District of New Jersey

NEWARK, N.J. – A federal grand jury today returned an indictment charging an Elizabeth, N.J., man with a series of gunpoint bank robberies throughout New Jersey, U.S. Attorney Paul J. Fishman announced.

Claude Williams, 61, was charged with six bank robberies and two counts of using a firearm in furtherance of a crime of violence when he was arrested in July 2012. Today’s indictment adds multiple counts, and Williams now faces one count of conspiracy to commit bank robbery, seven counts of bank robbery, one count of attempted bank robbery and eight firearms counts in connection with the alleged robbery spree. Williams will be arraigned on the indictment on a date to be determined.

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

Between Sept. 26, 2011, and July 30, 2012, Williams committed seven armed bank robberies and attempted to rob an eighth bank. He used a similar procedure for each robbery: after entering the bank armed with a handgun and wearing a bandana, hooded sweat shirt or jacket and white gloves, Williams would vault over the counter and demand money from bank tellers at gunpoint.

Williams robbed, or attempted to rob, the following banks:

Date

Bank

Location

Financial Resources Federal Credit Union
 

Somerset, N.J.

Nov. 21, 2011

Somerset Savings Bank
 

Somerville, N.J.

Feb. 27, 2012

Provident Bank
 

Piscataway, N.J.

April 17, 2012

Provident Bank
 

Clifton, N.J.

May 22, 2012

Provident Bank
 

Piscataway, N.J.

June 20, 2012

Fulton Bank
 

Metuchen, N.J.

July 12, 2012

Unity Bank
 

Middlesex, N.J.

July 30, 2012

Unity Bank

North Plainfield, N.J.

In several of the bank robberies, Williams sent a conspirator into the bank to case it shortly before he entered to commit the robbery.

Prior to the July 12, 2012, robbery, an unarmed, off-duty police officer was parked across from the Unity Bank. The officer observed Williams leave the bank, get into the rear of the getaway car, and crouch down to hide. After noting the license plate number, the officer followed the car.

After an unsuccessful attempt to elude the officer, the getaway car stopped. Williams got out of the car and pointed his gun at the officer, forcing the officer to leave the scene without apprehending Williams and his accomplice.

Later, on Friday, July 27, 2012, and Saturday, July 28, 2012, law enforcement observed Williams driving in the vicinity of a Unity Bank in Somerset, N.J. On July 30, 2012, law enforcement again observed Williams and accomplice Andrea Dorsey – who has since pleaded guilty to her involvement in some of the robberies – in the vicinity of the bank. Law enforcement stopped the car blocks from the bank and arrested Williams and Dorsey, finding a handgun and white gloves inside the car.

Each of the bank robbery charges carries a maximum potential penalty of 25 years in prison. The attempted bank robbery charge carries a maximum potential penalty of 20 years in prison. The first of the eight counts of using a firearm in furtherance of a crime of violence carries a mandatory minimum penalty of seven years and a maximum of life in prison; each additional count carries a mandatory minimum penalty of 25 years and a maximum of life in prison. Each charge 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 Somerset County Prosecutors Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.

The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division 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: Assistant Federal Public Defender Peter Carter Esq., Newark                           

Williams Indictment

TRENTON, N.J. - A Rahway, N.J., man who was the vice principal at Carteret High School was sentenced today to 37 months in prison for possessing child pornography, U.S. Attorney Paul J. Fishman announced.

Nicholas Sysock, 54, previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of possession of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.

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

Between May 2008 and March 2011, Sysock purchased from a company in Canada numerous DVDs that contained video recordings of child pornography. During a search of Sysock’s residence in October 2012, federal investigators found these DVDs and also found printed images featuring naked children. Sysock was arrested the same day. At the time of his arrest, Sysock was the vice principal of Carteret High School.    

In addition to the prison term, Judge Cooper sentenced Sysock to five years of supervised release, with monitored computer use, mental health treatment and restrictions on contact with children.

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

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: Carol Gillen Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A Sussex County, N.J., man today admitted luring a teenage boy to Pennsylvania for sex, as well as downloading and receiving child pornography on his home computer, U.S. Attorney Paul J. Fishman announced.         
                                             
Robert Mucha, 57, of Newton, N.J., pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to one count of enticing a minor to engage in criminal sexual activity and one count of receiving child pornography.
                                       
Mucha was arrested in his home on July 26, 2012.  He was charged at the time with a single count of possessing child pornography and has been detained by law enforcement since then.
According to documents filed and statements made in court:

In October 2010, Mucha convinced a teenage boy to travel from New Jersey to Pennsylvania to spend the day with him and then sleep over at Mucha’s apartment in Stroudsberg, Pa. After he was arrested in July 2012, Mucha admitted to sexual contact with the teenager.

Prior to his arrest, Mucha worked as a volunteer Emergency Medical Technician in Andover, N.J.  He also previously taught band and Bugle Corps to teenagers in Belleville, N.J. and Lakewood, N.J.

The count of enticing a minor to engage in criminal sexual activity to which Mucha pleaded guilty is punishable by a minimum potential penalty of 10 years in prison and a maximum of life in prison and a $250,000 fine. Sentencing is currently scheduled for Nov. 19, 2013.

Today’s guilty plea is part of Operation Holitna, an ongoing HSI-led investigation that originated in Boston. U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s guilty plea. He also thanked the U.S. Attorney’s Office for the District of Massachusetts and the HSI Boston office.

HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or its online tip form at http://www.ice.gov/tips.  Both are staffed around the clock by investigators.  Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children at 1-800-843-5678 or http://www.cybertipline.com

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

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Defense counsel: Assistant Federal Public Defender Carol Gillen Esq., Newark

Mucha Information

CAMDEN, N.J. – An East Stroudsburg, Pa., couple admitted today to fraudulently obtaining at least $272,247 in student loan proceeds from Liberty University and American Public University by using stolen identities to have the money directed to addresses where they could intercept it, New Jersey U.S. Attorney Paul J. Fishman announced. 

Stephanie Mitchell, 36, and Ronzell Mitchell, 37, pleaded guilty to separate informations charging each with one count of conspiracy to commit mail fraud. They entered their guilty pleas before U.S. District Judge Renée Marie Bumb in Camden federal court.

According to documents filed in this case and statements made in court: From approximately Aug. 19, 2010, through March 21, 2012, the Mitchells fraudulently obtained U.S. Department of Education (ED) funds and converted them to personal use. Stephanie Mitchell regularly used a box at a UPS Store located in Montvale, N.J., that was opened using the name and driver’s license of another person. The pair then contacted online universities Liberty and American and posed as students for whom student loans had been issued, causing the proceeds of numerous credit balance checks and debit cards to be redirected to the UPS Store and a vacant house located in Stroudsburg, Pa.

During their guilty plea proceedings, Stephanie and Ronzell Mitchell admitted several specific instances in which they redirected student loans intended for others to addresses they controlled. Through this method, the Mitchells obtained approximately $272,247 in ED funds to which they were not entitled.

The count to which the Mitchells pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss caused by their offenses. Sentencing is currently scheduled for Nov. 18, 2013.

U.S. Attorney Fishman credited special agents of the ED Office of the Inspector General, Northeastern Regional Office, under the direction of Special Agent in Charge Brian Hickey; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates, and special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Field Office, with the investigation.

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

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Defense counsel: Ronzell Michell: Paul Brickfield Esq., River Edge, N.J.
Stephanie Mitchell: Susan Cassell Esq., Ridgewood, N.J.

Mitchell, Ronzell Information
Mitchell, Stephanie Information

NEWARK, N.J. – A Newark man today admitted his role in a shotgun carjacking in Little Falls, N.J., on Oct. 30, 2011, U.S. Attorney Paul J. Fishman announced.

Hanzah Darby, 24, pleaded guilty to an indictment charging him with one count of theft of a motor vehicle by force, violence, and intimidation and one count of use of a firearm in furtherance of a crime of violence. He entered his guilty plea before U.S. District Judge Susan D. Wigenton in Newark federal court.

According to documents filed in this case and statements made in court: During his guilty plea proceeding, Darby admitted that on Oct. 30, 2011, he and another individual were in the Little Falls area when they spotted a parked 2008 BMW 335 with passengers inside. Darby and his conspirator  – who allegedly brandished a shotgun – approached the car and ordered the occupants out of the vehicle at gunpoint.

Ivan Lee, 25, of Newark, is charged with Darby in the indictment, and the charges against him remain pending. 

Darby and Lee then took the car and fled the area. Law enforcement officers recovered the car in Newark on Nov. 7, 2011. Darby was standing next to it at the time.

The carjacking charge to which Darby pleaded guilty carries a maximum potential penalty of 15 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 any other prison term. Each of the two counts also carries a maximum $250,000 fine. Sentencing is currently scheduled for Nov. 18, 2013.

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, officers of the Little Falls Police Department, under the direction of Chief John Dmuchowski; the New Jersey State Police, under the direction of Colonel Rick Fuentes; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s plea.

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

As for Lee, the charges and allegations contained in the indictment against him are merely allegations, and the defendant is considered innocent unless and until proven guilty.

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Defense counsel: Timothy Donohue Esq., West Orange, N.J.

Darby, Hanzah et al. Indictment

NEWARK, N.J. – A Monmouth County, N.J. man pleaded guilty today to his role 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.

Len Rubinstein, 42, of Holmdel, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with conspiring to violate the Anti-Kickback Statute and the Travel Act, and with money laundering, and making cash payments of thousands of dollars to doctors on behalf of BLS.

Rubinstein is the 14th individual to plead guilty in connection with BLS’s sophisticated 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.

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

On April 9, 2013, federal agents arrested David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and 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. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo.  In June, David and Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to charges related to their involvement.  Santangelo pleaded guilty last month to charges relating to his role in the scheme.  Ten employees or associates of BLS, and four physicians have pleaded guilty to their roles in the bribery scheme.

From May 2012 through April 2013, Rubinstein agreed with the Nicolls and others to pay doctors to refer patients to BLS for testing of blood specimens. He paid cash bribes to doctors as part of the conspiracy. Rubinstein admitted he used Delta Consulting Group LLC – an entity he controlled – to hide the money he received from BLS and used to make bribe payments to doctors.

Rubinstein faces a maximum potential penalty of five years in prison and a $250,000 fine on the bribery conspiracy charge and 20 years in prison and a $500,000 fine on the money laundering charge, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 12, 2013. He has also agreed to forfeit $250,000.  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 Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom 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 plea.

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

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Defense counsel: Charles Uliano Esq., West Long Branch, N.J.

Rubinstein Information

NEWARK, N.J. – A Monmouth County, N.J., man is expected to appear in federal court today on charges of tax evasion and failing to file federal personal tax returns on income derived from his ownership of a casino in Trinidad, resulting in a $1 million loss to the United States, U.S. Attorney Paul J. Fishman announced.

David Migliore, 50, of Brielle, N.J., was charged in a six-count indictment returned Aug. 1, 2013, by a federal grand jury in Newark charging him with three counts of tax evasion and three counts of willfully failing to file personal tax returns relating to tax years 2009, 2010, and 2011. Migliore surrendered this morning to special agents of IRS-Criminal Investigation and is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.

According to the indictment unsealed today:

Migliore owned several limited liability corporations in New Jersey, including Brielle Investment LLC; Brielle Investments & Management Co. LLC; and La Soufriere Maritime Inc.  Migliore also owned Island Club casino in Trinidad and had authority over foreign bank accounts in Trinidad.

From 2009 to 2011, Migliore earned significant income from Island Club Casino, resulting in taxes due totaling more than $1 million. Migliore allegedly took steps to conceal his income and assets from the IRS, including: using unreported bank accounts in Trinidad to deposit personal income; using U.S. bank accounts in the names of his limited liability corporations and business entities to receive personal income from Island Club casino in Trinidad; using limited liability corporations and business entities to pay for personal expenses in New Jersey and elsewhere; placing personal property in the names of limited liability corporations and business entities; directing income from Island Club Casino in Trinidad to be transferred directly to vendors in the United States to pay for his personal expenses; directing employees of Island Club Casino to send his income from the casino to individuals in New Jersey via Western Union for his benefit; and directing individuals to pick up cash, which was income attributed to him, from Western Union offices in New Jersey.

Each count of tax evasion is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Each count of failing to file tax returns is punishable by a maximum potential penalty of one year in prison and a $100,000 fine.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees in Newark; law enforcement officers from the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Christopher J. Gramiccioni; and police officers from Wall Township Police Department, under the direction of Chief Robert Brice, with the investigation leading to the indictment.

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

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: Robert Weir Esq., Red Bank, N.J.

Migliore Indictment

NEWARK, N.J. – A former Newark police officer was sentenced today to three months in prison for conspiring with another person to fraudulently obtain payments under the federal public housing assistance program known as “Section 8,” U.S. Attorney Paul J. Fishman announced.

Suliaman Kamara, 32, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of agreeing with another individual to obtain Section 8 public housing benefits to which they were not entitled. 

According to documents filed in this case and statements made in court: The Section 8 Program is a federal public housing assistance program administered by the U.S. Department of Housing and Urban Development. It provides rent subsidies to qualified low-income individuals. HUD provided federal grant money to the Newark Housing Authority (NHA) for the Section 8 Program. Under the NHA’s Section 8 Program, a tenant’s rental assistance was based upon the tenant’s anticipated family gross income. Tenants receiving Section 8 assistance from the NHA had to inform the Newark Housing Authority of all the members of the household and the annual household income.

From September 2006 to December 2011, Kamara, then a Newark police officer, lived in Newark with another individual (identified in court papers as “S.L.”) who was receiving Section 8 benefits. For most of that time they lived in a property owned by Kamara. They agreed they would not disclose to the NHA that they were living together so that Kamara’s income would not be taken into account in determining whether S.L. qualified for Section 8 benefits. Kamara and S.L. submitted fraudulent information and documents to the NHA in which they failed to disclose that Kamara lived with S.L. and was earning household income. Kamara and S.L. obtained more than $60,000 in Section 8 benefits to which they were not entitled.

In addition to the prison term, Judge Wigenton sentenced Kamara to two years of supervised release.

U.S. Attorney Fishman credited special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, for the investigation of this case.

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

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Defense counsel: Anthony Iacullo Esq., Nutley, N.J.

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

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

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

Rose admitted distributing images of child pornography via email using a computer located in his residence in February 2010. He also admitted to possessing more than 600 images of child pornography on his computer, which was seized from his residence in February 2012. Rose acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors posing in a sexually explicit manner. Rose was previously charged by complaint with distribution of child pornography in September 2011and has been free on bail since his arrest.

The count to which Rose pleaded guilty is punishable by a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years’ supervised release and a $250,000 fine. Sentencing is scheduled for Dec. 2, 2013.

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

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

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

Rose Information

CAMDEN, N.J. – The president, operator and manager of Harry Klause Cars and Trucks Inc., in Ocean City, N.J., admitted today to perpetrating a scheme to defraud automotive loan lenders and customers who traded in and bought vehicles at his dealership, U.S. Attorney Paul J. Fishman announced.

Harry Klause, 64, of Ocean City, N.J., pleaded guilty to an information charging him with wire fraud. He entered his guilty plea before U.S. District Judge Robert B. Kugler in Camden federal court.

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

Klause purchased trade-in vehicles from customers of his auto dealership and applied the purchase price against the price of vehicles those customers bought from the dealership. Though Klause agreed to pay off any existing loan the customers had on the trade-in vehicles, he didn’t do so in a timely way, causing damage to the customers’ credit scores. Klause then sold trade-in vehicles to other customers even though he had neither paid off the loans nor gotten the vehicle titles from the lenders.

Klause steered the buyers of the trade-in vehicles to various lenders to finance the purchases, but didn’t immediately – or ever – send the titles to those lenders. If a customer stopped paying a car loan, the lender would be without recourse to repossess the vehicle.

During his guilty plea proceeding, Klause admitted specific acts of fraud concerning individual transactions.

The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing before Judge Kugler is currently scheduled for Nov. 15, 2013.

U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the guilty plea. He also thanked the Northfield, N.J., Police Department, under the direction of Chief Robert James; and the New Jersey Motor Vehicle Commission, Business Licensing Investigative Unit, under the direction of Investigator Thomas Bramley, for their assistance.

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

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Defense counsel: William J. Hughes Jr., Esq., Atlantic City, N.J.

Klause Information

Christopher Seufert, 32, of Brick, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of possession of child pornography. Judge Cooper imposed the sentence today in Trenton federal court.

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

Seufert admitted he possessed more than 600 images of child pornography on a computer located in his residence in March 2010. He admitted using his America Online email account to send some of the images to himself and store them. Seufert acknowledged that among the images he possessed were images which depicted minors engaging in sexually explicit conduct with other minors and adults, including material portraying sadistic or masochistic conduct or other depictions of violence. The criminal images were brought to the attention of law enforcement by a tip from America Online.

In addition to the prison term, Judge Cooper sentenced Seufert to five years of supervised release with computer monitoring and restricted contact with minors. He must also register as a sex offender.   

U.S. Attorney Fishman credited special agents of the Newark FBI’s Child Exploitation Taskforce and credit, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and the N.J. State Police Internet Crimes Against Children Taskforce, under the direction of Col. Rick Fuentes, with the investigation leading to today’s sentence.

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

Defense Counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, Trenton

NEWARK, N.J. – A paralegal today admitted participating in a long-running, large-scale mortgage fraud scheme that defrauded financial institutions of at least $2 million, U.S. Attorney Paul J. Fishman announced.

Linda Cohen, 55, of Orange, N.J., pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of conspiring to commit bank fraud and one count of transacting in criminal proceeds.

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

Cohen worked as a paralegal who handled real estate closing for S.B., an attorney licensed in New Jersey. Cohen acted as the settlement agent for fraudulent mortgage loans brokered by conspirator Klary Arcentales, 45, of Lyndhurst, N.J., on behalf of Premier Mortgage Services. As closing agent, Cohen furthered the scheme by convening closings, receiving funds from lenders, and preparing “HUD-1” reports that purported to reflect the sources and destinations of funds for mortgages on subject properties. Those HUD-1s were neither true nor accurate. Cohen routinely certified HUD-1s in which she purported to have received a down payment from the buyer when no down payment had been made. At or following the closings, Cohen disbursed mortgage loan proceeds directly to Premier Mortgage Services, Arcentales, and other conspirators. Cohen created shell bank accounts into which she funneled the proceeds of her fraudulent activity.

The count of conspiracy to commit bank fraud to which Cohen pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine, and the count of transacting in criminal proceeds is punishable by a maximum penalty of 10 years in prison and a fine of $250,000 or twice the gross amount of any gain or loss. Sentencing is scheduled for Nov. 18, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and 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. He also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its role in the investigation.

The government is represented by Assistant U.S. Attorneys Zach Intrater and Rahul Agarwal of the Newark office.

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: Brian Daly Esq., Middletown, N.J.

Cohen, Linda Information

NEWARK, N.J. – Two North Jersey men admitted today they used stolen identities to file tax returns and claim refunds to which they were not entitled, U.S. Attorney Paul J. Fishman announced.

Alidu Dramani, 33, of Irvington, N.J., and Evans Boamah, 30, of Elizabeth, N.J., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to informations charging them with conspiring to make false claims against the United States.

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

Dramani and Boamah were employed at the North Jersey Developmental Center in Totowa, N.J., a mental health institution operated by the State of New Jersey. Using their access to patient information, the defendants stole names and Social Security numbers of patients at the center. They then provided the stolen identity information to another conspirator for use by a tax preparer to file false tax returns under those stolen identities to get federal tax refunds to which they were not entitled. As a result of the defendants’ participation in the conspiracy, tax preparers filed, attempted and intended to file false tax returns for the tax years 2009 through 2011 seeking $396,416 in tax refunds.

The count of conspiracy to defraud the government to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the pecuniary gain or loss from the offense. Sentencing is scheduled for Nov. 13, 2013.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes 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: Dramani: Peter W. Till Esq., Springfield, N.J.
Boamah: Stephen Wellinghorst Esq., Hackensack, N.J.

Dramani Information
Boamah Information

TRENTON, N.J. – Two members of the “Aryan Terror Brigade” white supremacist group were sentenced to prison today for their roles in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.

U.S. District Judge Joel A. Pisano sentenced Michal Gunar, 29, of East Windsor, N.J., to 33 months in prison. Gunar previously pleaded guilty to an indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act. Judge Pisano sentenced Kyle Powell, 24, of West Collingswood, N.J., to 15 months in prison. Powell previously pleaded guilty to an information charging him with conspiracy to commit a hate crime assault.

According to documents filed in this case and statements made in Trenton federal court: Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Powell and Christopher Ising, 31, of Waretown, N.J., drove to an apartment complex in Sayreville with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. At his guilty plea proceeding, Gunar admitted he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.

Ising, a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same indictment and charges as Gunar. He is scheduled to be sentenced on Aug. 9, 2013.

In addition to the prison terms, Judge Pisano sentenced Gunar and Powell 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 Aaron T. Ford; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, Criminal Investigations, Newark Field Office; and detectives from the N.J. State Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, with the investigation.

The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division in Washington.

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CAMDEN, N.J. – A Gloucester County, N.J., man was indicted today by a federal grand jury in Camden for allegedly exploiting two minor boys and for possessing, receiving and distributing images of child sex abuse, U.S. Attorney Paul J. Fishman announced.

Gerrett Conover, 48, of Woolwich Township, N.J., a former Boy Scout troop leader, was charged by complaint in September 2012 with one count of receiving images of child sex abuse over the Internet and has been held in federal custody since that time. Today’s indictment charges two counts of the sexual exploitation of children, 10 counts of the receipt or distribution of images of child pornography and one count of possession of additional images of child pornography.

According to the indictment returned today and other documents filed in this case: On Sept. 16, 2012, Conover was intercepted at the United States border coming from Canada into New York and was found in possession of a laptop computer containing images of child pornography. Federal agents obtained a search warrant for Conover’s home in Woolwich Township, and seized various computers and computer related media containing additional images of child sexual abuse, chats and emails.

The count of child exploitation with which Conover is charged is punishable by a maximum potential penalty of 30 years in prison, with a mandatory minimum penalty of 15 years in prison, and a $250,000 fine per count. Conover faces a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine for each count of distribution of child pornography. The possession count is punishable by a maximum potential penalty of 10 years in prison, and a $250,000 fine. Conover will be arraigned on the indictment at a later date.

U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McClees, with the assistance of HSI Offices in Boston, Mass.; Messina, N.Y.; and Los Angeles and San Bernardino, Calif.; and Customs and Border Protection in Ogdensburg, N.Y., with the investigation.

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

The charge 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: Jerome M. Brown Esq., Philadelphia

Conover Indictment

NEWARK, N.J. – A New York man who participated in one of the largest credit card fraud schemes ever charged by the Justice Department today admitted his role in the scheme, the fourth conspirator to do so in a two-week period, New Jersey U.S. Attorney Paul J. Fishman announced.

Muhammad Shafiq, 39, of Bellrose, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud. Vernina Adams, 31, of Philadelphia and Raghbir Singh, 57, of Hicksville, N.Y., pleaded guilty on July 31, 2013, to separate informations charging the same offense. Mohammad Khan, 49, of Staten Island, N.Y., pleaded guilty on July 24, 2013, to an information charging conspiracy to defraud the United States.

According to documents filed in this case and statements made in court: Shafiq, Adams, Singh and Khan 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; then run up large loans.

The scope of the criminal fraud enterprise required Shafiq, Adams, Singh, Khan 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.

During their guilty plea proceedings, Shafiq, Singh and Khan 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, with Khan admitting to personally using the cards.

Adams and her conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud.

During her plea proceeding, Adams admitted advertising on Craigslist for individuals willing to add someone onto their credit cards. She also admitted selling other members of the conspiracy fraudulent “tradelines,” including by working with Acapulco Jewelry, a complicit business in California. Adams would extend a fictitious line of credit to a false identity, backdate the line of credit so it appeared to have existed for a longer period of time, then falsely report the line of credit had been paid.

The count to which Shafiq, Adams and Singh pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. The count to which Khan pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.

Each defendant is scheduled for sentencing by U.S. District Judge Anne E. Thompson in Trenton, N.J.: Shafiq on Nov. 14, 2013; Adams and Singh on Nov. 7, 2013; and Khan 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 Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture 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: Muhammad Shafiq: Joseph Horn Esq., Rutherford, N.J.
Vernina Adams: Todd E. Henry Esq., Philadelphia
Raghbir Singh: David E. Levine Esq., Brooklyn, N.Y.
Mohammad Khan: Stephan Mahler Esq., Kew Gardens, N.Y.

Shafiq Information
Adams Information
Singh Information
Khan Information

NEWARK, N.J. – Five Newark residents are charged as players in a conspiracy to sell heroin and prescription pills out of a retail store in the city, U.S. Attorney Paul J. Fishman announced.

Lamont Vaughn, 30; Jarez Barron, 25; Theresa Barron, 24; Latoyia Vaughn, 29; and Felicia Holt, 27, are each charged by complaint with two counts: conspiring to distribute and possess with intent to distribute heroin and oxycodone. Federal agents arrested four of the defendants this morning at their homes. Latoyia Vaughn, Lamont Vaughn’s sister, remains at large.

Agents seized two firearms from Lamont Vaughn’s home, where they found him attempting to flush what appeared to be drugs down the toilet. Holt allegedly threw drugs out the window of her home as she fled from law enforcement, but was apprehended a short time later.

The arrested defendants are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Cathy Waldor in Newark federal court.

For at least a year beginning in August 2012, the defendants allegedy worked together to sell heroin and prescription pills out of a retail store in Newark. According to the complaints, they were observed and recorded by law enforcement discussing business hours and inventory and dealing bricks of heroin as well as Endocet – which they referred to as “bananas” – and other pills.

The conspiracy to distribute heroin count carries a maximum potential penalty of 40 years in prison, a minimum term of five years in prison, and a maximum fine of $5 million. The conspiracy to distribute oxycodone count carries a maximum potential penalty of 20 years in prison and a $1 million fine.

U.S. Attorney Fishman praised special agents and officers of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, as well as the New Jersey State Police Street Gangs North Unit with the investigation leading to the arrests.

The government is represented by Senior Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office Criminal Division in Newark.

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

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Vaughn, Lamont et al. Complaint
Holt Complaint

TRENTON, N.J. – A Hudson County, N.J., man today admitted his role in bid-rigging in order to fraudulently obtain U.S. Department of Housing and Urban Development grant funds from the City of Bayonne, N.J., U.S. Attorney Paul J. Fishman announced.

Leo Viguie, 38, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of theft of government funds totaling $40,000.

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

Viguie was the owner of L.V. Renovations LLC, a general contracting company in Bayonne. The City of Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department Housing and Urban Development under a federal program that provided grants of up to $20,000 to low income families to rehabilitate their homes and to repair conditions that were considered to affect their health and safety, and their homes’ accessibility, energy efficiency or code compliance.

In September 2011, Viguie, as the owner of L.V. Renovations, LLC, caused another contractor to provide Viguie with a bid that was higher than his own for the purpose of obtaining HUD grant funds from the City of Bayonne. Viguie then submitted the other contractor’s bid along with his own to the CBDCD. As a result of Viguie colluding with the other contractor and submitting the two bids, Viguie wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Sept. 29, 2011.

In December 2011, Viguie supplied another contractor with a bid on behalf of L.V. Renovations that was higher than the other contractor’s bid for the purpose of obtaining HUD grant funds from the City of Bayonne. The other contractor then submitted the two bids to the CBDCD. As a result of Viguie colluding with the other contractor who then submitted the two bids, the other contractor wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Dec. 28, 2011.

The theft of government funds charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is currently scheduled for Dec. 4, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent In Charge Aaron T. Ford in Newark, special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, and special agents of the IRS, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Newark office.

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Defense counsel: Genesis A. Peduto Esq., North Bergen, N.J.

Viguie Information

NEWARK, N.J. – Two pharmacists – twin brothers who previously owned the West Orange Pharmacy – today admitted reaping at least $1.5 million in illicit gains by defrauding patients, Medicaid and insurance companies over the past 15 years, U.S. Attorney Paul J. Fishman announced.

Robert Carlucci, 69, and William Carlucci, 69, both of Florham Park, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer to separate informations charging them with conspiring to commit health care fraud.

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

Robert Carlucci, William Carlucci, and another conspirator (identified as “L.S.” in the charging documents) participated in a variety of schemes designed to cheat customers and bilk insurance companies out of at least $1.5 million.

They used a practice they referred to as “TRADE-QUICK” to under-fill prescriptions.  Each letter in “TRADE-QUICK” corresponded to a number, beginning with “T” for “1” through “K” for “0.” The conspirators would enter a two-letter code into the West Orange Pharmacy computer system that indicated how much of the prescription they intended to fill. The code “QK” indicated that a prescription for 90 dosage units would instead be filled with 60 dosage units, because the “Q” stood for the number “6” and the “K” stood for the number “0.” After under-filling the prescription, the co-conspirators billed Medicaid and other insurance companies for the fully filled prescription.

Without informing the patients, the conspirators substituted generic drugs for the brand-name drugs prescribed by the patients’ physicians. Then they billed Medicaid and other insurance companies for the full amount of the brand-name drugs. The co-conspirators entered the prescribing physicians’ phone numbers into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.

The conspirators also filled outstanding refills on a given prescription without the patients’ knowledge and then billed Medicaid and the private insurers for the refills. They entered a dot (“.”) into the West Orange Pharmacy computer system as a code to indicate that they were utilizing this particular scheme.

The conspirators would sometimes lose money on a given prescription. On those occasions, they looked through a patient’s profile and found additional costs that they could pass on to Medicaid and other insurance companies. They would submit bills for these additional costs, and they would enter the code “COV” into the West Orange Pharmacy computer system to reflect this scheme.

The conspirators purchased prescription drugs back from their customers and would reuse those drugs to fill other patient prescriptions. They billed Medicaid and other insurance companies for the full amount of the filled prescriptions.

The conspirators purchased prescription drugs from non-licensed wholesalers at a substantial discount to the drugs’ wholesale price, then dispensed these discounted drugs to patients and billed Medicaid and private insurers for the full costs associated with the drugs.

The health care fraud conspiracy charge to which Robert Carlucci and William Carlucci pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross gain or loss from the scheme. As part of their guilty pleas, the defendants are agreeing to pay restitution of $1.5 million. Additionally, Robert Carlucci is forfeiting $849,568 and William Carlucci is forfeiting $558,717. Sentencing for both is scheduled for Nov. 12, 2013.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl Kotowski; and special agents of the Food & Drug Administration’s Office of Criminal Investigations, under the direction of Mark Dragonetti, with the investigation leading to today’s guilty pleas. He also thanked the Elizabeth, Clinton, Toms River, West Orange, and Marlboro Police Departments, along with the Essex County Sheriff’s Department for their work on this case.   

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

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Defense counsel: Robert Carlucci: Ricardo Solano Esq., Newark

William Carlucci: Mark Berman Esq., River Edge, N.J.

Carlucci, William Information
Carlucci, Robert Information

NEWARK, N.J. – A Plainfield, N.J., woman admitted today to playing a role in three armed robberies of banks in Somerset and Middlesex, N.J., U.S. Attorney Paul J. Fishman announced.

Andrea Dorsey, 54, of Plainfield, N.J., pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging her with three counts of bank robbery.

According to documents filed in this case and statements made in court: Claude Williams, 61, of Elizabeth, N.J., was charged in July 2012 by superseding complaint with six counts of bank robbery and two counts of using a firearm in furtherance of a crime of violence. Those charges remain pending.

Williams would usually send an accomplice into banks shortly before robbing them. Dorsey admitted she went into banks to gather information for Williams about how many employees were working and served as the getaway driver during the armed robberies of the Financial Resources Federal Credit Union located in Somerset, N.J., on Sept. 26, 2011, and the Somerset Savings Bank located in Somerville, N.J., on Nov. 21, 2011.

Williams and Dorsey were arrested on July 30, 2012, blocks from a Unity Bank in Somerset. Williams was wearing a bandana and law enforcement found a handgun and white gloves in the car.

Dorsey faces a maximum potential penalty of 25 years in prison and a $250,000 fine, or twice the gain or loss from the offense, on each of the three counts. Sentencing is currently scheduled for Oct. 30, 2013.

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

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Somerset County Prosecutor’s Office and the Middlesex Borough, Piscataway, Clifton, Metuchen, North Plainfield and Plainfield Police Departments for their excellent work.

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

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Defense counsel: Anthony J. Iacullo Esq., Nutley, N.J.

Dorsey, Andrea Information

NEWARK, N.J. – Two men were arrested by federal agents early this morning in Akron, Ohio, for conspiracy to defraud an aviation company out of charter flights and other businesses out of services and luxury goods, U.S. Attorney Paul J. Fishman announced.

Dante G. Dixon, 45, of Miami, Fla., and Christopher L. Henderson, 32, of Akron, Ohio, were charged by Complaint with conspiracy to commit wire fraud. They made their initial court appearances before U.S. Magistrate Judge Kathleen Burke in Akron federal court and were ordered held until they can be transported to New Jersey.

According to the Complaint:

From May 2013 through June of 2013, Dixon and Henderson and others allegedly conspired to fraudulently obtain at least four private charter flights from Jet Aviation, an international business aviation service with its United States’ headquarters in Teterboro, N.J. Dixon, Henderson and others also conspired to obtain tens of thousands of dollars in other luxury goods and services, all via sham lines of credit issued to a well-known financial institution for the defendants and others’ use, by misrepresenting that they and others were employees at the financial institution.

On May 5, 2013, an individual using the name “Josh Stevens” called Jet Aviation’s offices in Chicago, Ill., and Van Nuys, Calif., to inquire about its private charter flight services. That individual identified himself as being employed as a senior vice president at a well-known financial institution and provided an email address purporting to be affiliated with the financial institution. It was later determined that this email address was not, in fact, affiliated with the financial institution. A Jet Aviation employee sent an email to the provided email address. The email from Jet Aviation contained a draft Charter Services Agreement, which was signed by “Josh Stevens” and returned to Jet Aviation on May 9, 2013. The Agreement falsely listed “Josh Stevens” as a senior vice president, Dixon as a vice president, and Henderson as a vice president of international affairs at the well-known financial institution.

On May 21, 2013, based on the false information provided by “Josh Stevens,” a Jet Aviation employee created an account and a $350,000 line of credit for the defendants and others. The line of credit was in the name of the financial institution on behalf and for the use of the defendants and others. Dixon and Henderson and others used the sham line of credit to take at least four private charter flights.

On June 7, 2013, a Jet Aviation employee at Teterboro met Dixon and Henderson before they boarded their charter flight to Miami, Florida. During the meeting, the defendants identified themselves as being employees at the financial institution. The Jet Aviation employee then contacted the financial institution and was informed that Dixon and Henderson and others were not, and had never been, employees at the financial institution.

As a result of their misrepresentations to Jet Aviation, Dixon and Henderson and others fraudulently obtained private high-end charter flights and limousine car services, with a total value of $175,790. Jet Aviation never received payment from the defendants and others, or from the financial institution’s line of credit, for any of the services provided to the defendants and others, including the approximately $164,911 in charter flights and the approximately $10,879 in limousine services.

Dixon and Henderson and others made similar misrepresentations about their purported employment at the financial institution to other luxury service providers, including to a Tiffany & Co. store in Bal Harbour, Fla., and to The W South Beach Hotel in Miami, Fla. These misrepresentations resulted in the defendants and others fraudulently obtaining, via sham lines of credit with Tiffany and The W, approximately $19,991 in watches, sunglasses, sterling silver and leather business cardholders, and men’s cologne from Tiffany, and approximately $25,466 in overnight hotel stays at The W.

The investigation has revealed that the financial institution was not aware that Dixon and Henderson and others were using its corporate identity. As a result of their scheme, Dixon and Henderson and others fraudulently obtained more than $220,000 in luxury goods and services.

The charge of conspiracy to commit wire fraud with which the defendants are charged is punishable by a maximum potential penalty of 20 years in prison, and a maximum fine of $250,000 or twice the gain or loss resulting from the defendants’ crimes.

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 arrests.

The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes 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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Dixon-Henderson Complaint

NEWARK, N.J. – A Jersey City, N.J., police officer appeared in Newark federal court this afternoon to face charges that he stole more than 600,000 cigarettes from a trailer and conspired to rob $20,000 from a drug courier, U.S. Attorney Paul J. Fishman announced.

Mario Rodriguez, 39, of Jersey City, is charged by complaint with one count of cargo theft and one count of conspiracy to commit Hobbs Act extortion under color of official right. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on a $250,000 bond and confined to home incarceration with electronic monitoring. The complaint also charges Anthony Roman, 48, also of Jersey City, with the conspiracy. Roman was arrested at home Aug. 2, 2013, and appeared in court the same day. He was released on a $250,000 bond.

According to the complaint: The Cargo Theft

On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, N.J., to break into a trailer and steal cigarettes they planned to sell to the CI’s associate for $5,000. Law enforcement agents had parked the trailer there and established surveillance of the area.

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

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

The Extortion

On July 10, 2013, Rodriguez and the CI met in New Jersey with undercover law enforcement agents and discussed the possibility of robbing a drug courier – actually another undercover officer. Later that month, the group met again in Staten Island to discuss the plan. The undercover officers told Rodriguez the courier would be delivering cocaine to them that day in a Jersey City mall parking lot in exchange for a $20,000 payment, after which Rodriguez would steal the money. Rodriguez called Roman to help him with the robbery.

Rodriguez and Roman drove a Toyota RAV-4 truck to the location on July 24, 2013, where law enforcement agents had established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman robbed the woman they thought was a drug courier of the money after identifying themselves as law enforcement officers – which Roman is not – and pretending to arrest the CI.

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

The cargo theft and conspiracy to commit Hobbs Act Extortion charges carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry 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 in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to the charges. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.

The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs 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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Defense counsel: Mario Rodriguez: Brian J. Neary Esq., Hackensack, N.J.
Anthony Roman: Daniel Welsh Esq., Jersey City, N.J.

Rodriguez, Mario et al. Complaint

NEWARK, N.J. – Two Essex County, N.J., men were sentenced to prison today for the armed robbery of the Golden Palace jewelry store in Orange, N.J., U.S. Attorney Paul J. Fishman announced.

U.S. District Judge William J. Martini sentenced Antonio Moore, 45, of Newark, to 188 months in prison. Moore previously pleaded guilty to an indictment charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of that robbery. Judge Martini sentenced Charles Madison, 42, also of Newark, to 150 months in prison. Madison previously pleaded guilty to an information charging him with aiding and abetting the Hobbs Act robbery and for being a felon in possession of a firearm. A third defendant, David Williams, pleaded guilty in January 2013 and awaits sentencing.

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

On Aug. 6, 2012, Moore and Williams robbed the store at gunpoint, while Madison served as the getaway driver. During the robbery, Moore punched an employee of the Golden Palace in the head, restrained that employee and a co-worker with duct tape and telephone cord and took approximately $120,000 in jewelry from the store’s display cases. Law enforcement pulled over Madison’s pickup truck approximately an hour after the robbery and found dozens of pieces of gold jewelry scattered across the back seat of the truck.

In addition to the prison terms, Judge Martini sentenced each defendant 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 Aaron T. Ford in Newark, with the investigation. Fishman also thanked the Orange Police Department and the New Jersey State Police for their investigation and assistance.

The government is represented by Assistant U.S. Attorney Andrew J. Bruck and Chief David E. Malagold of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.

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Defense counsel: Moore: Mark A. Berman Esq., River Edge, N.J.
Madison: Michael V. Calabro Esq., Newark

CAMDEN, N.J. – A South Jersey man who hid his father’s death from authorities to continue getting his Social Security payments was sentenced today to 12 months in prison for stealing more than $200,000 in retirement savings benefits paid out to the deceased, U.S. Attorney Paul J. Fishman announced.

Michael Shelton, 66, of Pennsauken, N.J., previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of theft of government funds. Judge Simandle imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court: Shelton admitted that when his father died in March of 1990, he intentionally did not notify the Social Security Administration (SSA), as he was obligated to do, so that he could continue to receive his father’s SSA retirement checks. The SSA discovered the death in June of 2012, at which time the deceased was receiving $977 in monthly retirement benefits.

After his father had died, Shelton set up a direct deposit for the checks into a PNC Bank account in his father’s name. Shelton acknowledged he accessed that account at various times and used the money to pay for personal expenses. Shelton admitted that from March 1990 to July 2012, he collected $204,606 to which he was not entitled.

In addition to the prison term, Judge Simandle sentenced Shelton to three years of supervised release and ordered him to pay $204,606 in restitution to the Social Security Administration. Shelton was also ordered to pay restitution of $204,606.

U.S. Attorney Fishman credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, with 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: Thomas Young Esq., Assistant Federal Public Defender, Camden

TRENTON, N.J. – A former mortgage broker and bank officer was sentenced today to 12 months in prison for his role in conspiring to commit bank fraud in order to secure a $1.48 million residential real estate loan, U.S. Attorney Paul J. Fishman announced.

James Cockinos, 58, of Englewood Cliffs, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to commit bank fraud. Cockinos defrauded Washington Mutual Bank (later acquired by JPMorgan Chase) in New York, for the purpose of securing a $1.48 million residential loan. Judge Wolfson imposed the sentence today in Trenton federal court.

According to documents filed in this case and statements made in court: Cockinos was the owner/president of Federated Mortgage Company of America (FMCA). He was also a member of the Board of Directors at Mariner’s Bank. Cockinos, through FMCA, served as the mortgage broker on a residential loan with Washington Mutual Bank, F.A., in an application dated April 19, 2007. The borrower, identified as Individual Two in the complaint, applied for the loan at the request of a spouse identified as Individual One in the complaint. There was no co-borrower on the loan.

The loan was for the purpose of purchasing for $1.9 million a property located in Englewood Cliffs. Cockinos was responsible for obtaining certain information from Individual Two for purposes of completing the loan application. At the time that Individual Two signed the loan application, Individual Two did not review the contents of the application, which included information regarding the purpose of the property and Individual Two’s employment, income, and assets.

The application contained false statements concerning Individuals Two’s employment, income and assets. Cockinos also indicated in the application that he obtained the information from Individual Two through a face-to-face interview, when in fact, no such interview took place.

The application indicated that Individual Two had $400,000 in a joint checking account at Mariner’s Bank in New Jersey, when, in fact, Cockinos and Individual One caused $350,000 to be temporarily deposited into the joint account for the purpose of misrepresenting that amount as Individual Two’s assets. Cockinos also directed a Mariner’s Bank employee to falsely verify that there was $350,000 in the joint account for the prior two months, when in fact, there were significantly less funds in the account over the prior two months.

Washington Mutual ultimately approved a loan of $1.48 million and wired the loan amount to Individual Two’s closing attorney on June 17, 2007. On Sept. 25, 2008, JPMorgan Chase acquired the banking operations of Washington Mutual Bank. Between Nov. 2, 2010 and Jan. 10, 2011, Individual Two defaulted on the loan. JP Morgan initiated foreclosure proceedings. The Englewood Cliffs property was sold on March 16, 2012, leaving JPMorgan Chase with a loss of more than $500,000 on the defaulted loan.

In addition to the prison term, Judge Wolfson sentenced Cockinos to two years of supervised release, fined him $5,000 and ordered him to pay $513,882 in restitution.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of the Federal Deposit Insurance Corporation., Office of Inspector General, New York Region, under the direction of Special Agent in Charge A. Derek Evans; and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s sentence.

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

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Defense counsel: Edward J. Plaza Esq., Red Bank, N.J.

Former Assistant Also Failed to Pay More Than $250,000 in Taxes

NEWARK, N.J. – A former Citibank employee was sentenced today to 54 months in prison for stealing more than $1.3 million from William Salomon, a 98-year-old former managing partner of Salomon Brothers, which was later acquired by Citibank, U.S. Attorney Paul J. Fishman announced.

Karen Febles, 48, of Wallington, N.J., who worked as an executive assistant for Citibank, helping Salomon with his personal and professional finances, was previously convicted by a jury of bank fraud, four counts of wire fraud, three counts of money laundering, and two counts of tax evasion, after a one-week trial before U.S. District Judge William J. Martini. Judge Martini imposed the sentence today in Newark federal court.

According to documents filed in this case and the evidence at trial: From at least 2000 through September 2011, Febles worked as an executive assistant for Citibank in New York City. Her duties included assisting Salomon with his finances. As part of her employment, Febles had exclusive control over Mr. Salomon’s bank accounts and routinely prepared and negotiated checks on his behalf. Febles was terminated by Citibank in September 2011.

Between 2007 and September 2011, at least $1.3 million of Mr. Salomon’s funds went from his bank accounts directly into Febles’ 21 bank accounts, including two accounts that she maintained for her minor son. A review of hundreds of checks written by Febles revealed that the checks had been altered by Febles – after they had been signed by Mr. Salomon – to add additional sums of money. Once issued, Febles negotiated many of these checks, in cash, for the altered amount.

At the same time that more than $900,000 in checks and almost $400,000 cash went from Mr. Salomon’s bank accounts into Febles’ accounts, Febles spent hundreds of thousands of dollars on luxury purchases. These included, in just a five-month period in 2011, $52,720 in cash for a 2011 Range Rover; $34,650 in cash for a Mercedes-Benz; $43,200 in cash for one year’s rent of a three-bedroom home in Clifton, N.J.; and more than $45,000 in cash for six months’ rent on two apartments in Palisades Park, N.J. Febles’ purchases also included more than $115,000 on vacation and travel expenses; $56,000 rent on a four-bedroom home in Mahwah, N.J.; more than $20,000 on other automobile payments; and more than $20,000 on personal expenses, including entertainment, meals, travel, and clothing. During this time, Febles never earned more than $50,000 per year in take-home pay from Citibank.

In addition to the evidence of Mr. Salomon’s money going into Febles’ bank accounts and the evidence of Febles’ expenditures, the evidence at trial also established that Febles transferred hundreds of thousands of dollars that she stole from Mr. Salomon from her accounts into custodial bank accounts that she maintained for her minor son. The jury found that Febles transferred these funds to her son in order to conceal her bank and wire frauds.

In the tax years 2009 and 2010, Febles failed to disclose to the IRS any of the money that she stole from Mr. Salomon. In those two years, she claimed tax refunds of $14,839 and $9,293, respectively. Had Febles disclosed the money that she stole from Mr. Salomon on her tax returns in 2009 and 2010, she would have owed almost $70,000 to the United States in 2009 and more than $200,000 to the United States in 2010.

In addition to the prison term, Judge Martini sentenced Febles to three years of supervised release and ordered forfeiture and restitution of $1,154,911. She was also ordered to surrender $38,000 in cash she had put toward her bail.

U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, and 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 sentence.

The government is represented by Assistant U.S. Attorneys Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office 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: Edward J. McQuat and Richard Langweber, New York

NEWARK, N.J. – Two of the stars of the Bravo television show “The Real Housewives of New Jersey” were charged today in a conspiracy to defraud lenders and illegally obtain mortgages and other loans as well as allegedly hiding assets and income during a bankruptcy case, U.S. Attorney Paul J. Fishman announced.

Teresa Giudice, 41, and her husband, Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., were charged with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud in a 39-count indictment returned today by a federal grand jury. The indictment also charges Giuseppe Giudice with failure to file tax returns for tax years 2004 through 2008, during which time he allegedly earned nearly $1 million

“The indictment returned today alleges the Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” U.S. Attorney Fishman said. “Everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.”

“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the District of New Jersey and our law enforcement colleagues in announcing this indictment today,” Special Agent in Charge A. Derek Evans said. “We are committed to our partnerships with federal, state, and local law enforcement to address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal misconduct that undermines that integrity will be held accountable.

“The privilege of living well in the United States carries certain real responsibilities, including filing tax returns when required and paying the correct amount of tax,” Shantelle P. Kitchen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office, said. “Today’s indictment alleges the Giudices did not live up to their responsibilities by failing to file tax returns, falsifying loan applications and concealing assets in their bankruptcy petition. The reality is that this type of criminal conduct will not go undetected and individuals who engage in this type of financial fraud should know they will be held accountable.”

According to the Indictment:

From September 2001 through September 2008, Giuseppe and Teresa Giudice allegedly engaged in a mail and wire fraud conspiracy in which they submitted to lenders fraudulent mortgage and other loan applications and supporting documents in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when, in fact, they were either not employed or not receiving such salaries.

For example, in September 2001, Teresa Giudice applied for a mortgage loan of $121,500 for which she submitted a loan application that falsely claimed that she was employed as an executive assistant. She also submitted fake W-2 Forms and fake paystubs purportedly issued by her employer. The indictment also charges specific instances where the Giudices committed bank fraud and loan application fraud in the course of obtaining loans from several banks.

On Oct. 29, 2009, the Giudices filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee, among other things, assets, liabilities, income, and any anticipated increase in income. The indictment alleges that the Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming Season Two of the Bravo television show. The Giudices are charged with multiple counts of bankruptcy fraud for concealing and making false oaths and declarations about the assets and income during their bankruptcy case.

The indictment also alleges that during tax years 2004 through 2008, Giuseppe Giudice received income totaling $996,459, but did not file tax returns for those years.

The conspiracy to commit mail and wire fraud count carries a maximum potential penalty of 20 years of in prison and a $250,000 fine. The bank fraud and loan application fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The bankruptcy fraud counts each carry a maximum penalty of five years in prison and a $250,000 fine. The failure to file a tax return counts each carry a maximum penalty of one year in prison and a $100,000 fine.

U.S. Attorney Fishman credited special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, New York Region, under the direction of Special Agent in Charge A. Derek Evans; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Region 3 U.S. Trustee Roberta DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s indictment.

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

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

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Defense counsel: Giuseppe Giudice: Miles Feinstein Esq., Paterson
Teresa Giudice: Henry E. Klingeman Esq., Newark

Giudice, Giuseppe and Teresa Indictment

Several Co-Defendants Sentenced Last Week

TRENTON, N.J. – A doctor who admitted writing illegal prescriptions for oxycodone was sentenced today to 57 months in prison for participating in a conspiracy to distribute the medication illegally, U.S. Attorney Paul J. Fishman announced.

Jacqueline Lopresti, 52, of Fair Haven, N.J., previously pleaded guilty before Judge Freda L. Wolfson in Trenton federal court to an information charging her with one count of conspiracy to distribute oxycodone.

Lopresti was the second doctor convicted in connection with this large oxycodone distribution conspiracy. Last week, Dr. Hassan Lahham was sentenced to 108 months in prison by Judge Wolfson in connection with his involvement in the same scheme. Also last week, two co-defendants, Christopher Erwin, 49, of Barnegat, N.J., and Stephen Sampson, 52, of Manahawkin, N.J., were sentenced by Wolfson to 188 months and 96 months in prison, respectively, for their roles in the conspiracy. In total, 28 people have been charged and convicted in this oxycodone distribution conspiracy.

According to documents filed in this case and statements made in court: Oxycodone is the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet. It is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

In 2009, Lopresti issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various pharmacies located in and around Monmouth, Ocean, and Atlantic counties, N.J., and redistributed by others.

Erwin and Sampson were the leaders of a large-scale oxycodone distribution ring which used doctors, specifically Lopresti and Lahham, to collect prescriptions for oxycodone for which there is no medical necessity. Erwin and Sampson visited these physicians themselves and paid the physicians for medically unnecessary oxycodone prescriptions in their names and in the names of other people. Erwin and Sampson acquired the oxycodone for further distribution.

Erwin and Sampson transported various co-defendants, including: including Christopher Keosseian, 48, of Belmar; Joseph Keosseian, 46, of Belmar; James Baker, 51, of Forked River; Alex Bushman, 47, of Manahawkin; Heather Dockery, 28, of Barnegat; Wendy Galati, 45, of Toms River; Edward Gural, 37, of Barnegat; Donald Johnson, 32, of Barnegat; Bryan Lewicki, 36, of Barnegat; Gregory Mann, 50, of Surf City; Carter Nies, 36, of Barnegat; Jonathan Puggi, 35, of Little Egg Harbor; Henry Shubert, 43, of Waretown; Kyle Skora, 33, of Toms River; Crescenzo Terranova, 51, of Little Egg Harbor; and Robert Walton, III, 55, of Manahawkin; and others in multiple vehicles to various physicians and to the pharmacies afterwards. Erwin and Sampson trusted some of the defendants and paid some of the defendants to recruit and bring customers to the doctors as well as directed some of the defendants when to transport customers to the physicians and the pharmacies and which customers to transport.

In addition to the prison term, Judge Wolfson sentenced Lopresti to three years of supervised release, ordered to her to forfeit $465,000, and fined her $5,000.

U.S. Attorney Fishman credited U.S. Attorney Fishman credited the Drug Enforcement Administration's New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, along with the special agents, diversion investigators, task force officers, detectives and intelligence analysts of the Atlantic City Resident Office, Camden Resident Office Diversion Group, Seaside Heights Police Department, Barnegat Police Department, Ship Bottom Police Department, N.J. and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentencing.

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

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Defense counsel: Lopresti: Joseph Hayden Esq., Roseland, N.J.
Erwin: James R. Murphy Esq., Princeton, N.J.
Sampson: Richard Sparaco Esq., Cherry Hill, N.J.

Employees’ Pensions & Life Insurance Policies Looted

TRENTON, N.J. – A former insurance agent for a New York-based defense contractor and his two friends were sentenced today to prison terms or probation for stealing $1.4 million from the company, U.S. Attorney Paul J. Fishman announced.

Daniel Tumminia, 51, of Millstone, N.J., and Michael Feuer, 49, of Freehold, N.J., were each sentenced to one year in prison; Dennis Mannarino, 46, of Manalapan, N.J., was sentenced to three years of probation.

All three defendants previously pleaded guilty before U.S. District Judge Joel A. Pisano to separate informations charging them with conspiracy to commit wire fraud. Judge Pisano imposed the sentences today in Trenton federal court.

According to documents filed in this case and statements made in court: Fastener Dimensions (Fastener) was a New York-based manufacturer and distributor of aircraft, aerospace, and military components and hardware. Tumminia was an insurance agent for Massachusetts Mutual Life Insurance Co. (MassMutual) who represented Fastener and its president as an agent for MassMutual, handling all pension and profit sharing accounts and life insurance policies for Fastener’s employees.

From July 2004 through August 2010, Tumminia and his two friends – Feuer, a practicing attorney from 1990 through 2001 and the owner of Cypress Lawn Care, a landscaping company in New Jersey; and Mannarino, the owner of J&D Italian Specialty Meats, delicatessens located in New Jersey and New York – enriched themselves by diverting life insurance premium payments and pension and profit sharing checks belonging to Fastener’s employees into bank accounts that they controlled. In April 2008, Feuer incorporated and listed himself as the registered agent and officer of MassMutual Contracting Corp., a limited liability company that never performed any services for Fastener or any other clients, but was created by Feuer and Tumminia solely to falsely represent to Fastener that it was the real MassMutual. Feuer and Tumminia deposited $574,279 from Fastener into the MassMutual Contracting Corp. bank account.

Tumminia, Feuer and Mannarino conducted 133 transactions, including interstate wire transfers, totaling $1,437,542, in deposits into bank accounts that they controlled. They then used the diverted funds for personal expenditures, including rent, cable, and utility and grocery bills.

As part of their guilty pleas, Tumminia, Feuer, and Mannarino have agreed to make full restitution for all losses resulting from their crimes to the employees of Fastener Dimensions. Tumminia has agreed to forfeit $1,198,278 to the United States. Feuer has agreed to forfeit $115,963 and Mannarino has agreed to forfeit $10,000.

In addition to the prison terms, Judge Pisano sentenced Tumminia and Feuer sentenced to two years of supervised release.

U.S. Attorney Fishman credited special agents of the FBI working out of the Red Bank resident agency, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s sentences.

The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes 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: Tumminia: Jeffrey Tomei Esq., New York, and Denise Kalland Esq., West Palm Beach, Fla.
Feuer: Louis Klieger Esq., New York
Mannarino: Arthur Aidala Esq., New York

NEWARK, N.J. – A Russian national living in New York admitted today that he conspired with others to hack into retail brokerage accounts and execute sham trades, U.S. Attorney Paul J. Fishman announced.

Petr Murmylyuk, 33, of Brooklyn, N.Y., pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with conspiracy to commit securities fraud.

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

Murmylyuk admitted that he participated in a conspiracy to steal from online trading accounts at Scottrade, E*Trade, Fidelity, Schwab and other brokerage firms. Members of the conspiracy first gained unauthorized access to the online accounts of brokerage firm customers. The conspirators then used stolen identities to open additional accounts – referred to in the Information as “Profit Accounts” – at other brokerage houses. They then caused the victims’ accounts to make unprofitable and illogical securities trades with the Profit Accounts, leading to losses in the victims’ accounts and gains in the Profit Accounts. One version of the fraud involved causing the victims’ accounts to sell options contracts to the Profit Accounts, then to purchase the same contracts back minutes later for many times the price.

The members of the conspiracy recruited foreign nationals visiting, studying, and living in the United States to open bank accounts into which illegal proceeds could be deposited. The conspirators then caused the proceeds of the sham trades to be transferred from the Profit Accounts into those accounts, where the stolen money could be withdrawn. The scheme caused combined losses to Scottrade, E*Trade, Fidelity, Schwab and other affected brokerage firms of approximately $1 million.

The charge to which Murmylyuk pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is currently scheduled for Nov. 12, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees; and IRS – Criminal Investigations, New York Field Office, under the direction of Special Agent in Charge Toni M. Weirauch, with the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the leadership of its Regional Director Daniel M. Hawke, and the Justice Department’s Computer Crime and Intellectual Property Section for their assistance in the investigation, as well as the Manhattan District Attorney’s Office, under the direction of District Attorney Cyrus R. Vance Jr., for its contributions and cooperation in coordinating the parallel investigations.

The government is represented by Assistant U.S. Attorney Christopher J. Kelly, Deputy Chief of the Economic Crimes 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: Bradley L. Henry Esq., New York

Murmylyuk Information

NEWARK, N.J. – A man who entered the United States from Honduras illegally appeared today in federal court on charges of sex trafficking and stalking, U.S. Attorney Paul J. Fishman announced.

Hermen Zuniga Castro, 30, a/k/a “Helmer Zuniga,” “Herman Zuniga,” and “Helmer Mendoza,” of Honduras, was charged by criminal complaint for attempted sex trafficking and stalking. He appeared in the Middle District of Pennsylvania on July 11, 2013, where he was arrested by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS) following his release from the custody of the Bureau of Prisons after being incarcerated for illegal entry after deportation. He appeared before U.S. Magistrate Judge Michael Hammer in Newark federal court.

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

In June 2007, Zuniga began stalking and threatening the victim – identified in court papers only as “E.M.,” – while they were both living in Honduras. In November 2007, E.M. left Honduras and was smuggled into the United States by Zuniga, fearing he would kill her family, including her son. For the next two years, Zuniga forced the victim to work as a housekeeper and as a prostitute in Texas. During this time, Zuniga also terrorized the victim by repeatedly raping, beating, and threatening her. Zuniga told the victim that his ultimate plan was to take her to Houston to work as a prostitute. In October 2009, Zuniga branded the victim by carving the letter “H” into the left side of her abdomen with a knife.

The victim was finally rescued in November 2009, when Zuniga Castro was arrested for a traffic violation in Cleburne, Texas, and subsequently charged with illegal re-entry in the Northern District of Texas. He was sentenced to 14 months in prison and in February 2011 was deported to Honduras.

Shortly after arriving back in Honduras, Zuniga contacted the victim’s family and eventually obtained the victim’s telephone number in the United States. On one occasion, the victim received a telephone call from her mother with Zuniga standing next to her mother, threatening to kill the victim if she did not answer his telephone calls. Soon afterward, the victim began received threatening telephone calls from Zuniga on a daily basis. During the calls, he would threaten to come to the United States, transport the victim to Houston, where he would force her to earn money for him by becoming a prostitute.

In September 2011, Zuniga told the victim that he was en route to New Jersey from Honduras to get her. Early on the morning of Oct. 11, 2011, Zuniga called the victim and told her that he was at Newark Penn Station. He was apprehended by federal agents and arrested.

The count of attempted sex trafficking is punishable by a maximum statutory penalty of life in prison and a mandatory minimum statutory penalty of 15 years in prison. It also carries a maximum fine of $250,000 and a mandatory minimum term of five years of supervised release. The maximum penalty for stalking is five years in prison and a mandatory minimum term of three years of supervised release.

U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement (ICE) Homeland Securities Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s charges. Zuniga Castro was ordered detained.

The government is represented by Assistant U.S. Attorneys Shana W. Chen of the Economic Crimes Unit and Elizabeth M. Harris of the OC/Gangs Unit in Newark.

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

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Zuniga Complaint

Hackers Targeted Major Payment Processors, Retailers and Financial Institutions Around the World

NEWARK, N.J. – A federal indictment made public today in New Jersey charges five men with conspiring in a worldwide hacking and data breach scheme that targeted major corporate networks, stole more than 160 million credit card numbers, resulted in hundreds of millions of dollars in losses and is the largest such scheme ever prosecuted in the United States.

New Jersey U.S. Attorney Paul J. Fishman announced the charges today along withSpecial Agent in Charge James Mottola of the U.S. Secret Service (USSS), Criminal Investigations, Newark Division and Acting Assistant Attorney General for the Department of Justice’s Criminal Division Mythili Raman. The USSS led the investigation of the indicted conspiracy.

The defendants allegedly sought corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information they could exploit for profit. The defendants are charged with attacks on NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard. It is not alleged that the NASDAQ hack affected its trading platform.

“This type of crime is the cutting edge,” U.S. Attorney Fishman said. “Those who have the expertise and the inclination to break into our computer networks threaten our economic well-being, our privacy, and our national security.  And this case shows there is a real practical cost because these types of frauds increase the costs of doing business for every American consumer, every day.  We cannot be too vigilant and we cannot be too careful.”

“The defendants charged today were allegedly responsible for spearheading a world-wide hacking conspiracy that victimized a wide array of consumers and entities, causing hundreds of millions of dollars in losses,” Acting Assistant Attorney General Raman said. “Despite substantial efforts by the defendants to conceal their alleged crimes, the Department and its law enforcement counterparts have cracked this extensive scheme and are seeking justice for its many victims.  Today’s indictment will no doubt serve as a serious warning to those who would utilize illegal and fraudulent means to steal sensitive information online.”

“As is evident by this indictment, the Secret Service will continue to apply innovative techniques to successfully investigate and arrest transnational cyber criminals,” said Special Agent in Charge Mottola of the Newark Field Office. “While the global nature of cyber-crime continues to have a profound impact on our financial institutions, this case demonstrates the global investigative steps that U.S. Secret Service Special Agents are taking to ensure that criminals will be pursued and prosecuted no matter where they reside.”

According to the second superseding indictment unsealed today in Newark federal court and other court filings:

The five men each served particular roles in the scheme. Vladimir Drinkman, 32, of Syktyykar and Moscow, Russia, and Alexandr Kalinin, 26, of St. Petersburg, Russia, each specialized in penetrating network security and gaining access to the corporate victims’ systems. Roman Kotov, 32, of Moscow, also a hacker, specialized in mining the networks Drinkman and Kalinin compromised to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 26, of Odessa, Ukraine.  Dmitriy Smilianets, 29, of Moscow, sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.

Kalinin and Drinkman were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 32, of Miami, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. The U.S. Attorney’s Office for the Southern District of New York today announced two additional indictments against Kalinin: one charges him in connection with hacking certain computer servers used by NASDAQ and a second indictment, unsealed today, charged Kalinin and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information by hacking U.S.-based financial institutions.  Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme. Kotov and Smilianets have not previously been charged publicly in the United States.

Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Smilianets was extradited Sept. 7, 2012, and remains in federal custody. He will appear in District of New Jersey federal court to be arraigned on the superseding indictment on a date to be determined. Drinkman is in custody in the Netherlands pending an extradition hearing. Kalinin, Kotov and Rytikov remain at large. All of the defendants are Russian nationals except for Rytikov, who is a citizen of Ukraine.

The Attacks

The five defendants conspired with others to penetrate the computer networks of several of the largest payment processing companies, retailers and financial institutions in the world, stealing the personal identifying information of individuals. They took user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. Conservatively, the conspirators unlawfully acquired more than 160 millioncard numbers through hacking.

The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants placed malicious code, or malware, on the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network.  In some cases, the defendants lost access to the system due to companies’ security efforts, but were able to regain access through persistent attacks. 

Instant message chats obtained by law enforcement reveal the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.

The defendants used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then used an array of computers located around the world to store the stolen data and ultimately sell it to others.

Selling the Data

After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, vending the data only to trusted identity theft wholesalers. He would charge approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by either withdrawing money from ATMs or making purchases with the cards.

Covering Their Tracks

The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.

Over the course of the conspiracy, the defendants communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.

To protect against detection by the victim companies, the defendants altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.

As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges.

            The maximum potential penalties for each defendant per count are as follows:

Defendants

Violation

Maximum Penalty/Count

All

Conspiracy to gain unauthorized access to computers

5 years; $250,000 fine or twice the gain or loss from the offense

2

All

Conspiracy to commit wire fraud

30 years; $1 million fine or twice the gain or loss from the offense

3-8

Drinkman
Kalinin
Kotov
Smilianets

Unauthorized access to computers

5 years; $250,000 fine or twice the gain or loss from the offense

9-11

Drinkman
Kalinin
Kotov
Smilianets

Wire fraud

30 years; $1 million fine or twice the gain or loss from the offense

U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Pierson, and special agents from the Newark Division, under the direction of Special Agent in Charge James Mottola, for the ongoing investigation leading to today’s charges.

The government is represented by Erez Liebermann, Deputy Chief of the New Jersey U.S. Attorney’s Office Criminal Division; Assistant U.S. Attorney Gurbir Grewal of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit; and Trial Attorney James Silver of the Department of Justice’s Computer Crime and Intellectual Property Section in Washington.

U.S. Attorney Fishman thanked the Department’s Office of International Affairs in Washington for their extraordinary support, as well as public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police. Fishman also acknowledged the U.S. Attorney’s Offices in the District of Kansas and the Northern District of Georgia for their valuable contributions in the development of the prosecution.

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

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Defense counsel:

Vladimir Drinkman: Bart Stapert Esq., Amsterdam, Netherlands (for Netherlands-based proceedings)
Dmitriy Smilianets: Bruce Provda Esq., Queens, N.Y.

Drinkman, Vladimir et al., Indictment

NEWARK, N.J. – FBI special agents arrested two men in Brooklyn, N.Y., this morning in connection with armed robberies of T-Mobile stores in Paramus and Woodbridge, N.J., U.S. Attorney Paul J. Fishman announced.

Unique Randolph, 26, and Sulayman Graham, 30, both of Brooklyn, are charged in separate criminal complaints with one count each of committing a Hobbs Act robbery. Randolph is also charged with one count of using a firearm in furtherance of that robbery. Both defendants are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

According to the two criminal complaints unsealed today and other documents filed in connection with this case:

The FBI has been investigating a series of armed robberies in Bergen, Middlesex and Union Counties, as well as other locations, between May 2012 and January 2013 – including armed robberies of T-Mobile stores in Linden, Woodbridge and Paramus, N.J. Four other N.Y. men – Terrell McQueen, Leonard Arrington, Carl Williams and Eric Williams (no relation) – were previously arrested and indicted in connection with this investigation. The charges against those four defendants remain pending.

On Jan. 16, 2013, Randolph and another man entered the T-Mobile store in Paramus, N.J. After tying up two employees and a customer and forcing them to lie on the floor, the men forced a third employee, at gunpoint, to fill two laundry bags with more than 70 cell phones. Afterward, the men left the employee tied up on the floor with the others.

During the robbery, a UPS employee walked into the store and was forced at gunpoint to join the restrained group.

On Oct. 2, 2012, Arrington entered a T-Mobile store in Woodbridge, carrying a gun, 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, Graham, who drove them away in a Land Rover. McQueen, Eric Williams and others delivered the stolen phones to the same Brooklyn store.

The charges of Hobbs Act robbery carry a maximum potential penalty of 20 years in prison. The charge of use of a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to one another and to any other prison term. Each of the counts also carries a maximum fine of $250,000.

U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. 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 General Crimes Unit in Newark.

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

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Graham Complaint
Randolph Complaint

NEWARK, N.J. – A federal grand jury returned an indictment today against a Livingston, N.J., physician with medical practices in Verona and East Orange, N.J., for allegedly conspiring to receive thousands of dollars in cash kickbacks in exchange for referrals and for failing to file tax returns on nearly $1 million in income, U.S. Attorney Paul J. Fishman announced.

Yash Khanna, 71, a family physician and the owner and operator of Family Medicine & Pediatrics, LLC, in East Orange, and West Essex Medical Group, PA, in Verona, is charged in the six-count superseding indictment with one count of conspiracy to violate the federal health care Anti-Kickback Statute, two separate counts alleging substantive violations of the Anti-Kickback Statute and three counts of willfully failing to file a federal tax return.

Khanna was originally arrested on a complaint in December 2011 and indicted in May 2012 on one count of violating the Anti-Kickback Statute in relation to a two-year scheme to receive cash kickbacks in exchange for his diagnostic testing referrals to Orange, N.J.-based Orange Community MRI. The new charges allege a conspiracy lasting at least three years and that he failed to file tax returns for approximately $1 million in income – including the kickback income – from 2008 through 2010.

According to the superseding indictment:

From at least as early as 2009 through December 2011, Khanna conspired with Orange MRI to solicit and receive cash kickbacks from the facility in return for referring patients for diagnostic tests such as MRIs and CAT scans. Khanna and Orange MRI representatives negotiated the value of kickbacks that Orange MRI would pay him per test he referred, and they were paid for a period of at least three years.

Specifically, Khanna and Orange MRI’s executive director agreed Khanna would be paid $50 for every MRI referral of a Medicare or Medicaid patient and $75 for every MRI referral of a patient with private health insurance.

Khanna also failed to file federal tax returns for 2008, 2009, and 2010, even though he earned considerable income – including illegal income – during that time period: approximately $381,000 in 2008, $400,000 in 2009 and $214,000 in 2010.

The conspiracy and kickback charges each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the loss caused by the offense. The tax charges each carry a maximum potential penalty of a year in prison and a $100,000 fine, or twice the loss caused by the offense.

U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Thomas O’Donnell, and IRS-Criminal investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Scott B. McBride and Deputy Chief Joseph G. Mack of the U.S. Attorney’s Office Health Care and Government Fraud Unit.

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Defense counsel: Christopher L. Patella Esq.; Bayonne, N.J.

Khanna Superseding Indictment

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

Frank Santangelo, 43, of Boonton, N.J., pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with violating the Travel Act, money laundering and failing to file tax returns.

“Patients should be able to trust that their doctors are prescribing only tests that are necessary and are recommending providers who are best qualified to perform those tests,” U.S. Attorney Fishman said. “In pleading guilty today to the charges against him, Dr. Santangelo admitted he violated that trust. He committed the type of fraud that drives up the cost of health care and compromises patient care.”

“The investigation of Dr. Santangelo is another sad story of a doctor putting his greed ahead of his oath of fidelity to his patients,” FBI New Jersey Special Agent in Charge Aaron T. Ford said. “The plea today is 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, who remain committed to protecting the American public from those who would abuse the health care needs of innocent patients for their own financial gain.”

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

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

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

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

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

On April 9, 2013, federal agents arrested David Nicoll, 39, of Mountain Lakes, N.J.; Scott Nicoll, 32, of Wayne, N.J., a senior BLS employee and David Nicoll’s brother; and Craig Nordman, 34, of Whippany, N.J., a BLS employee and the CEO of Advantech Sales LLC – an entity used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Santangelo. Last month, David and Scott Nicoll and four other associates of BLS pleaded guilty to charges related to their involvement. So far, nine employees or associates of BLS, and four physicians have pleaded guilty to their roles in the bribery scheme.

“When a doctor prescribes a medical test, patients should feel confident that it is in their best interest,” said Thomas O’Donnell, Special Agent in Charge, Office of Inspector General, Department of Health and Human Services, New York region. “But when that doctor accepts more than a million dollars in bribes as Dr. Santangelo did, he jeopardizes patient-doctor trust, his patients’ health, and the integrity of the Medicare program, and will be prosecuted accordingly.”

The bribery count to which Santangelo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. He also faces a maximum potential penalty of 20 years in prison and a $500,000 fine on the money laundering charge, or twice the gross gain or loss from the offense, and a maximum potential penalty of one year in prison and a $100,000 fine on the tax charge. Sentencing for Santangelo is scheduled for Oct. 24, 2013.

Santangelo has also agreed to forfeit more than $1.8 million. The investigation has so far recovered more than $2 million through forfeiture.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom 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 Senior Litigation Counsel Andrew Leven, Assistant U.S. Attorney Joseph Minish, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.

13-308

Defense counsel: Thomas Ambrosio Esq., Lyndhurst, N.J.

Santangelo Information

TRENTON, N.J. – A Staten Island, N.Y., man was sentenced today to 114 months for his role in the robbery of Blue Stove Antiques in Fair Haven, N.J., on June 2, 2012, U.S. Attorney Paul J. Fishman announced.

Robert A. Fiolka, 69, previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with Hobbs Act robbery and use of a firearm in furtherance of a crime of violence. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Fiolka entered Blue Stove Antiques in Fair Haven at approximately 9:30 a.m., on June 2, 2012, wearing a hat and flesh-colored face mask and brandishing a handgun. Fiolka approached the store owner, pointed the handgun at him and demanded that he open the store’s safe. After the owner opened the safe, Fiolka ordered him to the ground and then proceeded to empty the safe’s contents into a satchel that he had with him. After filling the bag with the safe’s contents, Fiolka exited the store with approximately $200,000 worth of jewelry.

In addition to the prison term, Judge Wolfson sentenced Fiolka to five years of supervised release and ordered him to pay $200,000 in restitution.

U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence; he also thanked the Colts Neck Police Department, Fair Haven Police Department, Old Bridge Police Department, Wall Township Police Department, and the Monmouth County Prosecutor’s Office for their roles in the case.

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

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Defense counsel: John W. Mitchell Esq., New York, and Jerome A. Ballarotto Esq., Trenton

NEWARK, N.J. – Six people allegedly involved in an extensive scheme to obtain millions of dollars through fraudulently obtained refund checks issued by the U.S. Treasury were charged today for their involvement in the scam, U.S. Attorney Paul J. Fishman announced.  

Julio C. Concepcion, 48; Angel L. Concepcion-Vasquez, 29; Jose R. Zapata, 65; and Reyes Flores-Perez, 29, all of Passaic, N.J.; and Romy E. Quezada, 22, of Lake Mary, Fla., were arrested this morning by special agents of IRS-Criminal Investigation, postal inspectors from the U.S. Postal Inspection Service, and special agents of the U.S. Secret Service. A sixth defendant, Freddy Gabino-Martinez, 24, of Passaic, remains at large. Concepcion, Concepcion-Vasquez, Gabino-Martinez, and Zapata are charged with conspiracy to steal government funds, Flores-Perez is charged with transferring false identification documents, and Quezada is charged with theft of government funds.

The four defendants arrested in New Jersey are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Michael Hammer in Newark federal court. Quezada was arrested in Florida and will make her initial appearance in Orlando federal court.

According to the criminal Complaints unsealed today:

Background on Stolen Identify Refund Fraud

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion a year in losses to the U.S. Treasury.  SIRF schemes generally share a number of hallmarks:

• SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.

• SIRF perpetrators complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund.

• They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access.

• With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.

The Investigation

From October 2009 through December 2012, Concepcion, Concepcion-Vasquez, Gabino-Martinez, and Zapata engaged in a SIRF scheme that resulted in more than $2.5 million in losses to the U.S. Treasury. The conspirators obtained fraudulent tax refund checks, then deposited them into bank accounts that they controlled, often in the name of “dummy” corporations created to facilitate the scheme. They then transferred hundreds of dollars to others, including Concepcion’s wife, his children, and his children’s companions. Quezada is charged with depositing fraudulent treasury checks into an account that she opened and controlled, and Flores-Perez is charged with transferring fraudulent identification documents, including fake driver’s licenses and Social Security cards, used to further the SIRF scheme. 
                                                                                                                                                      
The conspiracy charge and the theft of government funds charge are punishable by a maximum potential penalty of 10 years in prison. The transfer of fraudulent documents charge is punishable by a maximum potential penalty of 15 years in prison. All charges are also punishable by a fine of up to $250,000, or twice the gain or loss caused by the offense.     

U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s arrests and charges.

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

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

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Defense counsel: Concepcion: Paulette Pitt Esq., Perth Amboy, N.J.
Concepcion-Vasquez: Rubin Sinins Esq., Newark
Zapata: Elizabeth Smith Esq., Mendham, N.J.
Flores-Perez: John Whipple Esq., Chatham, N.J.       

Concepcion, Julio et al., Complaint
Flores-Perez,Reyes Complaint
Quezada, Romy Complaint

WASHINGTON – Two shipping firms based in Germany and Cyprus were sentenced today to a $10.4 million monetary penalty for felony obstruction of justice charges and violating the Act to Prevent Pollution from Ships related to the deliberate concealment of vessel pollution from four ships that visited ports in New Jersey, Delaware and Northern California, the U.S. Attorney’s Offices in New Jersey and Delaware, the Department of Justice Environment and Natural Resources Division and the U.S. Coast Guard announced.

Columbia Shipmanagement (Deutschland) GmbH (CSM-D), a German corporation, and Columbia Shipmanagement Ltd. (CSM-CY), a Cypriot company, were sentenced to pay a $10.4 million criminal penalty, $2.6 million of which will be directed to the National Fish and Wildlife Foundation to fund community service projects selected to help restore the coastal environment of New Jersey and Delaware hit by Hurricane Sandy. The remaining $7.8 million is designated as a criminal fine. The companies were also placed on four years of probation, during which they will be subject to the terms of an environmental compliance plan that requires outside audits by an independent company and oversight by a court-appointed monitor. The shipping firms admitted that four of their ships (three oil tankers and one container ship) had intentionally bypassed required pollution prevention equipment and falsified the oil record book, a required log regularly inspected by the U.S. Coast Guard. The case is the largest vessel pollution settlement in either New Jersey or Delaware.

The companies previously pleaded guilty before U.S. District Judge Susan D. Wigenton on March 21, 2013, to six counts involving three vessels in New Jersey and four counts involving one ship in Delaware. The counts consist of violations of the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book, obstruction of justice and making false statements.

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

The investigation into the M/T King Emerald was launched on May 7, 2012, after several crew members provided cell phone photos and other evidence to Coast Guard officers conducting a routine inspection. The King Emerald was engaged in various types of illegal discharges of bilge waste dating back to at least 2010. The defendants admitted that illegal discharges of both sludge and oily bilge waste were discharged at night off the coast of Central America, including a discharge within the Exclusive Economic Zone of Costa Rica where a national park is located.  The ship’s second engineer previously pleaded guilty and was sentenced in Newark on April 3, 2013, to two years of probation.

The Delaware investigation began in October 2012 after several crew members of the M/T Nordic Passat provided the Coast Guard with a thumb drive containing photographs and video showing how illegal discharges had been sent overboard through the ship’s sewage system. They also alleged that sludge had been put into the ship’s cargo tanks and that logs showing sludge had been incinerated onboard had been falsified. The charges involving the M/V Cape Maas stem from a whistleblower report to the Coast Guard when the ship visited the port in San Francisco. The whistleblower provided a video showing the operation of the oily water separator pumping overboard without the use of the oil content monitor to detect and prevent oil from being illegally discharged.

Violations on a fourth ship, the M/T Cape Taft, which was anchored in New York waters and destined for New Jersey, were uncovered just weeks before the March plea, after the ship disclosed problems to CSM-D. An internal investigation revealed that the ship’s oily water separator had been used improperly for some time. Instead of sensing a sample of overboard discharges, it was instead flushed with fresh water by the crew. The ship’s oil record book was revised by CSM-D to reveal 16 instances where it was false. The defendants cooperated with the investigation and provided the government with video replays of the oil content monitor showing when the crew had “tricked” the sensor with fresh water.

This prosecution was made possible through the combined efforts of the U.S. Coast Guard Districts 1, 5 and 11; Coast Guard Sectors New York, Delaware Bay, and San Francisco; Coast Guard Investigative Service; Coast Guard Office of Maritime and International Law; and Coast Guard Office of Investigation and Analysis.

The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary in New Jersey; Senior Counsel Richard Udell and Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the U.S. Department of Justice Environment and Natural Resources Division; and Edmond Falgowski, Assistant U.S. Attorney in Delaware. Assistance was also provided by the U.S. Attorney’s Office for the Northern District of California.

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Defense counsel: Thomas L. Mills Esq., Washington, D.C.

NEWARK, N.J. – The leader of the Irvington, N.J., Brick City Brims set of the Bloods street gang was sentenced to 325 months in prison today for his involvement in a large-scale conspiracy to distribute more than 280 grams of crack cocaine, U.S. Attorney Paul J. Fishman announced.

Mark Manasse, a/k/a “M-Ease,” 28, of Irvington, previously pleaded guilty before U.S. District Court Judge Jose L. Linares to one count of a superseding indictment, charging him with knowingly and intentionally conspiring to distribute 280 grams or more of  the drug. Judge Linares imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court: Manasse was a leader of the Bloods street gang known as the Brick City Brims, who were distributing significant amounts of crack cocaine in and around the city of Irvington and elsewhere from February 2010 through April 2011. Manasse and his conspirators controlled the drug trafficking in and around the areas of 18th Street and Columbia Avenue in Irvington. Manasse maintained control of drug trafficking in these areas through the use of violence and intimidation.

Manasse and more than a dozen others were arrested on April 19, 2011, by special agents with U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) along with officers of the N.J. State Police and Irvington Police Department.

During the investigation, federal agents used a confidential source who was able to infiltrate the gang. Federal agents identified two cell phones Manasse used to conduct his narcotics trafficking activity and obtained court orders authorizing interception of drug-related phone calls. The agents intercepted thousands of calls during which Manasse discussed, orchestrated and directed the distribution of drugs. The calls also showed that Manasse directed, ordered and participated in acts of violence in order to maintain and protect the drug trafficking activity of the Brick City Brims in Irvington.

In addition to the prison term, Judge Linares sentenced Manasse to five years of supervised release. As a special condition of the supervised release, Judge Linares also banned Manasse from associating with any known street gang or organized crime members.

U.S. Attorney Fishman credited special agents of ICE HSI in Newark, under the direction of Special Agent in Charge Andrew M. McLees; the New Jersey State Police, under the direction of Superintendent Col. Joseph R. Fuentes; the Irvington Police Department, under the direction of Deputy Chief of Police Dwayne Mitchell, Senior Law Enforcement in Charge and Director Joseph Santiago; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray.

The government is represented by Assistant U.S. Attorney Michael H. Robertson of the U.S. Attorney’s Office Criminal Division in Newark.  

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Defense counsel: Kathleen M. Theurer Esq., Jersey City, N.J.

NEWARK, N.J. – The director of operations for the Housing Authority of the Township of North Bergen, N.J., was sentenced today to 46 months in prison for extorting employees of a maintenance company contracted by the authority, U.S. Attorney Paul J. Fishman announced.    
                       
John T. Kennell, 50, of North Bergen, previously pleaded guilty before U.S. District Judge Jose L. Linares to an information charging him with extortion under color of official right and by fear of economic harm. Judge Linares imposed the sentence today in Newark federal court.
                                               
According to documents filed in the case and statements made in court:              While the director of operations for the NBHA, Kennell used his official position to extort cash payments from employees of a company that provided repair and grounds maintenance services. Kennell, who supervised the employees of the company working for the Authority, accepted cash payments in amounts ranging from $100 to $400 from employees for, among other things, securing additional paid vacation days for these employees. Kennell assisted in securing these additional paid vacation days by falsely reporting to the company that the employees were working at the NBHA, when they were, in fact, traveling outside of the United States. Between February 2008 and June 2011, the company compensated employees for approximately 80 days of unauthorized vacation, totaling $12,498, because of Kennell’s actions.

Kennell accepted $2,000 to $2,500 in payments for his official assistance in this fraud.  He also accepted cash payments of $50 to $100 from an undocumented alien employee of the company for permitting that employee to twice change the alias that employee was using to continue working. Using his position of authority, as well as the threat of termination of employment, Kennell also regularly extorted the employees of the company – sometimes as frequently as twice a month – for cash payments in amounts ranging from $10 to $20 per employee.

In addition to the prison term, Judge Linares sentenced Kennell to three years of supervised release and ordered him to pay a $5,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of U.S. Department of Housing and Urban Development Office of Inspector General, under the direction of Special Agent in Charge Cary A. Rubenstein, and criminal investigators from the U.S. Attorney’s Office in Newark, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr. of the U.S. Attorney’s Office Special Prosecutions Division in Newark.

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Defense Counsel: Arthur R. Carmano Esq., Englewood, N.J. 

NEWARK, N.J. – An Albanian national who was living in Clifton, N.J., was sentenced today to 108 months in prison for robbing two TD Bank branches while armed with a gun in late 2011, U.S. Attorney Paul J. Fishman announced.

Arlind Hyseni, 31, also known as “Shpend Mazari” and “Luie Belushi,” previously pleaded guilty to an information charging him with two counts of bank robbery. One of the robberies occurred on Nov. 2, 2011, in Clifton in Passaic County, N.J., and the other on Dec. 30, 2011, in Wallington in Bergen County, N.J.

Hyseni pleaded guilty before U.S. District Judge Esther Salas. He was initially charged as Mazari, but admitted at his plea hearing that Hyseni is his real name. Judge Salas imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court: On Nov. 2, 2011, Hyseni entered a TD Bank in Clifton armed with a handgun and disguised with a baseball cap and a mask covering the lower part of his face. He ordered two bank employees to go to the vault and turn over cash, which they placed into a dark nylon bag.

Hyseni left the bank with the money, which included several “bait” bills and a dye pack. Hyseni discarded the money a short distance from the scene after the dye pack exploded.

On Dec. 30, 2011, Hyseni entered a TD Bank in Wallington shortly after it opened. He vaulted over the teller counter wearing a mask and armed with a handgun. He again ordered bank employees to go to the vault and hand over cash before fleeing with the money.

In addition to the prison term, Judge Salas sentenced Hyseni to serve three years of supervised release. Hyseni was also ordered to pay $20,715 in restitution.

In arguing for an increased sentence, the government noted Hyseni was convicted in absentia in Albania of robbery resulting in death and illegal possession of military weapons and sentenced to 25 years in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Andrew M. McLees, with the investigation.

The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Criminal Division in Newark.

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

TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone was sentenced today to 108 months in prison for his participation in a conspiracy to illegally distribute the medication, U.S. Attorney Paul J. Fishman announced.

Dr. Hassan Lahham, 55, of New York, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an Indictment charging him with conspiring to distribute oxycodone.

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

Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.

Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

In addition to the prison term, Judge Wolfson sentenced Lahham to three years of supervised release.

U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Carl J. Kotowski, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.

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Defense counsel: Frank P. Arleo Esq., West Orange, N.J.

TRENTON, N.J. – A physician who wrote illegal prescriptions for oxycodone was sentenced today to 108 months in prison for his participation in a conspiracy to illegally distribute the medication, U.S. Attorney Paul J. Fishman announced.

Dr. Hassan Lahham, 55, of New York, previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to Count One of an Indictment charging him with conspiring to distribute oxycodone.

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

Since January 2009, Lahham issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various New Jersey pharmacies located in and around Monmouth, Ocean, and Atlantic counties and redistributed by others. Lahham wrote the prescriptions in exchange for cash payments, and knew the pills were to be redistributed.

Oxycodone, the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

In addition to the prison term, Judge Wolfson sentenced Lahham to three years of supervised release.

U.S. Attorney Fishman credited the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Carl J. Kotowski, along with the Special Agents, Diversion Investigators, Task Force Officers, Detectives and Intelligence Analysts of the Atlantic City Resident Office; Camden Resident Office Diversion Group; Seaside Heights Police Department; Barnegat Police Department; Ship Bottom Police Department; and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Fabiana Pierre-Louis of the U.S. Attorney’s Office in Trenton.

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Defense counsel: Frank P. Arleo Esq., West Orange, N.J.

NEWARK, N.J. – A Hudson County, N.J., man was convicted by a federal jury today of sexually abusing a sleeping woman aboard a flight from Phoenix to Newark Liberty International Airport last summer, U.S. Attorney Paul J. Fishman announced.

Bawer Aksal, 49, of North Bergen, N.J., was convicted of one count of sexual abuse and one count of abusive sexual contact following a five-day trial before U.S. District Judge Jose L. Linares in Newark federal court. The jury deliberated seven hours before returning its guilty verdicts.

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

Aksal was a passenger on a United Airlines flight from Phoenix to Newark on August 20, 2012. He was sitting in the middle seat in a row of three seats. Neither Aksal, the victim, who was seated in the window seat, nor the passenger in the aisle seat knew each other. Before take-off, the victim texted a friend complaining about Aksal’s arm encroaching into her seating area.

About one hour before landing, the aisle passenger looked to his right and saw Aksal half into the victim’s seat, with his body against the victim’s, his right arm around the back of her and his left hand beneath a sweater that was draped over her. The victim awoke to find Aksal’s hands inside her shirt and shorts and struggled out of his grasp. The aisle passenger observed her jolting awake. The aisle passenger and the victim both gathered their belongings and headed to the back of the plane to report what happened to the flight attendants.

Aksal was detained upon arrival in Newark and arrested by agents of the FBI. He now faces a maximum potential sentence of life in prison and a $250,000 fine. Sentencing before Judge Linares is scheduled for Oct. 23, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael Fedorko, with the investigation leading to today’s conviction.

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

The federal government has exclusive jurisdiction over all sexual abuse cases that occur in American airplanes, as such events are outside the jurisdiction of any state.

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Defense counsel: Robert J. Degroot Esq., Newark

NEWARK, N.J. – A Hudson County, N.J., man was convicted by a federal jury today of sexually abusing a sleeping woman aboard a flight from Phoenix to Newark Liberty International Airport last summer, U.S. Attorney Paul J. Fishman announced.

Bawer Aksal, 49, of North Bergen, N.J., was convicted of one count of sexual abuse and one count of abusive sexual contact following a five-day trial before U.S. District Judge Jose L. Linares in Newark federal court. The jury deliberated seven hours before returning its guilty verdicts.

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

Aksal was a passenger on a United Airlines flight from Phoenix to Newark on August 20, 2012. He was sitting in the middle seat in a row of three seats. Neither Aksal, the victim, who was seated in the window seat, nor the passenger in the aisle seat knew each other. Before take-off, the victim texted a friend complaining about Aksal’s arm encroaching into her seating area.

About one hour before landing, the aisle passenger looked to his right and saw Aksal half into the victim’s seat, with his body against the victim’s, his right arm around the back of her and his left hand beneath a sweater that was draped over her. The victim awoke to find Aksal’s hands inside her shirt and shorts and struggled out of his grasp. The aisle passenger observed her jolting awake. The aisle passenger and the victim both gathered their belongings and headed to the back of the plane to report what happened to the flight attendants.

Aksal was detained upon arrival in Newark and arrested by agents of the FBI. He now faces a maximum potential sentence of life in prison and a $250,000 fine. Sentencing before Judge Linares is scheduled for Oct. 23, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael Fedorko, with the investigation leading to today’s conviction.

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

The federal government has exclusive jurisdiction over all sexual abuse cases that occur in American airplanes, as such events are outside the jurisdiction of any state.

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Defense counsel: Robert J. Degroot Esq., Newark

CAMDEN, N.J. – Three Atlantic City, N.J., residents today admitted their roles in the kidnapping and death of a 20-year-old Atlantic City woman, U.S. Attorney Paul J. Fishman announced.

Shameria Smith, 26, Aziz Sanders, 20, and Deshawn Hicks, 21, each pleaded guilty before U.S. District Judge Joseph H. Rodriguez to separate, one-count informations charging them with use of a firearm, and aiding and abetting the use of a firearm, in furtherance of a crime of violence – specifically, the Hobbs Act robbery and kidnapping that resulted in the death of Nadirah Ruffin.

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

On March 23, 2011, D.H. met with Isiah Ruffin (no relation to the victim) in the courtyard area of a housing complex on North Maryland Avenue, a section of Atlantic City known as “Back Maryland,” to talk to Isiah Ruffin about a dispute between Isiah Ruffin and Victim One. After a brief conversation, D.H. viciously assaulted Isiah Ruffin, knocking Isiah Ruffin unconscious and robbing him of cash. When Isiah Ruffin regained consciousness, D.H. assaulted Isiah Ruffin again. As a result of the assault, Isiah Ruffin was treated at the Atlantic City Medical Center for a possible concussion and facial lacerations. After Isiah Ruffin was released from the hospital, Smith and Sanders visited Isiah Ruffin, during which time Isiah Ruffin told Smith that D.H. had assaulted him.

To retaliate, Smith planned to enter Victim One’s house and assault and rob Victim One of illegal drugs and money. Sanders agreed to help Smith execute her plan and recruited Hicks to participate. Smith supplied the gun, duct-tape and handcuffs.

On March 26, 2011, Smith, Sanders, and Hicks entered Victim One’s house and duct-taped Victim One and four other victims, including Nadirah Ruffin, who were present. While in the house, Sanders and Hicks took money from Victim One, some of which Victim One had earned from selling illegal drugs. They took money from another victim, as well as marijuana that the victim was planning to sell. Sanders and Hicks admitted to taking more than $500 dollars and 50 bags of marijuana from the house.

During the robbery, Nadirah Ruffin recognized Smith’s voice. Smith ordered Sanders to punch Nadirah Ruffin. After Sanders hit Nadirah Ruffin, Smith punched her because she did not think Sanders had hit her hard enough. As the three defendants were leaving the residence, Smith told Sanders and Hicks to take Nadirah Ruffin from the residence. Smith, Sanders and Hicks then placed Nadirah Ruffin into a green van. They drove to the Clementon area and eventually to Philadelphia. Smith said that because she was a mother she could not kill Nadirah Ruffin. Smith placed the gun near Sanders and told him that they were not leaving until someone else killed Nadirah Ruffin. Sanders and Hicks took Nadirah Ruffin to the banks of the Schuylkill River, where Sanders shot her in the head, killing her. Her body was dumped in the river.

The charges to which Smith, Sander and Hicks pleaded guilty carry a maximum potential penalty of life imprisonment and a fine of $250,000.  Sentencing for Smith and Sanders is scheduled for Oct. 22, 2013, and Hicks is scheduled for Oct. 23, 2013.

Other defendants

Henry Ruffin and Ronnie Ruffin (no relation to Nadirah Ruffin) both pleaded guilty to failing to tell FBI special agents who interviewed them that they know Smith, Sanders and Hicks were involved in the home invasion and kidnapping. Henry Ruffin is scheduled to be sentenced Sept. 17, 2013, and Ronnie Ruffin is scheduled to be sentenced Sept. 19, 2013.

On April 3, 2012, Isiah Ruffin, pleaded guilty to providing false statements to investigators about the home invasion and kidnapping. He is scheduled to be sentenced Oct. 23, 2013.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office and the Atlantic City Police Department, for the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden, assisted by Assistant U.S. Attorney David Feder of the U.S. Attorney’s Office Appeals Division in Newark, and Mark Coyne, Chief of the Appeals Division.

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Defense counsel: Smith: Christopher O’Malley, Esq.
Sanders: Edward Borden Esq. and Carl J. Herman Esq. 
Hicks: Michael Huff Esq. and David Glazer Esq.
Henry Ruffin: Richard Sparaco Esq.
Ronnie Ruffin: Stanley O. King Esq.
Isiah Ruffin: J. Michael Farrell Esq. 

Smith, Shameria Information
Sanders, Aziz Information
Hicks, Deshawn Information

Doctor Made More Than Half a Million Dollars Illegally

TRENTON, N.J. – A doctor who was the owner and founder of Visiting Physicians of South Jersey (VPA) – a Hammonton, N.J., provider of home-based physician services for seniors – was sentenced today to 24 months in prison for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.  

Lori Reaves, 52, of Waterford Works, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging her with one count of health care fraud. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Reaves admitted lying in Medicare billings about the amount of face-to-face time she spent with patients, which led to her receiving at least $511,068 in criminal profits. Reaves was the highest billing home care provider among the more than 24,000 doctors in New Jersey from Jan. 1, 2008, through Oct. 14, 2011.

VPA provided home-based physician health care for elderly and homebound patients in New Jersey, offering services throughout South Jersey. As part of her responsibilities at VPA, Reaves was responsible for Medicare billings as a Medicare-approved provider. The claim submitted by the health care provider requires a physician to state a diagnosis and provide a procedure code – called a Current Procedural Technology (CPT) code – identifying services rendered. Medicare regulations require that each provider certify that the services rendered were medically necessary and were furnished by that provider. A warning at the bottom of the form specifically states that any false claims or statements in relation to the submission of a claim for reimbursement are prosecutable under federal or state law.

In most instances during the relevant time period, Reaves submitted forms that falsely claimed she had provided prolonged service visits to her patients in order to induce Medicare to make payments to her that were significantly higher than the payments she should have received. She routinely billed Medicare using codes that would have required her – under Medicare regulations and depending on the corresponding service – to spend between 60 and 150 minutes with a patient. Many of the claims Reaves submitted would have required her to spend a minimum of 2.5 hours of face-to-face time with her elderly clients, when she actually spent far less. As a result, Medicare reimbursed Reaves more than $511,068 for the fraudulent prolonged service visits Reaves claimed to have made.          

In addition to the prison term, Judge Wolfson sentenced Reaves to three years of supervised release. In addition to Reaves forfeiture of $511,068, Judge Wolfson ordered Reaves to pay restitution of $511,068 and pay a fine of $5,000.

U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom F. O’Donnell of the New York Regional Office, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys Deborah J. Gannett and R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark. 

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TRENTON, N.J. – Randy Binder, a pharmacist and the former proprietor of Texas Road Pharmacy in Manalapan, N.J., admitted today that he conspired to illegally distribute oxycodone to people without a legitimate need for the drug, U.S. Attorney Paul J. Fishman announced.

Binder, 60, of Matawan, N.J., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute oxycodone.

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

Binder admitted that he participated in a conspiracy to distribute oxycodone for no legitimate medical purpose and beyond the bounds of medical practice between January 2009 and June 2012.

Oxycodone, the active ingredient in brand name pills such as OxyContin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Users will often crush and snort the pills or dissolve and inject them to get an immediate high. This abuse can lead to addiction, overdose and death.

Binder would meet fellow conspirators in the parking lot of Texas Road Pharmacy to provide them with pills, or would leave the pills in a car in the parking lot, which conspirators would then pick up. Binder would also accept prescriptions which he knew to be invalid.

The charge to which Binder pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine.  Sentencing is currently scheduled for Oct. 24, 2013.

U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; 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 plea.

The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Jonathan Romankow of the U.S. Attorney’s Office Criminal Division and Tino Lisella, Trial Attorney with the Department of Justice, Tax Division.                                                                                                                                                                                                                                  13-297    
                                                 
Defense counsel: Steven Altman Esq., New Brunswick, N.J.

Binder, Randy Information

NEWARK, N.J. – A Bergen County, N.J., man was sentenced today to 60 months in prison for knowingly receiving over the Internet images and videos of child sexual abuse, U.S. Attorney Paul J. Fishman announced.

Joseph Anthony Amari, 81, of Fair Lawn, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden to one count of an indictment charging him with receipt of child pornography. Judge Hayden imposed the sentence today in Newark federal court.

Amari, who was initially federally charged by complaint in 2009, is currently serving a sentence in state prison following a separate state conviction for endangering the welfare of two minors. His federal sentence will run concurrently with his state sentence. The state also required Amari to register as a sex offender. The court had stayed the federal prosecution pending the resolution of the state charges.

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

Amari admitted during his guilty plea that he used peer-to-peer file-sharing software to download images and videos in February 2007 of children being sexually abused.

In addition to the prison term, Judge Hayden sentenced Amari to five years of supervised release.

U.S. Attorney Fishman credited the FBI Child Exploitation Task Force in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence. He also thanked the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli, and the Fair Lawn Police Department, under the direction of Chief of Police Erik Rose.

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

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Defense counsel: Chester Keller Esq., Newark

TRENTON, N.J. – A federal grand jury in New Jersey has indicted the developer of three Trenton affordable housing projects for allegedly diverted money intended for the developments, announced New Jersey U.S. Attorney Paul J. Fishman.

A federal grand jury returned a 25-count indictment today charging Robert Kahan, 67, of Sunny Isles Beach, Fla., with 10 counts of making false statement in a loan application, three counts of bank fraud, three counts of mail fraud, two counts of fraud against a local government receiving federal benefits, and seven counts of transacting in criminal proceeds. Kahan will be required to appear in federal court to face the charges on a date to be determined.

“As alleged in the indictment, Kahan took money intended for projects designed to help those in need of affordable housing and used it for his own ends,” said U.S. Attorney Fishman. “It isn’t just defrauded financial institutions and programs that lose: it’s the people of our cities who are the most vulnerable. They can’t afford it, and we won’t stand for it.”

“Mr. Kahan allegedly took advantage of the system and the good faith of banks, credit lenders and the local and federal government by diverting funds procured for the development of affordable housing,” said FBI Special Agent in Charge Aaron T. Ford. “The Newark office of the FBI remains committed to bringing to justice those individuals that insist on misusing funds through fraud and deception. Today’s plea is the result of the hard work of the men and women of the FBI and our federal partners at the Internal Revenue Service and U.S. Department of Housing and Urban Development, Office of Inspector General. Together with our federal partners we will continue combating fraud at all levels of society.”

According to the indictment: Kahan was a developer of three affordable housing projects in Trenton between 2006 and 2010 – the Canal Plaza Homeownership Project, the Southwest Village II Project and the Catherine S. Graham Project – for which he obtained both private and public funding.

When seeking loans for projects, including the three Trenton projects, Kahan caused personal financial statements to be submitted to banks on behalf of himself and his spouse that falsely overstated the value of his assets.

Kahan also falsely represented in payment applications, when requesting advances of loan and subsidy money in connection with the three Trenton projects, that all money he was previously paid had been used to pay costs for labor, materials and other obligations for a particular project. Kahan allegedly caused substantial portions of the money to be diverted for his own personal use, his other development projects and other uses that were not authorized.

The false statement in a loan application, bank fraud and mail fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The charges of fraud against a local government receiving federal benefits and transacting in criminal proceeds each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Cary Rubenstein, Special Agent in Charge, Northeast Region, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Eric Moran in Trenton and Senior Litigation Counsel J Fortier Imbert in Newark, both of the U.S. Attorney’s Office Special Prosecutions Division.

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: Scott Krasny Esq., West Trenton, N.J.

Kahan Indictment