District of New Jersey

NEWARK, N.J. – A Bronx, New York, man was sentenced today to 156 months in prison for distributing heroin and fentanyl into New Jersey from two drug mills in the Bronx, which resulted in the death of a 15-month-old child, U.S. Attorney Philip R. Sellinger announced.

Jhan Carlos Capellan Maldonado, 35, previously pleaded guilty before U.S. District Judge Esther Salas to a superseding information charging him with one count of distributing heroin and fentanyl from a drug mill in the Bronx in December 2018. Capellan Maldonado admitted that his distribution of fentanyl caused the death of a 15-month-old child. Judge Salas imposed the sentence today in Newark federal court.

Capellan Maldonado also pleaded guilty to one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl from a separate drug mill in the Bronx in February 2019. Six other individuals – Reimon Genao Rosario, 28; Dilson Vazquez Genao, 28; Eddie Urena Rodriguez, 39; Francisco Mercedes Gil, 36; Daury Contreras Ulerio, aka “Majimbou,” 39; and Jose Antonio Vazquez Pena, aka “Tono,” 51 – also of the Bronx, all have previously pleaded guilty to the same charge before Judge Salas and have been sentenced. Judge Salas imposed Capellan Maldonado’s sentence today in Newark federal court.

“In December 2018, a 15-month-old child ingested fentanyl and died. The toddler was in a Bronx apartment being used by Capellan Maldonado to run his drug distribution operation, preparing and packaging heroin and fentanyl. His drug mill led directly to the death of this child. The punishment he received today will not bring the child back, but the defendant is being brought to justice for the terrible effects of his role in trafficking this poison. The fentanyl epidemic has caused enormous pain and suffering to our communities, including the death of the child in this case.”

U.S. Attorney Philip R. Sellinger

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

On Dec. 27, 2018, Capellan Maldonado was operating a drug mill at an apartment in the Bronx where he employed four individuals to store, mix, and package heroin and fentanyl in quantities for distribution into New Jersey. Capellan Maldonado admitted that while the group was preparing the heroin and fentanyl, a 15-month-old child present in the apartment ingested some of the fentanyl and died as a result. The four other individuals have been charged with homicide by the District Attorney’s Office in the Bronx.

In early February 2019, law enforcement officers learned that Capellan Maldonado was again using an apartment in Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.

On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one – Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.

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

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, and special agents of the Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge Frank Tarentino, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

NEWARK, N.J. – A Union County, New Jersey, tax preparer admitted assisting in the preparation of fraudulent tax returns on behalf of his clients, resulting in improperly large refunds for the tax preparer’s clients, U.S. Attorney Philip R. Sellinger announced today.

Emmanuel Amenyo, 59, of Union, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to an information charging him with aiding and assisting in the preparation of a false and fraudulent tax return.

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

From tax years 2018 through 2021, Amenyo ran a tax preparation business in which he prepared and submitted individual tax returns to the IRS on behalf of clients. Amenyo filed numerous false tax returns on behalf of his clients and subscribed to false tax returns with respect to his own taxes. These tax returns falsely claimed charitable contributions, itemized deductions, child and dependent care expenses, and other qualified expenses to which Amenyo and his clients were not entitled, resulting in improperly large tax refunds, as Amenyo knew and intended. Amenyo’s conduct caused a tax loss of $250,466.

The charge that Amenyo pleaded guilty to carries a maximum penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for April 1, 2025.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Joseph Stern of the Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – Two Hudson County, New Jersey, men were sentenced to prison terms for their involvement a string of armed robberies of gas stations, U.S. Attorney Philip R. Sellinger announced today.

Wendell Bradley Jr., 27, of Bayonne, New Jersey was sentenced by U.S. District Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to 160 months in prison. Joseph Brown, 26, of Jersey City, New Jersey, was sentenced by Judge Arleo on Oct. 3, 2024, to 92 months in prison. Bradley previously pleaded guilty before Judge Arleo to one count of conspiracy to commit Hobbs Act robbery, one count of Hobbs Act robbery, one count of attempted carjacking, and one count of brandishing a firearm in furtherance of a crime of violence. Brown previously pleaded guilty to one count of attempted Hobbs Act robbery and one count of Hobbs Act robbery.

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

From Jan. 3, 2022, to Feb. 4, 2022, Bradley – either alone or with Brown – would drive to a gas station, pull up to a gas pump, ask the gas station attendant to put gas in the car’s tank, and, while the tank was being filled, would pull a gun on the attendant and demand money. On Jan. 20, 2022, in Union, Brown pointed a gun at a gas station attendant, demanded money, and threated to kill him. Bradley then grabbed the attendant from behind, but the attendant was able to break free and escape into the gas station before Brown or Bradley could take any money from him.

The spree ended after Bradley and Brown robbed a gas station attendant at gunpoint in Secaucus, New Jersey. Bradley and Brown fled, and officers chased them from Secaucus to Newark, where Bradley crashed his car. While both men were running away from police, Bradley pulled his gun, approached an off-duty Essex County Sheriff’s officer, and demanded that the officer give Bradley his car. The officer disarmed Bradley and detained him.

In addition to the prison term, Judge Arleo sentenced Bradley and Brown to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the ATF, under the direction of special Agent in Charge L.C. Cheeks, Newark Field Division; the Clifton Police Department, under the direction of Chief Thomas Rinaldi, the Hillside Police Department, under the direction of Chief Vincent P. Ricciardi, Jr, the Jersey City Department of Public Safety, under the direction of Director James Shea, the Newark Police Department, under the direction of Emanuel Miranda, the North Bergan Police Department, under the direction of Chief Peter Fasilis, the Secaucus Police Department, under the direction of Chief Dennis Miller, and the Union Police Department, under the direction of Police Director Chris Donnelly, with the investigation.

The government is represented by Assistant U.S. Attorney Aaron Webman of the Economic Crimes Unit and Megan Linares of the Cybercrime Unit in Newark.

NEWARK, N.J. – The owner of several New Jersey masonry construction companies pleaded guilty to willfully evading taxes, U.S. Attorney Philip R. Sellinger announced today.

Joseph Caravella, 58, of Randolph, New Jersey pleaded guilty before U.S. District Court Judge Madeline Cox Arleo in Newark federal court on Oct. 10, 2024, to a superseding information charging him with tax evasion for tax years 2008 to 2019.

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

From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery Penalties against Caravella for causing three masonry businesses that he owned to fail to pay their employment taxes. From March 2008 through April 2019, Caravella attempted to evade these taxes by placing companies that he controlled in the names of nominee owners; providing the IRS with false and misleading information as part of an Offer in Compromise; filing a false individual income tax return; using bank accounts in the names of nominees for his own purposes; causing his personal expenses to be paid with corporate funds; and causing his compensation to be inaccurately reported or not reported to the IRS on Forms W-2.

The tax evasion charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Trial Attorneys Kenneth Vert and Evan Mulbry of the Justice Department’s Tax Division.

NEWARK, N.J. – The ex-husband of a former star of the Bravo reality television show “The Real Housewives of New Jersey,” was sentenced today to 84 months in prison for hiring, then assisting, a soldier in the Lucchese Crime Family to assault his ex-wife’s current husband, U.S. Attorney Philip R. Sellinger announced.

Thomas Manzo, 59, of Franklin Lakes, New Jersey, was convicted on June 4, 2024, after a two-and-a-half week trial before Judge Susan D. Wigenton in Newark federal court. The jury convicted Manzo of one count of committing a violent crime in aid of racketeering, one count of conspiracy to commit a violent crime in aid of racketeering, and one count of falsifying and concealing documents related to a federal investigation.

 “Whether you’re actually in the Mafia or not, hiring the mob to assault someone because of your marital problems is abhorrent. Covering up the role you played only makes it worse. The jury’s verdict, and today’s sentence, make clear that this office will spare no resources to hold accountable anyone who commits such crimes.”

U.S. Attorney Philip R. Sellinger

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

In the spring of 2015, Manzo, a co-owner of The Brownstone, a Paterson, New Jersey, catering hall, hired Lucchese Crime Family soldier John Perna to assault his ex-wife’s then-boyfriend, paying for the assault with a free wedding reception. Perna, a “made man” with his own crew, worked with them to carry out the assault on July 18, 2015. The Perna wedding, held in August 2015 at the Brownstone, was attended by approximately 330 people, many of whom also were members of the Lucchese Crime Family. Four years later, Manzo concealed and falsified documents related to the Perna wedding in response to a grand jury subpoena.

In addition to the prison term, Judge Wigenton sentenced Manzo to three years of supervised release and ordered him immediately remanded.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the conviction. U.S. Attorney Sellinger also thanked special agents of the U.S. Department of Labor, Office of the Inspector General, Officers with the Lyndhurst Police Department, Officers with the Totowa Police Department, Investigators with the Monmouth County Prosecutors Office, Investigators of the New Jersey State Police, and the Passaic County Prosecutor’s Office for their substantial assistance.

The government is represented by Assistant U.S. Attorney Kendall R. Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit, Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office’s Special Prosecutions Division and Bruce P. Keller, Special Counsel to the U.S. Attorney. 

CAMDEN, N.J. – Two Camden men have been sentenced to prison for their respective roles in conspiracies that involved committing armed carjackings and robbing multiple gas stations in southern New Jersey, U.S. Attorney Philip R. Sellinger announced.

Kamau Bradshaw, 22, was sentenced today to 108 months in prison; Paul Rogers, 30, was sentenced on Aug. 7, 2024, to 188 months in prison. Both defendants previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to informations charging them with one count of conspiring to commit armed robberies, one count of committing an armed robbery, and one count of conspiring to commit armed carjackings. Judge Bumb imposed the sentences in Camden federal court.

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

On Sept. 14, 2021, two masked individuals carrying an AR-style rifle robbed a gas station in Pennsauken, New Jersey. One of the robbers wore a gray Nike hooded sweatshirt and scuffed tan work boots. The second robber wore a tan hooded sweatshirt with “REACTIVE” printed on the sleeves and striped boxer shorts. They obtained cash and cigarettes while brandishing the firearm. Shortly after the robbery, two individuals were seen returning to a residence in Camden with a large duffle bag. On Sept. 17, 2021, law enforcement officers executed a federal search warrant at the Camden residence and recovered, among other items, a duffle bag, an AR-style rifle, a gray Nike sweatshirt, scuffed tan work boots, and a tan hooded sweatshirt with “REACTIVE” printed on the sleeves. Bradshaw and Rogers were present when law enforcement agents executed the search warrant, at which time Bradshaw was wearing striped boxer shorts consistent with those worn by one of the robbers during the robbery.

Rogers and Bradshaw each admitted their role in eight gas station robberies or attempted robberies in addition to the Sept. 14, 2021, robbery in Pennsauken, including robberies in Haddon Township on Aug. 30, 2021; Pennsauken on Aug. 30, 2021; Bridgeton on Aug. 31, 2021; Brooklawn on Aug. 31, 2021; Vineland on Aug. 31, 2021; Pennsauken on Sept. 1, 2021; Haddon Township on Sept. 1, 2021; and Haddon Township on Sept. 16, 2021. Two of the gas stations were victimized more than once. At each gas station, at least one member of the conspiracy brandished what appeared to be an assault weapon in order to threaten the gas station attendant.

For several of the robberies, Bradshaw and Rogers used a car they obtained by committing an armed carjacking in Philadelphia. Members of the carjacking conspiracy traveled from Camden to Philadelphia and brandished what appeared to be an assault weapon in order to force a driver and passenger from an automobile. They returned to Camden with the victims’ car, which they proceeded to use to drive to and from some of their gas stations robberies.

In addition to the prison term, Chief Judge Bumb sentenced Rogers and Bradshaw each to three years of supervised release.

U.S. Attorney Sellinger credited special agents with Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, with the investigation leading to the sentencings. He also thanked the Camden County Prosecutor’s Office, Bridgeton City Police Department, Brooklawn Borough Police Department, Camden County Police Department, Haddon Township Police Department, New Jersey State Police, Oaklyn Police Department, Pennsauken Township Police Department, Vineland Police Department, and the Philadelphia Police Department.

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

NEWARK, N.J. – TD Bank, N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, “TD Bank”) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering.

TDBNA pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.

TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve System (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).

“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”

“TD Bank prioritized growth and convenience over following its legal obligations. As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”

U.S. Attorney Philip R. Sellinger

“For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”

“For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.”

According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.

Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”

Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.

TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.

As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.

The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.

IRS Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and the New York City Police Department provided substantial assistance.

Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Angelica Sinopole for the District of New Jersey’s Health Care Fraud Unit and Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. 

TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.

TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).

“By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”

“For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”

“For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.” 

“TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”

According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.

Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”

Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.

TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.

As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.

The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.

IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance.

Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

TD Bank US Holding Company Information

TD Bank N.A. Information

TD Bank US Holding Company Plea Agreement and Attachments

TD Bank N.A. Plea Agreement and Attachments

Video Statement:

https://youtu.be/eBEn8v-pD10

NEWARK, N.J. – A Somerset County, New Jersey, man admitted committing a federal hate crime for breaking into the Center for Islamic Life (CILRU) at Rutgers University in New Brunswick and destroying property, U.S. Attorney Philip R. Sellinger for the District of New Jersey, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and New Jersey State Attorney General Matthew J. Platkin announced today.

Jacob Beacher, 24, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Oct. 9, 2024, to an information charging him with damage to religious property.

“The free exercise of religion is a fundamental right of all Americans. Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.”

U.S. Attorney Philip R. Sellinger

“This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.”

“When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” FBI Newark Acting Special Agent in Charge Nelson I. Delgado said. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.”

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

On April 10, 2024, during the Eid-al-Fitr holiday, Beacher broke into the CILRU around 2:41 a.m., where he damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones, which are clay stones on which Muslims prostrate during prayer, and numerous other items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and a charity box belonging to the CILRU. He caused damage and destruction of property in excess of $5,000.

The charge of damage to religious property carries a maximum potential penalty of three years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 11, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, Branchburg Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; prosecutors and detectives from the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; detectives from the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Rutgers University Police Department-New Brunswick Division, under the leadership of Chief of University Police Kenneth Cop; and the New Jersey Regional Computer Forensics Laboratory.

The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit, and R. Joseph Gribko, Deputy Chief of the Civil Rights Division, with assistance from the National Security Unit for the District of New Jersey, as well by Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division. 

A New Jersey man pleaded guilty yesterday to a federal hate crime for breaking into the Center for Islamic Life at Rutgers University (CILRU) in New Brunswick, New Jersey, and destroying property.

“This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.”   

“The free exercise of religion is a fundamental right of all Americans,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.”

“When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” said Acting Special Agent in Charge Nelson I. Delgado of the FBI Newark Field Office. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.”

According to court documents, on or about April 10, at approximately 2:39 a.m., during the Eid- al-Fitr holiday, video surveillance footage showed Jacob Beacher, 24, walking toward the rear door of the CILRU. Soon after, at approximately 2:41 a.m., an intruder, later determined to be Beacher, forcibly entered the CILRU through its back door. Specifically, Beacher broke a glass pane on the door, pushed through a piece of plexiglass that was affixed to the interior side of the door and then manually opened the door from the inside by reaching through the broken glass to unlatch a deadbolt lock.

Once inside the CILRU, Beacher damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones and numerous items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and at least one charity box belonging to the CILRU.

A sentencing hearing will be scheduled for a later date. Beacher faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.

The FBI Newark Field Office, Branchburg Resident Agency, New Jersey Attorney General’s Office, Middlesex County Prosecutor’s Office, Rutgers University Police Department-New Brunswick Division and New Jersey Regional Computer Forensics Laboratory investigated the case.

Assistant U.S. Attorneys Benjamin Levin and R. Joseph Gribko for the District of New Jersey and Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division are prosecuting the case.

NEWARK, N.J. –A Hudson County, New Jersey, man was sentenced today to 135 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Christopher Carvajal, 31, of North Bergen, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of child pornography. Judge Cecchi imposed the sentence today in Newark federal court.

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

In April 2023, Carvajal’s iPhone was seized at Newark International Airport. A search revealed that Carvajal’s iPhone contained more than 900 video files and more than 400 image files depicting sexual abuse of minors, including infants or toddlers. Carvajal’s iPhone also contained communications in which Carvajal discussed his desire for sexual encounters with young children. Carvajal was previously convicted in the Superior Court of New Jersey, Bergen County, of a child pornography offense.

In addition to the prison term, Judge Cecchi sentenced Carvajal to 15 years of supervised release.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges.

 The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark.

NEWARK, N.J. – The owner of a New Jersey counseling center was sentenced today to 15 months in prison for her role in a health care fraud scheme involving hundreds of false claims, U.S. Attorney Philip R. Sellinger announced.

Maria P. Cosentino, 61, of Garfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging her with participating in a health care fraud scheme. Judge Hayden imposed the sentence today in Newark federal court,

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

Cosentino owned Bergen Alliance Counseling Services, which provided counseling services and mental health treatment to children, families, couples, and adults. She admitted that for years she submitted false claims to private health insurance plans for counseling sessions that she never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment. Cosentino kept the illicit profits, which totaled more than $700,000.

In addition to the prison term, Judge Hayden sentenced Cosentino to three years of supervised release and ordered her to pay restitution of $708,038.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

NEWARK, N.J. – A member of a Jersey City gang associated with the Marion Gardens Housing Complex was sentenced today to 234 months in prison for racketeering, violent crimes in aid of racketeering, drug trafficking, and firearms offenses, U.S. Attorney Philip R. Sellinger announced.

Jervon Morris, aka “Sticky,” 35, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to racketeering conspiracy and related crimes.

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

Morris and his co-defendants are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex, which routinely distributes cocaine and heroin, among other controlled substances, in and around the Marion Gardens Housing Complex. Members and associates of the gang also engaged in acts of violence, including numerous assaults, shootings, and murders, which targeted rival gang members and others. On July 28, 2011, Morris, Kevin Williams, aka “KK,” aka “Kay Kay,” 31, and other members of the Marion Gardens street gang, murdered a victim in the area of Gifford Avenue and Bergen Avenue in Jersey City.

In addition to the prison term, Judge Cecchi sentenced Morris to three years of supervised release.

On Feb. 7, 2018, Williams and another member of the Marion Gardens street gang assaulted a victim in the area of Summit Avenue and Magnolia Avenue in Jersey City. Williams was sentenced on Oct. 3, 2024, to 198 months in prison.

On June 30, 2018, Terick Rogers, aka “Moot,” 32, and two other members of the enterprise shot five people while celebrating “Meech Day” in honor of a deceased fellow gang member. On Aug. 21, 2024, Rogers, was sentenced to 192 months in prison.

On Jan. 9, 2019, Jakeem Gibson-Madison, aka “Beanz,” 30, and another member of the enterprise, traveled to the area of Grant Avenue and Ocean Avenue to target a rival gang member, at which time three victims were shot at, two of whom were hit. On Aug. 20, 2024, Gibson-Madison was sentenced to 180 months in prison.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the charges.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division for the District of New Jersey in Newark.

NEWARK, N.J. – A Somerset County, New Jersey, disbarred attorney today admitted a wire fraud scheme that caused losses of more than $1 million, U.S. Attorney Philip R. Sellinger announced.

Lawrence Coven, 61, of Hillsborough, New Jersey, pleaded guilty before U.S. District Court Judge Robert Kirsch in Trenton federal court to an information charging him with one count of wire fraud.

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

Coven operated and controlled Sunrise Enterprises LLC, which purported to provide financial services to investors. In reality, Coven induced victim investors into sending him funds by falsely representing that he would invest their money through Sunrise in exchange for large profits by providing short-term loans to borrowers who could not obtain standard loans. He falsely guaranteed investors returns of between 10 to 15 percent on their investments and told investors that their investments were risk-free. But instead of investing the money as he promised, Coven diverted investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills, and cash withdrawals. And when investors began asking questions, Coven provided them with false assurances that their money was safe and used money from existing investors to make payments to other investors in a Ponzi-like fashion.

The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 13, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Olta Bejleri and Fatime Meka Cano of the Economic Crimes Unit in Newark.

NEWARK, N.J. – An Arizona man was sentenced today to 49 months in prison for conspiring to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.

Walid Khater, 38, of Mesa, Arizona, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Walid Khater’s conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and was sentenced on June 12, 2024, to 57 months in prison.

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

Walid and Omar Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.

The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, totaling $4.49 million, which the Khaters and others directed to various bank accounts that they controlled.

In addition to the prison term, Judge Martinotti sentenced Walid Khater to three years of supervised release and ordered restitution of $4.49 million.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Acting Special Agent in Charge Nelson I. Delgado with the investigation leading to the sentencing. He also thanked the NJ Transit Police.

The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.

NEWARK, N.J. – An Essex County man was sentenced today to 120 months in prison for being a felon in possession of ammunition, Attorney Philip R. Sellinger announced today.

Lamar McCullough, 30, of Essex County, was convicted by a federal jury on June 7, 2024, of unlawful possession of ammunition by a convicted felon following a trial before U.S. District Judge Katherine Hayden, who imposed the sentence today in Newark federal court.

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

On March 5, 2021, members of the Newark Police Department responded to a report of a shooting victim at University Hospital. Surveillance video recorded at 7:22 p.m. showed McCullough shoot a victim four times at close range in the middle of Isabella Avenue in Newark. Four 9-millimeter shell casings were recovered from the area where McCullough discharged the firearm.

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

U.S. Attorney Philip R. Sellinger credited Newark Police Department, under the direction of Public Safety Director Fritz Fragé, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.

The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

The government is represented by Assistant U.S. Attorneys Jessica Ecker of the Healthcare Fraud Unit and Katherine Calle of the Special Prosecutions Division.

CAMDEN, N.J. – A former Salem County, New Jersey, man admitted his role in a scheme involving checks stolen from the mail and other sources, U.S. Attorney Philip R. Sellinger announced today.

Dezhon McCrae, 25, formerly of Penns Grove, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to a six-count information charging him with two counts of conspiracy to commit bank fraud, possession of a stolen postal key, possession of stolen mail, aggravated identity theft, and conspiracy to commit Hobbs Act robbery.

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

Count One

From May 2018 through February 2020, McCrae was part of a “card cracking” conspiracy in which the conspirators obtained stolen checks from the mail and other sources. They then used the stolen checks to create counterfeit checks with the same routing and account numbers for deposit into area banks. Next, the conspirators posted advertisements on social media, seeking individuals who had bank accounts and were willing to give the conspirators access to their accounts. The conspirators then deposited the counterfeit checks into the compromised banks accounts. The conspirators transferred as much money as possible out of the accounts before the banks discovered that the deposits were fraudulent. The conspirators were able to defraud the victim banks of over $274,000. McCrae’s role in this scheme resulted in over $10,000 loss to the victim banks. Three other codefendants have already been sentenced in connection with this scheme and three additional codefendants have pleaded guilty and are awaiting sentencing.

Count Two

After being charged via federal complaint for the conduct alleged in Count One of the information, McCrae engaged in a second scheme to commit bank fraud. From May 11, 2022, to July 27, 2022, McCrae participated in a nearly identical scheme to defraud another bank. This time, the victim bank suffered over $14,000 of loss due to McCrae’s offense.

Counts Three and Four

On Aug. 18, 2023, while the complaint for the allegations in Count One were still pending, McCrae was residing in Paulk County, Georgia. Local police were dispatched to McCrae’s residence in response to eye-witness reports of a shooting. The investigation of the shooting led to the discovery of a stolen postal mailbox key and stolen mail in McCrae’s residence.

Count Five

During the investigation of the Aug. 18, 2023 shooting at McCrae’s residence, local police obtained a warrant to search McCrae’s cellphone. The cellphone was found to contain evidence that McCrae had manufactured a fraudulent New Jersey driver’s license in the name of a real person, but using the photograph of a conspirator. The cellphone evidence also showed that McCrae mailed the false ID to his conspirators in Camden in late June 2023. On July 3, 2023, the false ID was used in an attempt to cash a stolen check at a bank in New Jersey. The bank’s employees were suspicious of the fraudulent ID and the conspirator fled the bank before the stolen check was cashed.

Count Six

The search of McCrae’s cellphone also uncovered evidence of his role in a conspiracy to commit two robberies of letter carriers in Cumberland County, New Jersey. The target of the robberies was the letter carriers’ postal mailbox keys. The first robbery occurred in Fairfield Township on June 13, 2023, when a masked assailant assaulted the letter carrier and successfully stole the postal mailbox key. The second robbery occurred on July 3, 2023, in Vineland. On this occasion, a masked assailant attacked the letter carrier from behind, striking him and spraying him with a cannister of bear repellant. The second robbery was unsuccessful in stealing the letter carrier’s postal mailbox key.

Conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million. Unlawful possession of a postal key carries a maximum penalty of 10 years in prison and up to a $250,000 fine. Possession of stolen mail carries a maximum penalty of five years in prison and up to a $250,000 fine. Aggravated identity theft carries a mandatory consecutive term of two years in prison and up to a $250,000 fine. Conspiracy to commit Hobbs Act robbery carries a maximum penalty of 20 years in prison and up to a $250,000 fine. Sentencing is scheduled for Feb. 6, 2025.

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspector’s Service, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; andspecial agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation. U.S. Attorney Sellinger also thanked the Paulk County (Georgia) Sheriff’s Department, the New Jersey State Police, the Cumberland County Prosecutor’s Office, the Glassboro Police Department, and the Cherry Hill Police Department.

The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.

NEWARK, N.J. – A New York man was sentenced to 27 months in prison for illegally possessing cocaine and fentanyl for distribution, U.S. Attorney Philip R. Sellinger announced today.

Isidro Fernandez, 36, New York, previously pleaded guilty to before U.S. District Judge Katharine S. Hayden to an information charging him with one count of possession with intent to distribute controlled substances. Judge Hayden imposed the sentence on Oct. 2, 2024, in Newark federal court.

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

On Feb. 26, 2021, law enforcement officers recovered a total of over 5 kilograms of cocaine and over 3 kilograms of fentanyl from a Passaic County residence occupied by Fernandez and from a vehicle that was seen leaving the residence. Fernandez admitted possessing the controlled substances with the intent to distribute.

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

U.S. Attorney Sellinger credited the New York Drug Enforcement Task Force, which comprises special agents and task force officers of the Drug Enforcement Administration, New York City Police Department, and New York State Police, with the investigation leading to the  sentencing.

The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.

Video Statement

NEWARK, N.J. – The chief executive officer of a construction company and a foreperson for the company were arrested today for their roles in a conspiracy to commit wire fraud in connection with the Newark Lead Service Line Replacement (LSLR) Program, U.S. Attorney Philip R. Sellinger announced.

Michael Sawyer, 57, of Burlington, New Jersey, and Latronia Sanders, aka “Tee,” 55, of Roselle, New Jersey, are each charged by complaint with conspiracy to commit wire fraud. They are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

“As our complaint alleges, Michael Sawyer and Latronia Sanders worked for a company hired by the city of Newark to replace lead pipes, but instead, they intentionally left lead pipes in the ground. By causing misleading photographs and verification forms to be submitted, Sawyer and Sanders concealed that they intentionally did not replace lead pipes and defrauded Newark by collecting payment for work they did not properly perform. Today, we begin the process of holding them accountable.”

U.S. Attorney Philip R. Sellinger

“For years, lead pipes that transport drinking water to homes in Newark remained buried in the ground after the city hired a company to replace them,” Newark FBI Acting Special Agent in Charge Nelson I. Delgado said. “The business, along with others, were paid to replace the water service lines because any amount of lead exposure is detrimental to people's health, particularly for children. We allege the subjects in this investigation knew they were not replacing the lead pipes, and then passed off misleading photos to conceal the ones they left in the ground. We are asking anyone who sees something or knows something they want to report to please call FBI Newark at 973-792-3000. We will hold accountable anyone who sees a payday in ripping off governmental agencies entrusted to protect the communities they serve.”

“These defendants allegedly undercut Newark’s lead service line replacement project that sought removal of all lead lines throughout the city,” Special Agent in Charge Tyler Amon with Environmental Protection Agency’s (EPA) Criminal Investigation Division in New Jersey said. “Violators who employ deception to compromise the integrity of important public drinking water related projects will be criminally investigated and held to account.”

“The EPA OIG is committed to doggedly pursuing criminal activity that targets critical water infrastructure funding," said Special Agent in Charge Nicolas Evans of the EPA Office of Inspector General. "Taking government funds but failing to replace lead service lines defrauds the program and hurts Americans’ access to safe drinking water.”

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

Beginning in 2016, high levels of lead were found in the drinking water in some of Newark’s schools. From 2017 to 2019, periodic testing of Newark’s drinking water by the U.S. Environmental Protection Agency (EPA) and the New Jersey Department of Environmental Protection (DEP) showed lead levels that were among the highest of any major city in the United States.

In March 2019, Newark announced plans to replace approximately 18,000 lead service lines within city limits as part of its LSLR Program. Newark hired an engineering firm to oversee the implementation of the program and contractors to complete the replacement work. JAS Group Enterprise Inc. (JAS) was one of the contractors hired by Newark. Prior to being hired as a contractor, JAS also worked on the LSLR Program as a subcontractor for another construction company.

Sawyer was the president and chief executive officer of JAS and responsible for overseeing and managing JAS’s operations. Sanders was employed by JAS as a foreperson of JAS crews assigned to replace lead pipes in Newark during the LSLR Program. Sawyer, Sanders, and others conspired to defraud Newark and others in connection with JAS’s performance as a contractor and as a subcontractor during the LSLR Program.

As alleged in the complaint, Sawyer, Sanders, and others intentionally failed to replace all lead pipes at certain locations as required under the terms of the relevant contracts, yet caused the submission of payment applications to Newark falsely representing that JAS completed the work in accordance with the contracts. Sawyer, Sanders, and others submitted false or misleading documents to support payment applications with respect to certain work sites. These materials included photographs that visually represented that the lead replacement was done or was unnecessary, but in fact were taken in a way to conceal that lead pipes were left in place.

At other sites where the water service lines already consisted entirely of copper pipes, Sawyer, Sanders, and others conspired to falsely represent that JAS had installed those copper pipes after removing lead pipes. Sawyer, Sanders, and others then caused the submission of fraudulent payment applications for work that JAS never completed, and induced Newark to pay JAS for work that JAS did not perform.

The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, twice the gross profits, or twice the gross loss suffered by the victims of the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Delgado in Newark; the EPA, Criminal Investigation Division Northeast Area Branch, under the direction of Special Agent in Charge Amon; the EPA Office of Inspector General, under the direction of Special Agent in Charge Evans, and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation.

The government is represented by Assistant U.S. Attorneys Edeli Rivera, Clara Kim, and Katherine Calle of the Special Prosecutions Division in Newark.

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

CAMDEN, N.J. – Two men from Camden, New Jersey, were indicted for their roles in conspiring to defraud the IRS by concealing cash wages paid to a business’s employees, U.S. Attorney Philip R. Sellinger announced today.

Tri Anh Tieu, 53, and Andy Tran, 49, both of Camden, New Jersey, were both charged with one count of conspiring to defraud the United States. They were arraigned before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court on Oct. 2, 2024, and were each released on $100,000 unsecured bond.

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

Tieu owed Tri States Staffing LLC, a business based in Pennsauken, New Jersey. Tran was an employee of Tri States Staffing who, at times, served as its representative. Tri States Staffing provided temporary workers to New Jersey businesses located in Gloucester and Burlington Counties. As part of its agreement with its customer businesses, Tri States Staffing was responsible for collecting and paying over to the IRS the payroll taxes due and owing on the wages paid to the temporary workers provided by Tri States Staffing.

Between the third quarter of 2018 and the second quarter of 2022, Tri States received more than $2.5 million in payments from its customer businesses. Tieu and Tran paid Tri States’s employees in cash and failed to pay over the payroll taxes due and owing on those wages. Tieu and Tran also filed false individual income tax returns that falsely omitted the income each received from Tri States Staffing. Tieu spent at least some of the unpaid payroll taxes on personal expenditures, including gambling.

The count of conspiracy to defraud the United States carries a maximum penalty of five years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Amy MacNeely in Philadelphia and Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the charge.

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

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

Link to video statement:

https://youtu.be/pl3o8-n5p6w

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division today filed a complaint against the state of New Jersey and joined with the state in filing a proposed consent decree to address findings of unconstitutional conditions at the New Jersey Veterans Memorial Homes at Menlo Park and Paramus.

The proposed consent decree, which must still be approved by the court, would resolve the department’s claims that New Jersey violates the Constitution by failing to keep the residents of its Veterans Homes safe from harm and an unreasonable risk of harm. The proposed consent decree requires the state to meet specific standards of clinical care, to overhaul its infection control and emergency operations practices and to implement measures for improved leadership and accountability. The proposed consent decree also asks the court to appoint an independent monitor who will oversee and assess the state’s compliance with the terms of the proposed consent decree.

“Our veterans, who have sacrificed so much, should never have been subject to deficient care. This consent decree provides a detailed roadmap and expert oversight to ensure they are protected, so that they and their families can rely on the veterans homes. We look forward to working with the state and the independent monitor to implement this decree and ensure that every resident of the veterans homes lives with the safety and dignity that they so richly deserve.”

U.S. Attorney Philip R. Sellinger

“Our veterans deserve to receive appropriate care, as required by law, and their families deserve to have confidence that their loved ones’ needs will be met,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement requires the state to deliver that care and have the oversight in place to provide families that confidence. The Justice Department will work diligently with the state to ensure the reforms are properly implemented.”

The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division initiated the investigation into the Veterans Homes in October 2020 under the Civil Rights of Institutionalized Persons Act (CRIPA). CRIPA authorizes the department to take action to address a pattern or practice of deprivation of federal rights of individuals in the custody of state or local governments.

In September 2023, the department notified the state that it found reasonable cause to believe the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus face unreasonable harm and risk of harm due to inadequate infection control practices and inadequate medical care. The department also identified the remedial measures necessary to address those unlawful conditions. Specifically, the department concluded that the state failed to provide the residents of its Veterans Homes with conditions of reasonable care and safety, in violation of the 14th Amendment.

Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available on its website at www.justice.gov/usao-nj/civil-rights-enforcement.

The government is represented by Assistant U.S. Attorneys Susan Millenky and Thandiwe Boylan of the U.S. Attorney’s Civil Rights Division; Michael Campion, Chief of the Civil Rights Division; Caroline Sadlowski, Executive Assistant U.S. Attorney; and attorneys from the Special Litigation Section of the Justice Department’s Civil Rights Division.

NEWARK, N.J. – A Newark business owner today admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.

Irwin Sablosky, 64, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.

“As he admitted in court, Irwin Sablosky provided cash and jewelry to Carmelo Garcia, a former Newark deputy mayor and director of the Newark Department of Economic and Housing Development in exchange for Garcia’s use of his influence to assist Sablosky’s acquisition of  various Newark-owned properties for redevelopment, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose greed overrides their sworn duty to serve the people and from the individuals who bribe those officials.”

U.S. Attorney Philip R. Sellinger

“By bribing a government official, Mr. Sablosky undermined the best interests of his community and threatened the confidence its citizens have in those that take an oath to serve the public,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “IRS-CI is committed to fostering trust in the legal system and holding bad actors accountable.”

“Irwin Sablosky’s selfish actions and severe abuse of power violated the public trust and risked jeopardizing the integrity of the federal process for fair and honest acquisitions of government owned properties to further his own self interests,” said Special Agent-in-Charge Vicky Vazquez with the U.S. Department of Housing and Urban Development, Office of Inspector General.  “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that threaten the integrity of HUD programs.”

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

Sablosky admitted bribing Garcia – who was also executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.

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

From 2017 through April 2019, Sablosky, Frank Valvano Jr., and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests.In addition to cash, Sablosky and Valvano also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business.

Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by  Sablosky and Valvano. In one instance, in June 2018, Sablosky and Valvano, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.

The honest services fraud charge in Count 18 of the indictment carries a maximum potential penalty of 20 years in prison. The bribery charge in Count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. Sentencing is scheduled for Feb. 20, 2025.

Sablosky originally was charged by indictment in October 2021 with Valvano, 56, of Florham Park, New Jersey, and Garcia, 59, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization and awaiting sentencing. Valvano’s case is pending before Judge Arleo, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s guilty plea.

The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.

The Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the District of New Jersey today filed a complaint against the State of New Jersey and joined with the State in filing a proposed consent decree to address findings of unconstitutional conditions at the New Jersey Veterans Memorial Homes (Veterans Homes) at Menlo Park and Paramus.

The proposed consent decree, which must still be approved by the court, would resolve the department’s claims that New Jersey violates the Constitution by failing to keep the residents of its Veterans Homes safe from harm and an unreasonable risk of harm. The proposed consent decree requires the state to meet specific standards of clinical care, to overhaul its infection control and emergency operations practices and to implement measures for improved leadership and accountability. The proposed consent decree also asks the court to appoint an independent monitor who will oversee and assess the state’s compliance with the terms of the proposed consent decree.

“Our veterans deserve to receive appropriate care, as required by law, and their families deserve to have confidence that their loved ones’ needs will be met,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement requires the state to deliver that care and have the oversight in place to provide families that confidence. The Justice Department will work diligently with the state to ensure the reforms are properly implemented.”

“Our veterans, who have sacrificed so much, should never have been subject to deficient care,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This consent decree provides a detailed roadmap and expert oversight to ensure they are protected, so that they and their families can rely on the Veterans Homes. We look forward to working with the state and the independent monitor to implement this decree and ensure that every resident of the Veterans Homes lives with the safety and dignity that they so richly deserve.”

The Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey initiated the investigation into the Veterans Homes in October 2020 under the Civil Rights of Institutionalized Persons Act (CRIPA). CRIPA authorizes the department to take action to address a pattern or practice of deprivation of federal rights of individuals in the custody of state or local governments.

In September 2023, the department notified the state that it found reasonable cause to believe the residents of the Veterans Homes at Menlo Park and Paramus face unreasonable harm and risk of harm due to inadequate infection control practices and inadequate medical care. The department also identified the remedial measures necessary to address those unlawful conditions. Specifically, the department concluded that the state failed to provide the residents of its Veterans Homes with conditions of reasonable care and safety, in violation of the 14th Amendment.

Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of New Jersey is available at www.justice.gov/usao-nj/civil-rights-enforcement.

NEWARK, N.J. – A New York man today admitted conspiring to commit wire fraud that caused losses of more than $2 million, U.S. Attorney Philip R. Sellinger announced.

Terrell Fuller, 34, of Baldwin, New York, pleaded guilty before U.S. District Court Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of wire fraud conspiracy.

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

Fuller and his conspirators submitted a fraudulent application to the Small Business Administration (SBA), which caused the SBA to provide them with approximately $1.2 million. They also opened bank accounts in the names of various entities and individuals, deposited illegally obtained or fraudulent checks into those accounts, and then withdrew and attempted to withdraw money from the accounts. Fuller, using stolen personal identifying information, fraudulently rented locations to live in New York and failed to pay more than $400,000 in rent and fees for those locations. Fuller and his conspirators obtained more than $2 million in money and property through their fraudulent actions.

The wire fraud conspiracy charge is punishable by a maximum penalty of 20 years in prison and maximum fine of $250,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 5, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, Franklin Township Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.  

The government is represented by Assistant U.S. Attorney Andrew Kogan of the Cybercrime Unit in Newark.

NEWARK, N.J. – A Florida woman today admitted fraudulently obtaining $465,489 in COVID-19 relief funding after submitting fraudulent applications to victim lenders, the U.S. Attorney Philip R. Sellinger announced.

Jane Batista, 43, of Lake Worth, Florida, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to one count of wire fraud and one count of money laundering.

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

From April 2020 to August 2021, Batista submitted fraudulent Paycheck Protection Program (PPP) loan applications for herself, her husband, and two businesses they owned and operated. In support of those applications, Batista lied about the number of employees the businesses employed, the income the employees earned, and the revenue Batista and her husband generated as sole proprietors. Batista also submitted forged documents, including fake tax return documents. After the victim lenders funded the loans, Batista used that money for personal expenses and made several large transfers, including one for $15,000.

The wire fraud count carries a maximum of 20 years in prison. The money laundering count carries a maximum of 10 years in prison. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 18, 2025.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Corwin Rattler; special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney with the investigation.

The government is represented by Assistant U.S. Attorneys Robert Taj Moore of the Organized Crime Drug Enforcement Task Force and Aaron L. Webman of the Economic Crimes Unit in Newark.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 51 months in prison for his role in a bank fraud conspiracy related to the theft of checks from the U.S. mail, U.S. Attorney Philip R. Sellinger announced.

Baba Diakite, 23, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to one count of an indictment charging him with conspiracy to commit bank fraud. His conspirator, Nasir Johnson, was previously sentenced last year by Judge Salas to 49 months in prison after pleading guilty to conspiracy to commit bank fraud, conspiracy to commit mail theft and possess stolen mail, and theft of a U.S. Postal Service key. Judge Salas imposed the sentences in Newark federal court.

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

From at least January 2020 to March 2022, Diakite, Johnson, and others conspired to steal checks from the mail in communities across New Jersey. Diakite and his conspirators used misappropriated keys belonging to the U.S. Postal Service to access mail collection receptacles and steal envelopes that contained checks. After stealing the checks, Diakite and his conspirators sold them to third parties or deposited them, sometimes in altered form for higher amounts, into bank accounts. Diakite and others then defrauded the banks by withdrawing money from the bank accounts. Diakite agreed that he caused a loss of between $550,000 and $1.5 million.

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

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher A. Nielsen; special agents with the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to the sentencing.

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

NEWARK, N.J. – A Colombian citizen admitted conspiring to import 15 kilograms of cocaine into the United States from Columbia, U.S. Attorney Philip R. Sellinger announced today.

Savier Cervantes, 37, of Cartagena, Colombia, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court on Sept. 30, 2024, to an information charging him with one count of conspiracy to import cocaine.

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

In December 2021, Cervantes facilitated the transfer of five kilograms cocaine from a source of supply in Colombia to a U.S. citizen, Antonio Diaz, and helped to arrange for the transportation of that cocaine from Cartagena to New Jersey. Diaz previously pleaded guilty to charges of conspiracy to distribute and possession with the intent to distribute cocaine.

In June and July 2022, Cervantes introduced a U.S. citizen, Bashimi Briscoe, to two individuals in Columbia who, between them, sold Briscoe 10 kilograms of cocaine, and arranged a meeting with a third individual who offered to transport that cocaine to the United States. Briscoe previously pleaded guilty to conspiracy to import cocaine into the United States.

The count to which Cervantes pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $1 million dollars. Sentencing is scheduled for March 12, 2025.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Frank A. Tarentino III, in New York, and special agents of the DEA operating in Colombia, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Aaron L. Webman of the Economic Crimes Unit in Newark.

TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to time served – 64 months – for concealing his attempts to provide material support to Hamas, U.S. Attorney Philip R. Sellinger,  Assistant Attorney General Matt Olsen of the U.S. Department of Justice’s National Security Division, FBI-Newark Acting Special Agent in Charge Nelson I. Delgado Jr., and FBI Assistant Director for Counterterrorism David J. Scott announced. 

Jonathan Xie, 25, of Basking Ridge, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of concealing attempts to provide material support to a designated foreign terrorist organization. Judge Shipp imposed the sentence today in Trenton federal court. 

“Jonathan Xie not only admitted sending money that he hoped would be used by the terrorist organization Hamas to fund violent acts against civilians in Israel, he professed his desire to travel to Gaza to join them. Brandishing a gun and holding a Hamas flag, he also posted that he was going to shoot everybody at a pro-Israel march and  ruminated how one could go on a rampage by ramming  pro-Israel demonstrators with a car. This supporter of Hamas learned the true cost of supporting terrorists.”

U.S. Attorney Philip R. Sellinger

“Xie is an unfortunate example of an emerging and extremely dangerous threat the FBI Newark Joint Terrorism Task Force is seeing with much more frequency,” Newark FBI Acting Special Agent in Charge Nelson I. Delgado said. “The average age of the international and domestic terrorism subjects we investigate is under 21 years old, and they're being radicalized in only a few months. Xie was a teenager when he decided to send money in support of a terrorism organization and then threaten to carry out a plan to kill pro-Israeli people. We need this case to serve as a warning to parents and guardians - pay attention to what your teenagers are doing online.”

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

Xie knowingly concealed and disguised the nature, location, source, ownership and control of  his  attempt to provide material support and resources to Harakat alMuqawamah al-Islamiyya and the Islamic Resistance Movement, an organization that is commonly referred to as Hamas. Xie admitted that he knew Hamas was a designated foreign terrorist organization and has engaged in terrorist activities. He said he attempted to conceal his attempted support believing it would be used to commit or assist in the commission of a violent act. 

In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.” 

In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . .  you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.”

In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On April 18, 2019, when the undercover employee asked whether Bitcoin was anonymous, Xie responded: “yah… i think thats why hamas is using it now because money transfer is not that anonymous.”   

In addition to the prison term, Judge Shipp sentenced Xie to 20 years of supervise release, including six months of home detention with location monitoring for the first six months. 

U.S. Attorney Sellinger and Assistant Attorney General Olsen credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Nelson I. Delgado; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to the sentencing. He also thanks the U.S. Secret Service for its assistance. 

The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Taryn Meeks of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division (currently detailed to the Human Rights and Special Prosecutions Section).

NEWARK, N.J. – A United Kingdom national has been charged for his execution of a hack-to-trade scheme, through which he generated millions of dollars in profits, U.S. Attorney Philip R. Sellinger announced.

Robert Westbrook, 39, of London, United Kingdom, was arrested in the United Kingdom this week with a view towards extradition to the United States so that he can face an indictment charging him with securities fraud, wire fraud, and five counts of computer fraud.   

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

From January 2019 through May 2020, Westbrook executed a hack-to-trade scheme through which he generated millions of dollars in profits. On at least five occasions, Westbrook gained unauthorized access to Office365 email accounts belonging to corporate executives employed by certain U.S.-based companies to obtain non-public information, including information about impending earnings announcements. Westbrook then used that information to purchase securities that he sold in short order for substantial profits after the material information became public.  On several occasions, Westbrook implemented auto-forwarding rules designed to automatically forward content from the corporate executives’ compromised email accounts to email accounts controlled by Westbrook.  Westbrook generated profits exceeding $3 million dollars through this scheme.

The securities fraud count carries a maximum potential penalty of up to 20 years in prison and a fine of $5 million. The wire fraud count carries a maximum penalty of up to 20 years in prison and a fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Each computer fraud count carries a maximum potential penalty of five  years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Westbrook today based on the same conduct.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Samantha C. Fasanello, Chief of the OCDETF/Narcotics Unit in Newark.

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

NEWARK, N.J. – An Assistant U.S. Attorney in the District of New Jersey was recognized by the National Association of Former U.S. Attorneys (NAFUSA) today during their annual meeting in Oklahoma City, Oklahoma.

NAUFA selected AUSA John Romano to receive the J. Michael Bradford Memorial Award for Most Outstanding Assistant U.S. Attorney, which recognizes an AUSA for outstanding performance in a significant civil or criminal matter, or a series of matters, that have had a significant impact and merit special recognition.

AUSA Romano was selected for his outstanding advocacy from 2015 through 2024 in United States v. Carolyn Jackson and John Jackson, a case involving two defendants’ horrifying treatment of their three very young foster children while living at the Picatinny Arsenal and elsewhere. The three children were all less than 4 years old and developmentally delayed when the defendants committed neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water, and force-feeding them hot sauce.

“The defendants’ foster children suffered gut-wrenching abuse and neglect. AUSA Romano’s work – specifically, his continuous and dogged efforts to seek justice for these vulnerable victims – exemplifies his devotion to the department’s mission and warrants this award.”

U.S. Attorney Philip R. Sellinger 

For more than nine years, AUSA Romano has played a pivotal role in this effort to secure justice for the defendants’ victims. He initially helped advise the trial team. When, despite the defendants’ grievous conduct, the district court sentenced them leniently, AUSA Romano successfully appealed. The district court again imposed a lenient sentence, and so AUSA Romano appealed again. After a third, lenient sentencing, AUSA Romano appealed and sought reassignment to a different judge, which the Third Circuit Court of Appeals granted.

These appeals required reviewing tens of thousands of pages of transcripts and exhibits and conducting exhaustive legal research. AUSA Romano also composed appellate briefs for all three appeals, which totaled in excess of 60,000 pages of briefing, and twice argued the case before the Court of Appeals.

In October 2023, AUSA Romano handled the fourth resentencing hearing before the newly assigned district judge. As a result of his compelling advocacy, both written and oral, he secured sentences of 140 months’ imprisonment for Carolyn Jackson and 108 months’ imprisonment for John Jackson.

TRENTON, N.J. – A Pennsylvania man was sentenced today to 78 months in prison for his role in a scheme to fraudulently obtain over $4.8 million in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) for himself and others, U.S. Attorney Philip R. Sellinger announced.

Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 61, of Kingston, Pennsylvania, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 14, 2023, to an information charging him with one count of conspiracy to commit bank fraud and one count of money laundering. U.S. District Judge Georgette Castner imposed the sentence today in Trenton federal court.

“This defendant admitted taking advantage of government programs that were specifically designed to provide needed financial assistance to Americans during the COVID-19 pandemic,” U.S. Attorney Sellinger said. “Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners. Together, we will continue to root out those who have exploited the suffering of others to line their own pockets, and bring them to justice.”

“COVID-19 relief funds were meant to assist honest, hardworking Americans during an unprecedented time of hardship in our country, not to aid those trying to enrich their lives through deception,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said.  “Mr. Young’s sentence today reinforces that individuals who defraud our federal programs will be held accountable.”

“This sentencing should serve as a resounding message to anyone who wants to utilize the US Mail to defraud the American taxpayer. Postal Inspectors will continue to aggressively work with our partners in law enforcement and the US Attorney’s Office to hold these types of fraudsters accountable,” stated Christopher A. Nielsen, Inspector in Charge of the Philadelphia Division.  

“Mr. Young and his fellow conspirators committed crimes and selfishly profited from the Paycheck Protection Program and the Economic Injury Disaster Loans; Mr. Young exploited Federal assistance programs intended to help those in need during a national crisis. This sentence now holds him accountable for his criminal acts,” said Michelle L. Anderson, Acting Inspector General for the SSA. “I thank our law enforcement partners for working to pursue perpetrators who fraudulently profit from Federal benefit programs. I appreciate the collaboration among the investigating agencies and the work of the U.S. Attorney’s Office for prosecuting this case.”

“Today’s sentencing sends a clear message that those who fraudulently obtained funds from COVID-19 relief programs will be held accountable,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) said. “The FDIC OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who participate in fraudulent schemes and threaten to undermine the integrity of our Nation’s banking system.”

“Darryl Duanne Young defrauded the federal government of nearly $5 million in pandemic relief funds for his own personal gain and will now pay the price for his crimes,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Young accountable for his crimes.”

“Young will serve time for selfishly pocketing millions of dollars in emergency funds our government intended to give qualified Americans and small businesses who needed economic assistance in the wake of the COVID-19 pandemic,” said HSI Newark acting Special Agent in Charge Spiros Karabinas. “HSI Newark and our law enforcement partners are committed to ensuring justice is served in cases where individuals perpetrated illicit schemes for personal gain during an unprecedented public health crisis.”

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

Young engaged in a scheme to illegally obtain for himself and his conspirators over $4.8 million in loans authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Young submitted and directed others to submit fraudulent PPP and EIDL loan applications, which fabricated numbers of employees and misrepresented company information, to induce lenders to approve the loan applications that they otherwise would not have approved. Among other things, Young submitted falsified tax documents and bank statements to a victim lender in support of PPP loan applications. Young personally received over $230,000 in PPP loans for businesses he controlled and received a percentage of loan proceeds for assisting in submitting fraudulent applications on behalf of others.

In addition to the prison term, Judge Castner sentenced Young to three years of supervised release and ordered restitution of $5.28 million.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent in Charge Corwin Rattler; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Board of Governors of the Federal Reserve System - Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of the five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
 

TRENTON, N.J. – An Ocean County man today admitted failing to collect and pay over employee taxes, U.S. Attorney Philip R. Sellinger announced.

Gerard Artz, 44, of Brick, New Jersey pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with one count of failure to collect and pay over taxes.

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

Artz owned and operated a construction company in Brick, New Jersey, and New York City. Beginning around 2016, Artz’s company, under his direction, withheld employment taxes from the company’s employees’ paychecks and did not remit those employment taxes to the IRS.  From 2016 to 2020, Artz and his company failed to collect and pay over $937,943 in employment taxes owed by his company.

The count of failure to collect and pay over taxes carries a maximum penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Artz has agreed to pay the government restitution of $937,943. Sentencing is scheduled for Feb. 5, 2024.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Eric Suggs of the Criminal Division in Trenton.

NEWARK, N.J. – A New Jersey business owner today admitted his role in a fraud scheme involving COVID funds, fraudulent tax filings and a fraudulent loan application, U.S. Attorney Philip R. Sellinger announced.

Richard Fadraga, aka “Ricardo Fadraga,” 53, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud conspiracy and two counts of wire fraud.

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

In June 2020, Fadraga and a conspirator who was in the business of preparing tax returns submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL), which resulted the Small Business Administration (SBA) paying $110,000 in COVID-19 related proceeds. In July 2020, Fadraga and the conspirator submitted another fraudulent EIDL application, which resulted in the SBA paying $131,200 in COVID-19 related proceeds. The July 2020 application was submitted under another person’s name to conceal the involvement of Fadraga and his conspirator, but law enforcement was subsequently able to link the July 2020 application back the two conspirators.

At the urging of his conspirator, Fadraga also obtained an Employer Identification Number (EIN) and Electronic Filer Identification Number (EFIN) using Fadraga’s personal identifying information. His conspirator then used the EIN and EFIN to submit federal tax returns on behalf of other people that contained false information. The fraudulent EIN was associated with tax returns that received more than $195,000 in federal refunds for tax year 2023, and the fraudulent EFIN was associated with tax returns that received more than $595,000 in federal refunds for tax year 2023, including tax refunds totaling more than $100,000 in the names (including variations of the names) of the conspirator and the conspirator’s associates.

Fadraga also fraudulently applied for a bank loan in connection with the purchase of property in Florida. When the lender requested additional information, Fadraga sent bank statements to his conspirator, who then altered those bank statements to make it appear as if Fadraga’s bank account contained more money than it really did.

Each count of wire fraud conspiracy and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 10, 2025.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark.

CAMDEN, N.J. – A Burlington County, New Jersey, man admitted receiving images of child sexual abuse over an online network, U.S. Attorney Philip R. Sellinger announced today.

Charles Borrelli, 62, of Burlington, New Jersey, pleaded guilty before U.S. District Judge Renée Bumb on Sept. 25, 2024, to an information charging him with receipt of child pornography.

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

On Jan. 3, 2022, Borrelli used an internet network to download sexually explicit images of children. Borrelli also distributed images and videos of child sexual abuse on a peer-to-peer file sharing network on Jan. 3, 2022. Borrelli possessed over 600 images and videos of child sexual abuse, which were found on a vast collection of personal electronic devices when members of law enforcement executed a search warrant at his residence in February 2022. Some of the images were of infants.

The charge of receipt of child pornography carries a mandatory minimum penalty of 5 years I prison, and a maximum potential penalty of 20 years in prison, and a $250,000 fine. However, because Borrelli has a prior conviction for possessing child pornography, he will face an enhanced penalty on the receipt charge of a mandatory minimum term of 15 years imprisonment and a maximum term of 40 years of imprisonment.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, under the direction of Acting Special Agent in Charge Spiros Karabinas in Newark; and members of the New Jersey State Police, Burlington County Prosecutor’s Office and Mount Laurel Police Department with the investigation.

The government is represented by Assistant U.S. Attorney Lindsey R. Harteis of the U.S. Attorney’s Office in Camden.

NEWARK, N.J. – Three New Jersey licensed attorneys and a New Jersey licensed realtor were indicted for their roles in defrauding financial institutions in a short sale fraud scheme, U.S. Attorney Philip R. Sellinger announced.

Lawyers Bruce Egert, 69, of Tenafly, New Jersey, Nelson Kong, 44, of Bethpage, New York, Seung Han Shin, aka Aaron Shin, 42, of Old Tappan, New Jersey, and realtor Francisco Sanchez, 48, of Ridgefield Park, New Jersey, were each indicted by a federal grand jury with one count of conspiracy to commit bank fraud and three counts of bank fraud. Egert and Kong were also charged with three counts of false statements to a financial institution.

Shin and Kong were arraigned on Sept. 19, 2024, before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Egert and Sanchez were arraigned on Sept. 23, 2024, before U.S. Magistrate Judge Stacey D. Adams in Newark federal court. Each of the defendants was released on $100,000 unsecured bond. 

According to documents filed in this case:

From June 2013 through December 2016, Egert, Kong, Shin, Sanchez, and others fraudulently induced mortgage lenders to participate in “short sale” transactions. In a typical short sale transaction, a financial institution agrees to allow a homeowner in financial distress to sell their home for less than they owe on their mortgage. Such transactions are called short sales because the market value of the house is less than the amount owed by the homeowner and the lender agrees to accept a payment “short” of the amount owed. Through fraudulent misrepresentations and false statements, Mehdi Kassai, with the help of his conspirators, purchased homes at significant discounts from the note-holding banks both in his name and using stolen identities. Kassai, Egert, Kong, Shin, and Sanchez failed to reveal to the banks that Kassai and Egert had already arranged to flip the homes to other buyers at much higher prices, and that the homes were flipped in violation of deed restrictions regarding the time before which a resale could occur and the maximum resale price. Some of the properties purchased were resold at a substantial profit, that is, “flipped,” the same day the short sale closed.

Steve Kang and Joshua Son were realtors who represented short sale sellers whose homes were sold to Kassai. In return for their involvement in the scheme, Kassai shared with them portions of the profits of the resales. Egert was Kassai’s attorney who represented him in the short sales, and, among other things, conspired with Kassai to use stolen identities to purchase short sale properties and submitted or caused to be submitted fraudulent HUD-1 Settlement Statements to the victim banks. Kassai recruited Kong to represent certain sellers, and, among other things, Kong drafted agreements. Shin was a bankruptcy attorney Kassai paid to file bankruptcy petitions on behalf of short sale sellers to forestall imminent foreclosures on the properties. Shin failed to disclose that Kassai, the short sale buyer, was involved in these transactions. Sanchez was a realtor Kassai paid to assist in the management and control of the short sale process. If Kassai attempted to buy a short sale property in his own name and was rejected, Sanchez assisted Kassai with finding a straw buyer to acquire the short sale property. 

Kassai pleaded guilty On Dec. 18, 2018, to an information charging him with bank fraud (Counts One and Two), wire fraud affecting a financial institution (Count Three), and money laundering (Count Four). He was sentenced by U.S. District Judge William J. Martini to 16 months in prison, three years of supervised release, and ordered to pay $7.94 million in restitution for 32 illicit transactions. 

Kang pleaded guilty on May 30, 2019, to an information charging him with bank fraud (Count One) and wire fraud affecting a financial institution (Count Two). He was sentenced by U.S. District Judge Claire C. Cecchi to time served and ordered to pay $2.38 million in restitution.

Son pleaded guilty on May 30, 2019, to an information charging him with bank fraud (Count One) and wire fraud affecting a financial institution (Count Two). He was sentenced by Judge Martini to time served, two years of supervised release, and ordered to pay $2.38 million in restitution.  

The conspiracy to commit bank fraud count, bank fraud counts, and false statements to a financial institution counts each carry a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; and special against of the Social Security Administration, Office of the Inspector General, Boston / New York Field Division under the direction of Special Agent in Charge Amy Connelly, with the investigation.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Special Assistant U.S. Attorney Kevin DiGregory of the Federal Housing Finance Agency, Office of Inspector General.

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

NEWARK, N.J. B A Rahway, New Jersey-based highway contractor will pay $950,000 to resolve allegations that it improperly represented itself as a Disadvantaged Business Enterprise (DBE) in order to obtain federally funded contracts, U.S. Attorney Philip Sellinger announced today.

The settlement resolves allegations that from October 2016 through April 2019, MV Contracting Inc. obtained several contracts funded by the Federal Highway Administration (FHA) set aside for DBE companies as part of a program designed to remedy ongoing discrimination in federally assisted highway contracting markets. The United States contended that MV Contracting procured these contracts despite knowing that it did not in fact qualify as a DBE. The company submitted improper claims for payment under the contracts, which were paid using federal funds.

U.S. Attorney Sellinger credited the U.S. Department of Transportation, Office of Inspector General, under the direction of Eric J. Soskin, and the Port Authority of New York and New Jersey, Office of Inspector General , under the direction of Inspector General John Gay, with the investigation of the allegations against MV Contracting.   

The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud Unit in Newark.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

NEWARK, N.J. – Two individuals have admitted their respective roles in a multimillion dollar compounded medication kickback scheme that they and others ran out of a pharmacy in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Jeffrey Andrews, 73, pleaded guilty on Sept. 24, 2024, before U.S. District Judge Madeline Cox Arleo in Newark federal court to one count of an indictment charging him with conspiracy to violate the Anti-Kickback Statute.

Adam Brosius, 59, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on Sept. 23, 2024, to two counts of an indictment charging him with conspiracy to commit health care fraud and conspiracy to violate the Anti-Kickback Statute.

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

From 2014 through 2016, Andrews, Brosius and others used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, New Jersey, to run an illegal kickback scheme involving compounded drugs including scar creams, pain creams, migraine mediation, and vitamins. Andrews worked as the Chief Financial Officer for Main Avenue. Brosius worked as Main Avenue’s director of business development, and later as its president.

The scheme identified compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers. Once Main Avenue identified lucrative formulas for compounds, it would create large prescription pads with those formulas on it and distribute the pads to marketers across the country with whom it had contractual relationships. The marketing companies would in turn distribute the prescription pad to telemedicine companies and doctors with whom they had a financial arrangement.

After filling prescriptions, Main Avenue submitted claims to health care benefit programs for reimbursement, including Medicare, Tricare, and commercial payers in New Jersey and elsewhere. After Main Avenue obtained reimbursement, it paid kickbacks to marketers who had generated the prescriptions.  Main Avenue signed contracts with many of the marketers, which detailed the illicit kickback arrangement, which called for Main Avenue to pay each marketer money based on the volume of referrals of compounded prescriptions and the reimbursement amount that Main Avenue received. Main Avenue received approximately $33 million in reimbursements for compounded medications alone from health care benefit programs. Over $5.8 million of that amount was paid by TRICARE, a federal payer.

The count of conspiracy to commit health care fraud is punishable by a maximum penalty of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum penalty of five years in prison. Both counts are also punishable by a fine of $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Brosius is scheduled for Feb. 20, 2025, and for Andrews, Feb. 18, 2025.

Charges remain pending against Chad Beene, 52, of Philadelphia, Pennsylvania. The charges and allegations against Beene are merely accusations and he is presumed innocent unless and until proven guilty. Robert Schneiderman, 81, of Langhorne, Pennsylvania, previously pleaded guilty to two counts of the Indictment.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Matthew Specht of the Special Prosecutions Division.

CAMDEN, N.J. – A Sussex County, New Jersey, man was sentenced to 146 months in prison for his involvement in a drug trafficking organization distributing methamphetamine, U.S. Attorney Philip Sellinger announced today.

Steven R. Kristiansen, 54, of Byram Township, New Jersey, previously pleaded guilty before U.S. Circuit Judge Stephanos Bibas, to a five-count information charging him with conspiracy to distribute methamphetamine, distribution and possession of methamphetamine, and possession of ammunition by a convicted felon. Judge Bibas imposed the sentence on Sept. 20, 2024, in Camden federal court.

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

In January 2022, law enforcement determined that Kristiansen was a member of a drug trafficking organization and distributed methamphetamine. From Jan. 14, 2022, to Jan. 18, 2022, Kristiansen sold over 60 grams of methamphetamine to an undercover police office. On Jan. 25, 2022, law enforcement executed search warrants at Kristiansen’s residence and car and recovered over 50 grams of methamphetamine and ammunition.

In addition to the prison term, Judge Bibas sentenced Kristiansen to five years of supervised release.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the diection of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the sentence.

The government is represented by Assistant U.S. Attorney Megan Linares of the Cybercrime Unit in Newark.

NEWARK, N.J. – A New York acupuncturist was sentenced today to 34 months in prison for participating in a $9 million health care fraud scheme to defraud Amtrak, U.S. Attorney Philip R. Sellinger announced.

Punson Figueroa, aka “Susie,” 58, of Long Island City, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging her with conspiracy to commit health care fraud.

“Submitting fraudulent claims to steal money harms the public and the health care system. This defendant admitted fleecing the health care system for millions of dollars in illicit claims, and today she learned the punishment for her offense. My office and our partners are committed to stopping health care scams and ensure that guilty participants are punished.”

U.S. Attorney Philip R. Sellinger

“We remain fully committed to bringing justice to health care providers who target Amtrak’s health care plans as well as Amtrak employees who collude with them,” said Amtrak’s Inspector General, Kevin H. Winters. “We hope this case serves as a deterrent for health care providers and Amtrak employees who may choose to engage in such schemes, and we ask anyone who suspects or observes such fraud to report it to our fraud, waste, and abuse hotline.”

“This investigation unveiled the mastermind behind a $9 million health care fraud scheme,” DEA – New York Special Agent in Charge Frank Tarentino said. “I applaud our law enforcement partners whose diligent work put an end to this conspiracy and brought Punson Figueroa to justice to face the consequences of her illegal actions.”

“This case demonstrates Amtrak’s resolve to work alongside all our law enforcement partners to investigate and hold accountable those who attempt to defraud the system,” Chief Sam Dotson said. “We are grateful for the collaborative law enforcement effort that led to this guilty plea, and we will continue to be vigilant in safeguarding Amtrak’s assets.”

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

From January 2019 through June 2022, Figueroa and her conspirators agreed to engage in a scheme to bill the Amtrak health care plan for fraudulent claims for services that never were provided and were medically unnecessary. Figueroa recruited Amtrak employees to participate in the scheme by paying them cash in return for allowing her to use their personal and insurance information to submit false and fraudulent claims. Figueroa conspired with dozens of Amtrak employees and paid hundreds of thousands of dollars in cash kickbacks to Amtrak employees over the course of the scheme.

On June 16, 2021, an undercover law enforcement agent posing as an Amtrak employee met with Figueroa at Figueroa’s office in New York. Figueroa instructed the undercover agent to sign his name about 30 times for services received and instructed the undercover agent not to date the signatures. Figueroa caused false claims to be submitted to Amtrak’s health care plan indicating that the undercover agent had visited providers at least seven times in May 2021, purportedly receiving acupuncture and physical therapy services.

The undercover agent visited Figueroa’s office on only one other occasion, on July 29, 2021. At this meeting, Figueroa handed the undercover agent an envelope filled with $1,000. Thereafter, Figueroa continued to use the undercover agent’s personal and insurance information to submit dozens of fraudulent claims to the Amtrak health care plan.

In total, Figueroa caused Amtrak to pay out over $9 million in false and fraudulent insurance claims.

In addition to the prison term, Judge Arleo sentenced Figueroa to three years of supervised release and ordered restitution of $9.05 million.

U.S. Attorney Sellinger credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, and the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorneys Katherine M. Romano and Jessica R. Ecker of the Health Care Fraud Unit in Newark.

CAMDEN, N.J. – A Burlington County, New Jersey, man has been charged with drug and firearm offenses, U.S. Attorney Philip R. Sellinger announced today.

Daniel Garcia Jr., 27, of Maple Shade, is charged by complaint with possession with intent to distribute over 50 grams of methamphetamine and possession of firearms by a convicted felon. His initial court appearance will be scheduled for a later date.

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

On June 23, 2024, at approximately 12:35 p.m., Garcia and another individual rushed a minor to the hospital because the minor was not breathing, was having seizures, drooling, and unresponsive. The minor was treated at the hospital and was later flown to a children’s hospital,  where care continued. Drug screening tests for the minor were positive for benzodiazepine, fentanyl, and cocaine. Medical personnel at the children’s hospital informed law enforcement officers that the minor had been administered benzodiazepine and fentanyl during treatment, but that cocaine had not been administered. A doctor at the children’s hospital also informed law enforcement officers that the minor’s symptoms, including seizure, cardiac arrest, and cardiac arrythmia, were all symptoms of a cocaine overdose.

On June 24, 2024, law enforcement officers executed a search warrant at Garcia’s residence and found cash, drug packaging paraphernalia and an envelope containing both 9mm and .357 magnum ammunition. On June 25, 2024, a search of a vehicle that Garcia had been seen operating revealed a laundry bag that contained $150,000 cash, 329.1 grams of methamphetamine, 767 grams of cocaine, 41 amphetamine tablets, 102 alprazolam tablets, 272 oxycodone tablets, 2.6 grams of MDMA powder, 1,341 grams of marijuana, 9.9 grams of psilocin and psilocybin mushrooms, 192 grams of crystalline cutting agents commonly used for illegal drug preparation, three digital scales, drug packaging material, two 9mm handguns and a .357 magnum revolver. The three firearms were loaded. Law enforcement officers also reviewed surveillance video from the apartment complex that showed Garcia returning to the apartment after leaving the hospital and placing the laundry bag inside the trunk of the vehicle.

The charge of possession with intent to distribute over 50g of methamphetamine carries a minimum statutory term of 10 years, a maximum statutory term of life, and a maximum fine of $10 million. The charge of being a felon in possession of firearms carries a maximum statutory term of 15 years and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation. U.S. Attorney Sellinger also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, and the Maple Shade Police Department, under the direction of Chief Christopher Fletcher.

The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.

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

CAMDEN, N.J. – A Bulgarian national today admitted assaulting a U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE) deportation officer, U.S. Attorney Philip R. Sellinger announced.

Vasil Petrov, 40, of Bulgaria, pleaded guilty before U.S. District Judge Karen Williams in Camden federal court to an information charging him with one count of assaulting a federal officer and inflicting bodily injury.

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

On Dec. 27, 2023, Petrov was in the lawful custody of ICE at an ICE facility in Elizabeth, New Jersey, pending removal from the United States. While being processed for removal, Petrov struck the deportation officer in the chin with a closed fist. As a result of Petrov’s assault, the deportation officer sustained bodily injury, including a laceration on his chin that required liquid stitches.

The charge to which Petrov pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 27, 2025.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation.

The government is represented by Assistant U.S. Attorney Chana Y. Zuckier of the OCDETF Unit in Newark.

NEWARK, N.J. – Two individuals were charged with the armed robbery of a U.S. Postal Service mail carrier, U.S. Attorney Philip R. Sellinger announced today.

Eddie Tyree James White, 26, of Delaware, and James Hammond-Smith, 26, of East Orange, New Jersey, are charged by complaint with one count of robbery of a mail carrier. White was additionally charged with theft of a postal key and theft of mail. Both appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court. Hammond-Smith was released on  $100,000 unsecured bond and White was detained.

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

On Nov. 28, 2022, White approached a USPS mail carrier while she was in her USPS vehicle in Newark. White displayed a firearm in his waistband and demanded the mail carrier’s arrow key, a master key used by USPS to access various mail receptacles. The mail carrier gave the key to White, who fled on foot. Hammond-Smith drove White to the robbery. White subsequently used the postal key to access mail receptacles to steal mail, including checks and money orders. 

The robbery of a mail carrier charge and postal key theft charge each carry a maximum penalty of 10 years in prison. The theft of mail charge carries a maximum penalty of five years in prison. All three charges carry a maximum fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest. 

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Neilson, Philadelphia Division, with the investigation. He also thanked the Delaware State Police.

The government is represented by Assistant U.S. Attorney Chana Zuckier of the OCDETF unit in Newark.

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

ન્યાય વિભાગના નાગરિક અધિકાર વિભાગ, એટલે કે ન્યુ જર્સી ડિસ્ટ્રિક્ટ માટે યુએસ એટર્ની ઑફિસ અને આવાસ અને શહેરી વિકાસ વિભાગ (HUD) એ આજે ​​જાહેરાત કરી કે ઓશનફર્સ્ટ બેંક, N.A એ ન્યૂ જર્સીમાં મિડલસેક્સ, મોનમાઉથ અને ઓશન કાઉન્ટીઝમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન લોકોની લોન નામંજૂર કરીને ધિરાણમાં ભેદભાવની પદ્ધતિ અથવા પ્રથા અપનાવવાના આક્ષેપોનું નિરાકરણ કરવા $15 મિલિયનથી વધુની ચુકવણી કરવા માટે સમંતિ આપી. રેડલાઇનિંગ એ એક ગેરકાયદેસર પ્રથા છે જેમાં ધિરાણકર્તાઓ, જાતિ, રંગ અથવા રાષ્ટ્રીય મૂળના આધારે, યુએસની બહારના નાગરિકોને ધિરાણ સેવાઓ આપવાનું ટાળે છે.

ઑક્ટોબર 2021માં, એટર્ની જનરલ ગારલેન્ડ અને આસિસ્ટન્ટ એટર્ની જનરલ ક્લાર્કે ન્યાય વિભાગની કોમ્બેટિંગ રેડલાઇનિંગ પહેલ શરૂ કરી, જે મિશ્રિત વંશના વિવિધ સમુદાયો સામેના ભેદભાવની આ નિરંતર પ્રથાને દૂર કરવા માટેનો સંકલિત રીતે અમલમાં મુકેલો પ્રયાસ છે. આ પહેલથી દેશભરમાં યુએસ એટર્ની ઑફિસો, નિયમનકારી ભાગીદારો અને રાજ્યની  એટર્ની જનરલ ઑફિસમાં તેના ભાગીદારો સાથે ભાગીદારીને મજબૂત જેથી આ વિભાગની પહોંચ પણ વધી છે. 2021 થી, વિભાગે 13 રેડલાઇનિંગના આક્ષેપોના ઉકેલો લાવ્યા અને સમગ્ર દેશમાં ધિરાણના ભેદભાવનો સામનો કરી ચુક્યા વિવિધ નાગરિકો માટે $137 મિલિયનથી વધુની રાહત મેળવી છે.

એટર્ની જનરલ મેરિક બી. ગારલેન્ડે જણાવ્યું હતું કે, "આ રકમ, અને ન્યાય વિભાગ દ્વારા સમગ્ર દેશમાં સમુદાયો માટે $137 મિલિયનથી વધુની મેળવેલી રાહત, તે ખાતરી કરવામાં મદદ કરશે કે અમેરિકનોની ભાવિ પેઢીઓને વારસામાં પોતાનું ઘર મળે કે જેના માટે તેઓએ પણ નામંજૂરીનો સામનો કર્યો હતો". “રેડલાઇનિંગ ગેરકાનૂની છે, તે હાનિકારક છે અને તે ખોટું છે. ન્યાય વિભાગ બેંકો અને મોર્ટગેજ કંપનીઓને રેડલાઇનિંગ માટે જવાબદાર ઠરાવવાનું ચાલુ રાખશે અને આ ભેદભાવપૂર્ણ પ્રથાઓથી સતત પીડાતા સમુદાયોને રાહત પ્રદાન કરશે."

યુએસ એટર્ની ફિલિપ આર સેલિંગરે જણાવ્યું હતું કે, "રેડલાઇનિંગ એક અસમાન વાતાવરણ બનાવે છે જે અયોગ્ય રીતે યુએસની બહારના નાગરિકોને, અમેરિકનનું સપનું, એટલે કે પોતાનું ઘર ખરીદવાથી અટકાવે છે, અને આ પ્રકારનો પ્રણાલીગત અને ઇરાદાપૂર્વકનો ભેદભાવ અસહ્ય છે અને સહન કરવામાં નહીં આવે." “21મી સદીમાં રેડલાઇનિંગ ચાલુ રહે છે તે સંપૂર્ણપણે અસ્વીકાર્ય છે અને અમે એ સુનિશ્ચિત કરવા માટે પ્રતિબદ્ધ છીએ કે અમારા તમામ નાગરિકોને તેમનું પોતાનું ઘર ખરીદવાની તક મળે કારણ કે આ આપણા બધા માટે સમુદાયોને મજબૂત બનાવવામાં મદદ કરે છે. આ કરાર ન્યુ જર્સીમાં રેસિડેન્શિયલ મોર્ટગેજ લેન્ડિંગમાં ગેરકાયદેસર અને ભેદભાવપૂર્ણ અવરોધોને દૂર કરવા માટે એક મોટું પગલું છે.”

ન્યાય વિભાગના નાગરિક અધિકાર વિભાગના આસિસ્ટન્ટ એટર્ની જનરલ ક્રિસ્ટન ક્લાર્કે જણાવ્યું હતું કે, "ઘણી વાર, મિશ્રિત વંશના લોકોને લોનની સમાન ઉપલબ્ધતા અને પેઢીગત સંપત્તિનું નિર્માણ કરવાની તક આપવામાં નથી આવી". “વર્તમાન દિવસના રેડલાઇનિંગને દૂર કરવાના ઐતિહાસિક પ્રયાસો દ્વારા, અમે પીડિત પરિવારો અને સમુદાયો માટે પોતાનું ઘર ખરદીવાની નવી તકો ખોલી છે. આ કરાર તમામ અમેરિકનો માટે વંશીય અને આર્થિક ન્યાય પ્રાપ્ત કરવા સહીત બેંકો અને નાણાકીય સંસ્થાઓને તેમના ભેદભાવપૂર્ણ કાર્ય માટે જવાબદાર ઠરાવવાની ન્યાય વિભાગની પ્રતિબદ્ધતા દર્શાવે છે."

HUDના કાર્યકારી સચિવ એડ્રિયન ટોડમેને જણાવ્યું હતું કે, "રેડલાઇનિંગ ગેરકાયદેસર હોવાની સાથે-સાથે દેશના હજારો રંગીન પરિવારો માટે અયોગ્ય રીતે આર્થિક તકોના દરવાજા બંધ કરે છે". “ન્યાય વિભાગમાં અમારા ભાગીદારો સાથે મળીને, HUD આવાસ ક્ષેત્રમાં તમામ પ્રકારના ભેદભાવને જડમૂળથી દૂર કરીને ફેર હાઉસિંગ એક્ટ લાગુ કરવા માટે પ્રતિબદ્ધ છે. આજની જાહેરાત ન્યાય હાંસલ કરવા અને અમેરિકનો માટે, ખાસ કરીને જેમને ભૂતકાળમાં લોન નામંજૂર કરવામાં આવી છે, તેમના માટે સમાન તકો ઊભી કરવા માટેની અમારી સહિયારી પ્રતિબદ્ધતા દર્શાવે છે."

ન્યાય વિભાગની ફરિયાદ, જે આજે ન્યુ જર્સીના ડિસ્ટ્રિક્ટ માટે યુએસ ડિસ્ટ્રિક્ટ કોર્ટમાં દાખલ કરવામાં આવી હતી, જેમાં આરોપ છે કે, 2018 થી અંદાજે 2022 સુધી, ઓશનફર્સ્ટ બેંકે મિડલસેક્સ, મોનમાઉથ અને ઓશન કાઉન્ટીઝમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન લોકોની લોન નામંજૂર કરી હતી અને તે સમુદાયોમાં લોન મેળવવા માંગતા લોકોની હોમ લોન મેળવવાની આશા પર પાણી ફેરવી દીધું હતું. ફરિયાદમાં એવો વિશિષ્ટ આક્ષેપ કરવામાં આવ્યો છે કે ઓશનફર્સ્ટએ મુખ્યત્વે અમેરિકન સમુદાયો પર અપ્રમાણસર રીતે તેની પહોંચ વિસ્તૃત કરવા અને જાહેરાત પર ધ્યાન કેન્દ્રિત કર્યું, તેની શાખાઓ અમેરિકન ક્ષેત્રોમાં ખોલી, અને તે કાઉન્ટીઓમાં મોટી સંખ્યામાં- અમેરિકન હિસ્પેનિક અને એશિયન ક્ષેત્રમાં તેની થોડી-ઘણી શાખાઓ બંધ કરી દીધી.

ન્યાય વિભાગે તેના આક્ષેપો, કોર્ટની મંજૂરીને આધીન, પ્રસ્તાવિત સંમતિ આદેશ દ્વારા ઉકેલ્યા છે. વધુમાં, ઓશનફર્સ્ટ અને HUD એ સમકક્ષ શરતો સાથે સમાધાન કરાર કર્યા છે. તે ઠરાવોમાં, ઓશનફર્સ્ટ નીચે મુજબ કરવા માટે સંમત છે:

• મિડલસેક્સ, મોનમાઉથ અને ઓશન કાઉન્ટીમાં મોટી સંખ્યામાં-બ્લેક, હિસ્પેનિક અને એશિયન રહેવાસીઓ માટે હોમ મોર્ગેજ, ઘર સુધારણા અને હોમ રિફાઇનાન્સ લોનની ઉપલબ્ધતા વધારવા માટે લોન સબસિડી ફંડમાં ઓછામાં ઓછા $14 મિલિયનનું રોકાણ કરવા;
• તે કાઉન્ટીઓમાં મુખ્યત્વે અમેરિકન, હિસ્પેનિક અને એશિયન રહેવાસીઓ માટે ક્રેડિટ, ગ્રાહકને નાણાકીય શિક્ષણ, મકાનમાલિકી અને ફોરક્લોઝર નિવારણ સંબંધિત સેવાઓ પ્રદાન કરવા માટે સામુદાયિક ભાગીદારી પર $400,000 ખર્ચ કરવા;
• તે કાઉન્ટીઓમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન ક્ષેત્રો પર કેન્દ્રિત જાહેરાત, આઉટરીચ, ગ્રાહકને નાણાકીય શિક્ષણ અને ક્રેડિટ કાઉન્સેલિંગ પર $700,000 ખર્ચ કરવા;
• તે કાઉન્ટીઓમાં મુખ્યત્વે આફ્રિકન, હિસ્પેનિક અને એશિયન ક્ષેત્રમાં લોન પ્રોડક્શન ઑફિસ ખોલવા અને બેંકની તાજેતરમાં ખોલેલી સંપૂર્ણ-સેવા શાખાની જાળવણી કરવા, જેમાં દરેક સ્થાન માટે ઓછોમાં ઓછો એક મોર્ટગેજ લોન અધિકારીને નિયુક્ત કરેલ હોવો જોઈએ;
• સમુદાયમાં ધિરાણની જરૂરિયાતોનું મૂલ્યાંકન કરવા, તેની વાજબી ધિરાણ અનુપાલન વ્યવસ્થાપન પ્રણાલીઓનું મૂલ્યાંકન કરવા અને વાજબી ધિરાણ અંગે સ્ટાફની ટ્રેનિંગ આયોજિત કરવા; અને
• સામુદાયિક ધિરાણના ડિરેક્ટરની નિમણૂક કરવા, જે રંગીન સમુદાયોમાં હોમ મોર્ટગેજ ક્રેડિટના સતત વિકાસની દેખરેખ રાખશે.

યુએસ એટર્ની ઑફિસ અને ન્યાય વિભાગના નાગરિક અધિકાર વિભાગે બેંકના નિયમનકાર, ઑફિસ ઑફ ધ કમ્પ્ટ્રોલર ઑફ ધ કરન્સી (OCC) તરફથી રેફરલ પ્રાપ્ત કર્યા પછી ઓશનફાર્સ્ટની ધિરાણ પદ્ધતિઓની તેમની તપાસ શરૂ કરી. ઓશનફાર્સ્ટએ આ તપાસમાં સહકાર આપ્યો અને રેડલાઇનિંગના આક્ષેપોને ઉકેલવા માટે ન્યાય વિભાગ અને HUD સાથે કામ કર્યું.

ન્યાય વિભાગ દ્વારા ન્યાયી ધિરાણ માટે અમલમાં મુકાયેલા કાર્ય વિશેની માહિતી www.justice.gov/fairhousing પર મળી શકે છે. લોકો યુએસ ન્યાય વિભાગની હાઉસિંગ ડિસ્ક્રિમિનેશન ટીપ લાઇનને 1-833-591-0291 પર કૉલ કરીને અથવા ઑનલાઇન રિપોર્ટ સબમિટ કરીને ધિરાણમાં ભેદભાવની સૂચના આપી શકે છે. યુએસ એટર્ની ઓફિસના નાગરિક અધિકાર અમલીકરણ વિશેની માહિતી www.justice.gov/usao-nj/civil-rights-enforcement પર ઉપલબ્ધ છે. ન્યુ જર્સીના ડિસ્ટ્રિક્ટની વ્યક્તિઓ પણ અહીં નાગરિક અધિકારોના ઉલ્લંઘનની જાણ કરી શકે છે અથવા (855) 281-3339 પર યુએસ એટર્નીની સિવિલ રાઇટ્સ હોટલાઇનને કૉલ કરીને પણ જાણ કરી શકે છે.

સરકારનું પ્રતિનિધિત્વ, યુએસ એટર્ની ઑફિસના નાગરિક અધિકાર વિભાગના સહાયક યુએસ એટર્ની સુસાન મિલેન્કી અને ટ્રાયલ એટર્ની નાથન શુલોક, યુએસ ડિપાર્ટમેન્ટ ઑફ જસ્ટિસ, સિવિલ રાઇટ્સ ડિવિઝન, હાઉસિંગ અને સિવિલ એન્ફોર્સમેન્ટ વિભાગ દ્વારા કરવામાં આવે છે.

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey, the Justice Department’s Civil Rights Division, and Department of Housing and Urban Development (HUD) announced today that OceanFirst Bank, N.A. has agreed to pay over $15 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black, Hispanic and Asian neighborhoods in Middlesex, Monmouth and Ocean Counties in New Jersey. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.

In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners, and its partners in state Attorneys General offices. Since 2021, the department has announced 13 redlining resolutions and secured over $137 million in relief for communities of color that have been the victims of lending discrimination across the country.

“This settlement, and the over $137 million in relief the Justice Department has secured for communities across the country, will help to ensure that future generations of Americans inherit a legacy of home ownership that they have been too often denied,” said Attorney General Merrick B. Garland. “Redlining is unlawful, it is harmful, and it is wrong. The Justice Department will continue to hold banks and mortgage companies accountable for redlining and to secure relief for the communities that continue to be harmed by these discriminatory practices.”

“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the American dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated. It is wholly unacceptable that redlining persists into the 21st Century, and we are committed to ensuring that all of our citizens have the chance to put down roots in their own home as this helps build stronger communities for all of us. This agreement is a major step forward in removing illegal and discriminatory barriers in residential mortgage lending in New Jersey.”

“Far too often, communities of color have been denied equal access to credit and the opportunity to build generational wealth,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Through our historic efforts to combat modern day redlining, we have opened up new homeownership opportunities for impacted families and communities. This agreement underscores the Justice Department’s commitment to holding banks and financial institutions accountable for their discriminatory actions while ensuring racial and economic justice for all Americans.”

“Redlining is not only illegal, but it unfairly closes doors of economic opportunity for thousands of families of color in this country,” said HUD Acting Secretary Adrianne Todman. “Together with our partners at the Justice Department, HUD remains committed to enforcing the Fair Housing Act by rooting out all forms of discrimination in housing. Today’s announcement underscores our shared commitment to achieving justice and creating equitable opportunities for Americans, particularly those who have historically been denied access.”

The Justice Department’s complaint, which was filed today in the U.S. District Court for the District of New Jersey, alleges that, from 2018 through at least 2022, OceanFirst Bank failed to provide mortgage lending services to predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties and discouraged people seeking credit in those communities from obtaining home loans. Specifically, the complaint alleges that OceanFirst disproportionately focused its outreach and advertising on majority-white communities, placed its branches in majority-white neighborhoods, and closed its only branches in the majority-Black, Hispanic, and Asian neighborhoods in those counties.

The Justice Department has resolved its claims via a proposed consent order, which is subject to court approval. Additionally, OceanFirst and HUD have entered into a conciliation agreement with equivalent terms. In those resolutions, OceanFirst has agreed to do the following:

• Invest at least $14 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties;
• Spend $400,000 on community partnerships to provide services related to credit, consumer financial education, homeownership, and foreclosure prevention for residents of predominantly Black, Hispanic, and Asian neighborhoods in those counties;
• Spend $700,000 on advertising, outreach, consumer financial education, and credit counseling focused on predominantly Black, Hispanic, and Asian neighborhoods in those counties;
• Open a loan production office and maintain the bank’s recently opened full-service branch, both located in predominantly Black, Hispanic, and Asian neighborhoods in those counties, with at least one mortgage loan officer assigned to each location;
• Conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings on fair lending; and
• Hire a director of community lending who will oversee the continued development of home mortgage lending in communities of color.

The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division opened their investigation into OceanFirst’s lending practices after receiving a referral from the bank’s regulator, the Office of the Comptroller of the Currency (OCC). OceanFirst cooperated with this investigation and worked with the Department of Justice and HUD to resolve the redlining allegations.

Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-nj/civil-rights-enforcement. Individuals in the District of New Jersey may also report civil rights violations here or by calling the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.

The government is represented by Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division and Trial Attorney Nathan Shulock, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.

CAMDEN, N.J. – A Philadelphia man today admitted using an internet-based chat application to entice a minor to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.

Louis Goldenberg, 41, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of attempted online enticement of a minor to engage in prostitution. 

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

In August 2023, Goldenberg began interacting on a messaging application with an undercover agent, who was posing as a middle-aged woman with a 12-year-old niece. From August through September 2023, Goldenberg messaged the undercover, continuously expressing interest in having sexual contact with the minor. During one of the conversations, Goldenberg indicated a specific hotel in Mt. Laurel, New Jersey, where he wanted to have sex with the minor. On Sept. 18, 2023, Goldenberg traveled from Pennsylvania to the Mt. Laurel hotel, where he had a reservation for that evening. When Goldenberg arrived, he was arrested by law enforcement.

The charge to which Goldenberg pleaded guilty carries a mandatory minimum term of incarceration of 10 years in prison, a potential maximum term of life in prison, and up to a $250,000 fine. Sentencing is scheduled for Jan. 27, 2025.

U.S. Attorney Sellinger credited special agents and task force officers with Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas, with the investigation leading to the charges. He also thanked the Burlington County Prosecutor’s Office and Mount Laurel Police Department.

The government is represented by Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.

The Justice Department’s Civil Rights Division, U.S. Attorney’s Office for the District of New Jersey and Department of Housing and Urban Development (HUD) announced today that OceanFirst Bank, N.A. has agreed to pay over $15 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black, Hispanic and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties in New Jersey. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.

In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners, and its partners in state Attorneys General offices. Since 2021, the department has announced 13 redlining resolutions and secured over $137 million in relief for communities of color that have been the victims of lending discrimination across the country.

“This settlement, and the over $137 million in relief the Justice Department has secured for communities across the country, will help to ensure that future generations of Americans inherit a legacy of home ownership that they have been too often denied,” said Attorney General Merrick B. Garland. “Redlining is unlawful, it is harmful, and it is wrong. The Justice Department will continue to hold banks and mortgage companies accountable for redlining and to secure relief for the communities that continue to be harmed by these discriminatory practices.”

“Far too often, communities of color have been denied equal access to credit and the opportunity to build generational wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through our historic efforts to combat modern day redlining, we have opened up new homeownership opportunities for impacted families and communities. This agreement underscores the Justice Department’s commitment to holding banks and financial institutions accountable for their discriminatory actions while ensuring racial and economic justice for all Americans.”

“We are committed to ensuring that everyone in New Jersey has access to the American dream of homeownership, regardless of race, color, or national origin,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This agreement is an important step in leveling the playing field and removing illegal and discriminatory barriers in residential mortgage lending.”

“Redlining is not only illegal, but it unfairly closes doors of economic opportunity for thousands of families of color in this country,” said HUD Acting Secretary Adrianne Todman. “Together with our partners at the Justice Department, HUD remains committed to enforcing the Fair Housing Act by rooting out all forms of discrimination in housing. Today’s announcement underscores our shared commitment to achieving justice and creating equitable opportunities for Americans, particularly those who have historically been denied access.”

The Justice Department’s complaint, which was filed today in the U.S. District Court for the District of New Jersey, alleges that, from 2018 through at least 2022, OceanFirst Bank failed to provide mortgage lending services to predominantly Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties and discouraged people seeking credit in those communities from obtaining home loans. Specifically, the complaint alleges that OceanFirst disproportionately focused its outreach and advertising on majority-white communities, placed its branches in majority-white neighborhoods, and closed its only branches in the majority-Black, Hispanic, and Asian neighborhoods in those counties.

The Justice Department has resolved its claims via a proposed consent order, which is subject to court approval. Additionally, OceanFirst and HUD have entered into a conciliation agreement with equivalent terms. In those resolutions, OceanFirst has agreed to do the following:

• Invest at least $14 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black, Hispanic, and Asian neighborhoods in Middlesex, Monmouth, and Ocean Counties;
• Spend $400,000 on community partnerships to provide services related to credit, consumer financial education, homeownership, and foreclosure prevention for residents of predominantly Black, Hispanic, and Asian neighborhoods in those counties;
• Spend $700,000 on advertising, outreach, consumer financial education, and credit counseling focused on predominantly Black, Hispanic, and Asian neighborhoods in those counties;
• Open a loan production office and maintain the bank’s recently opened full-service branch, both located in predominantly Black, Hispanic, and Asian neighborhoods in those counties, with at least one mortgage loan officer assigned to each location;
• Conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings on fair lending; and
• Hire a director of community lending who will oversee the continued development of home mortgage lending in communities of color.

The Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the District of New Jersey opened their investigation into OceanFirst’s lending practices after receiving a referral from the bank’s regulator, the Office of the Comptroller of the Currency. OceanFirst cooperated with the investigation and worked with the Justice Department and HUD to resolve the redlining allegations.

Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-nj/civil-rights-enforcement. Individuals in the District of New Jersey may also report civil rights violations here or by calling the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.

La División de Derechos Civiles del Departamento de Justicia, la Fiscalía Federal para el Distrito de New Jersey y el Departamento de Vivienda y Desarrollo Urbano (HUD) anunciaron hoy que OceanFirst Bank, N.A. ha acordado pagar más de $15 millones para resolver alegaciones de que participó en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean en New Jersey. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color o el origen nacional de las personas que viven en esas comunidades.

En octubre de 2021, el Fiscal General Garland y la Fiscal General Adjunta Clarke lanzaron la Iniciativa del Departamento de Justicia para Combatir la Exclusión Financiera, un esfuerzo de cumplimiento coordinado para abordar esta forma persistente de discriminación contra las comunidades de color. La iniciativa está ampliando el alcance del departamento al fortalecer las asociaciones con las Fiscalías de los Estados Unidos en todo el país, los socios reguladores y sus socios en las oficinas de los Fiscales Generales estatales. Desde 2021, el departamento ha anunciado 13 resoluciones de discriminación y ha obtenido más de $137 millones en ayuda para las comunidades de color que han sido víctimas de discriminación crediticia en todo el país.

“Este acuerdo, y los más de $137 millones en ayuda que el Departamento de Justicia ha conseguido para comunidades de todo el país, ayudarán a garantizar que futuras generaciones de estadounidenses hereden un legado de propiedad de vivienda que se les ha negado con demasiada frecuencia”, dijo el Fiscal General Merrick B. Garland. “La exclusión financiera es ilegal, es perjudicial y está mal. El Departamento de Justicia seguirá haciendo que los bancos y las compañías hipotecarias rindan cuentas por la exclusión financiera y garantizará ayuda para las comunidades que siguen viéndose perjudicadas por estas prácticas discriminatorias”.

“Con demasiada frecuencia, a las comunidades de color se les ha negado el acceso igualitario al crédito y la oportunidad de generar riqueza generacional”, dijo la fiscal general adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “A través de nuestros esfuerzos históricos para combatir la exclusión financiera moderna, hemos abierto nuevas oportunidades de propiedad de vivienda para las familias y comunidades afectadas. Este acuerdo subraya el compromiso del Departamento de Justicia de responsabilizar a los bancos y las instituciones financieras por sus acciones discriminatorias, al tiempo que garantiza la justicia racial y económica para todos los estadounidenses”.

“Nos comprometemos a garantizar que todos en New Jersey tengan acceso al sueño americano de ser propietarios de casa, independientemente de su raza, color de piel u origen nacional”, comentó Philip R. Sellinger, el Fiscal Federal para el Distrito de New Jersey. “Este acuerdo es un paso importante para nivelar el campo de juego y eliminar las barreras ilegales y discriminatorias en los préstamos hipotecarios residenciales”.

“La exclusión financiera no solo es ilegal, sino que cierra injustamente las puertas de oportunidades económicas para miles de familias de color en este país”, dijo la secretaria interina de HUD, Adrianne Todman. “Junto con nuestros socios del Departamento de Justicia, HUD sigue comprometido con hacer valer la Ley de Vivienda Justa erradicando todas las formas de discriminación en la vivienda. El anuncio de hoy subraya nuestro compromiso compartido de lograr justicia y crear oportunidades equitativas para los estadounidenses, en particular para aquellos a quienes históricamente se les ha negado el acceso”.

La queja del Departamento de Justicia, que se presentó hoy en el Tribunal Federal de Distrito para el Distrito de New Jersey alega que, desde el 2018 hasta al menos el 2022, OceanFirst Bank no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean, y desalentó a personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. En concreto, la queja alega que OceanFirst centró, de forma desproporcionada, su difusión y publicidad en comunidades de mayoría blanca, ubicó sus sucursales en barrios de mayoría blanca y cerró sus únicas sucursales en los barrios de mayoría negra, hispana y asiática en esos condados.

El Departamento de Justicia ha resuelto sus reclamaciones a través de una orden por consentimiento propuesta, que está sujeta a la aprobación del tribunal. Además, OceanFirst y HUD han celebrado un acuerdo conciliatorio con términos equivalentes. En esas resoluciones, OceanFirst ha acordado hacer lo siguiente:

• Invertir al menos $14 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, a mejoras en la vivienda y al refinanciamiento residencial para residentes de barrios de mayoría negra, hispana y asiática en los condados de Middlesex, Monmouth y Ocean.
• Desembolsar $400,000 en asociaciones comunitarias para proporcionar servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra, hispana y asiática en esos condados;
• Desembolsar $700,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra, hispana y asiática en esos condados;
• Abrir una oficina de generación de préstamos hipotecarios y mantener abierta la sucursal de servicio completo recientemente abierta, ambas en barrios de mayoría negra, hispana y asiática en esos condados, con al menos un funcionario encargado de préstamos hipotecarios asignado a cada sucursal;
• Llevar a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y celebrará capacitaciones del personal sobre el tema de préstamos justos y
• Emplear a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos hipotecarios en comunidades de color.

La División de Derechos Civiles del Departamento de Justicia y la Fiscalía Federal para el Distrito de New Jersey iniciaron su investigación de las prácticas crediticias de OceanFirst después de recibir una notificación del regulador del banco, la Oficina del Contralor de la Moneda. OceanFirst cooperó con la investigación y trabajó con el Departamento de Justicia y HUD para resolver las alegaciones de exclusión financiera.

Puede encontrar información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea. Información sobre la aplicación de las leyes de derechos civiles por parte de la Fiscalía Federal puede encontrarse en www.justice.gov/usao-nj/civil-rights-enforcement. Personas en el Distrito de New Jersey también pueden proporcionar información sobre vulneraciones de derechos civiles aquí o llamando a la línea directa para asuntos de derechos civiles del Fiscal Federal al (855) 281-3339.

NEWARK, N.J. – A Virginia man today admitted to conspiring to launder money taken from victims across the United States as a part of a series of romance scams, U.S. Attorney Philip R. Sellinger announced.

Nana Yaw Marfo, 39, of Alexandria, Virginia, pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court today to an information charging him with one count of money laundering conspiracy.

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

Marfo laundered money obtained through internet-enabled romance scams through numerous bank accounts opened in different business names. After receiving the romance scam victims’ money, Marfo wired thousands of dollars to overseas bank accounts. As part of this scheme, Marfo received and transferred approximately $4.7 million, knowing that the transactions were for the purpose of disguising or hiding the proceeds of criminal activity. 

The money laundering conspiracy charge has a maximum prison term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Feb. 4, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, with the investigation leading to the guilty plea. 

The government is represented by Assistant U.S. Attorneys David E. Malagold and Ingrid Eicher of the Criminal Division in Newark.

NEWARK, N.J. – A Morris County, New Jersey, man was sentenced today to 84 months in prison for possessing and distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Anselmo Girimonte, 53, of Wharton, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an indictment charging him with one count of possession of child pornography and one count of distribution of child pornography. Judge Neals imposed the sentence today in Newark federal court.

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

From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing program. Law enforcement used undercover online sessions to access the P2P program and during these sessions a user shared multiple video files of adults sexually abusing prepubescent children from an internet protocol address traced to Girimonte’s residence. During a March 2, 2022, search of Girimonte’s residence, law enforcement found over 100 images and videos depicting child sexual abuse, including images of prepubescent children being sexually abused, on Girimonte’s cell phone.

In addition to the prison term, Judge Neals sentenced Girimonte to 10 years of supervised release and ordered him to pay $68,000 in restitution to the victims.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the sentencing. He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the U.S. Postal Inspection Service.

The government is represented by Assistant U.S. Attorney Chelsea D. Coleman of the Opioid Abuse Prevention and Enforcement Unit in Newark.

Whistleblower Program

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today a new Whistleblower Non-Prosecution Pilot Program designed to proactively root out bribery, fraud, healthcare offenses, civil rights violations, corporate misconduct, and matters affecting the integrity of financial markets.

The program encourages individual participants in certain non-violent offenses to disclose their criminal conduct and provide cooperation against others who were involved. In exchange, the U.S. Attorney’s Office will enter into a non-prosecution agreement where certain specified conditions are met, including the condition that the government was not previously aware of the criminal conduct that is the subject of the disclosure. By providing clarity on the requirements and the benefits of such self-disclosure, the office seeks to incentivize individuals and their counsel to provide actionable and timely information. That will, in turn, help bring more misconduct to light and better protect the citizens of New Jersey.

“We are always looking for new and effective ways to identify and aggressively pursue crime,” U.S. Attorney Sellinger said. “This program sends a clear message that if you’ve helped commit a crime, you should come forward early and fully. If you don’t, someone else will. To get on the right side of the law and take advantage of this program, email us using the instructions on our website.”

DNJ’s Whistleblower Non-Prosecution Pilot Program is for individuals who participated in criminal activity and face criminal liability; it is different from the Department of Justice’s Corporate Whistleblower Awards Pilot Program, which is for individuals who did not meaningfully participate in criminal activity that falls within four subject areas, as further detailed at www.justice.gov/CorporateWhistleblower.    

As with all internal policies of the U.S. Attorney’s Office, this new program provides guidance to prosecutors. Nothing in these policies creates any substantive or procedural rights, privileges, or benefits enforceable in any administrative, civil, or criminal matter by prospective or actual witnesses or parties. It remains at all times the sole discretion of the U.S. Attorney’s Office to determine whether an individual has satisfied each of the conditions necessary for the office to enter into a non-prosecution agreement in exchange for the individual’s cooperation, and, where the office has determined that any of those conditions are not met, it remains at all times in the sole discretion of the office to determine whether to extend a non-prosecution agreement in exchange for the individual’s cooperation.