sell the stolen goods to the CI’s associate. Law enforcement agents had previously parked the trailer at the warehouse and established surveillance of the area.

After using bolt-cutters to cut the lock off of the trailer, Rodriguez and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, N.Y., Rodriguez made several phone calls seeking buyers for the TVs.

The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.

On July 10, 2013, Rodriguez, the CI and an undercover law enforcement agent met in New Jersey and discussed the possibility of robbing a drug courier, who was actually another undercover officer. On July 24, 2013, the group met again in Staten Island to discuss the plan. The undercover officer told Rodriguez the courier would be delivering cocaine to them that day in exchange for a $20,000 payment. Rodriguez suggested a Jersey City mall parking lot due to an absence of surveillance cameras and called his associate, Anthony Roman, 48, of Jersey City, who was not a law enforcement officer, to help him with the robbery. Roman was charged with one count of Hobbs Act extortion.

Later that day, Rodriguez and Roman drove an SUV to the location where the CI and the drug courier were parked. Law enforcement agents had already established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman approached the car and identified themselves as law enforcement officers who were investigating the CI. They pretended to arrest the CI, threatened to arrest the drug courier and took the cash.

Later that day, Rodriguez, the CI and the undercover agent met in a hotel room at a Pennsylvania casino to split the cash.

The cargo theft and conspiracy to commit extortion charges to which Rodriguez pleaded guilty carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000. Sentencing is scheduled for Sept. 26, 2014. Rodriguez has been suspended from the police department.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to today’s plea. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.

The government is represented by Acting Deputy Chief of the General Crimes Unit Jonathan W. Romankow in Newark.

The charges against Roman remain pending. They are merely accusations, and he remains innocent unless and until proven guilty.

14-199                                               

Defense counsel: Brian J. Neary Esq., Hackensack, N.J.

Rodriguez, Mario Information

TRENTON, N.J. - A licensed pharmacist pleaded guilty in federal court today to attempting to develop, produce and possess the potentially deadly toxins ricin and abrin for use as weapons and to possessing equipment for producing illegal narcotics, New Jersey U.S. Attorney Paul J. Fishman announced.
Jordan S. Gonzalez, 34,  of New York and formerly of Jersey City, N.J., entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.
 
“Jordan Gonzalez admitted today that he worked to manufacture and deploy deadly toxins, stockpiled weapons and body armor and acquired manuals training him for violent confrontation,” said U.S. Attorney Fishman. “We all have seen the devastation possible when these behaviors go unchecked. With today’s guilty plea,  Jordan Gonzalez will face justice and will not be a threat to society.”

“The overriding focus of the FBI’s WMD Directorate, and the primary focus of our overall efforts, is prevention,” said FBI Newark Division Special Agent in Charge Aaron T. Ford. “To make this happen we pull together various resources from the FBI and work closely with our law enforcement partners. In this case, the FBI worked swiftly and tirelessly with our partners to prevent and neutralize all threats posed by this defendant.”

Carl J. Kotowski, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said, “The men and women of DEA are dedicated to protecting the citizens of this nation. This investigation reveals how DEA and its law enforcement partners worked together to prevent Mr. Gonzalez from doing harm to the citizens of our communities.”

According documents filed in this case and statements made in court: From Sept. 18, 2011, through March 19, 2013, Gonzalez purchased thousands of seeds containing ricin and abrin, and materials to extract and administer those toxins to others, including filtering equipment, respirators, glass vials, a spraying device and projectile weapons including a crossbow pistol. Gonzalez also purchased materials for making RDX, an explosive compound used in military and commercial demolition applications. Gonzalez made the purchases through an online third-party vendor marketplace and all the items were delivered to him at his Jersey City apartment.

Gonzalez learned how to extract toxins from the seeds and about deployment methods from manuals he acquired. He also kept manuals teaching how to make improvised explosive devices and synthesize explosive compounds, including RDX.

On Nov. 8, 2013, while living in New York, Gonzalez purchased one kilogram of sodium azide, a toxic, gas-forming compound that can explode at high temperatures and is lethal if ingested or absorbed through the skin. Law enforcement officers intercepted the delivery during the investigation.

On Nov. 14, 2013, Gonzalez was arrested in Jersey City and search warrants were executed at three locations he used: apartments in Manhattan and Jersey City and a storage unit in Jersey City. Collectively, material collected through the searches included thousands of seeds containing ricin and abrin; explosive precursor chemicals; manuals related to toxins, explosives and improvised explosive devices; approximately one thousand rounds of ammunition, handguns, components for assault rifles, and high-capacity magazines; a bulletproof vest; and books and documents related to the collapse of social order and techniques for surviving in a lawless environment. Gonzalez has been in custody since his arrest.
Even small doses of ricin and abrin are potentially lethal to humans if ingested, inhaled or injected – causing death within 36 to 72 hours from the time of exposure.
 
During his guilty plea, Gonzalez admitted that acquiring this knowledge and these materials were substantial steps toward developing ricin and abrin as weapons and that he acquired all of the materials – including the firearms, ammunition and body armor – in anticipation of using them in confrontations with other people in the future.

Gonzalez also acquired manuals for synthesizing controlled substances, including methylenedioxyamphetamine (MDA) and methylenedioxymethamphetamine (MDMA), also known as “ecstasy.” He bought and had delivered to the Jersey City apartment a three-neck round-bottom flask, gel capsules and an encapsulating machine, as well as precursor chemicals used in the manufacture of MDA and MDMA. Possession of that type of flask is prohibited if intended for use in the manufacturing of controlled substances.
 
The toxin charge to which Gonzalez pleaded guilty carries a maximum potential penalty of any term of years or life in prison and a $250,000 fine. The narcotics charge carries a maximum potential penalty of four years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 17, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, and the DEA, under the direction of Special Agent in Charge Kotowski in New Jersey, with the investigation leading to today’s plea.  He also thanked members of FBI Newark’s Joint Terrorism Task Force; FBI’s New York Office and Weapons of Mass Destruction Directorate Laboratory Division; DEA’s New York Division; and the New Jersey Office of Homeland Security and Preparedness for their work on the case; as well as the police and fire departments of Jersey City and the City of New York, as well as the New Jersey State Police for their assistance.
 
The government is represented by Assistant U.S. Attorney L. Judson Welle of the U.S. Attorney’s Office National Security Unit and Assistant U.S. Attorney  Francisco J. Navarro of the Office’s Criminal Division, both in Newark. Valuable support was provided by attorneys of the Department of Justice’s National Security Division – Counterterrorism Section.

14-198                                                            

Defense counsel: Steven Ross Esq., New York

Gonzalez, Jordan Information

TRENTON, N.J. – An Essex County, N.J., man today admitted committing the armed robbery of a PNC Bank in Montclair, N.J., U.S. Attorney Paul J. Fishman announced.

Robert Mercedes, 24, of East Orange, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of bank robbery and one count of using a firearm during the commission of crime of violence.

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

Mercedes admitted using a gun to rob a PNC Bank in Montclair on Dec. 27, 2013. He brandished a gun and demanded that bank employees fill a backpack with money. Mercedes told employees of the bank, “I want 100s and 50s, I want 100s and 50s. You have 13 seconds.”  Mercedes was apprehended the same day by members of the East Orange Police Department, with the assistance of the Montclair Police Department and the FBI.

The count of bank robbery carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000. The count of brandishing a firearm during the bank robbery carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison.  Sentencing is scheduled for Sept. 23, 2014

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, along with the East Orange and Montclair police departments and the Essex County Prosecutor’s Office, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s General Crimes Unit in Newark.

14-197                                                          

Defense Counsel: John McGovern Esq., Newark

Mercedes, Robert Information

NEWARK, N.J. – The owner of a group of freight payment, logistics, and shipping businesses headquartered in Branchburg, N.J., surrendered today to face charges she operated them as a multimillion-dollar Ponzi scheme, U.S. Attorney Paul J. Fishman announced.

Shirley Sooy, 63, currently of Fort Smith, Ark., surrendered in Newark this afternoon to inspectors of the U.S. Postal Inspection Service and special agents of IRS-Criminal Investigation on a criminal complaint charging her with wire fraud conspiracy, wire fraud, mail fraud, and transacting in criminal proceeds. She is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.

According to the complaint unsealed today:

From 2003 through April 2013, Sooy, through a collection of businesses operating under the umbrella of the “TransVantage Group,” entered contracts with corporate clients – referred to in the complaint as the “victim companies.” TransVantage audited freight bills generated by common carriers and freight forwarders hired by the victim companies. TransVantage was obligated to pay the audited and approved freight bills to the carriers from funds provided by those companies, and the funds were supposed to be held in trust by TransVantage until paid over to the carriers. The victim companies also paid TransVantage for its purported auditing services, payments separate and apart from the carrier payment funds.

Sooy allegedly operated TransVantage as a Ponzi scheme, which resulted in more than $42 million in losses to the victim companies. Sooy and others comingled the funds from the victim companies – funds that were to have been paid to carriers – into two accounts and then misused those funds in various ways. They paid prior, unpaid carrier bills of particular victim companies using funds provided by other, unrelated victim companies; they funded TransVantage’s payroll obligations and they funded the obligations of various TransVantage subsidiaries.

They also subsidized millions of dollars in personal expenses, including mortgage payments for personal properties owned by Sooy and others in Bloomsbury, N.J.; Phillipsburg, N.J.; Waretown, N.J.; and Palm Beach Gardens, Fla.; a 48-foot yacht purchased by Sooy with others; a $135,000 Maserati automobile purchased by a conspirator; payments for personal credit card charges incurred by Sooy and her family members; and payments for remodeling Sooy’s home.

The counts of wire fraud conspiracy, wire fraud, and mail fraud with which Sooy is charged each carry a maximum potential penalty of 20 years in prison and a fine of up to $250,000, or twice the gain or loss from the offense. The counts of transacting in criminal proceeds with which Sooy is charged each carry a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gain or loss from the offense.

U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorneys Zach Intrater and Shirley U. Emehelu of the U.S. Attorney’s Office Economic 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.

Today’s arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

14-194                                                         

Defense counsel:  Michael J. Rogers Esq., Somerville, N.J.          

Sooy, Shirley Complaint

CAMDEN, N.J. - A Gloucester County, N.J., man was sentenced today to 240 months in prison for receipt of images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.

 Bryan Jacobs, 43, of Deptford, N.J., previously pleaded guilty before U.S. District Judge Renée Marie Bumb to one count of a superseding indictment charging him with receipt of child pornography. Jacobs has been in custody since his arrest in January 2010 on a criminal complaint charging him with related conduct. Judge Bumb imposed the sentence today in Camden federal court.

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

Jacobs created a profile on the social networking site MySpace, using the false persona of “Brianna,” purportedly a young woman from Philadephia. On Nov. 30, 2008, Jacobs, posing as Brianna, engaged in MySpace chats with a male minor. Jacobs received images that depicted the minor engaged in sexually explicit conduct, and downloaded those images to his computer.

In addition to the prison term, Judge Bumb sentenced Jacobs to 15 years of supervised release. Restitution will be determined at a later date.

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Philadelphia  Field Office, under the direction of Special Agent in Charge Cynthia R. Wofford; and the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton, with the investigation.

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

14-196                                                            

Defense counsel: Peter Levin Esq., Philadelphia

Genovese Crime Family Associate Also Pleads Guilty to Illegal Gambling Charges

NEWARK, N.J. - Two former longshoremen admitted today that they conspired to extort others in Local 1 and Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, and an associate of the Genovese organized crime family charged in the same case admitted running an illegal sports betting operation.

New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced the guilty pleas.

Rocco Ferrandino, 71, of Lakewood, N.J., and Michael Trueba, 78, of Kearny, N.J. – both former supervisors on the New Jersey piers – pleaded guilty to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against them.  Richard Dehmer, 78, of Springfield, N.J., an associate of the Genovese organized crime family of La Cosa Nostra, also pleaded guilty today to conspiring to operate, and operating, an illegal sports betting operation with others. Ferrandino, Trueba and Dehmer entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.

According to documents filed in this case and statements made in court: During their guilty pleas, Ferrandino and Trueba admitted they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear.  The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Ferrandino, the former head timekeeper at Maher Terminals, and Trueba, the former vice president of ILA Local 1235, were suspended from their positions following their arrests in this case.

Charges are still pending against three defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J., a soldier in the Genovese family. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.

The charge to which Ferrandino and Trueba pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charges to which Dehmer pleaded guilty carry a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 23, 24 and 30, 2014, for Dehmer, Ferrandino and Trueba, respectively.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.

The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.

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

14-195                                                             

Defense counsel:   Rocco Ferrandino: Vincent S. Verdiramo Esq., Jersey City, N.J.
Michael Trueba: Charles S. Lorber Esq., West Orange, N.J.
Richard Dehmer: Chester Keller Esq., Newark

TRENTON, N.J. – An engineer who formerly lived in Mahwah, N.J., admitted today to stealing trade secrets from two global medical technology companies based in northern New Jersey, U.S. Attorney Paul J. Fishman announced.

Ketankumar Maniar, 37, aka “Ketan Maniar,” pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with two counts of theft and attempted theft of trade secrets for his own economic benefit. Maniar, an Indian national, has been in custody since his June 2013 arrest.

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

C.R. Bard Inc. (Bard), based in Murray Hill, N.J., and Becton, Dickinson and Co. (BD), based in Franklin Lakes, N.J., are among the world’s leading manufacturers of medical technologies. From November 2004 until his resignation on Jan. 22, 2011, Maniar worked as an engineer at Bard’s Salt Lake City facility and was responsible for developing molding processes and specifications for catheters, ports and other medical products. From February 2012 until his resignation on May 24, 2013, Maniar worked as a staff engineer at BD’s Franklin Lakes headquarters, where he helped manufacture pre-fillable syringes and pen injectors.

Through his work at Bard and BD, Maniar was able to steal secret information related to the companies’ products, including Bard’s development of the first implantable port used for power injection of pharmaceutical drugs throughout the body. Maniar also had access to secret information related to a self-administered disposable pen injector still under development by BD and not yet available for commercial sale.

Maniar admitted he stole Bard and BD trade secrets that he kept after his resignation from those companies. Maniar downloaded numerous files containing Bard or BD product information from his work computers onto multiple computer storage devices, including external hard drives and thumb drives. He also used his work email accounts at Bard and BD to forward trade secrets to his personal email accounts.

On June 3, 2013, pursuant to court-issued federal warrants, FBI agents searched Maniar’s rental car and the New Jersey hotel room he stayed in while planning a move back to India. Agents seized – among other things – at least one hard drive containing Bard and BD trade secrets.

The theft of trade secrets charges are each punishable by a maximum potential penalty of 10 years in prison and a fine of up to $250,000. Sentencing is currently scheduled for Sept. 23, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for their work in the investigation of this case.

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

14-193                                               

Defense counsel: Bradley L. Henry Esq. and Ryan Blanch Esq., New York         

Maniar, Ketankumar Information

NEWARK, N.J. – Two corrections officers, a lawyer, and six others were charged today in three separate complaints with smuggling contraband, including cell phones and marijuana, into a federal pretrial detention facility at the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.

Corrections officer Stephon Solomon, 26, of Irvington, N.J.; Darsell Davis, 28, Dwayne Harper, 30, and Deidra Harrison, 49, all of Newark; attorney Brian Kapalin, 66, of Maplewood, N.J.; and Vladimir Sauzereseteo, 40, of East Orange, N.J., were arrested this morning by special agents of the FBI. Corrections officer Channel Lespinasse, 25, of Florham Park, N.J., was issued a summons. Quasim Nichols, 29, and Muhammad Subpunallah, 32, already are incarcerated on unrelated federal charges. 

“According to the complaints, the defendants operated contraband marketplace within the walls of the Essex County Correctional Facility,” said U.S. Attorney Fishman. “Jails are no place for drugs and illicit phones, and it is disappointing that two corrections officers and an attorney allegedly used their authority and access to make them available.”

“The allegations in today’s complaints underscore the commitment of the FBI and the Department of Justice to continue to pursue those employed by the government who undermine the public’s trust and engage in unethical and corrupt practices,” said Special Agent in Charge Ford. “The FBI and our law enforcement partners are determined to address public corruption at all levels of government.”

Solomon, Davis, Harper, Harrison, Kapalin, Sauzereseteo, Nichols and Subpunallah are scheduled to make their initial appearances this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court. Lespinasse will appear for her initial appearance on June 2, 2014, before U.S. Magistrate Judge Michael A. Hammer in Newark.

According to the complaints unsealed today:

On at least five occasions between October 2013 and April 2014, Solomon, a corrections officer at the Essex County Correctional Facility, smuggled contraband – including cell phones, tobacco, and marijuana – to Nichols, an inmate there, in exchange for cash bribes. Nichols’ friends, Davis and Harper, helped by collecting the items that were to be smuggled into the jail. Davis then handed off the contraband and cash payments to Solomon. Nichols ultimately sold some of the marijuana and cell phones he received from Solomon to other inmates. The inmates purchasing marijuana and cell phones from Nichols had their friends and family pay for the items by sending Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve the payments. Nichols also used the cell phones he received through this smuggling scheme to communicate with his conspirators.

Lespinasse, another corrections officer at the Essex County Correctional Facility, also smuggled in contraband in exchange for a cash bribe. In November 2013, Lespinasse and an associate, Harrison, agreed to smuggle a cell phone to an inmate in the jail in exchange for a cash bribe. On behalf of Lespinasse, Harrison accepted a $1,000 cash bribe and a cell phone from an undercover agent in the parking lot of a McDonald’s restaurant in Newark. Harrison promised the undercover federal agent that the cell phone would be delivered to its recipient – an inmate in the jail. Three days later, Lespinasse delivered the cell phone to the inmate.

Kapalin, a lawyer who practiced in New Jersey, used his access to inmates at the Essex County Correctional Facility to smuggle in contraband – including marijuana and tobacco – to inmates, including Subpunallah, in exchange for cash payments. Sauzereseteo, an associate of Subpunallah, delivered the contraband and the cash payments to Kapalin, who then smuggled the contraband into the jail.  In January 2014, Kapalin spoke with Subpunallah – at that point an inmate at the Hudson County Correctional Facility – over a recorded jail phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. Sauzereseteo was paid $1,650, via Western Union money transfers, which he used to purchase marijuana he delivered to Kapalin, along with a cash payment. A few days later, Kapalin met an inmate from the Essex County Correctional Facility in the attorney conference room at the jail, during which time he delivered the marijuana to the inmate.

A search of the federal pods at the Essex County Correctional Facility on May 26, 2014, produced nine hidden cellular phones, including one in the light fixture in the ceiling of Nichols’ cell.

The criminal complaints charge Solomon, Nichols, Davis, Harper, Lespinasse and Harrison each with one count of conspiring to violate the Hobbs Act, punishable by a maximum potential penalty of 20 years in prison and a maximum fine of the greatest of $250,000 or twice the gain or loss from the offense. The criminal complaints charge all nine defendants with one count of conspiring to provide contraband to inmates at the jail, a count that carries a maximum potential penalty of five years in prison and a $250,000 fine for smuggling marijuana or one year in prison and $100,000 maximum fine for smuggling a cell phone.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Warden Roy Hendricks, with the ongoing investigation leading to today’s arrests.

The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.

14-192                              

Solomon, Stephon et al. Complaint
Lespinasse, Channel et al. Complaint
Kapalin, Brian et al. Complaint

NEWARK, N.J. – Zhifei Li, the owner of an antique business in China, was sentenced today to 70 months in prison for heading an illegal wildlife smuggling conspiracy in which 30 rhinoceros horns and numerous objects made from rhino horn and elephant ivory worth more than $4.5 million were smuggled from the United States to China.

The sentence – one of the longest ever imposed in the United States for a wildlife smuggling offense – was announced by Paul J. Fishman, U.S. Attorney for the District of New Jersey; Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice; Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (USFWS).

“The multibillion-dollar illegal wildlife market is supplied by animal poaching of unthinkable brutality and fed by those willing to profit from such cruelty,” said U.S. Attorney Fishman. “Zhifei Li appropriately faces 70 months in prison for orchestrating schemes worth millions of dollars and for violating laws meant to protect the most vulnerable species.”

“Li was the ringleader of a criminal enterprise that spanned the globe and profited from an illegal trade that is pushing endangered animals toward extinction,” said Acting Assistant Attorney General Hirsch. “As this case clearly demonstrates, rhino trafficking is increasingly organized, well financed and a threat to the rule of law. The United States is resolved to bring wildlife traffickers to justice.”

Li, 30, of Shandong, China, the owner of Overseas Treasure Finding in Shandong, previously pleaded guilty before U.S. District Judge Esther Salas to a total of 11 counts: one count of conspiracy to smuggle and violate the Lacey Act; seven counts of smuggling; one count of illegal wildlife trafficking in violation of the Lacey Act; and two counts of making false wildlife documents. Judge Salas also imposed the sentence today in Newark federal court.

Li was arrested in Florida in January 2013 on federal charges brought under seal in New Jersey and shortly after arriving in the country. Before he was arrested, he purchased two endangered black rhinoceros horns from an undercover USFWS agent in a Miami Beach hotel room for $59,000 while attending an antique show. Li was arrested as part of “Operation Crash” – a nationwide effort led by the USFWS and the Justice Department to investigate and prosecute those involved in the black market trade of rhinoceros horns and other protected species.

In papers filed in Newark federal court, Li admitted that he was the “boss” of three antique dealers in the United States whom he paid to help obtain wildlife items and smuggle them to him via Hong Kong. One of those individuals was Qiang Wang, aka “Jeffrey Wang,” who was sentenced to 37 months in prison on Dec. 5, 2013, in the Southern District of New York. Li played a leadership and organizational role in the smuggling conspiracy by arranging for financing to pay for the wildlife, purchasing and negotiating prices, directing how to smuggle the items out of the United States, and getting the assistance of additional collaborators in Hong Kong to receive the goods and smuggle them to him in mainland China.   

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (known as CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.  

In pleading guilty, Li admitted that he sold 30 smuggled, raw rhinoceros horns worth approximately $3 million – approximately $17,500 per pound – to factories in China where raw rhinoceros horns are carved into fake antiques known as Zuo Jiu, which means “to make it as old” in Mandarin. In China, there is a centuries-old tradition of drinking from an intricately carved “libation cup” made from a rhinoceros horn. Owning or drinking from such a cup is believed by some to bring good health, and true antiques are highly prized by collectors. The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including for recently carved fake antiques.   

“Wild populations of rhinos are being slaughtered at appalling rates due to the greed and indifference of criminals like Li and his accomplices. The sentence handed down today serves notice to other organized trafficking and poaching rings that their crimes will not go unpunished,” said U.S. Fish and Wildlife Service Director Ashe. “We will relentlessly work across the U.S. government and with the international law enforcement community to destroy these networks, while strengthening protections for rhinos in the wild and reducing demand for horn in consumer countries.”

In addition to the prison term, Judge Salas ordered Li to serve two years of supervised release and to forfeit $3.5 million in proceeds of his criminal activity as well as several Asian artifacts. Various ivory objects seized by the USFWS as part of the investigation have also been surrendered.

The investigation is continuing and is being handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, the U.S. Attorney’s Office for the District of New Jersey, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section. 

The government is represented by Assistant U.S. Attorneys Kathleen P. O’Leary and Barbara Ward of the New Jersey U.S. Attorney’s Office Criminal Division and Asset Forfeiture and Money Laundering Unit, Assistant U.S. Attorney Thomas Watts-Fitzgerald of the U.S. Attorney’s Office for the Southern District of Florida and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

Additional information, including a detailed joint factual statement and photo exhibits, can be found here: http://go.usa.gov/8nYY.
             
14-191                                                      

Defense counsel: Gary Cutler Esq., New York

NEWARK, N.J. – Three Romanian natives living in Queens, N.Y., today admitted their involvement in a long-running and lucrative scheme to steal account information from bank customers throughout New York, New Jersey, and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.

Emil Revesz, a/k/a “Daniel Laptes,” 31, Constantin Pendus, a/k/a “Florin Bodgan Hristea,” 30, and Florin Apetrei, 19, each pleaded guilty before U.S. District Judge William J. Martini in Newark federal court. Revesz pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Pendus and Apetrei each pleaded guilty to informations charging them with conspiracy to commit bank fraud. Revesz and Pendus have been held without bail since their arrests on June 27, 2013, and Apetrei has been held without bail since his arrest on July 12, 2013.

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

Revesz, Pendus, Apetrei, and others participated in a large-scale ATM skimming scheme that involved the installation of skimmers and pinhole cameras on ATMs. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. Each pinhole camera would secretly record bank customers’ keystrokes as they entered their personal identification numbers. The customer account information that was captured by the skimming devices and pinhole cameras was used to create counterfeit ATM cards that were then used to withdraw millions of dollars in cash from bank ATMs. From June 2012 through July 2013, the conspirators stole more than $5 million from Wells Fargo, Citibank, and TD Bank. 

Revesz admitted he was one of the conspirators who installed skimmers and pinhole cameras at bank ATMs and who subsequently used counterfeit ATM cards to withdraw cash from Wells Fargo, Citibank, and TD throughout New Jersey, New York and Connecticut. Pendus admitted his participation in the scheme as it related to TD Bank, and Apetrei admitted to his participation in defrauding Wells Fargo Bank. Apetrei admitted he picked up pinhole camera parts and attempted, upon his arrest, to destroy debit cards containing the picture and name of another individual.

The charges to which Revesz, Pendus and Apetrei pleaded guilty arose from a large investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Of the 13 others charged in relation to the wider scheme, 12 are in custody.

The leader of the scheme, Marius Vintila, 31, was apprehended in Sweden and extradited to the United States on Feb. 7, 2014. Vintila was charged in a six-count indictment on Feb.18, 2014, with conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, possession of 15 or more counterfeit access devices, conspiracy to possess access device-making equipment, and possession of access device-making equipment. Vintila and a conspirator, Bogdan Radu, 31, designed and created the actual skimming devices and pinhole cameras and Vintila recruited individuals, including Revesz, Pendus, and Apetrei, to install them on bank ATMs. Vintila also used an alias to rent multiple self-storage units, in which he stored the contents of an entire skimming operation, including skimming devices, pinhole cameras, super glue, tape, Secure Digital (SD) memory storage cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila’s multimillion-dollar ATM skimming operation is one of the largest ever uncovered by law enforcement.

Other charged conspirators, including Radu, Constantin Ginga, 53, Marius Cotiga, 36, Dezso Gyapias, 29, Ioan Leusca, 30, Enes Causevic, 23, Luis Franco, 23, Mirel Hadzalic, 24, and another individual charged as “first name unknown, last name unknown,” a/k/a “Chioru,” installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.

Cotiga, Pendus, Revesz, Apetrei, Vintila, Franco, and Hadzalic are in custody in New Jersey and being held without bail. Causevic has been released on bail. Cotiga and Hadzalic previously pleaded guilty to conspiring to commit bank fraud and await sentencing, on June 5, 2014, for Cotiga and June 18, 2014, for Hadzalic. Radu previously pleaded guilty to conspiring to commit bank fraud and aggravated identity theft and awaits sentencing on June 5, 2014. Gyapias and Leusca were each sentenced on Feb. 20, 2014, to 57-month terms of imprisonment, and Ginga was sentenced on Feb. 26, 2014, to 57 months in prison. The individual known as “Chioru” remains at large.

The bank fraud conspiracy charge to which Revesz, Pendus, and Apetrei each pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge to which Revesz pleaded guilty carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Sentencing for all three defendants is currently scheduled for Sept. 17, 2014.

U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations (HSI) in Newark, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty pleas.

As for the defendants charged in pending complaints, the charges and allegations are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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

14-190                                                                

Defense Counsel: Revesz: Joshua Reinitz Esq., Nutley, N.J.
Pendus: Kenneth W. Kayser Esq., East Hanover, N.J.
Apetrei: Paul D. Petrus Jr. Esq., New York

Revesz, Emil Information
Pendus, Constantin Information
Apetrei, Florin Information

TRENTON, N.J. – Two New Jersey men admitted this week to participating in an armed robbery of a Target Store in Union, N.J., on “Black Friday” in November 2012, U.S. Attorney Paul J. Fishman announced today.

Maryland Liggins III, 29, of Newark, pleaded guilty today before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with conspiracy to commit a Hobbs Act robbery. On May 20, 2014, Darrell A. Carter, 24, of Irvington, N.J., pleaded guilty before Judge Thompson to an information charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of a crime of violence.

Carter, Liggins and two other men – Lavell Jones, 28, of East Orange, N.J., and DaQuaan Vaughn, 36, of Newark – were arrested on June 19, 2013, and charged by complaint in connection with the Target robbery. On April 29, 2013, a federal grand jury returned an indictment against Jones and Vaughn charging both men with one count of Hobbs Act robbery, and charging Vaughn with one count of using a firearm in furtherance of a crime of violence.      

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

On Nov. 23, 2012, Carter and Liggins allegedly participated in an armed robbery of the Target store on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. Carter and Vaughn allegedly entered the store and robbed the store’s employees at gunpoint and Liggins served as the getaway driver. Jones allegedly posed as a shopper and served as a lookout inside the store.     

While in the store, Carter and Vaughn restrained Target employees with zip ties and robbed them at gunpoint, stealing more than $50,000 from a cash cart and safe located in the cash room. The two men then fled the store and ran out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78. 

The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000. Sentencing for Liggins is scheduled for Sept. 25, 2014; sentencing for Carter is scheduled for Sept. 24, 2014.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the guilty pleas. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.

The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton, and Assistant U.S. Attorney Jonathan Romankow, acting deputy chief of the U.S. Attorney’s Office General Crimes Unit.

14-188                                  

Defense counsel:      

Carter: Peter Carter Esq., Newark                                                                 
Liggins: Joseph Rotella Esq., Newark           
Vaughn: Timothy Donohue Esq., West Orange, N.J.
Jones: Richie Roberts Esq., Newark

Liggins, Maryland Information
Carter, Darrell Information

Business Was Awarded Dozens of Undeserved Contracts Worth $1.2 Million

NEWARK, N.J. - The president of a New Jersey-based furniture and design services company admitted today to fraudulently holding her business out as a service-disabled veteran-owned small business, which obtained dozens of government contracts set aside for disabled veterans, U.S. Attorney Paul J. Fishman announced.

Miriam Friedman, 54, of Teaneck, N.J., pleaded guilty to an information charging her with making false claims to the U.S. Department of Veterans Affairs (VA). She entered her guilty plea before U.S. District Judge Esther Salas in Newark federal court.

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

Friedman is the president and owner of Office Dimensions Inc. – which sells furniture and design services to industrial and government customers – controlling all its revenues and running the company’s day-to-day operations. Friedman never served in the U.S. military.

Friedman self-certified in a central registry for government contractors that Office Dimensions was a service-disabled veteran-owned small business. She falsely claimed in the certification that her father-in-law – who was retired, unemployed and had very little involvement with Office Dimensions – was the owner and operator of the business. He had served in the U.S. military, but was not classified as a service-disabled veteran. Friedman then started bidding for VA contracts set aside for service-disabled veterans who own their own businesses.

During her guilty plea proceeding, Friedman admitted that she knew her claims were false, and that they led to dozens of contracts with the VA to provide furniture and interior space planning at VA facilities.

In total, the VA paid approximately $1.2 million to Office Dimensions based on contracts set aside for service-disabled veterans.

The charge carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Sept. 3, 2014, before U.S. District Judge Jose L. Linares.

U.S. Attorney Fishman credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey G. Hughes; the U.S. General Services Administration, Office of Inspector General, under the direction of Special Agent in Charge James E. Adams; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation.  

The case is being prosecuted by Scott B. McBride, Deputy Chief of the U.S. Attorney’s Economic Crimes Unit, and Assistant U.S. Attorney Danielle A. Walsman of the office’s Health Care and Government Fraud Unit.

14-187                                

Defense counsel: Brian J. Neary Esq.;Perry Primavera Esq., Hackensack and Hoboken, N.J.

Friedman, Miriam Information

TRENTON, N.J. - A federal grand jury today indicted four Orthodox Jewish Rabbis and one of their sons for allegedly conspiring to kidnap and force Jewish men to grant their wives religious divorces, U.S. Attorney Paul J. Fishman announced.

The indictment charges all five men with kidnapping conspiracy and variously charges the defendants with specific instances of kidnapping and attempted kidnapping. Rabbis Mendel Epstein, Martin Wolmark, Jay Goldstein, a/k/a “Yaakov” and Binyamin Stimler had previously been charged, along with others, with conspiracy to commit kidnapping in a complaint unsealed Oct.10, 2013. Four of the others charged, including Jay Goldstein’s sons, Avrohom Goldstein, 34, and Moshe Goldstein, 31, both of Brooklyn, N.Y., have since pleaded guilty to extortion charges in connection with the case. The rest of the charges are pending.

David Epstein was previously charged with a 2009 kidnapping to compel a religious divorce, or get, in a complaint filed on May 15, 2014.

The defendants and charges are outlined in the following chart. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.

Defendant

Count/Charge

Max Penalty

1 – conspiracy to commit kidnapping

life in prison

5 – attempted kidnapping

20 years in prison

Martin Wolmark, 56, Monsey, N.Y.

1 – conspiracy to commit kidnapping

life in prison

3 – kidnapping

5 – attempted kidnapping

20 years in prison

Jay Goldstein, 60, Brooklyn

1 – conspiracy to commit kidnapping

life in prison

3 – kidnapping

4 – kidnapping

5 – attempted kidnapping

20 years in prison

Binyamin Stimler, 38, Brooklyn

1 – conspiracy to commit kidnapping

life in prison

5 – attempted kidnapping

20 years in prison

David Epstein, 39, Lakewood

1 – conspiracy to commit kidnapping

life in prison

2 – kidnapping

3 – kidnapping

4 - kidnapping

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

The FBI began an undercover operation after becoming aware of incidents in which David Epstein and Jay Goldstein allegedly were involved in the kidnapping and assaulting of Orthodox Jewish men in order to compel them to grant religious divorces.

During the investigation, Mendel Epstein and Wolmark were recorded discussing plans to kidnap and torture victims. In an in-person meeting with undercover agents at his home on Aug. 14, 2013, Mendel Epstein laid out the plans for a particular target, including trapping him in a van and assaulting him with an electric cattle prod.

At that meeting, Mendel Epstein stated that the kidnapping would cost $10,000 to pay for the rabbinical court, or beth din, to approve the kidnapping and use of violence and an additional $50,000 to $60,000 to pay for the “tough guys” who would conduct the beating of the husband. One of the undercover agents  made a payment of approximately $10,000 to Mendel Epstein for the purpose of engaging his organization.

Law enforcement tracked subsequent planning phone calls discussing tactics and payment, as well as a trip by Mendel Epstein and Jay Goldstein to inspect the warehouse in Middlesex, N.J., where they planned to hold the victim. Undercover agents also recorded the convening of a beth din at Wolmark’s Monsey office and a subsequent meeting at Mendel Epstein’s home.

On Oct. 9, 2013, Goldstein, Stimler traveled with others from New York to the warehouse to execute the kidnapping.

The team arrived at the warehouse in two dark minivans shortly after 8:00 p.m. Some put on masks and entered the warehouse office with one of the undercover agents, while others walked around the outside of the warehouse with flashlights. Members of the team went in and out of the office wearing disguises, including ski masks, Halloween masks and bandanas. They discussed the plan. Among them, they carried rope, surgical blades, a screwdriver, plastic bags, and items used to ceremonially record a get.

Law enforcement moved into the  office and arrested the eight members of the team, including Goldstein and Stimler.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office Criminal Division in Trenton.

The pending charges and allegations against related defendants are merely accusations and they are considered innocent unless and until proven guilty.

Defense counsel:

Mendel Epstein: Susan Necheles Esq., New York
Martin Wolmark: Bejjamin Brafman Esq., New York
Jay Goldstein : Aiden O’Connor Esq., Hackensack, N.J.
David Epstein: Henry Mazurek Esq., New York
Binyamin Stimler: Nathan Lewin Esq., Washington

Epstein, Mendel et al. Indictment

NEWARK, N.J. - Two Trenton, N.J. men have been charged with a series of armed robberies committed in Burlington and Mercer counties, U.S. Attorney Paul J. Fishman announced today.

Samuel Matias Cruz, 33, of Trenton, was arrested today by special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Arturo Delacruz, 35, of Trenton, was arrested May 20, 2014. Both are charged by complaint with one count of conspiracy to commit Hobbs Act robbery. Cruz made his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson today. Delacruz appeared before Judge Dickson yesterday.  Both defendants were remanded without bail.

According to documents filed in this case and statements made in court: Between December 2012 and March 2013, Delacruz and Cruz allegedly planned and executed a number of violent armed robberies of various commercial establishments in the Trenton, N.J., area, including gas stations, restaurants, travel agencies and money-remitting businesses. On Dec.10, 2012, Delacruz and Cruz entered the Sabor Latino Bar in Trenton. While brandishing handguns, they physically restrained five people by tying their hands with plastic zip ties. They allegedly stole approximately $12,000 from the bar’s cash register, and approximately $2,000 in cash and jewelry from the bar’s patrons. Delacruz and Cruz fled the location in a getaway vehicle driven by another conspirator.

On Dec. 29, 2012, Delacruz allegedly planned the robbery of the Woodrow Wilson Service Plaza Sunoco Gas Station on the N.J. Turnpike, located in Hamilton Township, N.J.  Delacruz allegedly provided weapons and clothing to Cruz and an unnamed conspirator, which were utilized in the robbery. A Sunoco station employee was restrained with plastic zip ties while Cruz and the conspirator stole approximately $26,000 from the station’s cash drawers and register.    

The Hobbs Act conspiracy charges with which the defendants are charged carry a maximum potential penalty of 20 years in prison, as well as a maximum fine of $250,000, or twice the gross gain or loss arising out of the offense.

U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Stephanie R. Shoemaker; the Mercer County Prosecutor’s Office, under the direction of Prosecutor Joseph L. Bocchini Jr.; the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi with the investigation leading to the arrests. He also thanked officers from the N.J. State Police, under the direction of superintendent Col. Rick Fuentes; the Trenton Police Department, under the direction of Police Director Ralph Rivera Jr., and the Westampton Police Department, under the direction of Police Chief Ricky W. Smith for their roles in the case.

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

The government is represented by Assistant U.S. Attorney Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark.

14-185                                                  

Defense counsel:

Delacruz: E. Alexander Jardines Esq., Union City, N.J.
Cruz: Adalgiza A. Nunez Esq., Newark

Cruz, Samuel Matias Complaint
Delacruz, Arturo Complaint

TRENTON, N.J. – The former senior vice president of operations of an independent wholesale food distributor was sentenced today to 20 months in prison for evading taxes on income he received from third parties, U.S. Attorney Paul J. Fishman announced.

John Annetta, 61, of Marlboro, N.J., previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of tax evasion.

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

Between 2006 and 2011, Annetta worked at White Rose Food, an independent wholesale food distributor in the New York City and New Jersey metropolitan areas. During that time he was given $1,648,085 from two people he met in the course of his employment. He failed to report this money as taxable income for the calendar years 2006, 2007, 2008, 2009, 2010, and 2011 in the amounts of $106,500, $234,000, $317,406, $398,542, $292,700 and $298,936, respectively. He admitted that for 2006 through 2011 he would have owed the government $536,530 if he had reported the additional cash on his income tax returns.

In addition to the prison term, Judge Sheridan sentenced Annetta to two years of supervised release.

U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Postal Inspector in Charge Marie Kelokates, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for 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 Office Economic Crimes Unit in Newark.

14-183                                             

Defense counsel: Matt D. Mandel Esq. of Millburn, N.J.

NEWARK, N.J. - Three former longshoremen admitted today that they conspired to extort others in Local 1235 of the International Longshoremen’s Association (ILA) for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Salvatore LaGrasso, 58, of Edison, N.J.; Michael Nicolosi, 45, of Staten Island, N.Y.; and Julio Porrao, 71, of Palm Coast, Fla. – all former supervisors on the New Jersey piers – pleaded guilty today to conspiring to extort Christmastime tributes from the union members – count three of the second superseding indictment against them. LaGrasso, Nicolosi and Porrao entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.

According to documents filed in this case and statements made in court: During their guilty plea proceedings, LaGrasso, Nicolosi and Porrao admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. LaGrasso and Nicolosi were suspended from their positions following their arrests in this case. Porrao had already retired from his employment on the New Jersey piers at the time of his arrest.
Charges are still pending against five defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra (Genovese family). Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235 and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.

The charge to which LaGrasso, Nicolosi, and Porrao pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 17, 2014, for LaGrasso and Nicolosi and for Sept. 24, 2014, for Porrao.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas. They also thanked the Waterfront Commission of New York Harbor for its cooperation and assistance in the investigation.

The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.

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

14-184                                                

Defense counsel:         Salvatore LaGrasso: Peter Till Esq., Springfield, N.J.
Michael Nicolosi: Arthur L. Aidala Esq., Brooklyn, N.Y.
Julio Porrao: Erik Hassing Esq., Flanders, N.J.

CAMDEN, N.J. – A former bank officer was sentenced today to 18 months in prison for accepting bribes of more than $50,000 in return for his assistance in corrupt financial transactions as well as bank fraud, U.S. Attorney Paul J. Fishman announced.

Jose Dominguez, 47, of Newark, N.J., previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with soliciting and accepting bribes in excess of $1,000 as a bank officer. He had also pleaded guilty to a separate indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence today in Camden federal court.

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

From January 1988 to February 2007, Dominguez was employed as a loan officer at Spencer Savings Bank in Elmwood Park, N.J. From September 2004 to November 2004, Dominguez and Victor Patela, 38, a former Newark Police officer, conspired to fraudulently obtain a $1.92 million commercial loan from Spencer Savings Bank so that they could purchase apartment buildings in Elizabeth, N.J. In connection with this scheme, Dominguez and Patela made false representations to Spencer Savings Bank relating to Patela’s assets in order to obtain the commercial loan. Dominguez also accepted bribe payments from Patela in exchange for using his influence as a loan officer to obtain the $1.92 million loan. In June 2012 Patela was convicted at trial of bank fraud, conspiracy to commit bank fraud, two counts of loan application fraud and bank bribery and sentenced in April 2013 to 48 months in prison.

In 2003, Dominguez was contacted by a bank customer who wanted to refinance some loans with Spencer Savings Bank and wanted to do so without paying significant prepayment penalty fees. Dominguez advised the customer that if the customer made corrupt payments to Dominguez, the customer could obtain a lower interest rate without paying a prepayment penalty to Spencer Savings Bank.   

Between August 2003 and December 2003, Dominguez accepted $55,529.57 in corrupt payments from the customer to influence the requested loan modification. Dominguez also admitted to accepting additional bribes from other bank customers in the amounts of $4,500 and $5,000, respectively.

In addition to the prison term, Judge Hillman sentenced Dominguez to three years of supervised release and fined him $4,000.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.

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

14-186                                 

Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden

TRENTON, N.J. – Two members of an alleged international cybercrime, identity theft and credit card fraud conspiracy today admitted their roles in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.

Richard Gundersen, 47, of Brooklyn, N.Y., pleaded guilty to an indictment charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Lamar Taylor, 38, of Salem, Mass., pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Both defendants entered their guilty pleas before U.S. District Judge Peter G. Sheridan in Trenton federal court.

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

Both Gundersen and Taylor were asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Gundersen worked as “casher” under Pidtergerya, while Taylor performed a similar role under Dubuc.

Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.

After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Gundersen and Taylor, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.

Gundersen and Taylor admitted they were aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. They admitted that they opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. They also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less their own fees, to their immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.

The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.

The conspiracy to commit wire fraud, access device fraud and identity theft count carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gross gain or loss from the offense.  Gundersen and Taylor’s sentencings are scheduled for Sept. 3, 2014.

U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.

The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the
U.S. Attorney’s Office in Newark.

The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.

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.

14-182                                                          

Defense counsel: Gundersen: Cynthia Hardaway Esq., Newark
Taylor: Bruce Rosen Esq., Florham Park, N.J.

Gundersen, Richard Indictment
Taylor, Lamar Information

NEWARK, N.J. – The owner of a general contracting company in West New York, N.J., was arrested at home in North Bergen, N.J., this morning by special agents of the FBI and charged with bribing a fire official to eliminate more than $8 million in outstanding fines on buildings with fire code violations, U.S. Attorney Paul J. Fishman announced.

Victor Coca, 48, of North Bergen, is charged by criminal complaint with one count of paying a bribe to a local government agent. He is scheduled to appear before U.S. Magistrate Judge Joseph A. Dickson this afternoon in Newark federal court.

According to the complaint filed today:

Two West New York buildings – one owned by Coca and one owned by a friend of his – had outstanding fines for fire code violations. Coca’s friend’s building – called “Building 1” in the complaint – had approximately $14,500 in fines, and Coca’s building – called “Building 2” in the complaint – had approximately $8.73 million in outstanding fines and penalties.

Coca paid a West New York Bureau of Fire Prevention official – who is cooperating with the government – cash bribes to reduce or eliminate the outstanding fines, paying $2,000 to eliminate the $14,500 debt on Building one. For Building 2, Coca paid a $5,000 cash bribe to the official, making the amount due to the West New York Bureau of Fire Prevention only the initial fine amount of $5,000.

The charge carries maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the ongoing investigation leading to today’s arrest.

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

14-181                                 

Defense counsel: Zak Aljaludi, Union City, N.J.

Coca, Victor Complaint

NEWARK, N.J. - A Passaic County, N.J., man today admitted his role in defrauding the U.S. Department of Treasury of more than $2.5 million in income tax return checks, U.S. Attorney Paul Fishman announced today.               
          
Reyes Flores-Perez, 32, of Passaic, N.J., pleaded guilty today before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to defraud the United States and one count of knowingly transferring false identification documents.

According to documents filed in this case and statement made in court: Citizens of the Commonwealth of Puerto Rico typically do not file tax returns with the IRS as long as all of their income is derived from sources in Puerto Rico. Members of the conspiracy filed or caused to be filed phony individual income tax returns with the IRS using the identity information of other individuals, including citizens of the Commonwealth of Puerto Rico. The IRS processed the false returns as if they were legitimate and issued refund checks, which were obtained by Flores-Perez’ conspirators. Flores-Perez’ role in the scheme was to produce fraudulent identification documents that matched the identities of the payees on the treasury checks, which his conspirators used to negotiate the treasury checks. Flores-Perez admitted the total loss from the conspiracy was more than $2.5 million. 

The conspiracy charge to which Flores-Perez pleaded guilty carries a maximum potential penalty of five years in prison. The transferring fraudulent identification documents charge carries a maximum potential penalty of 15 years in prison. Both charges also carry a potential $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Sept. 10, 2014.

U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in 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. Secret Service, under the direction of Special Agent in Charge James Mottola; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s plea.

The government is represented by Assistant U.S. Attorneys Cari Fais of the General Crimes Unit and Andrew J. Bruck of the Organized Crime/Gangs Unit in Newark. 

14-180                                                        

Defense counsel: John Whipple Esq., Morristown, N.J.

Flores-Perez, Reyes, Information

TRENTON, N.J. – A Neptune, N.J., man today admitted his involvement in a 24-hour crime spree that took place in five separate shore-area towns and involved the shooting of a cab driver and a number of armed robberies, U.S. Attorney Paul J. Fishman announced.

Quam Wilson, 23,  pleaded guilty to committing a Hobbs Act robbery and using a firearm during a the commission of that robbery. Wilson also admitted to committing additional armed robberies, which will be taken into consideration at the time of his sentencing. Wilson entered his guilty plea before Judge Peter G. Sheridan in Trenton federal court.

Wilson was initially arrested and charged by criminal complaint with the conspiracy and firearms counts on March 13, 2013.  On June 3, 2013, U.S. Magistrate Judge Lois H. Goodman remanded him to federal custody pending trial. Wilson pleaded guilty today to counts one and two of the indictment returned against him on Sept. 5, 2013.

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

Wilson engaged in a crime spree that began at approximately 5:00 a.m. on Nov. 13, 2012, when he robbed a cab driver in Asbury Park. The driver was shot during the robbery. The victim, who survived, sustained a single gunshot wound to the head and was taken to Jersey Shore University Medical Center. During today’s hearing, Wilson admitted he took the cab driver’s identification, taxi keys and debit card during the robbery.

After robbing the taxi driver, Wilson proceeded to a Shell gas station located in Ocean Township. There, he approached a gas station attendant and, while brandishing a handgun, robbed him of cash and fled the area.

Later that morning, Wilson attempted to obtain money from the cab driver’s bank account from several area banks. Suspecting that a theft was taking place, a bank employee confiscated the identification and debit card from Wilson and contacted police.

At approximately 9:00 p.m., that same day, he committed an armed robbery at a taxi stand in Long Branch, again while brandishing a handgun.

During the early morning hours of the next day, Nov. 14, 2012, Wilson robbed an Exxon gas station in Red Bank at gunpoint.

A short time later, Wilson entered a Quick Check convenience store in Neptune Township. Again, he pointed a handgun at a cashier and demanded money. 

Wilson was arrested at approximately 10:00 p.m. by several police officers in Asbury Park, where he had been hiding in an attic.

The robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The firearm charge carries a maximum potential penalty of life in prison and a $250,000 fine, and a mandatory minimum penalty of 10 years in prison. Sentencing is currently scheduled for Sept. 3, 2014.  U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Stephanie R. Shoemaker, with the investigation. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, Asbury Park Police Department, Ocean Township Police Department, Long Branch Police Department, Neptune Township Police Department and the United States Marshals Service N.Y./N.J. Regional Fugitive Task Force for their excellent work in the investigation and apprehension of Wilson.

The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, and Special Assistant U.S. Attorney Jacquelynn Seely.

14-179                                                         

Defense counsel: David R. Oakley Esq., Princeton, N.J.

Wilson, Quam Indictment

NEWARK, N.J. – A doctor practicing internal medicine in Orange, N.J., was sentenced today to five months in prison and five months of home confinement for taking cash kickbacks for making referrals to a diagnostic testing lab in Orange, U.S. Attorney Paul J. Fishman announced.

Mahesh Patel, 64, of Florham Park, N.J., a board-certified physician, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with soliciting and receiving more than $6,000 in illegal cash kickbacks for patient referrals in violation of the federal health care anti-kickback statute.

Including Patel, 17 defendants – including 15 doctors – have been convicted in connection with the government’s ongoing investigation of illegal payments made by Orange Community MRI LLC (Orange MRI), a diagnostic testing facility.

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

Patel operated his own medical practice in Orange. From 2010 through November 2011, Patel agreed to take cash payments from Orange MRI in exchange for MRI scans he referred to the diagnostic testing facility. Patel admitted to receiving cash on a per-patient basis for nearly two years, and that on one of the occasions on which he received cash, Oct. 13, 2011, he received $375 in exchange for his prior referral of Medicare and Medicaid patients.        

In addition to the prison term, Judge Cecchi sentenced Patel to serve two years of supervised release, forfeit $6,600 and pay a $30,000 fine.

Ashokkumar Babaria, 64, of Moorestown, N.J., Orange MRI’s former medical director, has been ordered to forfeit more than $2 million in revenue from corrupt referrals. Chirag Patel, 38, of Warren, N.J., Orange MRI’s former executive director, awaits sentencing and has agreed to forfeit $89,180 in corrupt gains. In addition, 13 health care providers, including Mahesh Patel, have agreed to forfeit a total of $460,140 in illegal cash kickbacks. Two health care providers were convicted at trial and forfeiture has yet to be determined.

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.   

The government is represented by Deputy Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit and Acting Chief of the office’s General Crimes Unit, Joseph Mack;  and Deputy Chief Scott B. McBride of the office’s Economic Crimes Unit in Newark.

U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered approximately $535 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.

14-178                                                     

Defense counsel: Robert J. Cleary Esq. and William C. Komaroff Esq., New York

TRENTON, N.J. - Special agents of the FBI arrested two men at their Lakewood, N.J., homes this morning for allegedly kidnapping a reluctant Jewish husband in order to coerce him through violence to grant his wife a religious divorce – referred to as a “get” – U.S. Attorney Paul J. Fishman announced.

David Aryeh Epstein, 39, and Chaim Baruch Rubin, 32, are charged by criminal complaint with kidnapping. Both defendants appeared in Trenton federal court this afternoon before U.S. Magistrate Judge Douglas E. Arpert. They each were released on $500,000 bail with home detention and electronic monitoring.

According to the complaint unsealed today:

In November 2009, Rubin called the victim concerning a sales job opportunity at “ShredZone” in Lakewood, and the victim, who had been living in Brooklyn, N.Y., moved to a temporary residence in Lakewood to begin work. A few days later, Rubin asked him to stay late for a private meeting.

When he walked to his car that evening, the victim was attacked by a group of men. He was bound, put in a van, beaten and shocked with a stun gun until he agreed to grant his wife a divorce.

David Epstein is the son of rabbi Mendel Epstein, 68, of  Brooklyn, who was previously charged in October 2013 with conspiracy to commit kidnapping, along with nine other individuals. Four of those charged have since pleaded guilty to extortion charges in connection with this case.

If convicted, the defendants face a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s arrests.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.

The pending charges and allegations against these and related defendants are merely allegations and they are considered innocent unless and until proven guilty.

14-177                                                 

Defense counsel:

David Epstein: Harlan Protass Esq., New York
Chaim Rubin: James Moriarty Esq., New York      

Epstein, David and Chaim, Rubin Complaint

Mayor’s Brother, Also Convicted at Trial, Sentenced to 30 Months

TRENTON, N.J. - Trenton Mayor Tony F. Mack was sentenced today to 58 months in prison after being convicted at trial in February on all six federal extortion, bribery and mail and wire fraud charges against him, U.S. Attorney Paul J. Fishman announced.

Mack’s brother, Ralphiel Mack, who was also convicted on three of the charges, but found not guilty on three mail fraud and wire fraud counts, was sentenced to 30 months in prison. The Macks had been convicted following a five-week trial before U.S. District Judge Michael A. Shipp, who imposed the sentences today in Trenton federal court.

The Macks were charged in connection with a scheme to accept $119,000 in bribes in exchange for Mayor Mack=s official actions and influence in assisting cooperating witnesses in the development of an automated parking garage on City-owned land.

“Nearly four years ago, Tony Mack raised his hand and swore to uphold the state and federal constitutions as he assumed the office of mayor of the capital city of New Jersey,” U.S. Attorney Fishman said. “Within 10 weeks, he began selling that office and, with the help of his brother and others, he sold out the people of Trenton in the process. Today, he learned the true cost of his actions: He will spend 58 months in federal prison.”

“Instead of providing transparent government to the citizens of Trenton, Tony Mack and his brother allowed themselves to succumb to self-interest and greed,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation brought to light the unsavory underworld of secret meetings with convicted felons, the calculated use of ‘buffers’ and bagmen, and bribe payments associated with inside deals to give away the city’s treasures, its property. The citizens of Trenton are entitled to political figures who discharge their duties with goodness of heart, and not those motivated by personal gain.”

Tony F. Mack, 48, and Ralphiel Mack, 41, both of Trenton, originally were charged by complaint on Sept. 10, 2012, with one count of conspiracy to obstruct commerce by extortion under color of official right related to the $119,000 extortion scheme. Also charged at that time was Joseph A. Giorgianni, 64, of Ewing, N.J. An indictment returned in December 2012 added charges against all three defendants.

Giorgianni pleaded guilty on Dec. 13, 2013, to one count of conspiring with the Macks and others to obstruct interstate commerce by extorting individuals under color of official right, in addition to a separate extortion scheme, a narcotics charge and illegal weapons possession, all charges unrelated to the Macks.

Mayor Mack was convicted of the six counts charged in the indictment:

• Conspiracy to obstruct and affect interstate commerce by extorition under color of official right;
• Attempted obstruction of commerce by extortion under the color of official right;
• Accepting and agreeing to accept bribes;
• Two counts of wire fraud;
• Mail fraud;

Ralphiel Mack was convicted on the same first three counts and found not guilty of the mail and wire fraud charges. The jury members deliberated for seven hours before returning their verdicts.

According to documents filed in this case and the evidence presented at trial: Tony Mack, Giorgianni and Ralphiel Mack conspired to accept approximately $119,000 in cash and other valuables, of which $54,000 was accepted and another $65,000 that the defendants planned to accept, from two cooperating witnesses (CW-1 and CW-2). In exchange for the payments, Tony Mack agreed to, and did, assist CW-1 and CW-2 in their efforts to acquire a City-owned lot (East State Street Lot) to develop an automated parking garage (the Parking Garage Project). The scheme included a plan to divert $100,000 of the purchase amount that CW-2 had indicated a willingness to pay to the City of Trenton for the lot as a bribe and kickback payment to Giorgianni and Tony Mack. The mayor authorized and directed a Trenton official responsible for disposition of City-owned land to offer the East State Street Lot to CW-2 for $100,000, significantly less than the amount originally proposed by CW-2.

The defendants went to great lengths to conceal their corrupt activity and keep Tony Mack “safe” from law enforcement. For example, Giorgianni and Ralphiel Mack acted as intermediaries, or “buffers,” who accepted cash payments for Tony Mack=s benefit. Tony Mack also used another City of Trenton employee involved in the scheme, Charles Hall III, 49, of Trenton, to contact other Trenton officials to facilitate the Parking Garage Project and to inform the mayor when Giorgianni had received corrupt cash payments. Hall pleaded guilty before Judge Shipp in February 2013 to an information charging him with one count of conspiracy to obstruct commerce by extortion under color of official right and one count of conspiring to distribute narcotics with others, including Giorgianni.

To conceal the corrupt arrangement, the defendants avoided discussing matters related to the scheme over the telephone. When those matters were discussed, they used code words and aliases. One such code word was “Uncle Remus,” which both Giorgianni and Hall regularly used to communicate to Tony Mack that a corrupt payment had been received. For example, on Oct. 29, 2011, Giorgianni telephoned Hall and informed him that Giorgianni had to “see” Tony Mack and that “I got Uncle Remus for him,” meaning a corrupt cash payment that Giorgianni had received from CW-1 two days earlier. Giorgianni directed Hall to bring Tony Mack to a meeting location controlled by Giorgianni (Giorgianni=s Clubhouse), stating “we gotta talk” because “I got something that might be good for him” and that “they=ve already come with Uncle Remus,” meaning a corrupt cash payment. On June 13, 2012, Giorgianni telephoned Tony Mack and informed him that “Uncle Remus,” meaning a corrupt cash payment, “was there.” Tony Mack replied, “I=ll call you, J. Okay?”@ In text messages to Tony Mack related to the scheme, Giorgianni would refer to himself as “Mr. Baker.”

The defendants also concealed their activities by holding meetings concerning the corrupt activity away from Trenton City Hall, including at Giorgianni=s residence, a restaurant maintained by Giorgianni known as JoJo=s Steakhouse, Giorgianni=s Clubhouse and Atlantic City restaurants. At one Atlantic City meeting among Tony Mack, Giorgianni, Hall and CW-2, Tony Mack instructed Giorgianni to ensure that no photographs were taken in order to conceal the corrupt arrangement.

In addition to the prison terms, Judge Shipp sentenced Tony Mack to three years of supervised release, 100 hours of community service and fined him $3,000. He sentenced Ralphiel Mack to three years of supervised release and fined him $1,500.

U.S. Attorney Fishman credited special agents of the FBI=s Trenton Resident Agency, Newark Field Office, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorneys Eric W. Moran and Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Trenton and Camden, respectively.

14-176

Defense counsel: Tony Mack: Mark G. Davis Esq., Hamilton, N.J.
Ralphiel Mack: Robert Haney, Princeton Junction, N.J.

NEWARK, N.J. – A Wayne, N.J., man admitted today to sharing images of child sexual abuse from his home computer, U.S. Attorney Paul J. Fishman announced.

Manuel Fernandez, 33, pleaded guilty today before U.S. District Judge Jose L. Linares in Newark federal court to one count of an indictment charging him with distributing images of child pornography over the Internet. Fernandez has been in custody since his arrest in January 2012.

According to documents filed in the case and statements made during Fernandez’s guilty plea proceeding:

Fernandez admitted that between March 2011 and January 2012, he was a member of an online peer-to-peer file sharing network. Fernandez also admitted he made images and videos of child pornography available for other members to download from his “shared” folder. On March 24, 2011, an undercover law enforcement agent successfully downloaded multiple images and videos of child sexual abuse from Fernandez’s computer.

On Jan. 25, 2012, federal law enforcement agents executed a search warrant at Fernandez’s residence. The agents recovered a 1-terabyte hard drive and a 250-gigabyte computer tower, both of which contained numerous images and videos of minor children being sexually abused.

As part of his guilty plea, Fernandez agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.

The distribution of child pornography count to which Fernandez pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Aug. 19, 2014.

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.

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

14-174                                               

Defense counsel: Chris Adams Esq. Holmdel, N.J.

Fernandez, Manuel Indictment

NEWARK, N.J. – A physician with a practice in New York admitted today to accepting over $100,000 in exchange for test referrals as part of a massive bribery scheme operated by Biodiagnostic Laboratory Services LLC (BLS) of Parsippany, N.J., its president and numerous associates, U.S. Attorney Paul J. Fishman announced.

Michele Martinho, 39, of New York, pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging her with one count of accepting bribes.

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

Martinho admitted that from September 2010 through April 2013, she accepted bribes of $5,000 per month in cash in return for referring patient blood specimens to BLS, for which BLS received more than $350,000. Martinho accepted approximately $155,000 in bribes.

BLS salesman Kevin Kerekes paid the cash bribes to Martinho. Kerekes pleaded guilty to his involvement in the scheme on June 10, 2013.

The bribery count to which Martinho pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for July 8, 2014. As part of her guilty plea, Martinho agreed to forfeit $155,000, representing the bribes she received from BLS.

Including Martinho, 27 people – including 16 physicians – 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 recovered more than $7 million to date through forfeiture.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell; IRS– Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Joseph Minish, Senior Litigation Counsel Andrew Leven, 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 $535 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.

14-173                                                   

Defense counsel: Arthur Aidala Esq., New York

Martinho, Michele Information

NEWARK, N.J. – A New York attorney was indicted today for his role in an alleged scheme to defraud two international companies out of hundreds of thousands of dollars by fraudulently billing them for services that were never provided, U.S. Attorney Paul J. Fishman announced.    

Marijan Cvjeticanin, 50, of St. James, N.Y., was indicted today by a federal grand jury in Newark on six counts of mail fraud. The government is seeking the forfeiture of all funds fraudulently obtained by Cvjeticanin as a result of the scheme. Cvjeticanin was previously arrested and charged in May 2013 by complaint with one count of mail fraud.

According to the indictment and other documents filed in this case:  

From approximately September 1996 to September 2012, Cvjeticanin was employed by a New York law firm specializing in immigration law, first as a paralegal and then as an attorney.  Among other clients, the firm represented two international companies – with offices in New Jersey – in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks such as filing applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.

The application process required the companies to place job ads, in the geographic location where the relevant position was located, to demonstrate that there were no minimally qualified U.S. citizens available to fill that position. To do that, Cvjeticanin caused the firm to retain a supposed advertising agency, Flowerson Holdings Inc., a/k/a Flowerson Advertising, which allegedly handled all of the advertisement obligations of the companies in connection with permanent residency applications. Neither the firm nor the companies knew that Cvjeticanin owned and controlled Flowerson.

From 2010 through September 2012, the companies paid Flowerson approximately $579,000 for advertisements, but Flowerson did not place the majority of those ads. Instead, Cvjeticanin stole the money and used it for his personal benefit.             

If convicted, Cvjeticanin faces a maximum potential penalty of 20 years in prison and a $250,000 fine on each of the six counts.

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, Newark Field Office, and the U.S. Department of State Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge David J. Schnorbus, with the investigation.

The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office General Crimes Unit in Newark and Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.

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

14-175                               

Defense counsel:  Lorraine Gauli-Rufo Esq., Verona, N.J.

Marijan, Cjeticanin Indictment

NEWARK, N.J. - A Cranford, N.J., man was sentenced today to 63 months in prison for distributing images of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced. 

Andrew Johnson, 30, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of distribution of child pornography. Judge Wigenton imposed the sentence today in in Newark federal court.

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

Johnson admitted that on Dec. 7, 2012, he made available for others to download via an online peer-to-peer, file-sharing network images and videos of child sexual abuse that were stored on his home computer. An undercover law enforcement agent successfully downloaded from Johnson one image and 14 videos of child sexual abuse via the file sharing network.

As part of his guilty plea, Johnson agreed to forfeit the computers and computer accessories he used to commit the offense. He will also be required to register as a sex offender.

In addition to the prison term, Judge Wigenton sentenced Johnson to serve five years of supervised release and pay restitution of $13,500.

U.S. Attorney Fishman credited special agents of the FBI’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and the Cranford Police Department with the investigation leading to today’s guilty plea.

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

14-171                                                              

Defense counsel: Lorraine Gauli-Rufo Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – A Philadelphia woman today admitted conspiring to sell guns without a license, U.S. Attorney Paul J. Fishman announced.

Rosselyn M. DeJesus, 26, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with conspiracy to deal firearms without a license.

According to documents filed in this case and statements made in court: Between June 30, 2012, and July 19, 2012, DeJesus bought five pistols from Philadelphia-area gun shops, which she then transferred for resale to her conspirator, Michael Wayne Lee, also of Philadelphia. Lee, a previously convicted felon, resold them. Two of the five weapons were sold by a third individual, Ammie Steward, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). These two weapons are now in the custody of law enforcement.

On Feb. 19, 2014, Lee pleaded guilty before Judge Bumb to one count of conspiring with DeJesus, Steward, and others to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. He is scheduled to be sentenced Sept. 29, 2014.

On Dec. 19, 2012, Steward, pleaded guilty before Judge Bumb to dealing firearms without a license and one count of possession of a firearm by a previously convicted felon. He is scheduled to be sentenced Sept. 19, 2014.

Also in connection with this investigation, on May 5, 2014, ATF agents arrested Wendelle L. Ford, 40, of Camden.  Ford was charged with conspiracy to deal firearms without a license.
 
From January 2012 through July 2012, Ford obtained firearms from different sources, who purchased them in gun shops in Philadelphia and pawn shops in North Carolina. Ford then resold the firearms, including at least two firearms to Steward, who in turn sold the weapons to an ATF informant. In total, Ford dealt 15 firearms without a license.

Ford made his initial appearance in court on May 5, 2014, before U.S. Magistrate Judge Karen M. Williams and was released on bond.

The count of conspiracy to illegally deal firearms to which DeJesus pleaded guilty, and with which Ford is charged, carries a maximum potential penalty of five years in prison and a $250,000 fine. DeJesus is scheduled to be sentenced Sept. 5, 2014.

U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Robin Shoemaker, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.

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

14-169                                                

Defense counsel: DeJesus:  Frederick Klepp Esq., Cherry Hill, N.J.
Lee:  Stanley King Esq., Woodbury, N.J.
Ford:  Mark Catanzaro Esq., Moorestown, N.J.

DeJesus, Resselyn Information
Lee, Michael Wayne Information
Steward, Ammie Information
Ford, Wendelle Complaint

TRENTON, N.J. - An insurance broker who allegedly stole nearly $1 million while continuing  to sell health care coverage he knew was fake pleaded guilty today in connection with the scheme, U.S. Attorney Paul J. Fishman announced.
 
David Clark, 70, of Morristown,  N.J., entered his guilty plea to an information, charging him with conspiracy to commit wire fraud, before U.S. District Judge Michael Shipp in Trenton federal court.
According to documents filed in this case and statements made in court: Clark owned and operated Real Benefits Association, LLC (RBA), a New Jersey limited liability company he incorporated on Dec. 17, 2003, under a similar name. Clark established RBA as a purported labor organization and as a way to market and sell health insurance to the general public through the RBA Welfare Plan. Initially, the Welfare Plan was fully insured through Perfect Health, a licensed New York insurance company. Participants paid insurance premiums to bank accounts of RBA and/or the Welfare Plan, which Clark then remitted to Perfect Health. 

Perfect Health was purchased by Health Insurance Programs (HIP) in 2008, and HIP discontinued its insurance policy with the RBA Welfare Plan. The federal government notified Clark that RBA did not qualify as a labor organization and was required to cease operating.

 Nonetheless, Clark continued to market and sell the health insurance plans to unsuspecting participants. Eventually participants began to complain to their respective state insurance departments when their medical claims were not being paid, which prompted various departments throughout the United States to issue cease and desist orders.

Clark and conspirators continued to market and sell bogus health insurance, and from December 2008 to July 2011, they collected approximately $1,789,596 in premiums for RBA health insurance coverage. Clark diverted approximately $962,027 from the premiums paid by RBA participants for his personal use, including by using victims’ premiums to fund personal debit and credit card purchases, college tuition payments and deposits to a relative’s bank account.
      
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is currently scheduled for Aug. 20, 2014.

U.S. Attorney Fishman credited special agents of the U. S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia; and  the U.S. Department of Labor Employee Benefits Security Administration (EBSA), under Jonathan Kay, Regional Director; as well as postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates, with the investigation leading to the plea.
   
The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
  
If you have information or think you might be a victim of this scheme, please contact (866) 444-3272 to speak to an EBSA benefits advisor.

14-170                                                              

Defense counsel: John P. McDonald Esq.; Somerville, N.J.

Clark, David Information

CAMDEN, N.J. –  A Gloucester County, N.J., man is charged with scamming distressed homeowners into giving him their houses and then soliciting fake real estate investments from private investors – secured by those same properties – that netted him more than $3 million in illicit profits, U.S. Attorney Paul J. Fishman announced.

Randy Poulson, 42, of Woolwich Township, N.J. – the owner and operator of Equity Capital Investments LLC – was arrested this morning by special agents of the Philadelphia FBI. Poulson was arrested on a complaint charging him with mail fraud, which alleges the business he operated was actually a multimillion-dollar Ponzi scheme. Poulson is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Anne Marie Donio in Camden federal court.

According to the complaint unsealed today:

Poulson engaged in a two-pronged scheme. First, he promised to pay the mortgages of distressed homeowners facing foreclosure if they sold their homes to him – for no other compensation. Using this method, Poulson obtained the deeds to more than 25 distressed homeowners’ residences, causing them to vacate the homes so renters could move in. Poulson then stopped making the monthly mortgage payments, causing those mortgages to go into foreclosure without the distressed homeowners’ knowledge.

In the second prong of the scheme, Poulson successfully solicited more than 50 private investors into his companies – including Equity Capital Investments, which purportedly bought and sold real estate. Poulson explained to the investors that their money would be used to acquire and rehabilitate properties, which Poulson claimed he would rent out and then sell for a 10 to 20 percent return on the investment. In order to give the impression that Equity Capital Investments was a legitimate business, Poulson provided investors with fake mortgages and promissory notes for residential properties he claimed to be purchasing, renting and reselling. In support of the scheme, Poulson gave three weekend-long seminars, numerous speeches at monthly dinners and various, private tutorial sessions purporting to teach real estate investing tips to individuals who paid fees to attend. Poulson was the former president of the South Jersey Real Estate Investment Club.

The properties for which Poulson solicited private investments were the properties he acquired from the distressed homeowners. In reality, Poulson spent the investments on personal expenses and to partially repay previous investors in Ponzi-scheme fashion. Poulson spent some of the investors’ money on Ray’s Pizza, Acme, Exxon/Mobil, Jos. A. Bank, DirecTV, Hollywood Grooming, Kiddie Garden, Philadelphia Union tickets, American Express, Studio 122 (a hair salon), The Disney Store, Toys ‘R Us, Wawa, and rent-to-own payments on a personal beach house located in Ventnor, N.J.

The investigation to date has uncovered more than $3 million in investor losses as a result of Poulson’s schemes.

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

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special
Agent in Charge Edward J. Hanko in Philadelphia, for the investigation leading to today’s complaint.

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

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

14-168                                                             

Defense counsel: Richard Coughlin Esq., Camden

Poulson, Randy Complaint

CAMDEN, N.J. – A former financial officer and president of General Glass Equipment Company in Galloway, N.J., was sentenced today to 18 months in prison for concealing his actual income on corporate and personal tax returns, including more than $700,000 he failed to report in 2004, U.S. Attorney Paul J. Fishman announced.

Frank A. Dominico, 68, of Linwood, N.J., previously pleaded guilty before U.S. District Judge Noel L. Hillman to an indictment charging him with filing false income tax returns. Judge Hillman imposed the sentence today in Camden federal court.

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

Between 2004 and 2009, Dominico worked as a financial officer for General Glass and prepared their corporate income tax returns. During that time he was promoted from treasurer to president of the company.

For each tax year between 2004 and 2008, Dominico admitted he filed returns which reported only a portion of his income and, in some years, overstated his itemized deductions.

For instance, Dominico admitted that for 2004 tax year, he listed his compensation from General Glass as $51,334 on his personal tax return and $89,822 on General Glass’s corporate federal income tax return. In fact, Dominico failed to report an additional $722,000 in compensation for the 2004 tax year, which resulted in a tax loss to the United States of $129,710.

In addition to the prison term, Judge Hillman sentenced Dominico to serve one year of supervised release and ordered him to pay restitution of $840,321.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with 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.

14-172                                                                  

Defense counsel: Lori M. Koch Esq., Assistant Federal Public Defender, Camden

NEWARK, N.J. - Three former International Longshoremen’s Association (ILA) union officials admitted today that they conspired to extort ILA Local 1235 longshoremen on the New Jersey piers for Christmastime tribute payments, New Jersey U.S. Attorney Paul J. Fishman and Eastern District of New York U.S. Attorney Loretta E. Lynch announced.

Vincent Aulisi, 82, of West Orange, N.J., the president of ILA Local 1235 from approximately 2006 through 2007; Thomas Leonardis, 56, of Glen Gardner, N.J., the president of the union from approximately 2008 through 2011 and former ILA representative; and Robert Ruiz, 55, of Watchung, N.J., the delegate of the union from approximately 2007 through 2010 and former ILA representative, pleaded guilty today to conspiring to extort Christmastime tributes from ILA Local 1235 members – count three of the second superseding indictment against them. Aulisi, Leonardis and Ruiz entered their guilty pleas before U.S. District Judge Claire C. Cecchi in Newark federal court.

According to documents filed in this case and statements made in court: During their guilty plea proceedings, Aulisi, Leonardis and Ruiz admitted that they conspired with each other and others to compel tribute payments from ILA union members, who made the payments based on actual and threatened force, violence and fear. The timing of the extortions typically coincided with the receipt by certain ILA members of “Container Royalty Fund” checks, a form of year-end compensation. Leonardis and Ruiz were suspended from their positions following their arrest in January 2011. Aulisi had already retired from his employment on the New Jersey piers at the time of his arrest.

Charges are still pending against eight defendants in the superseding indictment, including a racketeering conspiracy charge against Stephen Depiro, 58, of Kenilworth, N.J. – a soldier in the Genovese organized crime family of La Cosa Nostra. Since at least 2005, Depiro has managed the Genovese family’s control over the New Jersey waterfront – including the nearly three-decades-long extortion of port workers in ILA Local 1, ILA Local 1235, and ILA Local 1478. Members of the Genovese family, including Depiro, are charged with conspiring to collect tribute payments from New Jersey port workers at Christmastime each year through their corrupt influence over union officials, including the last three presidents of Local 1235.

Two of the three remaining Genovese family associates are former union officials: Albert Cernadas, 78, of Union, N.J., the president of ILA Local 1235 from approximately 1981 to 2006 and former ILA Executive vice president; and Nunzio LaGrasso, 63, of Florham Park, N.J., the former vice president of ILA Local 1478 and former ILA Representative. The third, Richard Dehmer, 78, of Springfield, N.J., is charged with illegal gambling conduct unrelated to the waterfront extortions.

The charge to which Aulisi, Leonardis and Ruiz pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Sept. 4, 2014, for Ruiz and Sept. 9, 2014, for Aulisi and Leonardis.

U.S. Attorneys Fishman and Lynch credited the FBI in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford, and in New York, under the direction of Assistant Director in Charge George Venizelos, as well as the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Jacquelyn M. Kasulis of the U.S. Attorney’s Office, Eastern District of New York, and Assistant U.S. Attorney Anthony Mahajan, of the U.S. Attorney’s Office, District of New Jersey.

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

14-166                                                                  

Defense counsel: Joseph Fusella Esq., Bloomfield, N.J.
Michael N. Pedicini Esq., Chatham, N.J.
Marc Agnifilo Esq., New York, N.Y.

TRENTON, N.J. – A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department, U.S. Attorney Paul J. Fishman announced.

Khawaja Ikram, 41, of Staten Island, N.Y., pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of conspiracy to commit bank fraud. Two co-defendants, Tarsem Lal, 73, of Iselin, N.J., and Azhar Ikram, 40, of Howard Beach, N.Y., pleaded guilty before Judge Thompson in Trenton on April 2, 2014, to informations charging them with conspiracy to commit bank fraud.

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

Khawaja Ikram was originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.

The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; and finally, run up large loans.

The scope of the criminal fraud enterprise required Ikram and his conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.

Ikram admitted he helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. He also admitted he knew the cards would be used fraudulently at businesses.

The charge to which Ikram pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 23, 2014. Azhar Ikram and Lal are scheduled to be sentenced Sept. 17, 2014, U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford; postal inspectors, under the direction of Postal Inspector in Charge Maria L. Kelokates; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, for the investigation leading to today’s guilty plea. He also thanked the U.S. Social Security Administration for its role in the investigation.

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

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.

14-165                                                

Defense counsel: Neil G. Duffy III Esq., Union, N.J.

Ikram, Khawaja Information

NEWARK, N.J. – A former New Jersey Transit (NJ Transit) official today admitted she agreed to accept an $8,000 bribe and power washing services in connection with a snow removal contract, U.S. Attorney Paul J. Fishman announced.

Donna Schiereck, 56, of Jackson, N.J., pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging her with one count of agreeing to accept a bribe.

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

From September 2012 to December 2012, Schiereck was a supervisor at NJ Transit.  Schiereck agreed to accept $8,000 in exchange for her assistance with maintaining snow removal work for a Lakewood, N.J., company. She also sought and received free power washing services from the company in return for her official assistance.

The bribery count to which Schiereck pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the N.J. State Police, under the direction of Col. Joseph R. Fuentes, superintendent of the state police, for the investigation leading to today’s guilty plea. He also thanked N.J. Attorney General’s Office, under the direction of Acting Attorney General John Hoffman, and Eli Honig, director of the N.J. Division of Criminal Justice, for their work on the investigation.

The government is represented by Assistant U.S. Attorney Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division in Newark and Special Assistant U.S. Attorney Michael A. Monahan, chief of the Financial and Computer Crimes Bureau, Division of Criminal Justice, N.J. Office of the Attorney General.

14-164                                                    

Defense counsel: David A. Schwartz Esq., Eatontown, N.J.

Schiereck, Donna Information

Two Conspirators Sentenced to Probation

NEWARK, N.J. – A Monmouth County, N.J., man who formerly worked as a sheriff’s officer in Essex County was sentenced today to 15 months in prison for conspiring to collect a debt using extortionate means, U.S. Attorney Paul J. Fishman announced.

John Balsamo, 50, of West Long Branch, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an indictment charging him with using threats of violence and economic harm to collect a debt from the victim, an Ocean County, N.J., construction contractor. Judge Hayden imposed the sentence today in Newark federal court.

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

Balsamo and conspirators Timothy Kelly, 38, of Jersey City, N.J., and Robert C. Bantang, Jr., 45, of Oceanport, N.J., used extortionate means in order to collect $50,000 the contractor owed to Kelly from 2009. The conspirators made the victim believe that the money he had borrowed from Kelly was owed to the “Old Man,” a member of organized crime who would cause physical harm to the victim if the debt was not paid. Balsamo also displayed a key to a construction site where the victim was working in Brick, N.J., and warned that the key could be used to gain access to, and cause damage to the site, due to the victim’s failure to fully repay the debt. Balsamo and Kelly sent Bantang to the construction site on three occasions to deliver threats purportedly on behalf of the “Old Man.”

On March 24, 2011, Balsamo and Kelly went to the Brick construction site, which was now a completed restaurant, to confront the victim. Kelly told the victim that if he had brought his “boys” that it would have gotten “done right in here, right in this place, right like this, in front of everybody . . . and your wife gets it too.” Kelly also told the victim that he deserved “a beatin’ just out of f- - kin’ principle.” Balsamo warned that the “Old Man” wanted to “beat the shit” out of the restaurant owner due to the victim’s failure to repay the debt, which Balsamo and Kelly now stated had grown to $70,000. Balsamo also advised the victim that the “Old Man” has been “promoted,” implying that the “Old Man” now possessed a higher position in organized crime.

Kelly and Bantang previously pleaded guilty in February 2012 to conspiring to collect a debt from the victim using extortionate means, before Judge Hayden. Kelly was sentenced today to three years of probation, including four months of house arrest and 40 hours of community service. Bantang was sentenced to three years of probation.

In addition to the prison term, Judge Hayden sentenced Balsamo to two years of supervised release and ordered him to pay restitution of $2,500 in cash and a Rolex watch he had taken from the victim.

Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of the N.J., State Commission of Investigation, under the direction of Executive Director Philip James Degnan, for the investigation leading to today’s sentencings.

The government is represented by Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Economic Crime Unit in Newark.

14-167                                                            

Defense Counsel: Balsamo: John Yauch Esq., Assistant Federal Public Defender, Newark
Kelly: Timothy Donohue Esq., West Orange, N.J.
Bantang: Michael Baldassare Esq., Newark

NEWARK, N.J. – An Essex County, N.J., man was arrested at his home by federal law enforcement officers this morning on charges that he allegedly ran a real estate investment scheme that bilked victims out of $4 million, U.S. Attorney Paul J. Fishman announced today.

Abbe Edelman, 50, of Livingston, is charged by complaint with six counts of wire fraud. He is scheduled to make his initial court appearance later today before U.S. Magistrate Judge Mark Falk in Newark federal court.

According to the complaint: Beginning in 2004, Edelman operated through several companies alleged to be in the business of buying and selling real estate. He allegedly engaged in a real estate investment fraud in which he obtained millions of dollars from victims who invested in his scheme. Edelman told investors that he had significant past real estate experience, including a purported history of successfully buying and selling numerous bank foreclosed properties, and an MBA degree from NYU in real estate finance. Edelman claimed that he had long standing relationships with banks that provided him with unique access to purchase foreclosed properties below market prices and, in fact, already had negotiated with the banks to purchase certain properties at agreed-upon prices that would guarantee an easy resale and profit for investors.

Edelman promised investors that any investment would be used solely for the purchase and renovation of specific investment properties in, among other places, New York, New Jersey, California, and Florida. Edelman represented to his investors that he could obtain extraordinary returns – as much as 25 percent – in as little as eight to 12 months. Edelman allegedly told some victims he had received from other investors, including professional athletes and celebrities, the majority of the capital needed to purchase the investment properties. He also said he provided cash deposits to the financial institutions to secure the right to purchase the investment properties and invested his own money in the deals.

In reality, neither Edelman nor any of his real estate companies had a history of purchasing any bank foreclosed properties. Edelman also did not possess even an undergraduate degree. He did not have any deals lined up involving any investment properties, did not have his own money invested in any such deals, and did not have any money from celebrity investors. Edelman induced investors to give him $4 million and used little, if any, of it to fund any real estate acquisitions or renovations, instead diverting the funds for his own use.

He allegedly used the funds for his home mortgage and day-to-day living expenses, such as restaurants, telephone, and gas bills, purchased merchandise from high-end retailers, such as Gucci and Neiman Marcus, repaid existing investors in Ponzi-scheme fashion and paid his legal expenses in connection with victims seeking repayment of their investment.

When investors later inquired about the status of their investments, Edelman offered additional misrepresentations, including emails sent from a fake email account he had created, falsely assuring investors that he and his company had closed on the foreclosed properties, sometimes telling them buyers for the properties already had been identified.

In some cases, to allow the scheme to continue undetected, Edelman made “lulling” payments to investors, ranging from $100 to tens of thousands of dollars, to permit the scheme to continue. When payments were made to any investors, Edelman generally represented that the money was from the sale of investment properties, when, in fact, it came from a new investor.

The wire fraud counts with which he is charged each carry a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited criminal investigators with the U.S. Attorney’s Office and postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s arrest.

The charges and allegations against Edelman are merely accusations and he is considered innocent unless and until proven guilty.

The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky of the Economic Crimes Unit and Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit.

Today’s arrest is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

13-163                                                                                                                                                                                         

Edelman, Abbe Complaint

CAMDEN, N.J. – A Cape May County, N.J. man was sentenced today to 57 months in prison for transporting an underage girl across state lines for the purpose of engaging in sexual activity, U.S. Attorney Paul J. Fishman announced.

Michael Kulick, 47, of Dennis Township, N.J., previously pleaded guilty before U.S. District Court Judge Joseph E. Irenas to an information charging him with one count of transportation of a minor over state lines in order to engage in sexual activity. Judge Irenas imposed the sentence today in Camden federal court.

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

In August 2012, Kulick and his family went on a vacation to Lancaster, Pa., accompanied by his daughter’s friend, a 15-year-old girl. Kulick engaged in sexual contact with the minor girl while staying at a hotel in Pennsylvania. Kulick admitted that after returning to New Jersey, he continued to have a sexual relationship with the minor girl for approximately two months.  Kulick also admitted that at the time that he transported the minor girl to and from Pennsylvania, he knew that it was illegal in both New Jersey and Pennsylvania to commit statutory rape.

In addition to the prison term, Judge Irenas sentenced Kulick to 10 years of supervised release and must register as a sex offender. A restitution hearing is scheduled for July 9, 2014.

U.S. Attorney Fishman credited special agents of the FBI Atlantic City resident agency, under the direction of Special Agent In Charge Aaron T. Ford; in Newark; the N.J. State Police, under the direction of Col. Rick Fuentes, superintendent of the state police, and investigators with the Cape May County Prosecutor’s office, under the direction of Prosecutor Robert L. Taylor, with the investigation leading to today’s sentencing. 

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

14-166                                                        

Defense counsel:  Edwin J. Jacobs Jr. Esq., Atlantic City, N.J.

NEWARK, N.J. - The owner and president of GAC Consulting Group LLC (GAC) was sentenced today to 36 months in prison for his role in a scheme to defraud at least 17 charities and non-profit organizations, costing them more than $750,000 in losses, U.S. Attorney Paul J. Fishman announced. 

Gregory Ciccone, 37, of Woodland Park, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of wire fraud and one count of filing a false tax return. On Oct. 26, 2010, Ciccone was arrested and charged with mail fraud and wire fraud in connection with his charity fraud scheme, which promised high-end prizes that were never delivered. A superseding indictment returned by a federal grand jury on May 15, 2012, charged Ciccone with mail fraud, wire fraud and filing a false 2009 tax return.

According to documents filed in the case and statements made in court: Ciccone owned and operated GAC, a business which contracted with charities and non-profit organizations and arranged for high-end prizes to be auctioned off to bidders during fund-raising events. They included: a walk-on role on the “Desperate Housewives” television show; tickets to the 2009 Tony Awards; an appearance by “C.A.,”  a celebrity who is a cancer survivor; and rounds of golf at the Augusta National Golf Course in Augusta, Ga. 

Ciccone convinced the charities and non-profit organizations to pay GAC both an up-front retainer and commission fees based upon his ability to provide certain prizes. Ciccone not only did not deliver the vast majority of the prizes offered to his victims, he never had the ability to do so. From October 2006 through April 2010, Ciccone’s actions caused more than $768,000 in losses to at least 17 different charities and non-profit organizations. 

After his Oct. 26, 2010, arrest, Ciccone filed a false 2009 tax return on May 13, 2011, in which he failed to list certain retainer fees and commissions received from his victims, as well as gambling winnings. As part of his plea, Ciccone agreed to pay back $267,778 in criminal forfeiture.

In addition to the prison term, Judge Hayden sentenced Ciccone to three years of supervised release, ordered him to pay restitution of $768,103 and forfeiture of $267,788.

U.S. Attorney Fishman credited special agents with the FBI under the direction of Special Agent in Charge Aaron T. Ford; special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys Joseph Mack and Kathleen P. O’Leary of the U.S. Attorney=s Healthcare and Government Fraud Unit.

14-162                                                            

Defense counsel: Salvatore T. Alfano Esq., Bloomfield, N.J., and Louis C. Esposito Esq., Cedar Grove, N.J.

NEWARK, N.J. – The former co-chief executive officer (CEO) of PetroTiger Ltd. – a British Virgin Islands oil and gas company with operations in Colombia and offices in New Jersey – was indicted today for his role in a scheme to pay bribes to foreign government officials in violation of the Foreign Corrupt Practices Act (FCPA) and to defraud PetroTiger.

U.S. Attorney Paul J. Fishman of the District of New Jersey, Acting Principal Deputy Assistant Attorney General Marshall Miller of the Justice Department’s Criminal Division and Special Agent in Charge Aaron T. Ford of the FBI’s Newark Division made the announcement.

Joseph Sigelman, 43, of Miami and the Philippines, was indicted today by a federal grand jury in Camden, N.J., with conspiracy to violate the FCPA and to commit wire fraud, conspiracy to launder money, and substantive FCPA and money laundering violations. Gregory Weisman, 42, of Moorestown, N.J., the former general counsel of PetroTiger, pleaded guilty on Nov. 8, 2013, to conspiracy to violate the FCPA and to commit wire fraud. Sigelman’s co-CEO, Knut Hammarskjold, 42, of Greenville, S.C., pleaded guilty to the same charge on Feb. 18, 2014.

According to documents filed in this case and statements made in court: Sigelman and others paid bribes to an official in Colombia in exchange for the official’s assistance in securing approval for an oil services contract worth roughly $39 million. To conceal the bribes, they first attempted to make the payments to a bank account in the name of the foreign official’s wife for purported consulting services she did not perform. Sigelman and Hammarskjold provided Weisman invoices, including her bank account information. The conspirators made the payments directly to the official’s bank account when attempts to transfer the money to his wife’s account failed. Sigelman and his conspirators took steps to conceal the bribe payments from PetroTiger’s board members.

In addition, Sigelman and others attempted to secure kickback payments while negotiating an acquisition of another company on behalf of PetroTiger, including on behalf of several members of PetroTiger’s board of directors who were helping to fund the acquisition. In exchange for negotiating more favorable terms for the owners of the target company, two of the owners agreed to kick back to the conspirators a portion of the increased purchase price. To conceal the kickback payments, Sigelman and others had the payments deposited into Sigelman’s bank account in the Philippines, created a “side letter” to falsely justify the payments and used the code name “Manila Split” to refer to the payments amongst themselves.
Sigelman and Hammarskjold were charged by sealed complaints filed in the District of New Jersey on Nov. 8, 2013, with conspiracy to commit wire fraud, conspiracy to violate the FCPA, conspiracy to launder money and substantive violations of the FCPA. Hammarskjold was arrested Nov. 20, 2013, at Newark Liberty International Airport. Sigelman was arrested on Jan. 3, 2014, in the Philippines. The charges against Sigelman, Hammarskjold and Weisman were unsealed on Jan. 6, 2014. Today’s indictment consolidates the complaint’s conspiracy to commit wire fraud and to violate the FCPA charges into a single count, and adds one count of transacting in criminal proceeds.

The conspiracy to commit wire fraud and violations of the FCPA count carries a maximum potential penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The three substantive FCPA counts each carry a maximum potential penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. The conspiracy to commit money laundering count carries a maximum potential penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The transacting in criminal proceeds charge carries a maximum potential penalty of 10 years in prison and $250,000 or twice the gain or loss from the offense.

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

The case was brought to the attention of the department through a voluntary disclosure by PetroTiger, which cooperated with the department’s investigation. The department has worked closely with and has received significant assistance from its law enforcement counterparts in the Republic of Colombia and greatly appreciates their assistance in this matter. The department also thanks the Republic of the Philippines, including the Bureau of Immigration, and the Republic of Panama for their assistance in this matter. Significant assistance was also provided by the Criminal Division’s Office of International Affairs.
The case is being investigated by the FBI’s Newark Division. The case is being prosecuted by Assistant U.S. Attorney Zach Intrater of the District of New Jersey and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section.

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

14-160                                                       

Defense counsel: Andrew C. Lourie, Matthew I. Menschel, William A. Burck, Juan Pablo Morillo Esqs., Washington; Patrick J. Egan Esq., Philadelphia

Sigelman, Joseph Indictment

NOTE: The press release below was originally issued Wednesday, May 7, 2014. The complaints on which it was based misidentified Bryan Falu of Philadelphia as one of the defendants. Charges against Bryan Falu have been dismissed and he is not being sought by law enforcement. The criminal complaint on which the original press release was based, and this press release, have been amended.

Camden’s C-4 Anti-Violence Team Arrests 16 in Coordinated Takedown

CAMDEN, N.J. – This morning, teams of federal, state and local law enforcement partners led by the FBI arrested 16 members of related drug trafficking organizations – bound by family and narcotics business relationships – that processed and distributed crack, powder cocaine and heroin on the streets of Camden County, U.S. Attorney Paul J. Fishman announced.

Based on criminal charges filed by the U.S. Attorney’s Office and executed through the cooperative work of the Camden County Crime Collaboration, or C-4, the arrests targeted a group of interconnected drug trafficking organizations (DTOs) operating primarily in the Whitman Park section of Camden. The complaints unsealed today charge 21 defendants in two separate DTOs: one allegedly led by Efraim Rivera (the Rivera DTO), and the second involving two groups run by the Roldan and Ramos families – allegedly led by cousins Raymond Roldan and Jerome “Ant” Ramos – operated cooperatively on Sheridan Street as one organization (the Sheridan Street DTO).

In addition to the 16 defendants arrested today, two of the charged individuals, Dewayne Jackson and Mark Washington, were already in custody on state charges. Three more are being sought by law enforcement. Those arrested today are expected to appear this afternoon before U.S. Magistrate Judge Anne Marie Donio in Camden federal court.

“According to the charges, these individuals turned entire city blocks into distribution centers for narcotics,” said U.S. Attorney Fishman. “Relying on the bond of blood ties, they allegedly operated drug trafficking businesses as a family affair, sharing suppliers and street dealers in Camden and throughout South Jersey. Law enforcement is collectively committed to improving the quality of life of the people who live in these neighborhoods, who deserve freedom from drug trafficking and related violence.”

“This is the largest FBI takedown in Camden in a decade,” said Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, “and we’re not done yet. The FBI’s South Jersey Violent Offender and Gang Task Force, aided by our outstanding law enforcement partners, is committed to dismantling the violent drug gangs poisoning Camden’s streets.”

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

In addition to providing drugs to distributors on Sheridan Street, the DTOs together controlled or supplied numerous drug distribution groups, or “sets,” throughout Camden with powder cocaine, crack and – through the Ramos group – heroin. They also supplied other narcotics distributors, who sold the DTOs’ drugs throughout Camden County, including in Lindenwold, Sicklerville and Gloucester City.

Many of the DTOs’ members are relatives, and the Roldan and Ramos groups live in close proximity to one another on Sheridan Street. While the Roldan and Ramos groups each ran their own open-air drug sets along three blocks of Sheridan Street, they shared territory, set workers and suppliers, and used the same locations to process powder cocaine into crack cocaine.

An investigation led by the FBI used surveillance, confidential informants and cooperating witnesses, controlled drug purchases, record checks and telephone wiretaps to uncover the distribution networks.

Just during the time period of the wiretap – from Dec. 4, 2013 to March 4, 2014 – the Rivera DTO trafficked at least 225 ounces and the Sheridan Street DTO trafficked more than 50 ounces of powder cocaine. During the same period, the Rivera DTO trafficked approximately 24 ounces of crack. The Sheridan Street DTO sold more than 36 ounces of crack during a similar time frame – ending April 16, 2014 – during which the Ramos group also trafficked a minimum 325 grams of heroin, making approximately $1,800 a day on heroin alone.

“It is the continuing cooperative efforts of federal, state and county law enforcement agencies that have had a significant impact on the crime rate in Camden and made the city a safer place for its citizens, “said Camden County Prosecutor Warren Faulk. “Today’s arrests are just a part of these continuing efforts.”
“The Camden County Crime Collaboration is a collaboration of law enforcement agencies leveraging resources and intelligence to remove the most violent drug gang organizations from the streets in our region,” said Camden County Police Chief J. Scott Thomson. “Today’s arrest signals the end to a drug gang that has influenced violence in the Whitman Park neighborhood, one of Camden’s most challenged sections with gun violence. I am extremely grateful to the leadership of the U.S. Attorney’s Office of New Jersey for their stewardship of our C-4 efforts.”

The Rivera DTO acquired and distributed powder cocaine to the Sheridan Street DTO, which then processed the powder into crack for sale at open-air drug sets it controlled. The DTOs maintained various stash houses; rented cars to conduct drug-related business; moved around different locations to manufacture crack; and employed coded language when conducting drug business by phone or text messaging.

Efraim Rivera primarily operated  the Rivera DTO from his mother’s residence on Liberty Street in Camden, taking telephone orders for both powder and crack cocaine. He regularly travelled to Philadelphia, sometimes as often as three times a week, to purchase multiple-ounce quantities of cocaine from an uncharged conspirator who was Rivera’s source of supply. The Rivera DTO then sold the powder cocaine to the Sheridan Street DTO and to other customers. Some of the Rivera DTO’s customers then supplied powder or crack to Dymiere Demby, Dewayne Jackson and Daniel Alston for sets at 10th and Warsaw Streets, Green and Mechanic Streets, and Lindenwold, respectively.

The Sheridan Street DTO would then convert the powder cocaine to crack, which would be sold on the open-air drug markets respectively controlled by the Roldan and Ramos groups, or to other drug distributors, who supplied other drug traffickers or sets in and beyond the city of Camden. The Rivera DTO would purchase Sheridan Street DTO crack made from the same cocaine it sold to the Roldan group. Rivera’s DTO crack customers included Rivera’s relatives, Angel “Jungo” Garcia and Angel Velez, who would redistribute the crack.

When Raymond Roland was unable to obtain powder cocaine from the Rivera DTO, he turned to other suppliers, such as Luis “Canelo” Diaz, who also supplied the Rivera DTO.  Roldan worked closely with his cousin “Ant” Ramos. The two maintained regular contact and reached out to each other when attempting to locate sources of supply. Roldan was assisted in the day-to-day operation of his group by his sister, Daisy Roldan, and her son, Anthony “Boo Boo” Esprit, who facilitated meetings with suppliers and customers, transported narcotics and collected drug proceeds.

“Ant” Ramos was assisted by his brothers Giovanny “Gio” Ramos and Alexsio “Al” Ramos, who, along with Jimmy Mercado, “cooked” the crack and processed the powder cocaine, crack cocaine and heroin for sale. Intercepted telephone conversations captured the coordination among the Ramos group members as they discussed materials including ammonia, sandwich bags, masks and grinders.

The Roldan and Ramos groups shared set workers, such as Christian Setzer and Graciano “Rocky” Diaz, who made walk-up sales on Sheridan Street.

Calls were intercepted between Sheridan Street DTO members referring to being armed with guns and having a “strap” or gun on their person. One DTO member stated, “at the end of the day, I’m shooting.”  One DTO member stated in an intercepted conversation that he had just come from the gun range.

The defendants involved with the Rivera DTO each are charged with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack and 5 kilograms or more of cocaine; the members of the Sheridan Street DTO each are charged with one count of conspiracy to distribute 280 grams or more of crack; 500 grams or more of cocaine; and 100 grams or more of heroin. Raymond Roldan, Luis Diaz and Efraim Rivera each are charged with both counts. Each count carries a minimum potential penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine.

U.S. Attorney Fishman credited special agents of the FBI’s Philadelphia Division and the South Jersey Violent Offender and Gang Task Force, under the direction of FBI Special Agent in Charge Hanko; the Camden County Prosecutor’s Office, under the direction of Prosecutor Faulk; and the Camden County Police Department – Metro, under the direction of Chief Scott Thomson, with the investigation – as well as the Camden County Sheriff’s Office, under the direction of Sheriff Charles Billingham; the New Jersey State Police, under the direction of Col. Rick Fuentes; and the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean Dalton. He also thanked other members of C-4, the Philadelphia/Camden High Intensity Drug Trafficking Area program and the New Jersey Division of Criminal Justice for their roles in the case.

The government is represented by Special Assistant U.S. Attorney Ira M. Slovin of the
U.S. Attorney’s Office Criminal Division in Camden.

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

This case was developed through the work of C-4. Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.

Name

Age

Residence

Alleged Role

33

Camden

 Leader, Rivera DTO
Supplier, Sheridan Street  DTO

  Raymond Roldan

38

Camden

 Leader, Roldan group
Supplier, Rivera DTO

  Jerome Anthony Ramos, aka “Ant”

28

Camden

 Leader, Ramos group

  Uncharged conspirator

   

 Supplier, Rivera DTO

  Luis Diaz, aka “Canelo”

42

Camden

 Supplier, Rivera DTO
Supplier, Sheridan Street DTO

  Ramon Diaz, aka “Paluco”

44

Camden

 Facilitator, Sheridan Street DTO

  Daisy Roldan

36

Camden

 Facilitator, Roldan group

Anthony Esprit, aka “Boo Boo”

18

Camden

 Facilitator, Roldan group

Alexsio Ramos, aka “Al”

25

Camden

 Facilitator, Ramos group

Giovanny Ramos, aka “G”

20

Camden

 Facilitator, Ramos group

Jimmy Mercado, aka “J.I.”

26

Camden

 Facilitator, Ramos group

Christian Setzer. aka “Hitstick”

33

Camden

 Set Worker, Roldan and Ramos groups

Graciano Diaz, aka “Rocky”

26

Camden

 Set Worker, Roldan and Ramos groups

Angel Garcia, aka “Jungo”

36

Camden

 Customer/Redistributor, Rivera DTO

Ali Alexander, aka “Ali Al”

35

Camden

 Customer/Redistributor, Rivera DTO

Angel Velez

32

Camden

 Customer/Redistributor, Rivera DTO

Daniel Alston, aka “Boo”

33

Camden

 Customer/Redistributor, Rivera DTO

Dymiere Demby

23

Camden

 Customer/Redistributor, Rivera DTO

Giovanny Carrero

34

Camden

 Customer/Redistributor, Rivera DTO

Dewayne Jackson

45

Camden

 Customer/Redistributor, Rivera DTO

Mark Washington, aka “Burger”, aka “BG”

27

Camden

 Customer/Redistributor, Ramos group

Eric Rivera, aka “E”

27

Camden

 Customer/Redistributor, Ramos group

14-156                                                    

Rivera, Efraim et al Revised Complaint

NEWARK, N.J. – A Newark man was sentenced today to 234 months in prison for his role in three armed carjackings that occurred in a one-week span in three counties across northern New Jersey, U.S. Attorney Paul J. Fishman announced.

Rahim Braxton, 34, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to a superseding information charging him with three counts of carjacking and one count of brandishing a firearm during the course of a violent crime. U.S. District Judge Esther Salas imposed the sentence today in Newark federal court.

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

Braxton admitted he participated with several other men in three carjackings that were committed in Essex, Hudson, and Passaic counties over a period of one week in March 2012.  He said they agreed to take high-end BMW and Mercedes-Benz vehicles from their victims by force. Braxton also admitted that during each of the carjackings, at least one of the conspirators was armed with a gun that was to be used in order to threaten the drivers of the cars.

In addition to the prison term, Judge Salas sentenced Braxton to five years of supervised release.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; the Newark Police Department, under the direction of Police Director Sheilah A. Coley and Chief Ivonne Roman; the Clifton Police Department, under the direction of Chief John E. Link; and the Secaucus Police Department, under the direction of Chief Dennis Corcoran, for the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney James Donnelly of the Organized Crime/Gangs Unit in Newark.

14-159                                                     

Defense counsel: Ruth M. Liebesman Esq., Paramus, N.J.

NEWARK, N.J. – A Newark man made his initial court appearance today on charges that he sexually exploited two prepubescent girls after allegedly photographing himself abusing the girls, U.S. Attorney Paul J. Fishman announced.

Justin Kinney, 25, is charged by complaint with two counts of sexual exploitation of a child. He was already in state custody on related charges and had his initial appearance in Newark federal court today before U.S. Magistrate Judge Michael A. Hammer. Kinney was remanded without bail.

According to the complaint:

Law enforcement officers executed a search warrant on Kinney’s laptop computer and cellular telephone on Oct. 25, 2012. A forensic review of the equipment seized revealed several images of child sexual abuse that appear to be self-produced and allegedly depict Kinney sexually abusing two different prepubescent females.

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

U.S. Attorney Fishman credited special agents of the Department of Homeland Security Investigations (HSI), Immigrations and Customs Enforcement, under the direction of Special Agent in Charge Andrew McLees; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to the charges.

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

HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.

14-158                                                          

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

Kinney, Justin Complaint

NEWARK, N.J. - A dermatologist with a medical practice in East Brunswick, N.J., was charged today for allegedly structuring nearly $850,000 by intentionally purchasing numerous money orders for amounts below what would trigger a financial institution’s IRS reporting requirements, U.S. Attorney Paul J. Fishman announced.

Sandy S. Milgraum, 60, is charged in a criminal complaint with one count of conspiring to structure financial transactions to evade currency reporting requirements. Milgraum made his initial appearance in Newark federal court this afternoon and was released on $300,000 bail.

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

Milgraum is a licensed and board-certified dermatologist who operates the Academic Dermatology Laser Surgery Center in East Brunswick. From January 2005 through August 2010, Milgraum and others acting at his direction purchased approximately 1,280 money orders and monetary instruments totaling at least $846,092.92.

Each money order was purchased below the $3,000 limit that would require a financial institution to file a Cash Transaction Report with the IRS and disclose the identity of the individual who conducted the transaction, as well as the individual or organization for whom the transaction was completed.  

Milgraum and others purchased money orders from various venders including MoneyGram, Western Union, Bank of America and the United States Postal Service and then used them to make mortgage payments, credit card payments, business payments and other personal payments, including payments for various credit card debts incurred by a romantic partner of Milgraum’s.

The charge carries a maximum potential 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 IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates, with the investigation leading to the charge.

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

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

14-157                                              

Defense counsel: Joseph J. Benedict Esq., New Brunswick, N.J.

Milgraum, Sandy Complaint

Camden’s C-4 Anti-Violence Team Arrests 16 in Coordinated Takedown

CAMDEN, N.J. – This morning, teams of federal, state and local law enforcement partners led by the FBI arrested 16 members of related drug trafficking organizations – bound by family and narcotics business relationships – that processed and distributed crack, powder cocaine and heroin on the streets of Camden County, U.S. Attorney Paul J. Fishman announced.

Based on criminal charges filed by the U.S. Attorney’s Office and executed through the cooperative work of the Camden County Crime Collaboration, or C-4, the arrests targeted a group of interconnected drug trafficking organizations (DTOs) operating primarily in the Whitman Park section of Camden. The complaints unsealed today charge 21 defendants in two separate DTOs: one allegedly led by Efraim Rivera (the Rivera DTO), and the second involving two groups run by the Roldan and Ramos families – allegedly led by cousins Raymond Roldan and Jerome “Ant” Ramos – operated cooperatively on Sheridan Street as one organization (the Sheridan Street DTO).

In addition to the 16 defendants arrested today, two of the charged individuals, Dewayne Jackson and Mark Washington, were already in custody on state charges. Three more are being sought by law enforcement. Those arrested today are expected to appear this afternoon before U.S. Magistrate Judge Anne Marie Donio in Camden federal court.

“According to the charges, these individuals turned entire city blocks into distribution centers for narcotics,” said U.S. Attorney Fishman. “Relying on the bond of blood ties, they allegedly operated drug trafficking businesses as a family affair, sharing suppliers and street dealers in Camden and throughout South Jersey. Law enforcement is collectively committed to improving the quality of life of the people who live in these neighborhoods, who deserve freedom from drug trafficking and related violence.”

“This is the largest FBI takedown in Camden in a decade,” said Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division, “and we’re not done yet. The FBI’s South Jersey Violent Offender and Gang Task Force, aided by our outstanding law enforcement partners, is committed to dismantling the violent drug gangs poisoning Camden’s streets.”

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

In addition to providing drugs to distributors on Sheridan Street, the DTOs together controlled or supplied numerous drug distribution groups, or “sets,” throughout Camden with powder cocaine, crack and – through the Ramos group – heroin. They also supplied other narcotics distributors, who sold the DTOs’ drugs throughout Camden County, including in Lindenwold, Sicklerville and Gloucester City.

Many of the DTOs’ members are relatives, and the Roldan and Ramos groups live in close proximity to one another on Sheridan Street. While the Roldan and Ramos groups each ran their own open-air drug sets along three blocks of Sheridan Street, they shared territory, set workers and suppliers, and used the same locations to process powder cocaine into crack cocaine.

An investigation led by the FBI used surveillance, confidential informants and cooperating witnesses, controlled drug purchases, record checks and telephone wiretaps to uncover the distribution networks.

Just during the time period of the wiretap – from Dec. 4, 2013 to March 4, 2014 – the Rivera DTO trafficked at least 225 ounces and the Sheridan Street DTO trafficked more than 50 ounces of powder cocaine. During the same period, the Rivera DTO trafficked approximately 24 ounces of crack. The Sheridan Street DTO sold more than 36 ounces of crack during a similar time frame – ending April 16, 2014 – during which the Ramos group also trafficked a minimum 325 grams of heroin, making approximately $1,800 a day on heroin alone.

“It is the continuing cooperative efforts of federal, state and county law enforcement agencies that have had a significant impact on the crime rate in Camden and made the city a safer place for its citizens, “said Camden County Prosecutor Warren Faulk. “Today’s arrests are just a part of these continuing efforts.”
“The Camden County Crime Collaboration is a collaboration of law enforcement agencies leveraging resources and intelligence to remove the most violent drug gang organizations from the streets in our region,” said Camden County Police Chief J. Scott Thomson. “Today’s arrest signals the end to a drug gang that has influenced violence in the Whitman Park neighborhood, one of Camden’s most challenged sections with gun violence. I am extremely grateful to the leadership of the U.S. Attorney’s Office of New Jersey for their stewardship of our C-4 efforts.”

The Rivera DTO acquired and distributed powder cocaine to the Sheridan Street DTO, which then processed the powder into crack for sale at open-air drug sets it controlled. The DTOs maintained various stash houses; rented cars to conduct drug-related business; moved around different locations to manufacture crack; and employed coded language when conducting drug business by phone or text messaging.

Efraim Rivera primarily operated  the Rivera DTO from his mother’s residence on Liberty Street in Camden, taking telephone orders for both powder and crack cocaine. He regularly travelled to Philadelphia, sometimes as often as three times a week, to purchase multiple-ounce quantities of cocaine from an uncharged conspirator who was Rivera’s source of supply. The Rivera DTO then sold the powder cocaine to the Sheridan Street DTO and to other customers. Some of the Rivera DTO’s customers then supplied powder or crack to Dymiere Demby, Dewayne Jackson and Daniel Alston for sets at 10th and Warsaw Streets, Green and Mechanic Streets, and Lindenwold, respectively.

The Sheridan Street DTO would then convert the powder cocaine to crack, which would be sold on the open-air drug markets respectively controlled by the Roldan and Ramos groups, or to other drug distributors, who supplied other drug traffickers or sets in and beyond the city of Camden. The Rivera DTO would purchase Sheridan Street DTO crack made from the same cocaine it sold to the Roldan group. Rivera’s DTO crack customers included Rivera’s relatives, Angel “Jungo” Garcia and Angel Velez, who would redistribute the crack.

When Raymond Roland was unable to obtain powder cocaine from the Rivera DTO, he turned to other suppliers, such as Luis “Canelo” Diaz, who also supplied the Rivera DTO.  Roldan worked closely with his cousin “Ant” Ramos. The two maintained regular contact and reached out to each other when attempting to locate sources of supply. Roldan was assisted in the day-to-day operation of his group by his sister, Daisy Roldan, and her son, Anthony “Boo Boo” Esprit, who facilitated meetings with suppliers and customers, transported narcotics and collected drug proceeds.

“Ant” Ramos was assisted by his brothers Giovanny “Gio” Ramos and Alexsio “Al” Ramos, who, along with Jimmy Mercado, “cooked” the crack and processed the powder cocaine, crack cocaine and heroin for sale. Intercepted telephone conversations captured the coordination among the Ramos group members as they discussed materials including ammonia, sandwich bags, masks and grinders.

The Roldan and Ramos groups shared set workers, such as Christian Setzer and Graciano “Rocky” Diaz, who made walk-up sales on Sheridan Street.

Calls were intercepted between Sheridan Street DTO members referring to being armed with guns and having a “strap” or gun on their person. One DTO member stated, “at the end of the day, I’m shooting.”  One DTO member stated in an intercepted conversation that he had just come from the gun range.

The defendants involved with the Rivera DTO each are charged with one count of conspiracy to distribute and to possess with intent to distribute 280 grams or more of crack and 5 kilograms or more of cocaine; the members of the Sheridan Street DTO each are charged with one count of conspiracy to distribute 280 grams or more of crack; 500 grams or more of cocaine; and 100 grams or more of heroin. Raymond Roldan, Luis Diaz and Efraim Rivera each are charged with both counts. Each count carries a minimum potential penalty of 10 years in prison and a maximum potential penalty of life in prison and a $10 million fine.

U.S. Attorney Fishman credited special agents of the FBI’s Philadelphia Division and the South Jersey Violent Offender and Gang Task Force, under the direction of FBI Special Agent in Charge Hanko; the Camden County Prosecutor’s Office, under the direction of Prosecutor Faulk; and the Camden County Police Department – Metro, under the direction of Chief Scott Thomson, with the investigation – as well as the Camden County Sheriff’s Office, under the direction of Sheriff Charles Billingham; the New Jersey State Police, under the direction of Col. Rick Fuentes; and the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean Dalton. He also thanked other members of C-4, the Philadelphia/Camden High Intensity Drug Trafficking Area program and the New Jersey Division of Criminal Justice for their roles in the case.

The government is represented by Special Assistant U.S. Attorney Ira M. Slovin of the U.S. Attorney’s Office Criminal Division in Camden.

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

This case was developed through the work of C-4. Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.

Name

Age

Residence

Alleged Role

33

Camden

 Leader, Rivera DTO
Supplier, Sheridan Street  DTO

  Raymond Roldan

38

Camden

 Leader, Roldan group
Supplier, Rivera DTO

  Jerome Anthony Ramos, aka “Ant”

28

Camden

 Leader, Ramos group

  Uncharged conspirator

   

 Supplier, Rivera DTO

  Luis Diaz, aka “Canelo”

42

Camden

 Supplier, Rivera DTO
Supplier, Sheridan Street DTO

  Ramon Diaz, aka “Paluco”

44

Camden

 Facilitator, Sheridan Street DTO

  Daisy Roldan

36

Camden

 Facilitator, Roldan group

Anthony Esprit, aka “Boo Boo”

18

Camden

 Facilitator, Roldan group

Alexsio Ramos, aka “Al”

25

Camden

 Facilitator, Ramos group

Giovanny Ramos, aka “G”

20

Camden

 Facilitator, Ramos group

Jimmy Mercado, aka “J.I.”

26

Camden

 Facilitator, Ramos group

Christian Setzer. aka “Hitstick”

33

Camden

 Set Worker, Roldan and Ramos groups

Graciano Diaz, aka “Rocky”

26

Camden

 Set Worker, Roldan and Ramos groups

Angel Garcia, aka “Jungo”

36

Camden

 Customer/Redistributor, Rivera DTO

Ali Alexander, aka “Ali Al”

35

Camden

 Customer/Redistributor, Rivera DTO

Angel Velez

32

Camden

 Customer/Redistributor, Rivera DTO

Daniel Alston, aka “Boo”

33

Camden

 Customer/Redistributor, Rivera DTO

Dymiere Demby

23

Camden

 Customer/Redistributor, Rivera DTO

Giovanny Carrero

34

Camden

 Customer/Redistributor, Rivera DTO

Dewayne Jackson

45

Camden

 Customer/Redistributor, Rivera DTO

Mark Washington, aka “Burger”, aka “BG”

27

Camden

 Customer/Redistributor, Ramos group

Eric Rivera, aka “E”

27

Camden

 Customer/Redistributor, Ramos group

14-156                                                          

Rivera DTO Complaints
Sheridan Street DTO Complaints
Rivera and Sheridan Street DTO Complaints Attachment B

TRENTON, N.J. – A Sussex County, N.J., man was sentenced today to 24 months in prison for using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.

Albert Rose, 55, of Lafayette, N.J., previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of distribution of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.

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

Rose admitted distributing images of child pornography via email using a computer located in his residence in February 2010. He also admitted to possessing more than 600 images of child pornography on his computer, which was seized from his residence in February 2012. Rose acknowledged that among the images he possessed and distributed were images which depicted minors posing in a sexually explicit manner.

In addition to the prison term, Judge Pisano sentenced Rose to serve five years of supervised release and ordered him to pay restitution of $500.

U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McLees, 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.

14-153                                                                  

Defense counsel: S. Emile Lisboa Esq., Hackensack, N.J.

NEWARK, N.J. – A Brooklyn, N.Y., man admitted today to participating in five armed robberies of electronics stores, including an armed robbery in Linden, N.J., U.S. Attorney Paul J. Fishman announced.

Kajuan Crawley, 26, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding indictment charging him with conspiracy to commit Hobbs Act robberies.

Crawley was arrested Oct. 17, 2013, and charged in a superseding indictment — along with Carl Williams, 30, Eric Williams, 33, and Unique Randolph, 27 — in connection with five armed robberies of electronic stores in New Jersey and New York. Crawley has been in custody since his arrest.

According to documents filed in this case and statements made in court: Between June 11, 2012, and Sept. 20, 2012, Crawley conspired with others to commit a series of armed robberies of electronic store in New Jersey and New York, during which he and accomplices robbed merchandise for illegal resale.
 
Following the June 21, 2012, armed robbery of an electronic store in Rockville Center, N.Y., Crawley was apprehended by the officers with Nassau County Police Department. While released on bail, Crawley participated in the Sept. 20, 2012, armed robbery of an electronics store in Linden.
The charge of conspiracy to commit Hobbs Act robberies carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 18, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s plea. He also thanked the Linden and Woodbridge police departments in New Jersey, 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.

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

13-155                                   

Defense counsel:

Carl Williams: Mark A. Berman Esq., River Edge, N.J.
Eric Williams: Aaron M. Goldsmith Esq., New York
Kajuan Crawley: Maria D. Noto Esq., Matawan, N.J.
Unique Randolph: Damian P. Conforti, Esq., Newark

Crawley, Kajuan Superseding Indictment

TRENTON, N.J. - A Lakewood, N.J., man today admitted conspiring to kidnap a Jewish man to force him to give his wife a religious divorce, known as a “get,” U.S. Attorney Paul J. Fishman announced.

David Wax, 51, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with conspiracy to commit kidnapping.

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

In October 2010, Wax and his conspirators agreed to force a Jewish man (Victim One) to give his wife a “get,” a document which, according to Jewish law, must be presented by a husband to his wife to effect their divorce. Wax then lured Victim One from Brooklyn, N.Y., to Wax’s home in Lakewood on Oct. 17, 2010, under the pretense that Victim One would work on Talmudic books that Wax was publishing. When the victim arrived, he was brought upstairs, blindfolded, handcuffed, and bound. Victim One was then assaulted by Wax and his conspirators until he provided the get.

Victim One’s wife’s family paid Wax approximately $100,000 to obtain the forced get.  Wax’s conspirators received approximately $50,000.

The conspiracy to commit kidnapping charge carries a maximum potential penalty of life in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Aug. 19, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.

The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.

14-154                                                         

Defense counsel: Mitchell J. Ansell Esq., Ocean, N.J., and Edward Dauber Esq., Newark

Wax, David Information

NEWARK, N.J. – The former president of a Middlesex County, N.J., investment company today admitted he defrauded investors out of more than $250,000, U.S. Attorney Paul J. Fishman announced.

Shreyans Desai, 27, of Edison, president of Shreysiddh Capital LLC, located in Iselin, N.J., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Counts One and Two of a superseding indictment charging him with wire fraud. The third count in the indictment, securities fraud, will be dismissed after Desai is sentenced.

According to documents filed in this case and statements made in court: Desai misled a number of investors about his licensing status and the registration status of the company to induce them to entrust their money to him so that he could trade securities on their behalf. Desai then sought to retain control of the funds by providing investors with an inflated value of their investments, and also inflated the amount of commissions he purportedly earned through trading those funds.

The wire fraud counts to which Desai pleaded guilty each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for August 13, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Jane H. Yoon and Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.

14-151                                    

Defense counsel: Alyssa A. Cimino Esq., Fairfield, N.J.

Desai, Shreyans Indictment