District of New Jersey

NEWARK, N.J. – A federal grand jury today returned a 19-count indictment against a Newark, N.J. man this morning in connection with a series of commercial establishment robberies in Union, Essex, and Bergen Counties, U.S. Attorney Paul J. Fishman announced.

Jamar Darby (a/k/a Rhino) 26, is charged with one count of conspiring to commit a Hobbs Act robbery, nine substantive counts of Hobbs Act robbery, and nine counts of using a firearm during a crime of violence.

Darby was previously arrested on a criminal complaint charging him with committing a Hobbs Act robbery and using a firearm during a crime of violence in connection with the robbery of a Subway Restaurant in Verona.

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

On May 20, 2013, Darby and two other individuals allegedly entered a Subway Restaurant in Verona wearing dark hoodies, face masks, and gloves. Darby and another individual each brandished a handgun. After Darby and another robber restrained a Subway employee with plastic zip ties, Darby and his co-conspirators emptied the cash registers and fled.

The indictment also charges Darby in connection with the following robberies between December 2012 and May 2013:

Linden Stationary

Linden

Feb. 1, 2013

Newark

Feb. 1, 2013

Shoppers Express

Belleville

Feb. 2, 2013

Krauszers

Bloomfield

Feb. 13, 2013

Pat’s Deli

Newark

Feb. 19, 2013

Smashburger

Paramus

March 16, 2013

Krauszers

Bloomfield

March 29, 2013

South Wood Discount Liquor

Linden

April 17, 2013

Darby allegedly brandished a handgun in all of the robberies, and he and his conspirators stole cash, cigarettes, and other items from their victims.

The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison for the first offense, which must run consecutively to any other prison term. For each subsequent offense, the charge of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of 25 years in prison, which must run consecutively to any other prison term. Each count also carries 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 FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s indictment. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the N.J. State Police and the Essex County Prosecutor’s Office for their work on this case.

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

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

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Defense Counsel: Carl Herman Esq., West Orange, N.J.

Darby Indictment

TRENTON, N.J. – A Somerset County, N.J.-based financial advisor was sentenced today to 27 months in prison for stealing $138,000 from two elderly investors and funding his lavish lifestyle with money he claimed to be investing in conservative securities and his business, U.S. Attorney Paul J. Fishman announced.

Ralph A. Saviano, 72, of Bridgewater, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with wire fraud.

According to documents filed in this case and statements made in court: Saviano, an investment advisor who had worked in the financial industry for more than 40 years, targeted clients through his association with Centaurus Financial Inc., and later through Saviano Financial Group (SFG), from as early as July 2007 through October 2012. 

During this time, Saviano had approximately 300 clients, many of whom were unsophisticated investors between the ages of 60 and 85, whom he had known for many years and who trusted his financial experience and advice. Saviano admitted he targeted clients he knew were about to receive significant amounts of cash, such as maturing certificates of deposit (CDs), and proposed that they invest those funds in low-risk investments or in his business, SFG. Saviano said he would use these “business loans” solely for business expenses.

Saviano admitted that in May 2012, an 85-year-old client gave him approximately $63,000 from a mature CD that she was told would be invested in two investment funds. Saviano accompanied the client to her bank to redeem the CD and instructed her make the proceeds from the CD payable to him. In June 2012, another of Saviano’s clients – 80 years old and suffering from cancer – gave Saviano approximately $75,000 she inherited from a recently deceased relative, making the check payable to “Cash” with the words “financial investment” in the memo field.

Instead of doing as he claimed, Saviano used the funds to repay prior “loans” from other clients in Ponzi-scheme fashion, and to pay for various personal expenses, including: at least $33,000 for granite countertops and other home improvements, $18,000 in cash payments to himself and family members, $10,000 in personal mortgage and rent payments, and thousands more in jewelry, clothing, a family vacation to Aruba and a theater donation.

At the plea hearing on June 5, 2013, Judge Wolfson entered a consent judgment and order of forfeiture in the amount of $699,926.51, which constitutes the proceeds Saviano obtained from his known investor victims as a result of his offense.    

In addition to the prison term, Judge Wolfson sentenced Saviano to three years of supervised release and ordered restitution of $699,926.51.

In a parallel investigation, the U.S. Securities and Exchange Commission on Sept. 6, 2013, issued an order instituting settled administrative proceedings against Saviano. In its order, the SEC barred Saviano from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. It also barred him from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Aaron T. Ford in Newark, for the investigation leading to today’s sentence.  He also thanked the SEC’s New York office for its assistance with the investigation.

The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit and Evan Weitz of the office’s Asset Forfeiture and Money Laundering Unit in Newark.

If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.

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.   

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Defense counsel: Eric R. Breslin Esq., Newark, N.J

Plainfield-based Gang Allegedly Supported the Enterprise with Murder, Extortion, Plots to Kill Witnesses and a Law Enforcement Officer, and Sexual Assault

NEWARK, N.J. – Three former leaders of a New Jersey branch of the violent international street gang “La Mara Salvatrucha” – including its founding member – are charged with racketeering and murder in an indictment that also charges 11 other alleged members of the gang with related crimes, U.S. Attorney Paul J. Fishman announced today.

Santos Reyes-Villatoro, a/k/a “Mousey,” allegedly founded the “Plainfield Locos Salvatruchas” (PLS) – a subset, or “clique” – of La Mara Salvatrucha in the 1990s and served as its leader until his arrest in 2009 for attempted murder. Also known as MS-13, La Mara Salvatrucha is composed largely of Salvadorans and Salvadoran immigrants. Two other former leaders of the local PLS clique, Mario Oliva, a/k/a “Zorro,” and Roberto Contreras, a/k/a “Demonio,” are also charged in a 26-count indictment returned by a federal grand jury.

In all, the indictment charges 14 alleged members of the gang with racketeering conspiracy and a host of other violent crimes.

“The indictment describes an extraordinarily dangerous criminal enterprise whose entire reason for being revolves around imposing its leaders’ will through violence and intimidation,” U.S. Attorney Fishman said. “They have inflicted on the people of Plainfield and surrounding areas a reign of terror, backed up by physical assaults and murders. No community should have to endure such lawlessness.”

“The brazenness of the conduct charged in today’s indictment is deeply troubling,” Acting Union County Prosecutor Grace H. Park said. “The defendants allegedly showed no reluctance to react to perceived or real slights with immediate and reckless violence – and when they were caught, they plotted to retaliate against those who they believed to be responsible. Combatting gang-related crimes in Plainfield and all of our communities is one of the top priorities of this office, and it is reflected in today’s charges against the leaders of a particularly violent criminal enterprise.”

The federal indictment, which charges members of PLS with a racketeering conspiracy, four murders, multiple conspiracies to commit murder, extortion, robbery and a variety of other crimes, is the culmination of a three-year investigation that started in the Union County Prosecutor’s Office and expanded to include other local, state and federal agencies, including the Department of Homeland Security and the FBI. Among those named in the indictment are individuals who were arrested and charged with state crimes in the summer of 2011. Today’s indictment incorporates many of the acts charged at the state level and adds additional criminal activity uncovered during the subsequent investigation.

All but one of the defendants are currently in custody; Walter Yovany-Gomez remains at large. Those in custody are scheduled to make their initial appearances later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

According to the indictment:

The PLS clique was founded in the mid-1990s by Reyes-Villatoro and operated in New Jersey in Union, Somerset and Middlesex counties. Reyes-Villatoro served as “first word,” or leader, of the group until he was arrested in 2009 and charged with attempted murder. The first word is responsible for “greenlighting,” or authorizing, all murders committed by members of the clique.

Reyes-Villatoro relinquished the position to his “second word,” or deputy, Oliva, who held the position until he allegedly murdered a member of MS-13 in February 2010 and fled New Jersey. Contreras then took over. He is implicated in the sexual assault with Oliva of two underage girls.

            The indictment charges numerous violent acts committed by PLS members as part of the racketeering conspiracy, some of which targeted members of rival gangs, such as the Latin Kings and the 18th Street gang, and some of which targeted MS-13 members perceived as being disloyal.

Among the charges are four gang-related murders:

• Feb. 8, 2009, Julian Moz-Aguilar, a/k/a “Humilde,” allegedly murdered a Latin King (described in the indictment as Victim 5) at Reyes-Villatoro’s instruction;

• Feb. 27, 2010, Oliva and another MS-13 member allegedly murdered a member of MS-13 (Victim 10) who had been previously “greenlighted” by Oliva;

• Nov. 11, 2010, Hugo Palencia, a/k/a “Taliban,” allegedly instructed another MS-13 member to fire a gun at a rival gang member, which resulted in the death of another individual (Victim 11) near a high school in Plainfield, N.J.; and

• May 8, 2011, Cruz Flores, a/k/a “Bruja,” and Walter Yovany-Gomez, a/k/a “Cholo,” allegedly murdered an individual (Victim 15) because they believed the person was associating with the rival 18th Street gang.

“Today, HSI and our law enforcement partners have struck a serious blow to the core of this gang organization,” Andrew McLees, special agent in charge of ICE, Homeland Security Investigations (ICE-HSI) Newark, said. “MS-13 gang members and their associates are serious career criminals who have a callous disregard for human life. HSI is determined to remove the MS-13 menace from New Jersey’s communities.”

“Today’s indictment is the result of a long-term, multi-agency investigation,” Aaron T. Ford, FBI special agent in charge in Newark, said. “Dedicated personnel from agencies at all levels of government worked in unison to combat this dangerous and violent criminal enterprise.   This cooperation is, and will continue to be, a critical factor for successfully defending threats that endanger the citizens of New Jersey.”

In 2011, law enforcement arrested a number of PLS members in Plainfield. While detained at the Union County Jail, PLS members plotted to retaliate against those they believed were responsible for their arrest, including witnesses, law enforcement and fellow gang members they suspected were cooperating with the government. PLS members allegedly sought revenge against a Plainfield detective involved in the case by planning to firebomb the residence of the detective’s mother.

Six defendants – Reyes-Villatoro, Oliva, Julian Moz-Aguilar, Hugo Palencia, Cruz Flores, and Walter Yovany-Gomez – are charged with murder in aid of racketeering, which is punishable by a mandatory sentence of life in prison. The charge is a death penalty-eligible offense subject to a decision by the U.S. Attorney General. A complete chart outlining the counts per defendant and maximum potential penalties is attached, as is a chart outlining the overt acts charged in the indictment.

U.S. Attorney Fishman credited special agents of ICE-HSI, under the direction of Special Agent in Charge McLees; and the FBI, under the direction of Special Agent in Charge Ford. Fishman specifically thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Park, for long, close collaboration on the case. He also thanked the Somerset County Prosecutor’s Office, under the direction of Prosecutor Geoffrey D. Soriano; and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew C. Carey, for their roles. He also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.

 The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.

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

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Maximum Penalties
U.S. v. Reyes-Villatoro, et al.

Count

Charge

Defendants

Maximum Penalty

1.  

Racketeering Conspiracy

Reyes-Villatoro, Santos, 40
Oliva, Mario, 26
Contreras, Roberto, 25
Moz-Aguilar, Julian, 26
Palencia, Hugo, 21
Garcia, Jose, 21
Portillo-Fuentes, Ruben, 21
Ramirez, Esau, 22
Mejia, Kelvin, 21
Mejia, Franklin, 22
Orellana-Carranza, Julio, 25

Life in prison
(Reyes-Villatoro, Oliva, Moz-Aguilar, Palencia, Flores, and Yovany-Gomez)

20 years
(all other defendants)

2.

Murder in Aid of Racketeering (Victim 5)

Reyes-Villatoro
Moz-Aguilar

Death eligible; mandatory life sentence

3.

Use of Firearm in Violent Federal Crime (Victim 5)

Reyes-Villatoro
Moz-Aguilar

Life in prison; 10-year mandatory minimum

4.

Murder Resulting from Federal Firearm Crime (Victim 5)

Reyes-Villatoro
Moz-Aguilar

Death eligible

5.

Assault with a Dangerous Weapon in Aid of Racketeering (Victim 6, Victim 7)

Reyes-Villatoro
K. Mejia

20 years

6.

Use of Firearm in Violent Federal Crime (Victim 6, Victim 7)

Reyes-Villatoro
K. Mejia

20 years; 10-year mandatory minimum

7.

Threat to Commit Sexual Assault (Victim 8, Victim 9)

Oliva
Contreras

5 years

8.

Murder in Aid of Racketeering (Victim 10)

Oliva

Death eligible; mandatory life sentence

9.

Use of Firearm in Violent Federal Crime (Victim 10)

Oliva

Life in prison; 10-year mandatory minimum

10.

Murder Resulting from Federal Firearm Crime (Victim 10)

Oliva

Death eligible

11.

Accessory After the Fact to Murder in Aid of Racketeering (Victim 10)

Contreras

15 years

12.

Murder in Aid of Racketeering (Victim 11)

Palencia

Death eligible; mandatory life sentence

13.

Use of Firearm in Violent Federal Crime (Victim 11)

Palencia

Life in prison; 10-year mandatory minimum

14.

Murder Resulting from Federal Firearm Crime (Victim 11)

Palencia

Death eligible

15.

Murder-for-Hire Conspiracy

Garcia
Palencia

10 years

16.

Interstate Travel with Intent to Commit Murder-for-Hire

Garcia

10 years

17.

Assault with a Dangerous Weapon in Aid of Racketeering (Victim 14)

Garcia

20 years

18.

Conspiracy to Commit Murder in Aid of Racketeering (Victim 15)

Flores, Cruz, 27
Yovany-Gomez, Walter, 29
K. Mejia

10 years

19.

Murder in Aid of Racketeering (Victim 15)

Flores
Yovany-Gomez

Death eligible; mandatory life sentence

20.

Conspiracy to Commit Murder in Aid of Racketeering

Orellana-Carranza
Garcia
K. Mejia

10 years

21.

Assault with a Dangerous Weapon in Aid of Racketeering (Victim 18)

Portillo-Fuentes

20 years

22.

Assault with a Dangerous Weapon in Aid of Racketeering (Victim 19, Victim 20)

K. Mejia
F. Mejia

20 years

23.

Use of Firearm in Violent Federal Crime (Victim 19, Victim 20)

K. Mejia
F. Mejia

Life in prison; 10-year mandatory minimum

24.

Conspiracy to Distribute Cocaine

K. Mejia
F. Mejia

20 years

25.

Conspiracy to Commit Murder in Aid of Racketeering (Victim 22)

K. Mejia
F. Mejia

10 years

26.

Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)

Romero-Aguirre, Jose, 26
Orellana-Carranza
Garcia
Portillo-Fuentes
Ramirez
K. Mejia
F. Mejia

10 years

The maximum fine upon conviction of Count 24 is $1 million. For each of the other counts, the maximum fine upon conviction is $250,000.

Overview of Overt Acts
U.S. v. Reyes-Villatoro, et al.

Overt Acts

Counts
(if also charged separately from Count 1)

Date

Act

a-b

 

Before November 2009

Reyes-Villatoro becomes First Word; Oliva becomes Second Word

c

 

From December 2008 through November 2009

Reyes-Villatoro orders collection of “rent” from inactive gang members

d

 

Dec. 5, 2008

Palencia, Kelvin Mejia, and other MS-13 members shoot at Latin Kings

e-f

 

Jan. 25, 2009

Reyes-Villatoro orders unidentified MS-13 member to shoot at two members of Latin Kings

g-i

2-4

Feb. 8, 2009

Reyes-Villatoro orders Moz-Aguilar to murder Victim #5 (Christian Tigsi)

j-l

5-6

Oct. 31, 2009

Reyes-Villatoro drives Kelvin Mejia to house in North Plainfield, where Mejia fires at rival gang members

m-n

 

After Oct. 31, 2009, but before Feb. 27, 2010

Oliva becomes First Word; Contreras becomes Second Word

o

 

After Oct. 31, 2009, but before Feb. 27, 2010

Oliva orders collection of “rent” from inactive gang members

p-q

7

After Oct. 31, 2009, but before Feb. 27, 2010

Oliva and Contreras sexually assault two teenage girls to establish their dominance in gang

r-v

8-11

Feb. 27, 2010 and after

Oliva and one of his soldiers shoots and kills Victim #10 (Jessica Montoya). Contreras helps both perpetrators relocate to Maryland afterwards

w

 

After Feb. 27, 2010

Contreras becomes First Word

x

 

After Feb. 27, 2010

Contreras orders “greenlighting” of MS-13 member believed to be cooperating in investigation of Jessica Montoya’s murder.  (Individual is not killed.)

y

 

After Feb. 27, 2010

Contreras orders collection of “rent” from inactive gang members

z

 

Oct. 31, 2010

Unidentified MS-13 members evade law enforcement by hiding in a Plainfield apartment (which is later the scene of the murder in Overt Act mm)

aa-cc

12-14

Nov. 10-11, 2010

Palencia orders unidentified MS-13 member to shoot teenager as he walks home from school with a group of other kids. MS-13 member shoots at group, kills another kid in the crowd, Victim #11 (Spencer Cadogan)

dd-ee gg

15-16

December 2010 through
Jan. 10, 2011

Garcia recruits MS-13 members in the Washington, D.C., area to travel to New Jersey to participate in a murder-for-hire.

ff

 

Jan. 9, 2011

Unidentified MS-13 members murder Victim #12 (Andres Chach) in front of Pueblo Viejo (Note: this murder is not charged substantively)

hh

 

After Jan. 10, 2011, but before Jan. 31, 2011

Contreras passes information to Palencia about the murder of Victim #12

ii

 

May 7, 2011

Portillo shoots Victim #13 in Plainfield, using the same gun that was used four months earlier to kill Victim #12

jj-kk

17

May 8, 2011

Garcia assaults Victim #14

ll

 

May 2011

MS-13 assigns killing “missions” to certain members of the gang

mm-nn

18-19

May 8, 2011 and after

Flores and Yovany-Gomez murder Victim #15 (Julio Matute-Amaya); Mejia helps Yovany-Gomez flee New Jersey

oo-pp

 

May 11, 2011

Portillo, Moz-Aguilar, and Ramirez conspire to threaten and collect “rent” from inactive member of MS-13

qq

 

June 4, 2011

Franklin Mejia attacks Victim #17, who is supposedly associating with 18th Street gang

rr-tt

20

June 11, 2011

Orellana-Carranza seeks to complete his “mission”; conspires with Garcia and Kelvin Mejia

uu

21

June 15, 2011

Portillo attacks Victim #18 with machete

vv

22-23

June 15, 2011

Kelvin Mejia and Franklin Mejia rob two victims in Green Brook Park in Plainfield

ww

 

June 24, 2011

Orellana-Carranza, Ramirez, and Franklin Mejia plot to kill owner of underground liquor store

xx

 

June 28, 2011

Kelvin Mejia and Franklin Mejia threaten to kill individual they believe is cooperating with law enforcement

yy-zz

24

June 30, 2011 through July 2, 2011

Kelvin Mejia and Franklin Mejia arrange cocaine sales

aaa-ddd

25

July 2, 2011

Kelvin Mejia and Franklin Mejia plot to kill Victim #22 after he tries to protect Victim #17 (see Overt Act qq)

eee

 

July 4, 2011

Garcia and Kelvin Mejia plot to rob owner of underground liquor store to raise bail money

fff

 

July 2011

Franklin Mejia and Ramirez plot to kill Plainfield detective

ggg

26

July – August 2011

Kelvin Mejia, Franklin Mejia, Garcia, Ramirez and Orellana-Carranza plot to kill witnesses from inside Union County Jail

hhh-jjj

26

Aug. 1-2, 2011

Ramirez calls Romero-Aguirre from inside Union County Jail to plan witness retaliation plots

Reyes-Villatoro, Santos et al. Indictment

NEWARK, N.J. – Saddle River Valley Bank (SRVB) today agreed to pay an $8.2 million penalty to settle claims that it violated federal anti-money laundering laws, U.S. Attorney Paul J. Fishman, District of New Jersey; Department of the Treasury Financial Crime Enforcement Network Director Jennifer Shasky Calvery; and Comptroller of the Currency Thomas J. Curry announced.

SRVB agreed to resolve civil claims brought by the U.S. Department of Justice in connection with violations of the Bank Secrecy Act (BSA), which requires financial institutions to maintain programs designed to detect and report suspicious activity that might be indicative of money laundering and other financial crimes. In addition to the combined monetary penalty of $8.2 million, the bank has agreed to a number of related regulatory actions.

The complaint alleged that SRVB failed to maintain an effective anti-money laundering program and processed transactions involving at least $4.1 million in violation of federal money laundering laws. While a joint investigation by the U.S. Attorney’s Office and the Office of the Comptroller of the Currency (OCC) was underway, the majority of the assets of SRVB were acquired by another financial institution. The proceeds of that acquisition, plus all other assets of the bank, which are currently valued at approximately $9.2 million, were held pending the outcome of the investigation. SRVB has agreed to settle the government’s allegations with a combined penalty of $8.2 million of the remaining $9.2 million and has separately agreed with the OCC to cease operation and to dissolve its charter.

According to the complaint:

Beginning at least as early as 2000, numerous federal agencies, including the Department of State, the Department of the Treasury, the Federal Reserve Bank, and the IRS, began issuing public warnings to United States financial institutions about the increased money laundering threat present in Mexico. These warnings were also available through industry-wide advisories.  It was believed that the proceeds of narcotics sales in the United States were being disproportionately laundered and transferred through banking institutions in Mexico. Many of these warnings also discussed the specific money laundering risks associated with “casas de cambio,” (CDCs), which are non-bank currency exchange businesses located in Mexico and elsewhere.

Beginning in June 2009, SRVB began servicing what would ultimately become four CDCs, including three CDCs in Mexico and one in the Dominican Republic. SRVB voluntarily severed its relationship with the CDCs by May 2011, but only after processing at least $1.5 billion in transactions on behalf of the CDCs. SRVB’s anti-money laundering program related to the CDCs was deficient in several key areas

SRVB failed to:

•           appropriately monitor at least $1.5 billion in transactions conducted on behalf of the CDCs;

•           properly detect and report suspicious activity occurring within the CDC accounts and file Suspicious Activity Reports on a timely basis;

•           conduct sufficient enhanced due diligence on the CDCs;

•           have a BSA officer or other personnel with sufficient experience to operate an AML program;

•           provide adequate training to its employees concerning anti-money laundering;

•           retain qualified periodic independent testers for its anti-money laundering program, as required by the BSA.

After a joint investigation by the U.S. Attorney’s Office for the District of New Jersey and the OCC, SRVB agreed to an assessed civil monetary penalty by the OCC of $4. 1 million for the deficiencies in its anti-money laundering program.  SRVB has agreed to a concurrent civil monetary penalty by FinCEN of $4.1 million, to be satisfied by one payment to the U.S. Treasury Department on behalf of both actions by the OCC and FinCEN. SRVB also agreed to surrender and forfeit an additional $4.1 million to the United States to resolve the investigation conducted by the U.S. Attorney’s Office for the District of New Jersey and the OCC, for a total penalty of $8.2 million. 

U.S. Attorney Fishman credited special agents from the Department of Homeland Security, Homeland Security Investigations and thanked Counsel Elizabeth Ratliff and Noelle Kurtin of the OCC, as well as former Trial Attorney Joseph Markel of the Department of Justice, Asset Forfeiture and Money Laundering Section.

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 is 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. 

The government is represented by Assistant U.S. Attorneys Evan S. Weitz of the Asset Forfeiture and Money Laundering Unit and Aaron Mendelsohn of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.

13-387                                            

Defense counsel: Nicolas Bourtin Esq., New York

SRVB Settlement
SRVB Complaint

TRENTON – The owner of Kenal Enterprises LLC admitted today to filing false income tax returns for several years, U.S. Attorney Paul J. Fishman, District of New Jersey, and Assistant Attorney General Kathryn Keneally of the U.S. Department of Justice, announced.

Kenneth Morton of Pitman, N.J., owner of Kenal (d/b/a Ken Morton Roofing and Siding), a residential roofing company located in Pitman, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court an information charging him with filing false income tax returns for tax years 2007 through 2009.

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

From early 2007 through late 2009, Morton cashed $3,946,046 of Kenal’s gross receipts at a check cashing agency, the majority of which he did not deposit into his business bank account and did not report on his individual income tax returns. For the 2007, 2008, and 2009 tax years, Morton had unreported gross receipts of $1,343,348; $1,471,430; and $1,131,268, respectively, causing a loss to the IRS of $241,412.

Morton faces a maximum potential penalty of three years in prison and a fine of $250,000, along with restitution to the IRS. Sentencing is scheduled for Jan. 6, 2014.

Assistant Attorney General Keneally and U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.

The government is represented by Trial Attorneys Jessica Moran and Tino Lisella of the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.

13-388                                                

Defense counsel: Robert H. Williams Esq., Haddonfield, N.J.

Morton, Kenneth Information

TRENTON, N.J. – A West Orange, N.J., woman who defrauded an elderly victim of almost $100,000 – by taking the victim’s Social Security payments and secretly applying for a reverse mortgage on the victim’s home – admitted her crimes today in Trenton federal court, U.S. Attorney Paul J. Fishman announced.

Shawn L. Craig, 47, pleaded guilty to two counts of an information: mail fraud and filing false personal federal income tax return for 2011 by not disclosing income including money fraudulently obtained from her victim. Craig entered her guilty plea before U.S. District Judge Michael A. Shipp.

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

In November 2010, Craig entered into a general power of attorney with the victim, an elderly woman, to serve as her attorney-in-fact. In that position, Craig was trusted to act in the victim’s best interest and to arrange for the payment of the victim’s living expenses.

After gaining access to the victim’s bank accounts, Craig diverted a portion of the victim’s funds for her own benefit and the benefit of her family, including to pay her automobile insurance; purchase a bar and bar stools; make a tuition payment; and pay for entertainment at the Wachovia Center in Philadelphia. At the time Craig made those purchases, the funds in the victim’s accounts consisted primarily of the victim’s Social Security benefits.

In December 2010, Craig submitted an application in the victim’s name to a commercial lender for a reverse mortgage on the victim’s residence in East Orange. When the victim refused to sign a specific power of attorney permitting the closing of the reverse mortgage to go forward, Craig forged the victim’s signature on the document and presented it to the title agent at the title agent’s office in Morristown, N.J.

Craig used the money from the reverse mortgage to purchase items at retail establishments including Gucci, Coach, Nike, Apple, Footlocker and various other shoe stores; pay for meals and entertainment at restaurants, liquor stores and other establishments, including the Taj Mahal in Atlantic City, N.J., the Staples Center in Los Angeles and Amazing LA Tours in Santa Monica, Calif.; fund travel to, and stays at, hotels in New Jersey, California and Florida; and pay personal bills, including automobile insurance, gas and electric, cell phone and cable bills.

In June 2011, Craig was notified that the general power of attorney had been revoked, so she transferred the victim’s funds to a new bank account. In all, Craig misused approximately $99,000 of the victim’s funds.

Craig also admitted that she caused a tax preparer to prepare and electronically file with the IRS a false and fraudulent personal income tax return for tax year 2011, by not disclosing as income the funds that she had fraudulently obtained from the victim.

The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The tax charge carries a maximum potential penalty of three years in prison and a $250,000 fine. In addition, the plea agreement requires Craig to make restitution to the victim. Sentencing is scheduled for Jan. 2, 2014.

U.S. Attorney Fishman credited special agents of the United States Department of Housing and Urban Development, Office of Inspector General, Northeast Region; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.

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Defense counsel: Thomas R. Ashley Esq., Newark, N.J.

Craig Information

NEWARK, N.J. – Two members of a large-scale and sophisticated identity theft scheme today admitted their roles in defrauding banks and credit card companies out of millions of dollars, U.S. Attorney Paul J. Fishman announced.

Rita S. Kim, 49, of Fort Lee, N.J., and Hyon-Suk Chung, a/k/a “Clara,” 50, of North Bergen, N.J., each pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of a Second Superseding Indictment charging them with conspiracy to commit mail and wire fraud.

According to documents filed in this case and statements made in court: Kim and Chung conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to defraud banks and credit card companies. Park obtained Social Security cards beginning with the prefix “586,” which were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. The individuals from China who were issued these Social Security numbers never established credit files or scores in the United States – these Chinese identities were essentially blank slates with no corresponding credit files or scores. Kim and Chung engaged in the fraudulent build-up of credit scores associated with these Chinese identities by adding them as authorized users to their credit card accounts in exchange for a fee from Park and his associates.

Kim and Chung admitted they received information related to the Chinese identities necessary for the credit build-up from Park’s associates, such as Sung-Sil Joh, a/k/a “Jenny,” and Young-Hee Ju, a/k/a “Stephanie.”  Joh and Ju have pleaded guilty in connection with their roles in the scheme and await sentencing.

By attaching the Chinese identities to their credit card accounts, Kim and Chung increased the credit scores associated with the Chinese identities to between 700 and 800.  Kim and Chung each admitted that they created credit scores for approximately 100 Chinese identities.  They also acknowledged that their criminal conduct caused credit card companies and other lenders $2,047,651 in losses.

Kim and Chung each face a maximum potential penalty of up to 60 months in prison and will be ordered to pay restitution and forfeiture of more than $2 million. Sentencing for both Kim and Chung is scheduled for Jan. 8, 2014.

Park, Kim, Chung, and more than 50 other individuals were charged in this scheme on Sept. 16, 2010.  To date, more than 50 defendants have pleaded guilty and two remain at large. Park pleaded guilty on Jan. 9, 2012, related to his role in the enterprise and is awaiting sentencing.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives, Steven Cucciniello, for their work leading to today’s plea.

The government is represented by Assistant U.S. Attorneys Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Jane Yoon of the Criminal Division in Newark.

As for other members of the Park Criminal Enterprise, the charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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Defense Counsel: Kim: Stephen N. Dratch Esq., Livingston, N.J.
Chung: Thomas Ambrosio Esq., Lyndhurst, N.J.

NEWARK, N.J. – A New Jersey lawyer who turned his law firm and related corporations into a racketeering enterprise was sentenced today in Newark federal court to life in prison, U.S. Attorney Paul J. Fishman announced.

Paul W. Bergrin, 57, of Nutley, N.J., was convicted in March 2013, following a jury trial,  of all 23 counts on which he was tried – including conspiracy to murder a witness and other racketeering, cocaine and prostitution offenses. 

The jury returned the verdict after two months of trial before U.S. District Judge Dennis M. Cavanaugh, who also imposed sentence today.

“Paul Bergrin’s betrayal of the people he once served, the court and the rule of law was stunning,” said U.S. Attorney Fishman. “Each criminal choice he made was a step toward life in prison. After all he did to elude punishment for his clients - including orchestrating the murder of witnesses - he could not avoid facing justice for his own crimes.”

According to documents filed in this case, evidence at trial and statements made in court: Through his law firm, Bergrin conspired to tamper with witnesses, distribute cocaine and facilitate drug trafficking, prostitution and bribery, among other things.  He conspired to murder witnesses to protect the drug trafficking enterprise, one of whom was shot to death to prevent him from testifying in court.

As a result of his conviction, Bergrin faced a mandatory sentence of life in prison on each of the following counts: count three, violent crimes in aid of racketeering; count 12, conspiring to murder a federal witness to prevent his testimony at an official proceeding; and count 13, aiding and abetting the murder of a federal witness to prevent testimony at an official proceeding.  He also faced a maximum term of life in prison on three other counts.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the Drug Enforcement Administration’s New Jersey Division – under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation.

The government is represented by Deputy Chief John Gay and Assistant U.S. Attorney Joseph N. Minish of the U.S. Attorney’s Office Criminal Division; and Steven Sanders of the office’s Appeals Division in Newark.

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Defense counsel: Pro se; Lawrence Lustberg, Bruce Levy, Amanda Protess Esqs. (standby), Newark

NEWARK, N.J. – Two Union County, N.J., women were indicted by a federal grand jury today for their roles in a wide-ranging counterfeit check scheme, U.S. Attorney Paul J. Fishman announced.

Synethia Bland, 29, and Latisha White, 28, both of Elizabeth, N.J., were charged with one count of conspiracy to commit bank fraud and three counts of bank fraud, all of which caused losses of at least $400,000.

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

Between October 2009 and May of 2012, Bland and White created more than 150 counterfeit checks, most or all of which were in amounts of less than $5,000. Bland and White recruited numerous individuals who either held bank accounts at TD Bank or would be willing to open a new account at that bank. Bland and White induced them to participate in their scheme by promising to share some of the proceeds.

After obtaining the cooperation of an account holder, Bland and White would deposit one of their counterfeit checks into that person’s bank account. Within a day or two of such a deposit, and before the bank realized that the deposited check was counterfeit, Bland and White would arrange to draw down the funds credited by the deposit. Funds were drawn through ATM withdrawals, cash withdrawals at banks and the purchase of money orders and merchandise.

Bland and White orchestrated the deposits of more than $600,000 in counterfeit checks into more than 120 different bank accounts. Among such deposits were the deposits of counterfeit checks in the amounts of $4,529 on July 12, 2010; $4,865 on Feb. 13, 2012, and $4,725 on May 2, 2012.

Each of the four charges is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.

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

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; postal inspectors under the direction of U.S. Postal Inspection Service Inspector in Charge Maria L. Kelokates; investigators at the Union County Prosecutor’s Office under the direction of Acting Prosecutor Grace H. Park; and investigators at the Morris County Prosecutor’s Office under the direction of Acting Prosecutor Fredric M. Knapp.

The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Office Economic Crimes Unit.

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Defense counsel: Bland:   Rubin Sinins Esq., Springfield, N.J.
White: Ruth M. Liebesman Esq., Paramus, N.J.

Bland, Synethia et al Indictment

TRENTON, N.J. – A federal jury in Trenton, N.J., today convicted a Trenton man for illegally carrying a loaded shotgun as a convicted felon, U.S. Attorney Paul J. Fishman announced.

The jury returned a guilty verdict against Tyreek Harrington, 27, following a three-day trial before U.S. District Judge Freda L. Wolfson. Harrington was convicted of the first count in the indictment against him: being a convicted felon in possession of a loaded, sawed-off shotgun.  Harrington was not convicted on the second count, involving possession of a revolver.

According to documents filed in this case, statements made in court, and the evidence at trial: In the early morning of April 20, 2012, officers from the New Jersey State Police and Trenton Police Departments were conducting surveillance in the area of Spring and Passaic Streets in Trenton when Harrington was observed in an alley handling a sawed-off shotgun.  

The felon in possession count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 6, 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 Thomas J. Cannon; the Trenton Police Department, under the direction of Director Ralph Rivera; and the New Jersey State Police’s Crime Suppression North Unit, under the direction of Colonel Rick Fuentes, Superintendent, for the investigation leading to the conviction.

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

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Defense counsel: John S. Furlong Esq., West Trenton, N.J.

NEWARK, N.J. – Two Atlantic County men were arrested today on charges that they participated in a multi-year conspiracy to traffic in counterfeit merchandise, including professional sports teams’ jerseys, U.S. Attorney Paul J. Fishman announced.

Brett Strothers, 32, of Egg Harbor Township, N.J,, and his brother Evan Strothers, 28, of Mays Landing, N.J., were arrested at their homes this morning by agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, on a complaint charging both men with conspiracy to traffic in counterfeit goods. Both men are scheduled to appear before U.S. Magistrate Cathy L. Waldor in Newark federal court today. Also charged in the complaint were Joseph Cuozzo, 44, a United States Citizen residing in Thailand, and Haresh Aildasani, 27, an Indian Citizen residing in the People’s Republic of China (PRC).

According to the Complaint:

From 2010 to 2012, Brett and Evan Strothers purchased large quantities of counterfeit National Basketball Association (NBA) and National Football League (NFL) sports jerseys, which they used as prizes in several different basketball and football tossing amusement park games they operated on the Wildwood and North Wildwood boardwalk. The games enticed customers to pay for the chance to win a purported authentic NBA or NFL jersey by shooting basketballs into a hoop or tossing footballs through a target at various stands.

Brett and Evan Strothers purchased the counterfeit sports jerseys from, among others, Couzzo, who operated as a middleman between the defendants and Aildasani, who manufactured the jerseys in the PRC and sold them to numerous customers.

Between 2010 and 2012, the defendants Brett and Evan Strothers allegedly purchased at least 16,700 counterfeit NBA and NFL jerseys from defendant Cuozzo, who in turn purchased the jerseys from defendant Aildasani and kept a portion of money for himself. The Manufacturer Suggested Retail Price for authentic versions of these jerseys is estimated at approximately $4 million.

The count with which the defendants are charged carries a maximum penalty of 10 years in prison and a fine of up to $2 million, or twice the gross amount of gain or loss sustained by any victim.

U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s arrests. He also thanked officers of U.S. Customs and Border Protection, under the direction of Director of New York Field Operations Robert E. Perez their role in the case.

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

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

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Strothers, Brett et al. Complaint
Exhibit 1 Photo

TRENTON, N.J. – A former Department of Veterans Affairs (VA) employee who worked as a supervisory engineer at the VA’s campus in East Orange, N.J., today admitted accepting more than $1.2 million in kickback payments in connection with VA contracts awarded to companies with which he had relationships, and to engaging in a scheme to defraud the VA by claiming one of those companies was owned by a service-disabled veteran when it was not, New Jersey U.S. Attorney Paul J. Fishman announced.

Jarod Machinga, 43, of Hopewell, N.J., pleaded guilty today to an information charging him with one count of honest services wire fraud, one count of wire fraud and one count of engaging in a monetary transaction in criminally derived property. Machinga entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.

“When trusted with the important work of serving and honoring our nation’s veterans, Jarod Machinga took the opportunity to serve himself,” said U.S. Attorney Fishman. “Taking more than $1 million in kickbacks – including money meant for service-disabled veteran-owned businesses – not only violates the law, it violates our sense of decency.”

“Jarod Machinga’s criminal behavior violated the public trust, betrayed the best interests of disabled veteran entrepreneurs and besmirched the reputations of the overwhelming majority of the employees in the Department of Veterans Affairs who are dedicated to serving veterans,” said Department of Veterans Affairs Inspector General George Opfer. “We will spare no effort to protect the interests of veterans and taxpayers in identifying and prosecuting those who seek to criminally enrich themselves by virtue of their employment.”

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

In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga partnered with a person – identified in the information as “Individual 1” – to set up three companies that could be used to obtain VA work, then directed more than $6 million worth of VA construction projects to those companies. Machinga admitted he accepted approximately $1,277,205 in kickbacks in exchange for his official action and influence between 2007 and July 2012.

Congress has established a program through which certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. One of Individual 1’s companies entered into such a contract with the VA after Machinga falsely represented to the VA that it was a service-disabled veteran-owned small business – even though Individual 1 was not a veteran. Machinga then used his official position and influence at the VA to award such a contract to Company 1. The company was paid more than $3 million by the VA in connection with the contract.

Machinga also admitted that for many of the projects awarded to Individual 1’s companies, he recruited other contractors to perform the work so the companies were able to keep the money paid to them without having to incur the expense of actually completing the projects.

The two wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. The monetary transaction count carries a maximum potential penalty of 10 years in prison and a fine equal to the greatest of: $250,000, twice the pecuniary gain or loss or not more than twice the amount of the criminally derived property involved in the transaction. Sentencing is scheduled for Jan. 15, 2014.

U.S. Attorney Fishman praised special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their work leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.

           
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Defense counsel: Fortunato N. Perri Jr., Philadelphia                                                                                                  

Machinga Information

NEWARK, N.J. – An Essex County, N.J., man was sentenced today to 120 months in prison for weapons charges in connection with a year-long investigation by the FBI Safe Streets Task Force that led to the confiscation of 45 guns from the streets of Newark, East Orange and Irvington, U.S. Attorney Paul J. Fishman announced today.

Randy Andrew, 36, of Irvington, N.J., was previously convicted by a federal jury of one count each of trafficking firearms and conspiracy to traffic firearms and three counts of possession of a firearm by a convicted felon. The jury returned a verdict after a one-week trial before U.S. District Judge William Walls in Newark federal court.

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

Andrew and seven others (all of whom have since pleaded guilty) were arrested in 2011 on charges of trafficking in firearms without a license. The FBI Safe Streets Task Force led an operation – for more than a year – to recover firearms in an effort to stem gun violence and take weapons off the streets of Newark and surrounding areas. Agents directed and supervised a “sting operation” using a confidential informant to purchase firearms from illegal gun brokers and dealers. The operation yielded 45 illicit firearms, including several assault rifles, machine pistols, shotguns and semi-automatic handguns.

Andrew was selling firearms out of a laundromat in Irvington. On five separate occasions between May and July 2010, he met with the informant to discuss the purchase of assault weapons. On May 10 and 19 and June 9, 2010, Andrew sold firearms to the informant. On June 1 and July 12, 2010, he attempted to sell assault weapons to the informant, but his supplier could not provide the guns.

In addition to the prison term, Judge Walls sentenced Andrew to serve two years of supervised release.

U.S. Attorney Fishman credited the FBI special agents and local detectives and investigators from the FBI’s Safe Streets Task Force, which operates under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation. The Safe Streets Task Force comprises the FBI, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the Essex County Corrections Department and the Newark, East Orange and Jersey City Police Departments.

The government is represented by Assistant U.S. Attorneys Adam N. Subervi and Amy D. Luria of the U.S. Attorney’s Office Criminal Division.

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Defense counsel: Paul Casteleiro Esq., Hoboken, N.J.

CAMDEN, N.J. – A principal of a Pennsylvania construction company pleaded guilty today to paying bribes to the representative of a general contractor to secure contracts for federally subsidized construction projects in New Jersey and Pennsylvania, U.S. Attorney Paul J. Fishman announced today.

Alex Rabinovich, 57, of Richboro, Pa., pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count Four of an eight-count indictment, which charged a conspiracy to make payoffs to a contractor’s representative for receiving favorable treatment when bidding on federal construction projects.

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

The defendant and his conspirators were charged with paying cash to a prime contractor’s representative to improperly obtain subcontracts on federally funded construction projects.  Between November 2009 and January 2013, Rabinovich and other conspirators paid a Philadelphia contractor’s representative to get “last looks” at other competitors’ bids. This allowed Sands Mechanical of Bristol, Pa., to successfully underbid other subcontractors. A total of $46,200 in bribes/kickbacks was owed for 10 subcontracts awarded to Sands Mechanical. By the summer of 2012, approximately $15,000 was still outstanding for the last two contracts. On two occasions, in November and December 2012, Rabinovich was caught on videotape giving a total of $4,156 in cash to the contractor’s representative to pay down the amounts still due and owing.

Conspiracy to bribe a prime contractor is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 8, 2014.

Seven other defendants have previously pleaded guilty to various charges in the indictment ranging from collecting kickbacks, arson and aggravated assault.

Fishman credited special agents of the 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; the Department of Labor-Wage and Hour Division, under the direction of George Ference, regional administrator; Naval Criminal Investigative Service, under the direction of Assistant Special Agent in Charge Jeremy Gauthier, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, Detachment Commander, Joint Base McGuire-Dix-Lakehurst with the investigation leading to today’s guilty plea.

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

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Defense counsel: Lawrence Krasner Esq., Philadelphia

Rabinovich Indictment

CAMDEN, N.J. – An Atlantic City, N.J., man admitted he conspired to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.

John Parisi, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with conspiracy to commit wire fraud.

According to documents filed in this case and statements made in court: Parisi and 12 others – including his cousin, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. John Parisi admitted that he joined the conspiracy in April 2007.

Parisi managed a family trust and a limited liability company on behalf of Scarfo as part of the scheme to defraud FPFG.  Parisi said Scarfo, his cousin, directed Parisi in the use of various bank accounts through which Scarfo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. As alleged in the indictment, the money involved proceeds of the fraud that Scarfo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Learned Associates, and one controlled by Pelullo. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.

Parisi also said that beginning in February 2008 he assisted Scarfo and his then-fiancée, Lisa Marie Scarfo, obtain a mortgage for a $715,000 house in Egg Harbor Township, N.J., that the Scarfos intended to purchase. Lisa Marie Scarfo pleaded guilty on Sept. 17, 2013, to a conspiracy to make a false mortgage loan application in connection with the purchase of the Egg Harbor Township house. 

Scarfo, Pelullo, and six other defendants charged in November 2011 – including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.

The conspiracy count to which Parisi pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  Sentencing is scheduled for Jan. 17, 2014.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the 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, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark.  He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.

The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.

With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:  Lisa Evans Lewis Esq., Camden

Parisi, John Superseding Information

CAMDEN, N.J. – The wife of a reputed mob figure today admitted she conspired to defraud a mortgage lender in order to buy a $715,000 house in Egg Harbor Township, N.J., U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced.

Lisa Marie Scarfo, 34, of Elmer, N.J., pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging her with conspiracy to make false statements for the purpose of influencing the actions of the bank on her mortgage loan application.

According to documents filed in this case and statements made in court: In November 2011, Lisa Marie Scarfo and 12 others – including her husband, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a 25-count indictment with a racketeering conspiracy including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company, was targeted for extortionate takeover and looting by a group of the conspirators.  A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state.

Lisa Marie Scarfo admitted that she joined the mortgage fraud conspiracy in January 2008 when she worked with her then-fiancé, Nicodemo S. Scarfo, and others to secure a $500,000 mortgage from St. Edmond’s Federal Savings Bank to purchase the Egg Harbor Township house.  Drossner previously pleaded guilty and admitted that at the direction of Pelullo, he created false tax returns to help Lisa Marie Scarfo qualify for a mortgage for the house. The indictment alleges that Nicodemo S. Scarfo used money looted from FPFG for the $215,000 down payment on the house.  The false tax returns, which exaggerated Lisa Marie Scarfo’s income so that she could qualify for the mortgage without naming her then-fiancé Scarfo, were used to secure the mortgage.

After the FPFG scheme was shut down by federal law enforcement in May 2008, the Scarfos were unable to pay the mortgage and the house ultimately went into foreclosure.  It was sold by the bank in 2010.

Nicodemo S. Scarfo, Pelullo, and eight other defendants charged in November 2011 – including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.

The conspiracy count to which Lisa Marie Scarfo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  Sentencing is scheduled for Jan. 10, 2014.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the 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, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark.  He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.

The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.

With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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Defense counsel:  Richard Sparaco Esq., Cherry Hill, N.J.

Scarfo Superseding Information

NEWARK, 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 following the guilty plea of another conspirator last week, New Jersey U.S. Attorney Paul J. Fishman announced.

Qaiser Khan, 49, of Valley Stream, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court. Khan pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud. Shafique Ahmed, 52, of Floral Park, N.Y., pleaded guilty before U.S. Magistrate Judge Cathy L. Waldor in Newark on Sept. 11, 2013, to an information charging conspiracy to commit bank fraud.

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

Khan and Ahmed were 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; finally, run up large loans.

The scope of the criminal fraud enterprise required Khan, Ahmed and their 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.

Khan and Ahmed admitted they 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. They also admitted they knew the cards would be used fraudulently at businesses.

The charges to which Khan and Ahmed pleaded guilty carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense.

The defendants are both scheduled for sentencing before U.S. District Judge Anne E. Thompson as follows: Khan on Jan. 6, 2014, and Ahmed on Oct. 30, 2013.

U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. 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.

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Defense counsel: Khan: Christopher Adams Esq., Roseland, N.J.
Ahmed: Joseph Giaramita Esq., Brooklyn

Khan, Qaiser Information
Ahmed, Shafique Information

NEWARK, N.J. – Two men were sentenced to prison terms today for their respective roles in a large-scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.

Sang-Kyu Seo, 63, of Palisades Park, N.J., was sentenced to three years in prison and Young-Woo Ji, 39, Bayside, N.Y., was sentenced to 65 months in prison by U.S. District Judge Katharine S. Hayden in Newark federal court.

Seo previously pleaded guilty before Judge Hayden to a five-count information that charged him with conspiracy to unlawfully produce identification documents and false identification documents, aggravated identity theft, conspiracy to commit wire fraud, conspiracy to commit bank fraud, and tax evasion.

Ji previously pleaded guilty before Judge Hayden to an information charging him with conspiracy to commit wire fraud affecting financial institutions and bank fraud, aggravated identity theft and false claims.

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

The Seo Conspiracy

Seo was the owner and operator of Hang Jin Yi Inc., d/b/a Hwangini, a salon located in North Bergen, N.J., and Pier 7 Corporation, a purported small business located in Palisades Park. Seo conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to obtain a Social Security card beginning with the prefix “586” for another individual. These “586” Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park is alleged to have been the leader of a criminal organization headquartered in Bergen County, N.J. that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes. Park pleaded guilty on Jan. 9, 2012, to his role in the enterprise and is awaiting sentencing.

The Park Criminal Enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various coconspirators who received a fee for this service – members of the enterprise’s credit build-up teams.  By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800.  The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities. 

After building up the credit associated with these identities, Park and his conspirators directed, coached, and assisted the customers in opening bank accounts and obtaining credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. In particular, Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit cards related to these fraudulent transactions, the collusive merchants gave the money to Park and his coconspirators, minus their kkang fee.

Seo admitted that he obtained a 586 Social Security card and counterfeit driver’s licenses through Park for a family member, who then used this identity to “bust out” credit cards.

Seo also admitted that he gave his corporate and personal credit cards to Park for the purpose of busting out these maxed out credit cards. In furtherance of this conspiracy, Park and his conspirators issued worthless checks, drawn on bank accounts that had been established using the 586 identities, as payment toward the balances on Seo’s credit cards. Before the banks and credit card companies realized that these checks were bogus, Park and his conspirators charged Seo’s credit cards through collusive merchants or used them to purchase merchandise.

Seo also admitted that in mid-2007, with the assistance of a loan broker, he fraudulently obtained a $100,000 commercial loan on behalf of Pier 7. Seo admitted that he and the loan broker made false statements to obtain the loan, including falsely representing that his business’ annual revenue was approximately $620,000.

Seo admitted that he committed tax evasion by issuing checks to himself and others, representing income derived through the operation of Hwangini, and then failing to report this income on his personal tax returns. Seo admitted that on or about April 15, 2008, he filed an individual income tax return for tax year 2007. This return declared that his taxable income for calendar year 2007 was approximately $197 and the amount of tax due and owing was approximately $19. Seo admitted that this return failed to include $304,848 in additional taxable income that he had received in 2007, having an additional tax of $81,643. He was arrested on Sept. 16, 2010, and released on $250,000 bail.

The Ji Conspiracy

Ji conspired with Park and others to defraud banks, credit card companies, and other lenders. Ji admitted that in February 2008, he traveled to Illinois and used a 586 Social Security card belonging to a person with the initials F.C., to fraudulently obtain driver’s licenses.

Ji admitted that he used the F.C. identity to fraudulently obtain credit cards. He then used these credit cards, in the name of F.C., to fraudulently build up credit scores and credit histories for Park’s customers who had obtained 586 identities from the Park Criminal Enterprise.

Ji also admitted that he used the F.C. identity to establish a merchant account for ZZ Entertainment, Inc., a completely fictitious business. By establishing this account, Ji obtained a credit card processing machine and thereafter served as a “collusive merchant” for the Park Criminal Enterprise. Ji acknowledged that between Oct. 5, 2008, and Oct. 20, 2008, he charged $50,000 in fraudulent credit card charges through his ZZ Entertainment Corp. account and then shared portions of this fraud with Park. In total, Ji caused more than $400,000 in financial losses to banks, credit card companies and others.

Ji admitted that he used the 586 identities that he had obtained from Park to file fraudulent tax returns with the IRS. Ji admitted that he used these identities, together with fraudulent W-2 Forms, to claim hundreds of thousands of dollars in tax refunds. He was arrested on Sept. 16, 2010 and released on a $250,000 bail.

In addition to the prison term, Judge Hayden sentenced Seo to three years of supervised release and ordered him to pay $1.2 million in restitution. She sentenced Ji to three years of supervised release and ordered him to pay $187,874 in restitution.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives Steven Cucciniello, for the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.

As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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Defense counsel: Wanda M. Akin Esq., Newark

FBI Seeks Additional Victims, Information

CAMDEN, N.J. – A registered sex offender who allegedly traveled between New Jersey, New York and Pennsylvania to sexually assault a girl younger than 13 on more than one occasion is expected to appear this afternoon to face a federal charge in Camden federal court, U.S. Attorney Paul J. Fishman announced.

Joseph Anthony Caracciolo, aka “Joseph Crillo,” aka “Joseph Grillo,” 47 – believed to have resided in Massachusetts, California, Virginia, Connecticut, Florida and New York – was arrested in New York on Aug. 28, 2013. He is currently being held on related state charges filed by the Atlantic County Prosecutors Office. The U.S. Attorney’s Office for the District of New Jersey is adopting the case for federal criminal prosecution.

Caracciolo is charged by federal criminal complaint with travelling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. He is to appear this afternoon before U.S. Magistrate Judge Karen M. Williams.

The FBI and the U.S. Attorney’s Office are seeking additional information from the public in order to identify other potential victims.

According to documents filed in this case: During a period between May and August 2012, Caracciolo traveled from New York to New Jersey and from New Jersey to Pennsylvania in order to sexually assault a 12-year-old girl.

In intercepted communications, Caracciolo acknowledged paternity of a child born to the victim. The exchanges were monitored by law enforcement with the victim’s consent.

The count with which Caracciolo is charged carries a maximum potential penalty of 30 years in prison and a $250,000 fine.

According to the Department of Justice National Sex Offender Public Website, Caracciolo has been in violation of his sex offender registration requirements since August 2005.

Individuals with information concerning Caracciolo are asked to contact the FBI’s tip line at 1-800-CALL-FBI. Information can also be provided to the nearest FBI field office or filed electronically at https://tips.fbi.gov.

U.S. Attorney Fishman credited special agents of the Newark FBI Safe Streets Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; the Atlantic County Prosecutor’s Office, under the direction of James P. McClain; and the Egg Harbor Township Police Department, under the direction of Chief Michael J. Morris, with the investigation.

The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Matthew T. Smith 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 presumed innocent unless and until proven guilty.

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

Caracciolo, Joseph Anthony Complaint

NEWARK, N.J. – The United States Court of Appeals for the Third Circuit issued a precedential opinion today upholding a federal statute that prevents the state of New Jersey from legalizing sports betting in its casinos and racetracks.

The opinion concludes that professional sports leagues have standing to sue to stop the spread of state-sponsored sports gambling – as provided by the 1992 federal Professional and Amateur Sports Protection Act (PASPA) – and that the act itself is constitutional.

The United States of America intervened in the matter to defend the constitutionality of PASPA. New Jersey U.S. Attorney Fishman argued the United States’ position before the District Court and the Third Circuit Court of Appeals.

“We are gratified that the Court of Appeals agreed with the United States’ position that Congress acted constitutionally when it enacted PASPA,” said U.S. Attorney Fishman. “The government’s argument was not whether sports gambling should be legalized or is good policy. The government argued and the Court of Appeals agreed that Congress had the constitutional authority to make uniform national policy and not to leave it to the decisions of individual states.”

On Aug. 7, 2012, the National Collegiate Athletic Association, the National Basketball Association, the National Football League, the National Hockey League and Major League Baseball filed suit against New Jersey’s governor, director of the Division of Gaming Enforcement, and executive director of the Racing Commission after New Jersey amended its constitution. The amendment  permitted the legislature to legalize, with limited exceptions, wagering at casinos and racetracks throughout the state on the results of professional, college and amateur sports.

The Sports Leagues’ suit sought to enjoin the implementation of state-sponsored gambling in New Jersey. U.S. District Judge Michael A. Shipp found that the Sports Leagues had standing to bring their action, rejected constitutional challenges to PASPA and entered judgment against New Jersey. Today’s decision by the Third Circuit Court of Appeals affirmed the District Court’s judgment.

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TRENTON, N.J. – A Georgia man living in Long Island, N.Y., was charged today with traveling from New York to New Jersey for the purpose of having sexual contact with a minor and with distributing child pornography, U.S. Attorney Paul J. Fishman announced.

Richard J. Simone Jr., 23, of Acworth, Ga., is charged by complaint with one count of traveling across state lines for the purpose of engaging in illicit sexual conduct with a minor and one count of distribution of child pornography. Simone made his initial court appearance today before U.S. Magistrate Judge Lois H. Goodman and was detained pending a bail hearing on Friday, Sept. 20, 2013.

According to the criminal Complaint filed today in Trenton federal court:

Beginning in July 2013, an undercover special agent of Homeland Security Investigations, Department of Homeland Security, began communicating via the internet with Simone. Over the course of July, August, and September, Simone and the undercover agent engaged in numerous, graphic communications over the internet regarding Simone having sex with the undercover agent’s fictitious 9-year-old daughter and fictitious minor babysitter. During an online conversation in August 2013, Simone sent nine images of child pornography to the undercover agent. On Sept. 13, 2013, Simone traveled from Long Island, where he was living, to Monmouth County, N.J., for the purpose of having sex with the undercover agent’s fictitious daughter and babysitter. Simone was arrested upon his arrival at the location in Monmouth County where he and the undercover agent had arranged to meet prior to the sexual conduct.

The charge of traveling with the purpose of engaging in illicit sexual conduct with a minor carries a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of five years, a maximum penalty of 20 years, and a $250,000 fine.

U.S. Attorney Fishman credited agents of Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees in Newark, and the West Long Branch Borough Police Department, under the direction of Chief of Police Lawrence L. Mihlon, for the investigation leading to today’s complaint. He also thanked HSI New York; U.S. Customs and Border Protection, and the Monmouth County Prosecutor’s Office, for their assistance with the investigation.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The government is represented by Harvey Bartle, attorney in charge of the U.S. Attorney’s Trenton Office.

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

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

Simone Complaint

CAMDEN, N.J. – A tax preparer was sentenced today to 36 months in prison for his role in helping to prepare false income tax returns, illegal use of Social Security numbers and unlawfully obtaining United States’ citizenship, U.S. Attorney Paul J. Fishman announced.

Nicolas Gomez-Rua, 54, of Atlantic City, N.J., and Medellin, Colombia, previously pleaded guilty before U.S. District Judge Noel L. Hillman to three counts of a 45-count indictment. Judge Hillman imposed the sentence today in Camden federal court.

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

On Oct. 16, 2012, Gomez-Rua was charged in an indictment with 29 counts of aiding and assisting the preparation of a false income tax return, 10 counts of illegal use of a Social Security number and two counts of unlawful procurement of citizenship or naturalization. Clara Hernandez-Estrada, Gomez-Rua’s wife, was also charged with unlawful procurement of citizenship or naturalization, false statements in an application for a passport, false claim to U.S. citizenship and aggravated identity theft.

Gomez-Rua was arrested on Nov. 29, 2012, by special agents with U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) at JFK International Airport in New York when he tried to enter the United States from Colombia.

Between 2008 and 2010, Gomez-Rua operated Quick Tax Solution and Rapid Tax Solution in Ventnor City, N.J. He met with clients and obtained information and documents from them, which he used to prepare their U.S. Individual Income Tax Returns (1040 forms). Gomez-Rua admitted that he intentionally included fraudulent items and tax credits, such as false and fraudulent dependents, child tax credits, Earned Income Tax Credit (EITC) claims, fuel tax credits and education credits, in order to obtain larger refunds than those to which his clients were entitled.

Gomez-Rua admitted that he maintained a file of Social Security cards and birth certificates for individuals born in Puerto Rico that was used to add fraudulent dependents on the 1040 forms that were filed with the IRS. Clients paid Gomez-Rua on average $300 to $500 for the use of fraudulent dependents. Gomez-Rua admitted that after preparing the fraudulent returns, he filed the false returns electronically and by U.S. Mail with the IRS.

Gomez-Rua admitted that 729 U.S. individual federal income tax returns containing fraudulent items and credits were prepared by Quick Tax Solution and Rapid Tax Solution on behalf of its clients for tax years 2007 through 2009. Based on the false and fraudulent returns prepared for tax years 2007 through 2009, the United States lost approximately $170,211 in tax revenue.

Gomez-Rua admitted that on March 12, 2009, he filed a 1040 form that he prepared for an individual that contained false deductions, including child and dependent; car expenses; filing status; and exemption amount. According to Gomez-Rua, the dependents were added so that the client would receive a bigger refund; the false return caused a loss of $5,827 to the United States.

Gomez-Rua said he was born in Colombia and in October 1993, he illegally entered the United States. Gomez-Rua said that Clara Hernandez-Estrada, a citizen of Colombia, also illegally entered the United States from Colombia. Sometime after entering the United States, Gomez-Rua settled in Atlantic City.

While in Atlantic City, Gomez-Rua admitted that he purchased the identity of “Wigaberto Santiago,” including his name, date of birth and Social Security number. Santiago was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua then used that identity to work at various locations in Atlantic City.

Gomez-Rua further admitted that he purchased the identity of “Elizabeth Tirado,” including her name, date of birth and Social Security number, for Hernandez-Estrada. Tirado was a citizen of the Commonwealth of Puerto Rico. Gomez-Rua stated that between 1997 and 2008, Hernandez use the Tirado identity to work in Atlantic City.

Gomez-Rua said that on March 30, 1998, he married Hernandez-Estrada under the name of Elizabeth Tirado. He admitted that at various times between 1998 and 2008, he prepared and filed with the IRS income tax returns which included W-2 Forms issued to Hernandez-Estrada under the Tirado identity.

Gomez-Rua admitted that on Feb. 8, 2001, he submitted an application to U.S. Citizenship and Immigration Services for lawful permanent resident status based on his fraudulent marriage to Tirado, a U.S. citizen. On Feb. 13, 2002, U.S. Citizenship and Immigration Services approved his application, granted him permanent resident status in the United States and issued him a green card.

On May 9, 2006, Gomez-Rua submitted an application to U.S. Citizen and Immigration Services seeking to become a citizen of the United States based on his marriage to a U.S. citizen.  Gomez-Rua admitted that he signed the application under penalty of perjury and that the application included the following false representations: that he had never used other names; that he had been married to and living with the same U.S. citizen for the last three years, and that his spouse had been a U.S. citizen for the last three years; and that his spouse was Elizabeth Gomez.

On Feb. 23, 2007, Gomez-Rua was interviewed under oath, subject to the penalty of perjury, by an immigration services officer in Mount Laurel, N.J., and repeated the lies in his application. On Feb. 27, 2007, U.S. Citizen and Immigration Services approved Gomez-Rua’s application for citizenship and he was naturalized as a citizen of the United States. Gomez-Rua admitted that had he told the immigration services officer the truth then he would not have been eligible to become a United States citizen.

In addition to the prison term, Judge Hillman sentenced Gomez-Rua to three years of supervised release and ordered him to pay $170,211 in restitution. He also revoked his citizenship.

U.S. Attorney Fishman credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and special agents of the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of Michael Fogarty, Acting Special Agent in Charge of the DSS New York Field Office, for the investigation leading to today’s sentence.

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

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

CAMDEN, N.J. – A property manager and a straw purchaser have admitted their roles in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, N.J., area, U.S. Attorney Paul J. Fishman announced today.

Paul Watterson, 53, of Mountainside, N.J., and John Bingaman, 44, of Benton, Ark., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to separate informations charging each with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Bingaman entered his plea today and Watterson entered his plea on Sept. 11, 2013.

According to documents filed in this case and statements made in court: Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Watterson created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Watterson also obtained on behalf of his conspirators false documents to support the phony loan applications for certain straw purchasers.  Watterson’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.

Watterson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Watterson’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.  Watterson received $273,600 from five separate real estate transactions.

Bingaman purchased three separate properties in Wildwood and Wildwood Crest.  Bingaman and others falsified his loan applications with respect to his employment, income, and assets in order to cause the lenders to make loans to Bingaman for the three properties. Bingaman took a portion of the fraudulent mortgage proceeds by having three separate checks totaling $241,789.98 deposited into an account for Five Stone Development – a company he controlled.

The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. Watterson’s sentencing is scheduled for March 13, 2014. Bingaman’s sentencing is scheduled for March 14, 2014.  

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty pleas.

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

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Defense counsel: Watterson: Thomas R. Ashley Esq., Newark
Bingaman: William H. Buckman Esq., Moorestown, N.J.

Bingaman Information
WattersonInformation

NEWARK, N.J. – FBI special agents arrested a Newark, N.J., man in Newark this morning for alleged offenses in connection with armed robberies of a Krauszers Food Store in West Orange, N.J., and a Subway restaurant in Verona, N.J., U.S. Attorney Paul J. Fishman announced.

Antwon Yarbrough, 27, is charged by complaint with two counts of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark and was detained.

According to the criminal complaint unsealed today:

On April 24, 2013, Yarbrough and another individual entered a Krauszers in West Orange wearing dark hoodies, face masks and gloves. Yarbrough used a plastic zip tie to secure the door from the inside while the other individual pointed a gun at the clerk and pushed the clerk to the floor. Yarbrough bound the hands and feet of two other individuals in the store, striking one in the head with his forearm. The other robber tied up the clerk with zip ties and struck the clerk’s head with the gun. Yarbrough and the other robber then emptied the cash register, stole several cartons of cigarettes and fled.

On May 20, 2013, Yarbrough and two other individuals entered a Subway restaurant in Verona, again wearing dark hoodies, face masks, and gloves. The two robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained a Subway employee with zip ties, emptied the cash register, and fled.

The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, 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, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.

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

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

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Defense counsel: Stacy Biancamano Esq., West Orange, N.J.

Yarbrough, Antwon Complaint

Guns Originated From Straw and Gun Show Purchases in Ohio and Virginia

CAMDEN, N.J. – A Woodlynne, N.J., man today admitted – as part of his guilty plea to federal firearms and drug distribution charges – to selling illegally to drug dealers and other criminals in the Camden area at least 100 guns he purchased with cash from other illicit firearms dealers, U.S. Attorney Paul J. Fishman announced.

Terrance Laboo, aka “Terrance Reeves,” 40, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of dealing firearms without a license, conspiracy to deal in firearms without a federal firearms license, possession of firearms by a convicted felon and distribution of PCP.

“Today Terrance Laboo admitted he poisoned the streets of Camden with dangerous drugs and deadly weapons,” said U.S. Attorney Fishman. “Criminals who exploit the laws of other states to bring guns into New Jersey fuel a culture of violence that destroys communities and lives.”

“We will continue to be relentless in the pursuit of anyone who aims to put guns in the hands of criminals,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Thomas J. Cannon.

According to documents filed in this and related cases and statements made in court: Laboo admitted that between December 2009 and September 2011, he sold or brokered the sale of at least 100 handguns that he purchased with cash from illegal gun distributors with out-of-state connections.

Laboo obtained many of the weapons from Joshua Jackson, aka “Apple,” aka “Trent,” 33, of Willingboro, N.J., and Columbus, Ohio. Jackson obtained  most of the firearms through purchases at gun shows from unlicensed gun sellers who were not subject to background checks. Some of the firearms also were purchased at Ohio gun stores by straw purchasers working for Jackson, who then transported the handguns to New Jersey from Ohio and resold them to Laboo and others in the Camden area. Laboo admitted he knew he was buying guns that came illegally from Ohio and Virginia.

At the time of the gun sales, Laboo acknowledged, he was distributing PCP and cocaine from the corner of 4th and Chestnut Streets in Camden. Laboo admitted he sold, directed or brokered the sale of many of the firearms to other drug dealers in southern New Jersey.

The illegal firearms dealing count and the conspiracy count to which Laboo  pleaded guilty each carry a maximum potential penalty of five years in prison and a $250,000 fine. The possession of firearms by a convicted felon count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The distribution of a controlled substance (PCP) count carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 14, 2014.

Jackson is charged with related charges in a separate complaint, which remains pending.

U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge Cannon, with the investigation leading to today’s guilty plea. He also thanked the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in New Jersey, and the Camden County Prosecutor’s Office, under the direction of Prosecutor Warren W. Faulk. Fishman additionally credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia; the Camden County Police Department, under the direction of Chief J. Scott Thomson; and the New Jersey State Police, under the direction of Colonel Rick Fuentes, Superintendent, for their support.

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

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

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Defense counsel: Tangie Boston Esq., Philadelphia

Laboo, Terrance Information

NEWARK, N.J. – An Essex County, N.J., man made his initial court appearance today in connection with his alleged role in eight bank robberies that took place between Nov. 20, 2012, and Sept. 11, 2013, U.S. Attorney Paul J. Fishman announced.

Andrew Thomas, 32, of Newark, is charged by complaint with eight counts of bank robbery. His girlfriend, Jennifer Pinto, 32, also of Newark, is charged with conspiring to commit two of the eight bank robberies. Both made their initial court appearances today before U.S. Judge Joseph A. Dickson in Newark federal court.

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

Thomas is allegedly responsible for a bank robbery spree that spanned several months and four counties in New Jersey and which included seven bank robberies and one attempt. Pinto is charged in the same complaint with two counts of conspiracy to commit bank robbery in connection with two of the eight bank robberies for which Thomas is charged.   

Thomas robbed or attempted to rob eight banks on eight separate dates between November 2012 and September 2013.  Thomas robbed the following banks on the following dates:

Nov. 20, 2012

Wells Fargo Bank
550 Broad Street
Newark

Investors Savings Bank
946 Amboy Avenue
Edison, N.J.

May 3, 2013

Investors Savings Bank
56 Westfield Avenue
Clark, N.J.

May 30, 2013

Garden State Community Bank
1162 Green Street
Iselin, N.J.

June 6, 2013

JP Morgan Chase Bank
60 Stirling Road
Watchung, N.J.

July 30, 2013

Wells Fargo Bank
550 Broad Street
Newark

August 10, 2013

Garden State Community Bank
310 North Avenue
Cranford, N.J.

Sept.11, 2013

Lusitania Savings Bank
1135 Liberty Avenue
Hillside, N.J.

In several of the bank robberies, Thomas allegedly wore similar clothes and used similar tactics in robbing the bank. In all but two of the bank robberies, Thomas allegedly pointed what appeared to be either a silver or black handgun directly at the victim bank tellers and verbally demanded money. Thomas also wore either a black V-neck shirt or blue button down shirt in several of the robberies. Pinto is charged with conspiring to commit the bank robberies in Watchung and Cranford on June 6, 2013, and August 10, 2013, respectively. In each of those bank robberies, Pinto allegedly assisted Thomas by driving him to and from the bank robberies.

Each count of bank robbery with which Thomas is charged carries a maximum penalty of 20 years in prison and a fine of $250,000. He was detained.

Each count of conspiracy with which Pinto is charged carries a maximum penalty of five years in prison and a fine of $250,000. She was released on $100,000 bond.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford. He also thanked the Newark, Edison, Clark, Woodbridge, Watchung, Cranford, and Hillside police departments for their contributions to the case.

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

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Defense counsel: Thomas: Linda Foster Esq., Assistant Federal Public Defender, Newark
Pinto: Roy B. Greenman Esq., Union, N.J.

Thomas, Andrew Complaint

NEWARK, N.J. – A Bergen County, N.J., man today admitted his role in a large-scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.

Matthew J. Kang, 44, Englewood Cliffs, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden to an Information charging him with conspiracy to unlawfully produce identification documents and false identification documents (Count One), conspiracy to commit wire fraud affecting financial institutions and bank fraud (Count Two), aggravated identity theft (Count Three), conspiracy to commit bank fraud (Count Four), and tax evasion (Count Five). 

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

Kang, an independent loan broker, conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to obtain a Social Security card beginning with the prefix “586.”  These 586 Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park was the leader of a criminal organization, identified in court papers as “the Park criminal enterprise,” headquartered in Bergen County, that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes.  Park pleaded guilty on Jan. 9, 2012, related to his role in the enterprise and is pending sentencing.

The Park criminal enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various conspirators who received a fee for this service – members of the enterprise’s credit build-up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.

After building the credit scores associated with these identities, Park and his conspirators directed, coached, and assisted his customers to open bank accounts and obtain credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit card related to these fraudulent transactions, the collusive merchants gave the money to Park and his conspirators, minus their “kkang fee.”

Kang admitted that he obtained and brokered 586 Social Security card and counterfeit driver’s licenses through Park for others. Kang further admitted that as a member of a “build-up” team, he fraudulently established credit histories and scores for customers using these 586 identities. Kang and his conspirators used these fraudulently obtained identities to obtain credit cards and to obtain bank loans. Kang also admitted that he brokered numerous commercial loans through false statements and documents. Kang and his conspirators caused more than $4 million in financial losses.

Kang admitted that he committed tax evasion by receiving income, including  commission and fees from loans he had brokered, funneling this income through his corporate accounts, and then using these funds for personal expenses. Kang admitted that around April 15, 2008, he filed an individual income tax return for tax year 2007 that declared that his taxable income for calendar year 2007 was $73,741. Kang admitted that this return failed to include $74,647 in additional taxable income that he had received in 2007, thus having an additional tax of $28,705 due the United States.

Kang faces the following statutory maximums: five years in prison (Count One); 30 years in prison (Count Two and Four); two years in prison, mandatory minimum (Count Three), and five years’ imprisonment (Count Five). Sentencing is scheduled for Jan. 6, 2014. He was arrested on Sept. 16, 2010, and released on $250,000 bail.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; the Department of Homeland Security’s Immigration and Customs Enforcement Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives Steven Cucciniello, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Jane Yoon of the Healthcare and Government Fraud Unit in Newark.

As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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Defense Counsel: Edward J. Dauber Esq. and Thomas B. Slocum Esq., Newark

NEWARK, N.J. – Two New Jersey doctors and a company salesman pleaded guilty today to their roles in a long-running bribes-for-test referrals scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, N.J., its president, and numerous associates, U.S. Attorney Paul J. Fishman announced.

Angelo Calabrese, 56, of Pine Brook, N.J., Paul Ostergaard, 72, of Pompton Plains, N.J., and David McCann, 45, of Lyndhurst, N.J., all pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court.

Calabrese, a doctor with an office in North Arlington, N.J., pleaded guilty to an information charging him with violating the Travel Act and admitted accepting more than $130,000 in bribes to refer at least $600,000 in lab business to BLS. Ostergaard, a doctor with an office in Pompton Plains, N.J., pleaded guilty to an information charging him with violating the Travel Act, and admitted accepting more than $50,000 in bribes to refer at least $150,000 in lab business to BLS.  McCann pleaded guilty to an information charging him with conspiring to violate the Anti-Kickback Statute and the Travel Act and admitted paying thousands of dollars in cash to doctors on behalf of BLS.

With today’s guilty pleas, 17 people have now pleaded guilty in connection with the sophisticated BLS bribery scheme, which its organizers have admitted involved the payment of millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies.

“We are continuing to pursue those defendants, including doctors, who put personal profits ahead of patient care,” U.S. Attorney Fishman said. “Patients need to be confident that their doctors are recommending providers who are best qualified to perform medically necessary tests. Those doctors who recommended providers in return for payoffs should know we are coming after them.”

 “As is evident in the pleas entered today, and the investigation into the illegal activity of Biodiagnostic Laboratory Services, the FBI Newark takes very seriously the allegations of health care fraud, bribes and kickbacks,” FBI Special Agent in Charge Aaron T. Ford said. “This investigation and prosecution remains ongoing and those medical professionals that decided to make medical referrals in exchange for bribes are expected to be brought to justice. These pleas today are a direct result of the joint efforts of Health and Human Services-Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service and Federal Bureau of Investigation.”

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

Calabrese received more than $130,000 from BLS between 2010 and 2013 through a sham consulting agreement and a sham rental agreement, which combined to pay Calabrese more than $4,500 per month in bribes from BLS.  Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments – who pleaded guilty in June to his role in the scheme, made many of the payments to Calabrese on behalf of BLS.

Ostergaard received more than $50,000 from BLS between 2006 and 2009 through a sham lease agreement and a sham service agreement.  William Dailey, 42, of Wall, N.J., a BLS salesman who pleaded guilty to his role in the scheme in May, negotiated the sham agreements on behalf of BLS, with the knowledge and approval of BLS’s president, David Nicoll, 39, of Mountain Lakes, N.J.  Ostergaard admitted today that while he was being bribed to make referrals to BLS, he noticed that BLS was adding tests that Ostergaard had not ordered for his patients, but stayed silent about the added tests.

McCann paid thousands of dollars in cash on a monthly basis between December 2011 and April 2013 to numerous physicians on behalf of BLS in exchange for the doctors’ referral of blood specimens to BLS.

On April 9, 2013, federal agents arrested David Nicoll, Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother, and Nordman. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 43, of Boonton, N.J.  In June, David and Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to charges related to their involvement.  Santangelo, a doctor, pleaded guilty last month to charges relating to his role in the scheme.  So far, 11 employees or associates of BLS, and six physicians have pleaded guilty to their roles in the bribery scheme.

“Offering slush fund payments for medical referrals, ultimately paid for by taxpayers, can have absolutely no place in our health care system,” Thomas O’Donnell, Special Agent in Charge of the Office of Inspector General at the U.S. Department of Health and Human Services region including New Jersey, said. “Such schemes will continue to be vigorously investigated and prosecuted, and these criminals will be brought to justice.”

The bribery count to which Calabrese and Ostergaard pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine.  McCann faces a maximum potential penalty of five years in prison and a $250,000 fine on the bribery conspiracy charge. Sentencing for all three defendants is scheduled for March 13, 2014.

Calabrese and Ostergaard have also agreed to forfeit $334,000 and $53,900, respectively.  The investigation has so far recovered more than $3 million through forfeiture.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty pleas.

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.

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Defense counsel: Calabrese: Julian Wilsey Esq., Livingston, N.J.
Ostergaard: Justin Walder Esq. and Kevin Buchan Esq., Roseland, N.J.
McCann: Benjamin Choi Esq. and Joseph Horn, Esq., Rutherford, N.J.

Calabrese Information
Ostergaard Information
McCann Information

TRENTON, N.J. – A Long Island, N.Y., man admitted today to participating in seven armed robberies of electronics stores in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.

Leonard Arrington, 27, of Roslyn Heights, N.Y., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit Hobbs Act robberies and one count of using a firearm in furtherance of a crime of violence.

Arrington was arrested on May 22, 2013, originally charged in an indictment in connection with the Oct. 2, 2012, robbery of a Woodbridge, N.J., T-Mobile store. He has been in custody since his arrest.

According to documents filed in this case and statements made in court: Between May 30, 2012, and Oct. 2, 2012, Arrington conspired with others to commit a series of gunpoint electronics store robberies during which he and accomplices stole merchandise for illegal resale. Typically, store employees were threatened at gunpoint and restrained during the robberies.

In pleading guilty to the gun charge, Arrington admitted that on Oct. 2, 2012, he entered a T-Mobile store in Woodbridge, brandishing a firearm, along with another man. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called the getaway driver, who drove them away in a Land Rover. Accomplices delivered the stolen phones to a cell phone store in Brooklyn.

In all, Arrington admitted to participating in the following robberies:

Date

Bank

Location

Radio Shack

New Rochelle, N.Y.

June 11, 2012

T-Mobile Store

Hempstead, N.Y.

June 18, 2012

Radio Shack

Westbury, N.Y.

June 20, 2012

T-Mobile Store

West Hempstead, N.Y.

June 21, 2012

Radio Shack

Rockville Center, N.Y.

September 20, 2012

T-Mobile Store

Linden, N.J.

October 2, 2012

T-Mobile Store

Woodbridge, N.J.

 

The conspiracy charge carries a maximum potential penalty of 20 years in prison. The firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to one another and to any other prison term. Each count also carries a maximum $250,000 fine. Sentencing is scheduled for Jan. 22, 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. 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 excellent work in this case.

The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division.

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Defense counsel: Dennis Cleary Esq., Newark, N.J.

Arrington Superseding Information

Kickbacks, Bribery and Extortion Alleged

NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.

The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.

Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.

“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”

“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”

According to the indictment returned today:

Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.

Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.

The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.

On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.

Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.

In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.

The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.

The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.

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

The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.

The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
  
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Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark                                                           

Ferriero Indictment

Kickbacks, Bribery and Extortion Alleged

NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.

The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.

Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.

“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”

“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”

According to the indictment returned today:

Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.

Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.

The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.

On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.

Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.

In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.

The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.

The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.

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

The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.

The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
  
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Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark                                                           

Ferriero Indictment

NEWARK, N.J. – A Romanian national and Queens, N.Y., resident today admitted to a scheme to steal account information from bank customers throughout New Jersey, New York and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.

Constantin Ginga, 52, pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Ginga has been held without bail since his arrest on Jan. 13, 2013.

To date, nine other individuals have been charged with a related conspiracy, which stole millions of dollars from unsuspecting customers.

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

During his guilty plea, Ginga admitted that he and fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Ginga admitted that he and other conspirators went back to collect the devices containing the recorded information.

Ginga acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, he and his conspirators used those cards to take approximately $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.

The charges to which Ginga pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of approximately $5 million in cash stolen from their customer accounts.

Of the nine others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, eight are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 30, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Ginga, to install them on bank ATMs.

Other charged conspirators, including Ginga, Marius Cotiga, 35, Ioan Leusca, 30, Dezso Gyapias, 28, Constantin Pendus, 29, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “FNU LNU” (name unknown)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.

Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody and being held without bail. Vintila and the unnamed individual remain at large.

The bank fraud conspiracy charge to which Ginga pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine.  Sentencing is currently scheduled for Dec. 18, 2013.

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 in Newark, under the direction of Andrew M. McLees, with the investigation.

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.

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.

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Defense counsel:Warren Sutnick Esq., Hackensack, N.J.

Ginga Information

CAMDEN, N.J. – A former Pennsville, N.J., police officer was sentenced today to 15 months in prison for obstructing the FBI’s investigation of his alleged possession of child pornography, U.S. Attorney Paul J. Fishman announced.

Robert Waterman, 32, of Wrightstown, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of obstruction of a federal investigation in connection with his destruction of a computer hard drive. 

According to the indictment and statements made in court:

Waterman was formerly a police officer with the Pennsville Police Department. On March 4, 2010, while he was still a member of that department, FBI special agents told Waterman that he was being investigated for alleged possession of child pornography. During the plea hearing, Waterman admitted that following this interview with the FBI, he located a hard drive in his garage and placed it in his patrol car. Waterman admitted that he then broke apart the hard drive’s circuit board into small pieces while in his patrol car at the police department.  Waterman admitted he did this to obstruct the FBI’s investigation.

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

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, and officers of the Pennsville Police Department, under the direction of Police Chief Allen J. Cummings, for their cooperation and assistance with the investigation.

The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division.                                   

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

NEWARK, N.J. – The father and son operators of Clevett Worldwide Mailers LLC, a Succasunna, N.J., bulk mailing house, today admitted to defrauding clients of more than $1 million through a fraudulent bulk-mailing scheme in which they shredded millions of pieces of mail rather than delivering them, U.S. Attorney Paul J. Fishman announced.

Harold Clevett, 68, of Middlesex, N.J., and Mark Clevett, 37, of Randolph, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to one count of conspiracy to commit wire fraud charged in an indictment against them.

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

Mark Clevett owned, and both Clevetts operated, Clevett Worldwide Mailers, which contracted with international and domestic customers to handle large mailings. Customers sent their mail jobs to Clevett Worldwide Mailers for sorting, addressing and delivery to the post office. The company received fees from their customers for each piece of mail and for the total weight of the mail that it handled.

During their guilty plea proceedings, both father and son admitted that rather than sending their clients’ mail as contracted, they directed their employees to throw away all or part of it, and even called in a shredding company to destroy unsent mail.

Mark and Harold Clevett also acknowledged they charged their customers for the full amount of the mailings, even sending some of their customers fraudulent postal forms to make it appear as though the mailings were delivered. The pair admitted that between 2007 and June 2011, they discarded and shredded nearly 3 million pieces of customer mail and reaped nearly $1 million in illicit profits.

The wire fraud conspiracy charge to which the Clevetts pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense. Sentencing for both defendants is scheduled for Dec. 18, 2013.

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

The government is represented by Assistant U.S. Attorneys Rahul Agarwal and Michael Robertson of the U.S Attorney’s Office in Newark.

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Defense counsel:

Harold Clevett: Brian J. Neary Esq., Hackensack, N.J.

Mark Clevett: Don Larsen Esq., Montville, N.J.                    

Clevett, Harold and Mark Indictment

CAMDEN, N.J. – A loan officer admitted today to conspiring to defraud financial institutions as part of an approximately $2 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on town homes and other real estate in three states, U.S. Attorney Paul J. Fishman announced.

Raffi Oghlian, 38, of Westwood, N.J., pleaded guilty today, before U.S. District Judge Jerome B. Simandle in Camden federal court, to an information charging him with one count of conspiracy to commit wire fraud.

According to documents filed in this case and statements made in court: Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc., in Hasbrouck Heights, N.J., which was in the business of making mortgage loans.

During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, N.J., and Atlanta, as well as properties in Naples, Fla., owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents. 

Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information, concerning, among other things, the straw buyers’ employment, income, assets and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.

Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles.  For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.

In all, the conspiracy caused approximately $2 million to be released from MJS Lending.

The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS – Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.

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

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Defense counsel: John Klotz Esq.,Clifton, N.J.                                                                                                                  

Oghlian Information

NEWARK, N.J. – A man who allegedly committed six armed robberies of Newark convenience stores – including the same grocery twice within a week – has been federally charged in connection with the spree, U.S. Attorney Paul J. Fishman announced.

Larry McRae, 26, of Newark, is charged by complaint with six Hobbs Act robberies and one count of discharging a firearm in furtherance of a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.

According to the complaint unsealed today:

From June 30, 2012 through Sept. 15, 2012, McRae entered the convenience stores on six different occasions, robbing the store clerks at gunpoint. During the robbery of the Moroni Deli on Sept. 15, 2013, he discharged one round from a handgun as he exited the store. McRae was apprehended by members of the Newark Police Department later that morning and has been in state custody since that time.

The dates and locations of the robberies were as follows:

Date

Location

Moroni Deli

Sept. 5, 2012

P&T Grocery

Sept. 1, 2012

P&T Grocery

Aug. 29, 2012

New B&C Meat Market

June 30, 2012

Arvelo Mini Market

June 30, 2012

Angel Mini Market

Each of the Hobbs Act robbery charges carries a maximum potential penalty of 20 years in prison. The discharging a firearm in furtherance of a crime of violence charge carries a mandatory minimum penalty of 10 years in prison to run consecutive to any sentence that he receives for the Hobbs Act robbery charge and a maximum potential penalty of life in prison. Each of the seven counts also carries a maximum $250,000 fine.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the Newark Police Department, under the leadership of Director Samual A. DeMaio and Chief Sheilah A. Coley for their excellent work on the case.

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

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

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

McRae, Larry Complaint

NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today filed a civil asset forfeiture complaint seeking the forfeiture of hundreds of thousands of dollars held in bank accounts previously seized by special agents of the U.S. Secret Service from an Atlanta-based unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.

The complaint alleges that the assets are property involved in, or traceable to, deposits made into and through TCash Ads Inc. and its affiliate, Trustcash Holdings Inc. (“TCash”), in operating the illegal virtual currency service.

According to the complaint filed in Newark federal court: TCash is an online payment processing service that enables individuals to anonymously purchase goods and virtual currency credits from entities who are registered with the service. Users can enter any number of national bank locations and deposit cash into a TCash account. TCash accounts can be used to pay any TCash-registered entity, including virtual currency exchanges and off-shore accounts in Canada, Cyprus, the Philippines, China, Nepal, Australia and elsewhere. 

The service’s website offers deposit, charge, and mobile payment as methods to process payments, advertising that it is “a leader in payment processing, and offers a powerful suite of payment services…” The website also indicates that if a customer uses a credit card, it will be billed as “TCash Ads Inc,” and that the service has the ability to accept payments from credit cards, e-checks, online bank accounts and cash and to provide customer anonymity.

From as early as 2008 through 2012, TCash facilitated the transmission of millions of dollars, including transactions involving individuals in New Jersey. 

Federal law requires every financial institution that operates as a money transmitting or service business (MTB) to be licensed in the state in which it is operating and to be registered with the Treasury Department through the Financial Crimes Enforcement Network (FinCEN).  TCash does not possess the appropriate license in any state in which it appears to operate – including New Jersey, Georgia, California, Texas, New York and Delaware – and is not registered with FinCEN.  

*          *          *

Civil forfeiture cases are “in rem” proceedings – meaning they are proceedings against things, not persons or entities who allegedly committed underlying unlawful acts.  The law permits persons claiming an interest in the property an opportunity to appear and present their cases that they are innocent owners of the property and the property should not be forfeited. 

U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Office, and support from FinCEN, a bureau within the U.S. Department of the Treasury, with the ongoing investigation.

The government is represented by Assistant U.S. Attorneys Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit and Aaron Mendelsohn of the office’s Economic Crimes Unit in Newark.

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Defense counsel: Douglas R. Jensen Esq., New York

TCash Complaint

TRENTON, N.J. – A federal grand jury in Trenton, N.J., returned an indictment today charging a Neptune Township, N.J., man with shooting a cab driver during a 24-hour run of armed robberies in New Jersey shore-area towns, U.S. Attorney Paul J. Fishman announced.

Quam Wilson, 23, is charged in the 11-count indictment with five counts of committing a Hobbs Act robbery, five counts of using a firearm during a crime of violence and one count of possession of a firearm by a previously convicted felon. 

Wilson was initially arrested and charged by federal criminal complaint with the conspiracy and firearms counts on March 13, 2013. He appeared on June 3, 2013, before U.S. Magistrate Judge Lois H. Goodman, who remanded him to federal custody pending trial. Wilson will be arraigned on the indictment on a date to be determined.

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

Wilson then proceeded to a Shell gas station located in Ocean Township at approximately 7:00 a.m. 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, Wilson 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.

Each count of Hobbs Act robbery (Counts One, Three, Five, Seven and Nine) carries a maximum potential penalty of 20 years in prison. The charge of using a firearm during a crime of violence (Counts Two, Four, Six, Eight and Ten) carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison for a conviction on Count Two (which charges discharging a firearm in connection with robbing the cab driver), and 25 years for each subsequent count of conviction, each of which must run consecutively to one another and to any other prison term. The charge of possession of a firearm by a convicted felon (Count Eleven) carries a maximum potential penalty of 10 years in prison. Each of the counts also carries a maximum $250,000 fine.

U.S. Attorney Fishman praised special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, 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 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 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.

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Defense counsel: Edward Bertuccio Esq.  Eatontown, N.J.

Wilson, Quam Indictment

CAMDEN, N.J. – A federal jury convicted a husband and wife and two others today for conspiring in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.

The jury returned the verdict after two days of deliberation following a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.

Four defendants – Adam Lacerda, 28, and Ashley Lacerda, 32, both of Egg Harbor Township, N.J.; Ian Resnick, 37, of Abescon, N.J.; and Genevieve Manzoni, 46, of Lake Worth, Fla. – were convicted of one count of conspiracy to commit mail and wire fraud. Adam Lacerda was also convicted of nine counts of mail fraud and three counts of wire fraud. Ashley Lacerda was convicted of one count of mail fraud and four counts of wire fraud. Resnick was convicted of three counts of mail fraud and three counts of wire fraud. Manzoni was also convicted of one count of mail fraud.

A fifth defendant, Joseph Diventi, 32, of Somers Point, N.J., was acquitted of the two counts with which he was charged.

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

The defendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial).  Adam Lacerda, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back. His wife Ashley Lacerda, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office.

Resnick, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.”

Genevieve Manzoni was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer.

The 14 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of tens of thousands of dollars by the defendants’ sophisticated scheme.

Each count of which the defendants were convicted carries a maximum potential penalty of 20 years in prison $250,000 fine, or twice the gain or loss caused by the offense. Sentencing before Judge Hillman is scheduled for Dec. 12, 2013 for Resnick and Manzoni and Dec. 13, 2013, for the Lacerdas.

To date, 13 other members of the VO Group have pleaded guilty to conspiring to commit mail fraud and wire fraud in connection with the scheme.

U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Assistant Special Agent in Charge Michael Mikulka, Newark Field Office, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.

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

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Defense counsel:

Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, N.J.
Ian Resnick: Michael E. Reilly Esq., Philadelphia
Genevieve Manzoni: Ralph A. Jacobs Esq., Philadelphia
Joseph Diventi: Brian Stephen O'Malley, Haddon Heights, N.J.

South Jersey Mortgage Fraud Fact Sheet Final

NEWARK, N.J. – A former vice president at a South Plainfield, N.J., traffic safety equipment business admitted today to evading income taxes on more than $2 million in withdrawals he made from the business for his own use, U.S. Attorney Paul J. Fishman announced.

Anthony R. Pecoraro, 50, of Colts Neck, N.J., pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of tax evasion.

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

Pecoraro worked in 2008 and 2009 at Traffic Safety Service LLC, which provided traffic safety equipment and other traffic related services to local and state municipalities and private businesses. In connection with his position as a vice president, he had access to the company’s business account.

During his guilty plea proceeding, Pecoraro admitted he wrote checks for unauthorized cash withdrawals for a total of approximately $2,126,200 between June 2008 and December 2009, which he took for personal use. Pecoraro acknowledged he failed to report this money as taxable income for calendar years 2008 and 2009 in the amounts of $563,800 and $1,562,400, respectively, and that if he had reported the additional cash on his income tax returns he would have owed the government approximately $733,970.

The charge to which Pecoraro pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 4, 2013.

U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.

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

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

Pecoraro, Anthony Information

TRENTON, N.J. - An Edison, N.J., man who once worked as a school crossing guard admitted today to taking compromising photographs of a naked child and distributing them and hundreds of other photographs of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
                       
Kenneth Christensen, 44, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of production of child pornography and one count of distribution of child pornography. He has been detained since his arrest in February 2013.
                                                           
According to documents filed in this case and statements made in court:

During his guilty plea proceeding, Christensen – who worked as a school crossing guard in Metuchen, N.J., prior to his arrest – admitted that in 2012, he sent four individuals emails containing several hundred images of child pornography, including sadistic and masochistic conduct. Christensen acknowledged he distributed more than 600 such images.

Christensen also admitted that some of the files he distributed were photographs he took himself, including in his own bedroom, of a naked, prepubescent child who was bound in some of the images.

The production count carries a maximum potential penalty of 30 years in prison and a mandatory minimum sentence of 15 years in prison. The distribution count carries a maximum potential penalty of 20 years in prison and mandatory minimum sentence of five years in prison. Each count also carries a maximum $250,000 fine. Christensen is also required to register as a sex offender. Sentencing is scheduled for Dec. 9, 2013.

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

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

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

Christensen, Kenneth Information

NEWARK, N.J. – A New York man today admitted his role in a widespread foreign student visa fraud that took place in Iselin and Jersey City, U.S. Attorney Paul J. Fishman announced.

Manamadurai Somalingam, 64, of Pelham, N.Y., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiring to commit visa fraud and one count of conspiring to conceal and harbor illegal aliens for private financial gain.

According to documents filed in this case and statements made in court: Somalingam admitted that from March 2011 through May 2012, while he was the owner of a school called PC Tech Learning with campuses in Iselin and Jersey City, he engaged in a conspiracy to obtain student visas for foreign citizens who were not eligible for such visas.  Somalingam admitted that he falsely certified that a woman he hired to work for him at the Jersey City campus of PC Tech was eligible for a student visa even though he knew that she would be working full-time and was not eligible.

He also admitted that he never terminated a foreign citizen’s student status as long as that individual paid his tuition fees, even though Somalingam, as the primary designated school official for PC Tech, was required to terminate any student who failed to make proper progress in his studies.

The conspiracy to commit visa fraud charge to which Somalingam pleaded guilty is punishable by a maximum potential penalty of five years in prison, and the conspiracy to harbor illegal aliens charge is punishable by a maximum potential penalty 10 years in prison. Both offenses are also subject to a maximum fine of $250,000. Sentencing before U.S. District Judge Anne E. Thompson is scheduled for Dec. 5, 2013.

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

The government is represented by Assistant U.S. Attorney Shana W. Chen of the Economic Crimes Unit in Newark.

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Defense counsel: Timothy R. Anderson Esq., Red Bank, N.J.

Somalingam Information

NEWARK, N.J. – Four men from Haverstraw, N.Y., and Philadelphia, Pa., have been charged in federal court with conspiring to engage in the sex trafficking of a minor, U.S. Attorney Paul J. Fishman announced.

Karl Venord, 30, a/k/a “Dreadhead,” and Samuel Verrier, a/k/a “Dre,” 35, both of Philadelphia, were charged by complaint with conspiring to engage in the sex trafficking of a minor. Both are scheduled to appear in Newark federal court later today before U.S. Magistrate Judge Stephen C. Mannion.

Varian Charles, 28, a/k/a “Bob,” of Philadelphia, was indicted August 27, 2013, by a federal grand jury for conspiring to engage in the sex trafficking of a minor. He was previously charged with the same offense in a criminal complaint and appeared in Camden federal court on July 24, 2013, before U.S. Magistrate Judge Ann Marie Donio, where he was ordered detained.

Wilbur Senat, 23, a/k/a “Wilby,” of Haverstraw, was charged in a criminal complaint with conspiring with Charles to engage in the sex trafficking of a minor. He appeared in Newark federal court on August 6, 2013, before U.S. Magistrate Judge Cathy L. Waldor, where he was ordered detained.

According to the documents filed in this case:

In the summer of 2011, the minor victim met Senat in upstate New York. Shortly after they met, Senat allegedly took the minor victim to a motel in Nyack, N.Y. At the motel, Senat forced the victim to engage in commercial sex acts with various individuals, who paid Senat money in exchange for the sex acts performed by the minor victim.

Shortly after this incident, Senat allegedly threatened the victim that if she did not agree to leave New York with him, her family would be harmed. As a result of these threats, the victim agreed to leave with Senat. Senat then purchased tickets for himself and the victim to travel from New York City to Philadelphia via public transportation.

Upon arriving in Philadelphia, the victim and Senat were picked up by Charles. Charles took them back to his house in Philadelphia, where Senat and Charles told the victim that she would be staying at Charles’ house in order to engage in prostitution. While at Charles’ house, the victim was forced to have sex with various individuals, who paid Senat and Charles in exchange for the sex acts performed by the victim. While the victim was staying at Charles’ house, she was also physically abused by Senat and Charles.

While at Charles’ house, the victim met Verrier. Verrier took the victim from Charles and told her that she could make more money working for him. Verrier then brought the victim to various clubs in Philadelphia, where he instructed her to solicit club patrons for sex acts in exchange for money.

In late August 2011, after the victim began working for Verrier, he introduced her to Venord. Venord and Verrier asked the victim to accompany them on a car ride to New Jersey. The victim agreed, because she thought she would be taken to visit her family member who lived in New Jersey.

During the drive to New Jersey, Venord and Verrier told the victim that they intended to blackmail an individual who was in New Jersey. Venord and Verrier told the victim that she was to have sex with this individual and take photographs of him, and that they would use these photographs to blackmail him.

Venord and Verrier drove the victim to Bordentown, N.J., to locate the individual that they intended to blackmail. After locating the individual outside a bank, Venord and Verrier attempted to have the victim proposition the individual, but they were unsuccessful in this attempt.

The count of conspiracy to engage in the sex trafficking of a minor is punishable by a maximum statutory penalty of life in prison. It also carries a maximum fine of $250,000.

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 the charges.

The government is represented by Assistant U.S. Attorneys Sarah Wolfe in Trenton and Courtney M. Oliva in Newark.

The charges and allegations summarized above are merely accusations and the defendant is considered innocent unless and until proven guilty.

13-349                                                   

Defense counsel: Venord and Verrier: TBD
Charles: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Senat: Michele Ann Adubato Esq., Bayonne, N.J.

Charles Indictment
Venord, Karl, et al., Complaint

Medicines had been donated to be used for indigent patients

TRENTON, N.J. – A Union County, N.J., woman was convicted today for her role in defrauding a charity program out of more than $7 million in donated HIV and cancer medication by using her access to a company hired to administer the program, U.S. Attorney Paul J. Fishman announced.

Lateefah McKenzie Body, 35, of Linden, N.J., was convicted of one count of conspiracy to commit mail fraud and nine counts of mail fraud following a two-week trial before U.S. District Judge Mary L. Cooper in Trenton federal court. The jury deliberated for one day before finding McKenzie Body guilty on all counts.

On Nov. 13, 2012, Keisha Jackson, 47, of Perth Amboy, N.J., and Jameshia Bryant, 27, of South River, N.J., pleaded guilty to related charges and admitted their involvement in the fraud conspiracy. They are awaiting sentencing.

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

A pharmaceutical company donated millions of dollars’ worth of FDA-approved prescription medicines – including for the treatment of HIV and cancer – at no cost to qualified patients experiencing financial difficulties.  Jackson, Bryant, and McKenzie Body were all, at various times, employed as customer service representatives at a corporation hired to provide administrative support in operating the donated medicines program.  They were responsible for receiving applications for the program, entering the applications into the computer system, and using the computer system to cause the donated medicines to be delivered to the physicians of patients who met certain eligibility criteria, including financial status.

As part of the scheme, McKenzie Body entered approximately 600 fraudulent orders into the company’s system, causing medicines to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme.  After McKenzie Body was terminated from the company for unrelated reasons, McKenzie Body enlisted Bryant to take over entering fraudulent orders.  Bryant agreed, and entered approximately 950 fraudulent orders, again causing medicines, which could then be resold at a profit, to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme.

Each of the 10 counts is punishable by a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.  Sentencing for McKenzie Body is scheduled for Dec. 12, 2013.

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 verdict.

The government is represented by Assistant U.S. Attorneys Andrew Leven of the Healthcare and Government Fraud Unit and Danielle Corcione of the General Crimes Unit in Newark.

13-348                                             

Defense Counsel: James Patton Esq., Livingston, N.J.

NEWARK, N.J. – A Newark man is expected to make his initial court appearance today on charges of sexual exploitation of a prepubescent girl after allegedly abusing her repeatedly and filming the abuse, U.S. Attorney Paul J. Fishman announced.

Pedro Rios, 57, is charged by complaint with two counts of sexual exploitation of a child. He is currently in state custody on related charges and is scheduled to appear in Newark federal court today before U.S. Magistrate Judge Steven C. Mannion.

According to the complaint:

Law enforcement officers executed a search warrant at Rios’s home in Newark on Feb. 5, 2013. A forensic review of the computer equipment seized revealed several video files of child pornography which appear to be self-produced and allegedly depict Rios on camera engaging in sexually explicit conduct with a prepubescent female in the rear of a cab of a tractor trailer truck.

Law enforcement officers identified and interviewed a female, who allegedly said Rios would periodically drive her to his tractor trailer truck in Union County, N.J., where he would undress her and have sexual contact and sexual relations with her and record the encounters. Rios allegedly threatened to hurt the victim’s family if she told anyone.

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 FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, 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 these charges.

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

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

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

Rios Complaint

NEWARK, N.J. – A Bergen County, N.J., man who allegedly used the internet and social media to create a fictitious high school girl, used that fake identity to establish an online relationship with another person and then falsely reported the girl’s kidnapping to a U.S. Embassy was arrested today by federal officials, U.S. Attorney Paul J. Fishman announced.

Andriy Mykhaylivskyy, a/k/a/ “Andriy Haddad,” 18, of Rutherford, N.J., was arrested this morning and charged by complaint with making false statements to a United States official. He is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.

According to the complaint:

In late August 2012, Mykhaylivskyy, allegedly posing as Kate Brianna Fulton, began an online relationship with a high school classmate identified in court papers as “Individual One.” Law enforcement investigation determined Kate Fulton was a fictitious person created by Mykhaylivskyy on Facebook using photographs of an actual high school student taken from an unsecured Facebook page without her knowledge or permission.

On July 2, 2013, Mykhaylivskyy, using an alias, called the U.S. Embassy in Chisinau, Moldova, and reported that his girlfriend, “Kate Fulton,” a United States citizen, had been kidnapped in Bulgaria on June 28, 2013. The online relationship continued until Kate’s alleged kidnapping, with Mykhaylivskyy maintaining the relationship online and via text messaging.

Mykhaylivskyy independently befriended Individual One, claimed to know Kate Fulton, and confirmed details regarding Kate Fulton.

On July 8, 2013, the U.S. Embassy in Sofia, Bulgaria, received a telephone call from Individual One seeking assistance regarding the kidnapping of Kate Brianna Fulton, whom Individual One reported was kidnapped while she was vacationing in Burgas, Bulgaria. Individual One provided the Embassy with tweets that Individual One received on June 29, 2013, a day after the purported kidnapping, from Kate Brianna Fulton’s Twitter account. One tweet was of a number that Individual One believed to be Kate’s local Bulgarian cell phone and the other read, “Someone help me.”

After receiving the second report of the kidnapping, federal agents from the U.S. Embassy Sofia, Bulgaria, Regional Security Office and the headquarters of the Bureau of Diplomatic Security in Northern Virginia engaged in an extensive investigation to locate Kate Brianna Fulton and also received assistance from Bulgarian law enforcement. Bulgarian police combed hotels, hostels and other lodgings in Burgas seeking information on the missing girl and the Bulgarian border police searched incoming passenger records.

This law enforcement investigation revealed that Kate Brianna Fulton was a fictitious person created by Mykhaylivskyy, and that the high school student whose pictures were used without her permission was safe and in the United States.

The count of making false statements with which Mykhaylivskyy is charged is punishable by a maximum of five years in prison and a fine of $250,000.

U.S. Attorney Fishman credited special agents of the U.S. Department of State’s Bureau of Diplomatic Security in Embassy Sofia, the DSS Office of Protective Intelligence Investigations, the DSS New York Field Office and the New York and Newark Joint Terrorism Task Forces, for the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the U.S. Attorney’s Office General Crimes Unit in Newark.

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

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Mykhaylivskyy Complaint

NEWARK, N.J. – An Atlantic County, N.J., man was arrested today for allegedly shooting four species of hawks in the residential neighborhood where he lived, U.S. Attorney Paul J. Fishman announced.

Robert Losasso, 68, of Somers Point, N.J., was taken into custody today by special agents of U.S. Fish and Wildlife Service, Office of Law Enforcement, and charged by complaint with six counts of violating the Migratory Bird Treaty Act. Losasso is scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.

According to the Complaint unsealed today:

Robert Losasso fatally shot, and attempted to fatally shoot, with a .22 caliber rifle and a .17 caliber pellet gun, both equipped with scopes, red-tailed hawks, sharp-shinned hawks, red-shouldered hawks, and Cooper’s hawks. These species are among the tens of thousands of birds of prey that migrate every year from Canada along the Atlantic Flyway through New Jersey.  Residents of Somers Point reported to law enforcement that over a period of more than two and a half years they had observed more than 40 dead or injured birds of prey in or around their yards and had sustained what appeared to be bullet holes and pellet marks to their homes.

From December 2012 through April 2013, Losasso allegedly killed, or attempted to kill, three red-tailed hawks, one sharp-shinned hawk, one red-shouldered hawk, and one Cooper’s hawk, all of which are protected under the Migratory Bird Treaty Act. The Migratory Bird Treaty Act, which was enacted in 1918, implements in the United States protections afforded migratory birds under several international conventions to which the United States is a party. Breeding populations of red-shouldered hawks are listed as endangered on the State of New Jersey’s Endangered and Threatened Wildlife list. Sharp-shinned hawks and populations of Cooper’s hawks also have special protections under New Jersey state law.

The counts charged are strict liability crimes that carry a maximum potential penalty of six months’ imprisonment and a fine of $15,000 per count.

U.S. Attorney Fishman credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Carmine Sabia, with the investigation leading to the charges. He also thanked the N.J. Division of Fish and Wildlife, Bureau of Law Enforcement, and the Somers Point Police Department, for their roles in the case.

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

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

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Losasso Complaint

TRENTON, N.J. – A Brooklyn, N.Y., man today admitted his involvement in a plot to burglarize a pharmacy in Englishtown, N.J., and sell stolen narcotics for cash, U.S. Attorney Paul J. Fishman announced.

David Mordukhaev, 22, pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with one count of conspiracy to distribute oxycodone and possess oxycodone with intent to distribute.

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

The Union Hill-Supremo Pharmacy in Englishtown was burglarized shortly after 4:00 a.m. on June 17, 2012. Mordukhaev and his fellow conspirators filled 17 garbage bags and two cardboard boxes with merchandise from the pharmacy, including approximately 1,988 dosage units of methylphenidate, 500 dosage units of hydromorphone, 300 dosage units of Opana (a trade name for oxymorphone) and 3,800 dosage units of oxycodone – all Schedule II controlled substances. The stock lost by the pharmacy was valued at $350,000. Mordukhaev admitted he stole the drugs knowing they would be sold for profit.

The conspiracy to distribute oxycodone charge to which Mordukhaev pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Dec. 3, 2013.

Mordukhaev’s co-conspirator, James Zarbailov, previously pleaded guilty before Judge Wolfson on May 9, 2013, to conspiracy to distribute and possess with intent to distribute oxycodone. Zarbailov will be sentenced on Oct. 3, 2013.

U.S. Attorney Fishman credited special agents of the FBI’s Red Bank Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and law enforcement officers from the Marlboro Township Police Department, under the direction of Police Chief Bruce E. Hall, for the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.

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Defense counsel: Lance Lazzaro Esq., Brooklyn, N.Y.

Mordukhaev, David Information

NEWARK, N.J. – U.S. Attorney Paul J. Fishman joined Acting Essex County Prosecutor Carolyn A. Murray, Essex County Sheriff Armando Fontoura and Newark Police Director Samuel A. DeMaio today to announce the launch of a joint anti-carjacking public awareness campaign.
 
Aimed at raising awareness of the serious consequences carjackers face, the campaign will include billboards, bus placards and flyers. The message is that carjacking is a serious crime and those who engage in carjacking face severe consequences.
 
“Carjacking terrorizes victims and the communities in which they live and work,” U.S. Attorney Fishman said. “The penalty for these crimes is appropriately tough. Carjackers prosecuted federally can face decades in prison, far from home, in a system with no parole.”

 “Carjacking is not the same as taking a stolen car for a joyride,” said Prosecutor Murray. “When you pull out a gun and demand someone’s vehicle that is a serious crime and the penalties are severe if you are convicted. We want to send that message to young people who sometimes seem to view carjacking as nothing more than a theft.”

All of the billboards will be up by the end of the day. Three are up already in Newark just a short distance from the Leroy Smith Building at 50 West Market Street.

They are located at:

• 4th Avenue and Broadway
• 61 Pennsylvania Avenue at the intersection of Parkhurst
• 97 Sussex Avenue

  In the 1990s, Essex County led the nation in car theft. With advances in technology, increasingly vehicles are equipped with sophisticated anti-theft devices, making it almost impossible for an amateur to steal an unattended car. As a result, carjackings have been on the rise in Essex County.

For example, in 2009, Essex County had just over 200 carjackings. Every year that number has continued to climb. Recently, there have been more than 400 carjackings each year countywide. These crimes occur in the early morning hours and late at night. Sometimes they involve high-end cars, but very often modestly priced vehicles are targeted.

“Carjacking is the fastest growing and potentially the most dangerous of crimes against persons and property,” Sheriff Armando Fontoura pointed out.  “This public education initiative was devised to warn that law enforcement has teamed up our anti-carjacking efforts and makes clear the serious and long-term consequences of committing such a crime.” 

Newark Police Director DeMaio said, “The Newark Police Department has implemented several proactive and reactive initiatives to combat this plague including but not limited to joint task forces and specialized proactive units. In addition to educating our motorists on how to better protect themselves from would be carjackers, we are now endeavoring to educate the carjackers themselves. Lawmakers, prosecutors, and judges are taking these crimes very seriously and sending a message to criminals through stiff penalties for carjackings, some of which are prosecuted on the federal level.”

In response to the increase in incidents, a Carjacking Task Force was set up in 2010 by the U.S. Attorney Paul Fishman and then Acting Essex County Prosecutor Robert Laurino.

Since that time the Essex County Prosecutor’s Office has worked cooperatively with the U.S. Attorney’s Office; the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI); the Newark Police Department; the U.S. Immigration and Customs Enforcement; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the New Jersey Attorney General’s Office; the New Jersey State Police; and the Essex County Sheriff’s Office.

Starting Aug. 1, East Orange, Belleville and Irvington Police Departments became a part of this initiative. Each department has sent officers to serve on the Carjacking Task Force. In addition, the Essex County Prosecutor’s Office continues to maintain a Special Prosecutions Unit. Three assistant prosecutors are assigned to that unit. It was established to seek swift justice in these cases.

In line with these efforts, the Essex County Prosecutor’s Office indicted eight defendants in recent weeks in carjacking cases. They include the following defendants: Faquan Martin, 35, of Irvington, was indicted on 11 counts including conspiracy, carjacking, weapons possession, eluding and resisting arrest following an event on Nov. 20, 2012, in Newark. In addition to carjacking, Martin fled from the police causing a crash and creating a risk to the public.

Kalik Hollis, 19, and Andre Spencer, 19, both of East Orange, were both indicted in a seven-count indictment. Spencer is accused of carjacking someone in Belleville on Oct. 1, 2012. He is also accused of robbery. Hollis was indicted on knowingly receiving a 2006 Toyota Corolla. He is also charged with fleeing when the Belleville Police attempted to stop him.

Terrell Walker, 19, of Irvington, and Malcolm Smith, 20, of Newark were indicted for a Nov. 26, 2012, carjacking in Newark. In addition to carjacking they are charged with aggravated assault and robbery. Walker is also charged with committing another carjacking in Newark on Dec. 19, 2012.

An 11-count indictment was returned charging Donald Moore, 19, of Newark, Messiah Arrington, 19, of Newark, and Magid Wheeler, 18, of Newark with various crimes related to a Jan. 6, 2013, carjacking. Wheeler and Arrington were involved in the carjacking of a 2013 Honda Accord. Three days later Moore fled in the same Honda, resulting in a police chase.

 The U.S. Attorney’s Office has been working with investigators and prosecutors at the federal, state and local levels to select carjacking cases that are appropriate for federal prosecution. Since the formation of the anti-carjacking task force, the U.S. Attorney’s Office has prosecuted 37 defendants. Last month, the U.S. Attorney’s Office announced charges against five Essex County men for carjacking and related crimes.

Significant sentences arising out of federally prosecuted carjackings, and at which federal Bureau of Prisons facility those convicted are serving their time, include:

• Jahlil Thomas (who is featured on one of the billboards), 262 months; serving his sentence in Beaver, W.Va.
• Jerome Conover, 181 months; Ray Brook, N.Y.
• Taj Elliot, 147 months, Coleman, Fla.
• Amonra Jackson, 120 months, Beaumont, Texas.
• Alhakim Young, 130 months, Inez, Ky.
• Jermaine May, 118 months, Bruceton Mills, W. Va.
• Jirrod Parker, 150 months, Inez, Ky.

The federal charge of carjacking or attempted carjacking carries a maximum potential penalty of 15 years in prison; 25 years in prison if serious bodily injury results; and life in prison or the federal death penalty if death results. Using a firearm in furtherance of a crime of violence carries a minimum consecutive term of five years in prison if a firearm is possessed, seven years in prison if a firearm is brandished, 10 years in prison if a firearm is discharged and a maximum of life in prison. Each of these charges also carries a maximum $250,000 fine. There is no parole in the federal system.

“We are encouraged by this partnership of federal, state and local law enforcement to combat carjacking in our communities,” Murray said. “Our goal is to let carjackers know that we take these crimes very seriously and that the penalties they will face are considerable.”

“In addition to putting would-be criminals on notice, we want to alert the public to be cautious,” Prosecutor Murray said. “Don’t leave the keys in your car even to run in and drop the baby off at the babysitter’s. Don’t leave your doors unlocked as you drive around. Be alert. Be smart,” she added.

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Carjacking billboard - green cell
Carjacking Billboard - Parking Spot - Hallway
Carjacking Billboard - Seconds Years

NEWARK, N.J. – Five members of a massive, international counterfeit goods conspiracy have pleaded guilty to their roles in the scheme, U.S. Attorney Paul J. Fishman announced.

Yi Jian Chen, 53,  and Hui Huang, 33, both of Brooklyn; and Ning Guo, 40, of People’s Republic of China, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to informations charging them each with one count of conspiracy to traffic in counterfeit goods. Guo also pleaded guilty to one count of money laundering conspiracy.

Jian Zhi Mo, 45, of Flushing, N.Y. and Yuan Feng Lai, 28, of New York City, pleaded guilty on August 12, 2013, before Judge Salas in Newark federal court to informations charging them each with one count of conspiracy to traffic in counterfeit goods.

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

From August 2008 through February 2012, the defendants ran an international counterfeit goods smuggling and distribution conspiracy. The defendants and others imported more than 35 containers of counterfeit goods – primarily cigarettes, handbags, and sneakers – into the United States from China in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.

The conspirators sought help in importing counterfeit goods into the United States and used a corporation to import the goods through Port Newark-Elizabeth Marine Terminal in Elizabeth, N.J.  This corporation was actually a front company set up by law enforcement to act as an importer. The conspirators imported the counterfeit goods using fraudulent customs paperwork, which, among other things, falsely declared the goods within the containers.

Certain conspirators controlled the importation of the counterfeit goods into the United States.  Some conspirators managed the distribution of counterfeit goods once they arrived in the United States.  Others paid individuals they believed controlled an importation company with connections at the port. In fact, these individuals were undercover law enforcement agents.

Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. A number of conspirators, including Guo, also engaged in a money laundering conspiracy to disguise and conceal the source of what they believed to be the profits of certain unlawful activity, moving this money through banks in the United States, China, and elsewhere, to disguise the sources of the laundered funds.

Law enforcement introduced several undercover special agents to the conspirators. These undercover agents purported to have connections at the port, which allowed them to obtain containers that were on hold, get them released and pass them through to the conspirators. The conspirators paid the undercover agents more than $900,000 for these “services.”

Undercover agents recorded dozens of phone calls and in-person meetings with various conspirators.  The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.

Roles of the Individual Defendants

• Ning Guo’s primary role in both conspiracies was to transport and store imported counterfeit merchandise for the conspirators after it arrived at the port. He was also involved in the actual importation of the goods from China. Guo communicated with the undercover agents in numerous recorded calls and meetings about importing counterfeit goods from China and clearing the goods through customs.  Guo was also involved in an international money laundering scheme through which he and others laundered the proceeds of the counterfeit goods smuggling scheme.

• Jian Zhi Mo was introduced by Guo to an undercover agent in March 2011. Mo then began to meet regularly with undercover agents to provide false and fraudulent Customs paperwork to the agents relating to shipments of counterfeit goods. Mo also received counterfeit goods from undercover agents and transported the goods to locations controlled by other conspirators. Mo also paid the undercover agents hundreds of thousands of dollars as their “fees” for clearing the containers of counterfeit goods through customs.

• Yi Jian Chen was introduced to an FBI undercover agent in August 2010 by a conspirator, who said he wanted to import a container of counterfeit sneakers. A conspirator provided fraudulent customs paperwork to the agents and set up the delivery of a container of counterfeit goods to one of his customers. The buyer turned out to be defendant Chen. The agents engaged in several recorded conversations with Chen. At one of these meetings, Chen and Guo met with undercover agents in Linden, N.J., and Guo provided, on behalf of Chen, approximately $32,000 to ensure the counterfeit goods would be released from the port and delivered to a warehouse controlled by conspirators.

• Hui Huang was introduced to an FBI undercover agent in November 2011 by Chen. Huang subsequently had the agents clear two containers of counterfeit goods for Huang and a conspirator.

• Yuan Feng Lai provided undercover agents with cash and fraudulent customs paperwork to smuggle counterfeit goods into the United States. Lai also accepted money from the undercover agents, delivered it to money launderers and acted as a warehouse manager for one of the warehouses run by Guo.

The conspiracy to traffic in counterfeit goods count to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $2 million. The money laundering count to which Guo pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $500,000 or twice the gain or loss caused be the offense. Sentencing for Mo and Lai is scheduled for Nov. 25, 2013. Sentencing for Guo, Chen and Huang is scheduled for Nov. 25, 2013.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, for the investigation leading to this week’s guilty pleas.

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.

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Defense counsel: Guo: Richard Willstater Esq., White Plains, N.Y.
Chen: Jean Barrett Esq., Montclair, N.J.
Huang: Edgar Fankbonner Esq., New York
Mo: Stephen Dratch Esq., Livingston, N.J.
Lai: Peter Carter Esq., Assistant Federal Public Defender, Newark

Guo Information
Chen Information
Huang Information
Mo Information
Lai Information