District of New Jersey

NEWARK, N.J. – A sergeant first class in the U.S. Army and U.S. Army recruiter has been charged for engaging in a fraudulent scheme to defraud a credit union by using her position to obtain the personally identifying information of U.S. Army recruits and recruit candidates and submit fraudulent bank account applications to the credit union on the recruits’ behalf, U.S. Attorney Philip R. Sellinger announced today.

Jane Crosby, 33, of Jersey City, New Jersey, is charged by complaint with one count of bank fraud and seven counts of aggravated identity theft. Crosby appeared today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on $100,000 unsecured bond.

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

From Sept. 12, 2023, to Dec. 27, 2023, Crosby submitted “Pre-Active Duty Membership” bank account applications to a credit union on behalf of seven U.S. Army recruits or purported recruits, without their knowledge or consent.  Such accounts are intended to facilitate the direct deposit of soon-to-be service members’ salaries once they join the military.  These applications included the victims’ names and Social Security numbers as well as copies of their passports, driver’s licenses, and/or Social Security cards.  Once these credit union accounts were opened, Crosby, posing as the victims, applied for approximately $266,000 in loans and credit card accounts and used some of the accounts to deposit fraudulent checks and then withdraw funds.

The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.

U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division under the direction of Special Agent in Charge Joel Kirch, with the investigation.

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

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

NEWARK, NJ. – An India- and New Jersey-based man who operated jewelry companies in New York City’s Diamond District admitted today to spearheading a scheme to illegally evade customs duties for more than $13.5 million of jewelry imports into the United States and with illegally processing more than $10.3 million through an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced.

Monishkumar Kirankumar Doshi Shah, aka “Monish Doshi Shah, 39, of Mumbai, India, and Jersey City, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count each of conspiracy to commit wire fraud and operating and aiding and abetting the operation of an unlicensed money transmitting business.

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

From December 2019 through April 2022, Shah engaged in a scheme to evade duties for shipments of jewelry from Turkey and India to the United States. Shah would ship and/or instruct his conspirators to ship goods from Turkey or India – which would have been subject to an approximately 5.5 percent duty if shipped directly to the United States – to one of Shah’s companies in South Korea. Shah’s conspirators in South Korea would change the labels on the jewelry to state that they were from South Korea instead of Turkey or India, and then ship them to Shah or his customers in the United States, thereby unlawfully evading the duty. Shah would also make and instruct his customers to make fake invoices and packing lists to make it look like Shah’s South Korean companies were actually ordering jewelry from Turkey or India. Shah also instructed a third-party shipping company to provide false information to U.S. Customs and Border Protection (CBP) concerning the origin of the jewelry. During the scheme, Shah shipped approximately $13.5 million of jewelry from South Korea to the United States without paying the appropriate duty.

From July 2020 through November 2021, Shah owned and/or operated numerous jewelry companies in New York City’s Diamond District, including MKore LLC, MKore USA Inc., and Vruman Corp. Shah used these entities to conduct more than $10.3 million in illegal financial transactions for customers, including converting cash to checks or wire transfers. Shah would also collect cash from customers and use other individuals’ jewelry companies to convert the cash into wires or checks. At times, Shah and other members of the money transmitting business moved hundreds of thousands of dollars in a single day. In exchange for their services, Shah or other members of the money transmitting business charged a fee. None of Shah’s or his associates’ companies were registered as money transmitting businesses with New York, New Jersey, or the Financial Crimes Enforcement Network (FinCEN).

As part of his plea agreement, Shah agreed to pay restitution to CBP in the amount of $742,500 for the wire fraud scheme and forfeiture in the amount of $11.13 million for the wire fraud and unlicensed money transmitting schemes.

The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2025.

U.S. Attorney Sellinger credited special agents and task force officers of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of  Homeland Security Investigations New York, under the direction of Acting Special Agent in Charge Darren B. McCormack; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; and special agents with U.S. Customs and Border Protection at the Port of New York/Newark, under the direction of Port Director TenaVel Thomas, with the investigation leading to today’s guilty plea. He also thanked U.S. Customs and Border Protection in New York; Homeland Security Investigations in Seoul, South Korea; the Korea Customs Service in South Korea; the Seoul Customs Special Investigation Office in South Korea; the U.S. Drug Enforcement Administration in Paterson; the Parsippany-Troy Hills Police Department; the Morristown Police Department; the Federal Deposit Insurance Corporation – Office of Inspector General; and the Justice Department’s Money Laundering and Asset Recovery Section (MLARS).

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.

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

TRENTON, N.J. – A Burlington County, New Jersey, man and a Mercer County, New Jersey, man made their initial court appearances today on charges of participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections and meal deliveries to needy Trenton residents, U.S. Attorney Philip R. Sellinger announced.

Martin Moore, 59, of Florence, New Jersey, and Andre Trott, 51, of Ewing, New Jersey, are each charged by complaint with conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the city of Trenton. Moore is also charged with making false statements to investigators. They appeared before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and were each released on $50,000 unsecured bond.

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

Trenton’s Department of Health and Human Services (Trenton HHS) is required to provide services to identify lead sources in residential homes in Trenton where children had tested positive for elevated levels of lead in their blood. Beginning in 2018, a New Jersey state grant funded inspections of Trenton properties identified with childhood residents with elevated blood lead levels. Trenton’s Bureau of Environmental Health (BEH), a subdivision of Trenton HHS, was responsible for performing these residential lead inspections.

Trenton received federal funding from the U.S. Department of Housing and Urban Development under a Community Development Block Grant (CDBG) to provide public services, including a meal program to prepare and deliver meals throughout Trenton to the city’s most vulnerable and needy populations. Members of BEH delivered meals under the CDBG from 2020 to 2021.

Moore, a principal registered environmental health specialist for BEH and the entity’s supervisor, and Trott, a senior registered environmental health specialist for BEH, conducted residential lead inspections with other members of BEH from February 2018 through May 2022, and delivered meals with other members of BEH from April 2020 through May 2021. Moore directed members of BEH, including conspirators Trott, Michael Ingram, William Kreiss, and Meraj Fatima, to obtain payments from the city of Trenton for work they did not perform, by fraudulently inflating the overtime hours they claimed to have worked relating to residential lead inspections. Moore also directed Trott, Ingram and Kreiss to inflate their overtime hours submitted for meal deliveries. Moore, himself, also falsely reported overtime exceeding the time it actually took him to complete activities related to lead inspections and meal deliveries. As a result of these fraudulent overtime reports, Moore, Trott, and other members of BEH were paid for overtime work that they did not perform.

In May 2022, when the FBI asked Moore about his role in connection with lead inspections, Moore falsely stated that there was no situation where he had purposedly misrepresented his hours and no situation where he had claimed overtime hours for periods of time that he was outside of New Jersey, even though Moore knew at the time he made these statements that they were knowingly and intentionally false.    

Moore faces a maximum penalty of 10 years in prison and maximum fine of $500,000.  Trott faces a maximum penalty of five years in prison and a $250,000 fine.

Ingram and Kreiss pleaded guilty on Nov. 28, 2023, and Fatima pleaded guilty on Feb. 26, 2024, to separate informations charging each with one count of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds belonging to and under the care, custody and control of the City of Trenton. They are awaiting sentencing.

U.S. Attorney Sellinger credited agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Environmental Protection Agency Office of Inspector General, under the direction of Acting Assistant Inspector General Nicolas L. Evans; and the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Branch Office.

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

TRENTON, N.J. – A Miami Beach, Florida, man admitted his role in a durable medical equipment health care fraud scheme, U.S. Attorney Philip R. Sellinger announced today.

Christopher Vehovec, 31, of Miami Beach, Florida, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on Aug. 28, 2024, to an information charging him with one count of conspiracy to commit health care fraud.

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

Vehovec and his conspirators solicited and received kickbacks and bribes in exchange for providing durable medical equipment (DME) companies with completed doctors’ orders for medically unnecessary DME, such as orthotic braces. Vehovec and his conspirators utilized the service of telemedicine companies to obtain these prescriptions for DME, and the DME orders were subsequently fraudulently billed to Medicare and other health care benefit programs.

Vehovec and his conspirators caused losses to Medicare and other health care benefit programs of at least $4.2 million.

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Feb. 27, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz 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. – U.S. Attorney Philip Sellinger announced today that a defense contractor based out of Killeen, Texas, will pay $600,000 to resolve allegations that it improperly billed for services that it did not perform. 

The settlement resolves allegations that Solution One Industries Inc. made false claims in conjunction with a contract awarded to Solution One by the U.S. Air Force. Solution One contracted to support the 421st Combat Training Squadron based out of Joint Base McGuire-Dix-Lakehurst in New Jersey by performing different tasks under specific contract line items, on an as-needed basis. The settlement resolves allegations that from December 2017 through June 2019, Solution One billed for tasks that it did not perform, including providing backup power and providing briefings to military personnel. 

U.S. Attorney Sellinger credited the U.S. Department of the Air Force Office of Special Investigations, under the direction of Brig. Gen. Amy S. Bumgarner, with the investigation of the allegations.   

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

NEWARK, N.J. – A citizen of Peru who was extradited to the United States on narcotics importation conspiracy and attempt charges had his initial appearance today in Newark federal court, U.S. Attorney Philip R. Sellinger announced today.

Roque Rafael Martinez Cubas, aka “Ever Arteaga,” 51, is charged by indictment with one count of conspiracy to distribute five kilograms or more of cocaine for unlawful importation and with one count of attempt to distribute five kilograms or more of cocaine for unlawful importation into the United States.

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

Cubas was part of an international drug trafficking organization that manufactures and transports large quantities of cocaine from Peru to various countries, including the United States.  From May 2022 through April 2023, Cubas and others conspired and attempted to import 662 kilograms of cocaine into the United States. Cubas was arrested in Peru in December 2023, and extradited at the request of the United States. He had his initial appearance today, before U.S. Magistrate Judge André M. Espinsoa in Newark federal court, pleaded not guilty, and was detained.

The narcotics charges each carry a maximum potential penalty of life imprisonment and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the U.S. Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz; and the U.S. Drug Enforcement Administration in Lima, Peru, with the investigation leading to the charges. He also thanked the Peruvian National Police Special Investigations Unit; the Peruvian National Prosecutor General’s Office; the U.S. Department of State’s Diplomatic Security Service; Homeland Security Investigations Newark; U.S. Customs and Border Protection; Immigration and Customs Enforcement – Enforcement and Removal Operations Newark Field Office; the Mercer County Prosecutor’s Office; the Morris County Prosecutor’s Office; the Town of Dover Police Department; and the New Jersey National Guard Counterdrug Unit. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Cubas and his extradition to the United States. U.S. Attorney Sellinger thanked officials in Peru for their assistance.

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.

The government is represented by Assistant U.S. Attorney Jenny Chung of the Opioid Abuse Prevention and Enforcement 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. – The former chief executive officer of Mariner’s Bank and an accomplice both admitted their roles in improperly obtaining a nominee loan from the bank, Attorney for the United States Vikas Khanna announced. 

Fred Daibes, 67, of Edgewater, New Jersey, the former CEO and chairman of the board of directors at Mariner’s Bank, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to Count 7 of an indictment charging him with making false entries in connection with a Mariner’s Bank loan memorandum dated June 11, 2008, relating to a $1.8 million loan which falsely stated that a nominee was the borrower. In fact, the line of credit was for the benefit of Daibes. The memorandum falsely stated that the source of repayment would be the personal cash flow of the nominee when, in fact, Daibes would and did fund the payments on the line of credit.

Michael McManus, 67, of Madison, New Jersey, pleaded guilty to an information charging him with misprision of a felony, that is, the misapplication of the proceeds of the $1.8 million loan issued by Mariner’s Bank. 

The false entries count to which Daibes pleaded guilty carries a statutory maximum term of imprisonment of 30 years and a maximum fine of $1,000,000.  The misprision count to which McManus pleaded guilty carries a statutory maximum term of imprisonment of 3 years and a maximum fine of $250,000. Sentencing for both defendants is scheduled for Jan. 23, 2025.

Attorney for the United States Vikas Khanna credited investigators from the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the FDIC Office of Inspector General, under the direction of Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty pleas. 

The government is represented by Assistant U.S. Attorney Elaine K. Lou, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office’s Criminal Division in Newark, under the supervision of the Special Prosecutions Division.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 143 months in prison for possessing with intent to distribute over five kilograms of fentanyl and four kilograms of cocaine, and possessing six firearms as a convicted felon, U.S. Attorney Philip R. Sellinger announced.

Carlos Santiago, 50, of East Orange, pleaded guilty before U.S. District Judge Michael Farbiarz to possession with intent to distribute 400 grams or more of fentanyl, possession with intent to distribute 500 grams or more of cocaine, and possession of firearms by a convicted felon. Judge Farbiarz imposed the sentence today in Newark federal court.

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

On Oct. 24, 2022, federal agents encountered Santiago as he was moving controlled substances from a storage unit to his vehicle in Newark. Santiago was arrested after law enforcement located several kilograms of fentanyl and cocaine, as well as one firearm, in Santiago’s storage unit. Law enforcement searched Santiago’s residence in East Orange and located several additional kilograms of fentanyl and cocaine, and five other firearms. Santiago had previously been convicted, in New Jersey Superior Court, Essex County, of a drug offense and resisting arrest.

In addition to the prison term, Judge Farbiarz sentenced Santiago to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, and special agents of the Bureau of Alcohol, Tobacco and Firearms, under the direction of Acting Special Agent in Charge Thomas Greco, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Sam Thypin-Bermeo of the General Crimes Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 131 months in prison for an armed robbery of a store in Essex County, U.S. Attorney Philip R. Sellinger announced.

Quayon Moore, 25, of Newark, previously pleaded guilty before U.S. District Judge Michael E. Farbiarz to an indictment charging him with Hobbs Act robbery and using and discharging a firearm in relation to crime of violence. Judge Farbiarz imposed the sentenced today in Newark federal court. 

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

On Dec. 8, 2021, Moore entered a store and pointed a gun at a store employee and demanded that the employee give Moore everything he had. Moore shot the firearm toward the employee’s direction, and the bullet hit the wall behind the employee. While continuing to point the firearm at the employee, Moore took money from the cash register, and an iPhone.

In addition to the prison term, Judge Farbiarz sentenced Moore to five years of supervised release, and ordered restitution of $1,000.

U.S. Attorney Sellinger credited FBI Newark’s Violent Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; and the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Farhana C. Melo and Chelsea D. Coleman of the Criminal Division in Newark.

CAMDEN, N.J. – Three New Jersey residents were indicted for their role in a multimillion-dollar mortgage fraud scheme and two of the three were indicted for fraudulently obtaining approximately $3 million of federal Economic Injury Disaster Loans, U.S. Attorney Philip R. Sellinger announced today.

            Arthur Spitzer, 37, of Toms River, New Jersey, is charged with eight counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, two counts of aggravated identity theft, one count of making a false statement to a financial institution, and 12 counts of money laundering. Mendel Deutsch, 38, of Toms River, is charged with three counts of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, one count of making a false statement to a financial institution, and two counts of money laundering. Joshua Feldberger, 42, of Howell, New Jersey, is charged with one count of wire fraud, one count of bank fraud, one count of bank and wire fraud conspiracy, one count of aggravated identity theft, and one count of making a false statement to a financial institution. The defendants were arraigned today before U.S. District Judge Edward S. Kiel in Camden federal court.

According to the indictment:

In 2019 and 2020, Spitzer orchestrated a scheme to defraud property owners and mortgage lenders by obtaining mortgage loans for real estate properties that he did not own.   Spitzer identified properties in New Jersey and Brooklyn, New York, that had either no mortgages or mortgages in amounts significantly lower than the property’s market value. On six occasions, Spitzer obtained mortgage loans by misrepresenting that he had the authority to obtain mortgage loans secured by properties he did not own. Spitzer used fraudulent documents purporting to transfer control to him, which contained forged signatures of the true property owners. The mortgage loan proceeds were disbursed to bank accounts controlled by Spitzer or were used to otherwise benefit Spitzer, such as to pay off his debts. Spitzer then caused the mortgage loans to default by not making the required payments, leaving the true property owners subject to foreclosure and eviction.

In June 2020, Spitzer conspired with Deutsch and Feldberger to make it appear as if Spitzer owned three properties in Brooklyn, and agreed to sell them to Deutsch, who obtained a $4 million mortgage loan in connection with the transaction. Feldberger facilitated the fraudulent transaction as the owner of the settlement company that handled the transaction. The defendants created and sent letters stating that Deutsch had deposited significant funds into escrow toward the transaction, when in reality he had not; they created fake documentation purportedly transferring control of the properties to Spitzer; they failed to disclose a short-term loan obtained shortly before the transaction’s closing; and they lied to the mortgage lender by stating that the settlement company had received more than $2 million from Deutsch at closing, which led the mortgage lender to fund the loan. The defendants then used the mortgage loan proceeds to fund Deutsch’s down payment, which he had supposedly already provided.

In 2020 and 2021, Spitzer and Deutsch each fraudulently obtained millions of dollars of government loans that were intended for small businesses distressed by the COVID-19 pandemic. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic. To obtain an EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and revenues or expenses.

Spitzer and Deutsch obtained EIDL loans for businesses that had little or no operations by submitting loan applications that included false statements about the applicant companies’ number of employees, revenues, cost of goods sold, or lost rents.

The counts of bank fraud conspiracy, bank fraud, and making a false statement to a financial institution, are each punishable by a maximum of 30 years in prison and a $1,000,000 fine. The counts of wire fraud conspiracy and wire fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of money laundering are each punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The counts of aggravated identity theft carry a mandatory two-year prison sentence.

U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.

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

TRENTON, N.J. – A South Carolina man was sentenced today to72 months in prison for engaging in several bank and wire fraud schemes and a securities offering fraud scheme that spanned six years and caused losses of millions of dollars, U.S. Attorney Philip Sellinger announced.

Sandy John Masselli, 63, of Columbia, South Carolina, previously pleaded guilty before U.S. District Judge Michael A. Shipp to nine counts of a superseding indictment charging him with bank fraud, wire fraud, and securities fraud. Masselli was initially charged by complaint in October 2017. Judge Shipp imposed the sentence today in Trenton federal court.  

“Sandy Masselli used a web of lies to dupe victims into investing millions of dollars in his company, promising them substantial returns from an initial public offering that was never going to happen. Instead of investing the money as promised, Masselli fraudulently spent it on himself and his family. The significant sentence handed down today holds him accountable for greedily profiting at the expense of innocent investors.”

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

From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO, assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks or months of the investors’ stock purchases. 

However, as Masselli knew, Carlyle was neither poised nor prepared to conduct an IPO on either the NASDAQ or the NYSE, given that, among other deficiencies, neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Masselli did not invest these funds in Carlyle, as he had promised investors he would, but instead misappropriated these funds to pay for his and his family’s own personal expenses.

Within weeks and often days of receiving investor funds, Masselli quickly deposited them into and throughout a web of bank accounts he controlled, many of which were opened under names of fictitious corporate entities in an effort to conceal the source of the funds. After disguising the provenance of the investor funds, Masselli typically went to work quickly misappropriating the funds.

Masselli also opened multiple credit card accounts, made purchases on those accounts until he had almost reached or exceeded the credit limit, and then purported to send payments from accounts that he knew did not have sufficient funds to cover those payments. Before the fraudulent payments were rejected for insufficient funds, the credit card companies temporarily credited the accounts based on those payments, providing Masselli access to additional credit and allowing him to continue to make purchases. Masselli ultimately failed to pay the balances and the credit card companies sustained a loss. On two occasions, Masselli contacted the victim credit card companies falsely claiming that the accounts had been opened fraudulently by others who had stolen his personal identifiable information.

In addition to the prison term, Judge Shipp sentenced Masselli to three years of supervised release and ordered restitution of $3.2 million and $1 million in forfeiture.

The SEC previously filed a civil complaint against Masselli based on the securities fraud conduct.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also expressed appreciation for the SEC Division of Enforcement, under the direction of Gurbir S. Grewal.

The government is represented by Assistant U.S. Attorneys Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Alexander E. Ramey of the U.S. Attorney’s Trenton Office.

NEWARK, N.J. – A San Antonio, Texas, woman was arrested and charged with fraudulently selling over $18 million worth of counterfeit coupons used at various retail stores across the United States for the purchase of household items, U.S. Attorney Philip R. Sellinger announced today.

Janet Bernal, aka “Rocky,” aka “Rocky G,” aka “Rocky Gee,” aka “RockyG-Kruella,” of San Antonio, Texas, is charged by complaint with three counts of wire fraud. She appeared on Aug. 27, 2024, in the Western District of Texas, before U.S. Magistrate Judge Richard Farrer in San Antonio federal court, and was released on $15,000 secured bond.

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

From June 2020 through June 2024, Bernal orchestrated a scheme to produce and sell fraudulent, counterfeit coupons for use by purchasers at retail stores throughout the United States, including large pharmacies and grocery stores. Bernal offered counterfeit coupons through a monthly fee-based subscription group that was available on a commonly used Internet cloud-based messaging application.

Purchasers subscribed to the group, paid a monthly fee, and then had unlimited access to numerous types of counterfeit coupons that Bernal posted for download on the application. Members paid the monthly fee to mobile cash accounts associated directly with Bernal. Members downloaded tens of thousands of counterfeit coupons and redeemed them at retail stores throughout New Jersey and elsewhere. The loss to 156 retail stores and to the manufacturers whose products were covered by the counterfeit coupons was approximately $18 million.

The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. 

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the arrest.

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

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

NEWARK, N.J. – A Missouri man was arrested for an attempted data extortion campaign targeting his former employer, a U.S.-based industrial company with its headquarters located in Somerset County, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Daniel Rhyne, 57, of Kansas City, Missouri, is charged by complaint with one count of extortion in relation to a threat to cause damage to a protected computer, one count of intentional damage to a protected computer, and one count of wire fraud. He was arrested in Missouri on Aug. 27, 2024, had an initial appearance in Kansas City federal court and was released.

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

Rhyne was employed by a U.S.-based industrial company in New Jersey as a core infrastructure engineer. On Nov. 25, 2023, certain employees of the company received an extortionate e-mail. The email warned the employees that all of the company’s IT administrators had been locked out or deleted from the company’s computer network; backups of the company’s servers had been deleted; and additional servers belonging to the company would be shut down each day for a period of 10 days if a ransom of 20 Bitcoin, equivalent at the time to $750,000, was not paid.

The investigation revealed that Rhyne gained unauthorized access to the company’s computer systems by remotely accessing the a company administrator account. Rhyne then, without authorization, scheduled several computer tasks to be carried out on the network, including changing the company administrator passwords and shutting down its servers. Rhyne controlled the email address used to send the November 25 extortion email to the company’s employees.

The charge of extortion in relation to a threat to cause damage to a protected computer carries a maximum penalty of five years in prison and a $250,000 fine. The charge of intentional damage to a protected computer carries a maximum penalty of 10 years in prison and a $250,000 fine. The wire fraud offense carries a maximum penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the arrest. He also thanked the FBI Kansas City, under the direction of Special Agent in Charge Stephen A. Cyrus.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Cybercrime Unit in Newark.

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 Cumberland County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip Sellinger announced.

Raymond Stickelman, 51, of Vineland, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information with one count of possession of child pornography. He was released on $100,000 unsecured bond.

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

In November 2021, law enforcement agents executed a search warrant at Stickelman’s residence. Law enforcement located an electronic file storage device that contained over 500 files containing images of child sexual abuse. Stickelman admitted possessing that device and the child pornography files it contained.

The count of possession of child pornography carries a maximum penalty of 10 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 7, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Lindsey Harteis and Elisa Wiygul of the Camden office.

NEWARK, N.J. – Two Passaic County correctional officers were indicted today by a federal grand jury for their role in violating a pretrial detainee’s civil rights and conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.

Sergeants Jose Gonzalez, 45, and Donald Vinales, 38, are each charged in a two-count indictment with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. Gonzalez and Vinales were previously charged by complaint. They will be arraigned on a date to be determined. 

According to the indictment:

On Jan. 22, 2021, a pretrial detainee at the Passaic County Jail (PCJ) squirted a mixture containing urine onto a correctional officer. The following day, Gonzalez, Vinales and other correctional officers transported the detainee through an area of the PCJ that does not have a video surveillance camera, which correctional officers and inmates at the PCJ have referred to as a “blind spot.” While in that blind spot, Gonzalez and Vinales assaulted the detainee, while he was handcuffed, when they knocked him to the ground and struck him multiple times. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault.

The defendants were required to submit documentation regarding their use of force.  None of them submitted any such reports. 

In April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Gonzalez, Vinales, and Correctional Officer Lorenzo Bowden, among others, met to discuss the federal investigation. The group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). During an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault.

Bowden pleaded guilty on April 18, 2024, before U.S. District Judge Michael E. Farbiarz to an information charging him with conspiracy to obstruct justice and is awaiting sentencing.

The charge of deprivation of rights under color of law carries a maximum penalty of 10 years in prison and the charge of conspiracy to obstruct justice carries a maximum penalty of 20 years in prison. Both charges carry a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Acting Director Gary F. Giardina, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Benjamin Levin, Co-Chief of the General Crimes Unit, and R. Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division.

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

TRENTON, N.J. – A Mercer County, New Jersey, couple today admitted their roles in a conspiracy to prepare and submit fraudulent asylum applications, U.S. Attorney Philip R. Sellinger announced.

Zuwairul Ameer, aka “Zuwairul Thowfeek,” 61, and Claudette Ameer, aka “Claudette Pieries,” 63, both of Lawrence Township, New Jersey, pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to count one of an indictment charging them with one count of conspiracy to commit immigration fraud.

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

Applicants for asylum in the United States must show that they have suffered persecution in their country of origin on account of race, religion, nationality, political opinion, or membership in a particular social group, or have a well-founded fear of persecution if they were to return to that country. The process requires an application that is reviewed by an asylum officer with the U.S. Citizenship and Immigration Services (USCIS), who makes an initial determination whether to grant asylum. If the application has been prepared by someone other than the applicant, the preparer must disclose his or her name and address and must sign the application.

Since at least 2007, Zuwairul Ameer has been in the business of preparing fraudulent asylum application on behalf of his non-citizen clients. Claudette Ameer has managed that business, acting as the primary point of contact for clients, arranging meetings, and mailing completed applications to USCIS. With Claudette Ameer’s assistance, Zuwairul Ameer met with clients, listened to their stories of mistreatment in their countries of origin, and drafted applications on their behalf that were fraudulent because they: exaggerated the stories of mistreatment; falsely omitted Zuwairul Ameer’s name as the preparer; or both.

The conspiracy charge to which the Ameers have pleaded guilty is punishable by a maximum of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 25, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, New York Field Office, under the direction of under the direction of Assistant Director in Charge James Smith, and immigration officers with of the USCIS Fraud Detection and National Security Directorate at the New York Asylum Office, under the direction of Director Mathew Varghese, with the investigation.

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

NEWARK, N.J. – A Bergen County, New Jersey, man was indicted on charges that he fraudulently obtained hundreds of thousands of dollars of Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds, U.S. Attorney Philip R. Sellinger announced today.

Malak Faltawws, aka “Mark Andrews,” 47, of Rutherford, New Jersey, is charged with three counts of wire fraud and two counts of money laundering. He made his initial appearance today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.

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

From March 2020 through November 2021, Faltawws fraudulently obtained hundreds of thousands of dollars in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP, by submitting false and fraudulent applications, inflating his businesses’ revenue, payroll expenses, and number of employees. After receiving the fraudulent funds, he diverted the proceeds for his personal gain.

Each wire fraud charge carries a maximum penalty of 20 years in prison, and each money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigations, under the direction of Special Agent in Charge Jenifer L. Piovesan, and investigators of Port Authority of New York and New Jersey, Office of the Inspector General, under the direction of Inspector General John Gay, with the investigation.

The government is represented by Assistant U.S. Attorney Aja Espinosa 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 Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

Video statement by U.S. Attorney Sellinger

TRENTON, N.J. – A former Monmouth County, New Jersey, financial counselor with the United States Army who is a major in the U.S. Army Reserve was sentenced today to 151 months in prison for admitted defrauding Gold Star families and related crimes, U.S. Attorney Philip R. Sellinger announced.

Caz Craffy, aka “Carz Craffey,” 42, of Colts Neck, New Jersey, pleaded guilty on April 16, 2024, before U.S. District Judge Georgette Castner to the indictment filed against him, which charged six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts affecting a personal financial interest, and making false statements to a federal agency. Judge Castner imposed the sentence today in Trenton federal court.

“Caz Craffy was sentenced to prison today for brazenly taking advantage of his role as an Army financial counselor to prey upon families of our fallen service members, at their most vulnerable moment, when they were dealing with a tragedy born out of their loved one’s patriotism. These Gold Star families have laid the dearest sacrifice on the altar of freedom. And they deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. No amount of money can undo their enormous loss. Instead of offering guidance, Caz Craffy chose to defraud these heroic families. The lengthy term of imprisonment imposed today is just punishment for this heinous and shameless crime.”

“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” Special Agent in Charge Joel Kirch, Department of the Army Criminal Investigation Division, Northeast Field Office, said. “The hard work, long hours, and dedication of our partners within the Task Force, from the United States Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”

“Families of service members who have sacrificed their lives for our country should receive care, respect, and dignity from those assigned to help them secure survivor benefits,” Principal Deputy Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the criminal investigative arm of the DoD Office of Inspector General, said. “This outcome underscores DCIS and our law enforcement allies’ unwavering dedication to ensuring that those who exploit their official roles to prey on mourning military families are held accountable.”

“Craffy made a conscious decision to defraud Gold Star families suffering from losing their loved one who paid the ultimate sacrifice serving this country,” FBI – Newark Special Agent in Charge James E. Dennehy said. “The money these survivors are given does nothing to ease their suffering. It does, however, help with the burdens they face, such as paying off a mortgage or putting their children through college. They believed Craffy was acting in their best interest, but instead, he was using their money as a method to make his own. Heartless and despicable don’t even begin to sum up his crimes.”

“The sentencing of Craffy represents the culmination of a thorough, long-term investigation that enabled us to obtain justice for the military families robbed in this case,” Homeland Security Investigations Newark acting Special Agent in Charge William S. Walker said. “Craffy dishonored the Gold Star families he swore to serve and disgraced his position as an advisor to these families by seeking his own gain in illicit financial transactions. I am proud of our multiagency team of detectives, agents and prosecutors who prevailed in holding this fraudster accountable.”

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

When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 payment and the servicemember’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.

From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He is also a major in the U.S. Army Reserve, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy acknowledged that he was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.

Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He admitted to encouraging the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.

From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the scheme, the Gold Star family accounts lost more than $3.7 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.

In addition to the prison term, Judge Castner sentenced Craffy to three years of supervised release and ordered forfeiture of $1.4 million. Restitution will be determined at a later date.

The U.S. Securities and Exchange Commission (SEC) has a pending civil complaint against Craffy based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).

U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Walker, with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Head of Enforcement Bill St. Louis.

The government is represented by Assistant U.S. Attorneys Carolyn Silane of the Economic Crimes Unit in Newark and Martha K. Nye of the Criminal Division in Trenton.

NEWARK, N.J. – Two members of a Jersey City gang associated with the Marion Gardens Housing Complex were sentenced for their roles in two different shootings and other gang-related crimes, U.S. Attorney Philip R. Sellinger announced today.

Jakeem Gibson-Madison, aka “Beanz,” 30; and Terick Rogers, aka“Moot,” 32, both of Jersey City, New Jersey, were sentenced before U.S. District Judge Claire C. Cecchi in Newark federal court. Judge Cecchi sentenced Gibson-Madison to 15 years in prison and sentenced Rogers to 16 years in prison. Both defendants were ordered to serve five-year terms of supervised release following their terms of imprisonment.

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

Gibson-Madison, Terick Rogers, and others were all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. They routinely distributed cocaine and heroin, among other controlled substances, in and around the Marion Gardens Housing Complex. They also engaged in acts of violence, including numerous assaults, shootings, and murders, which targeted rival gang members and others.

Gibson-Madison and another member of the enterprise participated in a shooting on Jan. 9, 2019. Gibson-Madison drove his fellow gang member to the area of Grant Avenue and Ocean Avenue to target a rival gang member, at which time his fellow gang member shot two victims and attempted to shoot a third.

On June 30, 2018, Rogers, with two other members of the enterprise, collectively shot five people while celebrating “Meech Day” in honor of a deceased fellow gang member;

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; 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 Department of Homeland Security – Homeland Security Investigations,  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 Connecticut man admitted his role in a multimillion-dollar durable medical equipment (DME) health care fraud and kickback scheme, Attorney for the United States Vikas Khanna announced.

Jesse Foote, 58, of Fairfield, Connecticut, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.

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

From December 2017 to March 2021, Foote conspired with overseas telemarking call centers, DME suppliers, telemedicine companies, and doctors to submit fraudulent claims to health care benefit programs, including Medicare and TRICARE, through a circular scheme of kickbacks and bribes. Foote controlled a marketing company though which he purchased patient “leads” from overseas telemarking companies, which consisted of information about Medicare and other beneficiaries and pre-written doctors’ orders for DME. The telemarketing call centers targeted Medicare beneficiaries and others with health insurance to persuade them to accept DME, including orthotic braces, without regard to medical necessity. Foote paid bribes and kickbacks to telemedicine companies, which in turn paid bribes and kickbacks to doctors, to obtain doctors’ orders for DME based on the leads. The doctors often approved the DME orders without having had any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary. Foote then sold the signed doctors’ orders to others with whom he had kickback arrangements. The doctors’ orders were ultimately submitted to DME suppliers, including DME suppliers controlled by Foote, which submitted fraudulent claims for reimbursement to health care benefit programs including Medicare, TRICARE, and private insurance companies. 

In total, Foote and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $7.8 million for DME. 

The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 years in prison. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Jan. 21, 2025.

Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Brian J. Solecki, with the investigation.

The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.

NEWARK, N.J. – A Middlesex County, New Jersey, man was charged with producing and possessing photos depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Anthony Lagotta Jr., 54, of Plainsboro, New Jersey, is charged by complaint with one count each of production and possession of child pornography. He had his initial appearance before U.S. Magistrate Judge Stacey D. Adams in Newark federal court and was detained.

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

Approximately 15 years ago, Lagotta sexually assaulted two minor victims and took photos depicting that abuse. In July 2022, Lagotta uploaded approximately 30 of those images to a child pornography website hosted on the darknet. During a search of Lagotta’s residence on Aug. 19, 2024, authorities discovered on Lagotta’s computer approximately 700 images depicting sexual abuse of one of those two minor victims, including some of the same images that Lagotta had previously posted on the darknet forum.

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

U.S. Attorney Sellinger credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked the Plainsboro Police Department and the Middlesex County Prosecutor’s Office.

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

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

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

NEWARK, N.J. – A California man today admitted conspiring to launder money obtained from internet-related fraud, U.S. Attorney Philip R. Sellinger announced.

Charles Singleton, 64, of Los Angeles, California, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of conspiracy to commit money laundering (Count One).

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

From September 2018 to August 2020, Singleton worked with conspirators to launder money obtained through business email compromises, a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions. The fraud is carried out by compromising, hacking, or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.  

Singleton opened several business bank accounts in the names of companies he controlled and received proceeds of wire fraud in those accounts. Singleton and his conspirators then withdrew and transferred money from various bank accounts and shared among themselves the account information of bank accounts. Singleton also executed at least one fraudulent contract with a conspirator for a wire of $70,000. As part of the plea, Singleton agreed to forfeit over $1.1 million constituting proceeds derived from the conspiracy.

The charge of money laundering conspiracy carries a maximum term of 20 years in prison and a fine of up to $500,000 or twice the value of the funds involved in the transfer, whichever is greater. Sentencing is scheduled for Jan. 28, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, Woodland Park Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the U.S. Attorney’s Office’s Criminal Division in Newark.

CAMDEN, N.J. – A former U.S. Postal Service (USPS) mail carrier has been convicted of bribery, fraud, and conspiracy charges, U.S. Attorney Philip R. Sellinger announced today.

Emerson Pavilus, 49, of Union, New Jersey, was convicted on Aug. 15, 2024, on all three counts of an indictment charging him with receiving bribes as a public official, conspiring to defraud the United States, and conspiring to possess with intent to distribute controlled substances. The jury returned the verdict following a trial before U.S. Circuit Court Judge Stephanos Bibas, sitting by designation in the U.S. District Court for the District of New Jersey.   

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

Pavilus was a mail carrier at the post office in Flanders, New Jersey. From at least 2015 to 2020, Pavilus received cash payments in exchange for helping individuals intercept packages containing illegal narcotics and other illicit materials. Pavilus provided his conspirators with addresses for vacant houses along his mail route to which they could ship illegal packages. Pavilus then intercepted those packages from the mail stream and personally delivered them to his conspirators in exchange for bribe payments at places other than the addresses listed on the packages.

The bribery charge is punishable by a maximum potential penalty of 15 years in prison and a maximum fine of $250,000 or twice the gross gain from the offense, or three times the monetary equivalent of the bribe amount, whichever is greatest. The conspiracy to defraud the United States charge carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain from the offense, whichever is greater. The narcotics offense carries a maximum potential penalty of five years in prison, and a maximum fine of $250,000.   

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the USPS Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; and the U.S. Postal Inspection Service, in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the guilty verdict. He also thanked the Irvington Police Department.

The government is represented by Assistant U.S. Attorneys Jordann R. Conaboy and Mark J. McCarren.

TRENTON N.J. – A New Jersey couple admitted fraudulently obtaining approximately $790,000 in federal Economic Injury Disaster Loans (EIDL) payments, U.S. Attorney Philip R. Sellinger announced today.

Diana Valteri, 42, and Edmond Haxhillari, 43, of Sparta, New Jersey, and Cypress, Texas, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on Aug. 19, 2024, to informations charging them with wire fraud and money laundering.

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Valteri and Haxhillari are a married couple who from June 2020 through August 2020 participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue, but were actually shell companies with no business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain.

The wire fraud charge carries a maximum penalty of 20 years in prison, and the money laundering charge carries a maximum penalty of 10 years in prison. Each charge also carries a maximum fine of $250,000, or twice the gross gain to the defendants or gross loss to the victim, whichever is greatest. Sentencing is scheduled for Jan. 22, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; 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, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker, and special agents from the Small Business Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of 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, multistate 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.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano and Aja Espinosa of the Economic Crimes 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.

CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing unregistered machineguns and other items, U.S. Attorney Philip R. Sellinger announced.

Michael John James, 30, of Somers Point, New Jersey, pleaded guilty before U.S. District Judge Edward S. Keil to an information charging him with possessing unregistered machineguns and other firearms, as defined under the National Firearms Act.

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

In February 2024, law enforcement officers executed a search warrant at James’ residence, where they recovered dozens of firearms and ballistics items. Among the recovered items were three operable machine guns, an operable weapon modified to be shorter than a standard rifle, an operable weapon modified to be shorter than a standard shotgun, and three silencers.  James admitted that he possessed all of the items recovered from his residence. James also admitted that these machine guns and other firearms were operable when he possessed them. 

The charge to which James pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 30, 2024.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; personnel from the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds; and officers of the Somers Point Police Department, under the direction of Chief Robert C. Somers, with the investigation leading to today’s arrest.

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

NEWARK, N.J. – The U.S. Attorney’s Office has reached an agreement with Hackensack Meridian Health (HMH) to resolve allegations that HMH violated the Americans with Disability Act (ADA) by prohibiting individuals with disabilities from bringing service animals to medical appointments, U.S. Attorney Philip R. Sellinger announced.

During its investigation, the U.S. Attorney’s Office determined that HMH violated the ADA by refusing to allow a service animal into a medical office. The matter stems from a complaint alleging that Dr. Abigail Whetstone’s office, part of HMH, did not permit an individual with a disability using a service animal to bring the service animal into the office for an appointment.

Under the ADA, places of public accommodation must make reasonable modifications to policies and practices to permit persons with disabilities who require service animals to use service animals while participating in its services. Places of public accommodation also cannot require individuals using service animals to produce documents or tags verifying that the animal is a service animal.

HMH has agreed to make reasonable modifications to its policies, practices, and procedures to permit the use of service animals by persons with disabilities, to ensure that all employees working at Whetstone’s office have a hard copy of HMH’s service animal policy, and to ensure that all employees working at Whetstone’s office receive training on Title III’s service animal compliance. HMH will also pay damages to the complainant.

Individuals who believe they may have been victims of discrimination may call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 and/or file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD). 

The government is represented by Assistant U.S. Attorney Kelly Horan Florio, Senior Civil Rights Counsel in the U.S. Attorney’s Office’s Civil Rights Division.

TRENTON, N.J. – A Mercer County, New Jersey, man was convicted of evading federal income taxes and filing false tax returns, U.S. Attorney Philip R. Sellinger announced today.

Gordian A. Ndubizu, 69, of Princeton Junction, New Jersey, was convicted on Aug. 15, 2024, of all eight counts of an indictment charging him with four counts of tax evasion and four counts of filing false tax returns in tax years 2014 through 2017. The jury deliberated for two hours before returning the guilty verdict following a four-day trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court.

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

During tax years 2014 through 2017, Ndubizu was a professor of accounting at a university in Pennsylvania as well as the co-owner of Healthcare Pharmacy in Trenton, New Jersey. Healthcare Pharmacy was organized as an S corporation, the income of which flowed through to Ndubizu and his wife and was to be reported on their personal income tax returns. Ndubizu prepared fraudulent books and records for Healthcare Pharmacy inflating the pharmacy’s costs of goods sold to reduce and underreport the pharmacy’s actual profits flowing through to Ndubizu and his wife. In the fraudulent books and records, among other things, Ndubizu identified certain wire transfers as payments to purchase goods sold by the pharmacy when these wire transfers were in fact made to personal bank accounts under Ndubizu’s control and to bank accounts in Nigeria associated with an automotive company under Ndubizu’s control. Each of Ndubizu’s tax returns for tax years 2014 through 2017 falsely underreported his income and falsely reported that he had no financial interest in or signature authority over any foreign bank accounts. Ndubizu failed to report approximately $3.28 million in income from the pharmacy, resulting in the evasion of approximately $1.25 million in tax due and owing.

Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Each count of filing a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation Division, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty verdict. He also thanked special agents of the Drug Enforcement Administration, and officers of the Trenton Police Department and Mercer County Prosecutor’s Office.  

The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Ashley Super Pitts of the U.S. Attorney’s Office Criminal Division in Trenton.

법무부는 오늘 제한된 언어 능력을 가진(LEP) 사람들을 위한 법원 서비스로의 접근을 개선하기 위해 뉴저지 사법부와 합의에 도달했다고 발표했습니다.

본 합의는 법무부의 민권국과 뉴저지 지방 검찰청이 뉴저지 사법부의 일부인 몬머스(Monmouth) 주변 법원(MVC)이 1964년 민권법(제6편) 위반인 제한된 영어 능력을 가진 법원 이용자들에 대해 그들의 출신 국가에 기반한 차별을 했다는 혐의들과 법무부에 본 차별 혐의에 관해 고발한 법원 직원에 대해 보복한 것에 대한 수사를 해결합니다.

“제한된 영어 능력을 가진 사람들은 우리 법원 제도에서 언어 장벽에 직면할 경우, 그들의 자녀, 가정 및 기본권을 잃을 수도 있습니다”라고 법무부 민권국의 크리스틴 클라크(Kristen Clarke) 국장은 말했습니다. “민권국은 법원이 반드시 대중을 위한 언어 장벽을 제거하도록 하기 위해 계속 싸울 것입니다.”

“법을 공정하고 공평하게 시행하는 건 우리 민주주의 제도의 초석”이라고 뉴저지 지방 검찰청의 검사장 필립 R. 셀린저(Philip R. Sellinger)는 말했습니다. “우리는 뉴저지에 있는 모든 소송 당사자가 언어 장벽과 상관없이 뉴저지 법원 제도에 평등한 접근성을 갖도록 보장하기 위해 전념할 것입니다. 본 합의는 제한된 영어를 구사하는 법원 이용자들이 몬머스 카운티에 있는 뉴저지주 법원에서 평등한 접근성을 갖도록 보장합니다.” 

제6편은 뉴저지 사법부와 같은 연방 재정 지원의 수혜자에 의한 인종, 피부색 또는 출신 국가에 기반한 차별을 금지합니다. 법무부의 수사는 언어 장벽이 제한된 영어 능력을 가진 사람들에게 법원 제도에 대한 접근성을 저해했다는 것을 밝혀냈습니다. 이러한 장벽은 서류 양식 작성을 돕기 위한 통역 제공 거부, 제한된 영어 능력을 가진 법원 이용자에게 중요한 문서를 번역하거나 설명하지 못한 것과 언어 접근 정책 및 절차를 직원에게 충분히 알리지 않은 것을 포함합니다.

본 합의문에 따라, 뉴저지 사법부는 중요한 법원 서류 양식 및 자료를 번역하고 사용할 수 있도록 법원에 배포할 것입니다. 뉴저지 사법부는 또한 향후 1년간 자체적으로 언어 접근 계획 검토, 법원을 위한 의무적인 언어 접근 교육 개발, 제6편의 보복 교육 제공, 제6편의 보복 금지 정책 및 영어 이외의 언어로 제6편의 신고 절차를 설명하는 공지를 발행할 것입니다. 법무부는 이러한 사항들과 기타 요건을 2년간 주시할 것입니다. 뉴저지 사법부는 또한 보복 혐의를 제기한 개인에게 $89,718의 금액에 해당하는 손해배상금을 지급하기로 합의했습니다.

제6편의 집행은 민권국과 뉴저지 지방 검찰청의 최우선 과제이고, 양측은 개인이 보복으로부터 자유롭게 수사에 항의하거나 협조할 수 있도록 보장하기 위해 전념합니다. 민권국에 관한 추가 정보는 www.justice.gov/crt 웹사이트에 있고, 제한된 영어 능력자 및 제6편에 관한 정보는 www.lep.gov에 있습니다. 민권국은 법원 언어 사용에 관한 정보를 www.lep.gov/state-courts에서 제공합니다.

일반인은 civilrights.justice.gov/report/에 잠재적인 민권 위반 사항을 신고할 수 있습니다.

뉴저지 지방 검찰청에서의 민권국을 포함한 민권 집행에 관한 추가 정보는 www.justice.gov/usao-nj/civil-rights-enforcement에 있습니다.

NEWARK – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division, together with the New Jersey Judiciary, have reached agreement to improve access to court services for people with limited English proficiency (LEP).

This agreement resolves an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division and into allegations that Monmouth Vicinage Courts (MVC), part of the New Jersey Judiciary, discriminated against court users with LEP based on their national origin and retaliated against a court employee who complained to the department about this alleged discrimination, in violation of Title VI of the Civil Rights Act of 1964 (Title VI).

“Dispensing justice fairly and equitably is a cornerstone of our democratic system. We remain committed to ensuring that all litigants in New Jersey have equal access to New Jersey’s court system regardless of language barriers. This agreement will ensure that limited English court users will have equal access to the New Jersey state courts in Monmouth County.” 

“People with limited English proficiency can lose their children, homes and fundamental rights when they face language barriers in our court systems,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue fighting to ensure that courts remove language barriers for the public.”

Title VI prohibits race, color or national origin discrimination by recipients of federal financial assistance, such as the New Jersey Judiciary. This investigation uncovered language barriers that impeded access to the court system for people with LEP. These barriers included refusing to provide an interpreter for assistance with forms, failing to translate or explain vital documents to court users with LEP and failing to adequately inform staff of language access policies and procedures.

Under the agreement, the New Jersey Judiciary will translate vital court forms and materials and make them available for distribution at courthouses. The New Jersey Judiciary will also review its language access plan over the next year, develop mandatory language access training for its courts, provide Title VI retaliation training and issue public notices that explain the Title VI nonretaliation policy and Title VI complaint process in non-English languages. The U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division will monitor these and other requirements for two years. The New Jersey Judiciary also agreed to pay damages in the amount of $89,718 to the individual who alleged retaliation. 

The enforcement of Title VI is a top priority of the U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division, and both are committed to ensuring that individuals can complain or cooperate with investigations free from retaliation. Additional information about civil rights enforcement at the U.S. Attorney’s Office for the District of New Jersey, including the Office’s Civil Rights Division, is available at www.justice.gov/usao-nj/civil-rights-enforcement.

Additional information about the Department of Justice’s Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. The Department of Justice’s Civil Rights Division provides information about courts language access at www.lep.gov/state-courts. Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.  

The government is represented by Assistant U.S. Attorney Kelly Horan Florio, Senior Civil Rights Counsel in the U.S. Attorney’s Office’s Civil Rights Division, and Attorney Advisor Linda Quash, U.S. Department of Justice, Civil Rights Division, Federal Coordination and Compliance Section.

Spanish translation:

https://www.justice.gov/es/opa/pr/el-departamento-de-justicia-llega-un-acuerdo-con-la-judicatura-de-nueva-jersey-para-resolver

NEWARK, N.J. – Two Brooklyn, New York, men admitted their roles in three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022, as well as conspiring to commit robberies in New Jersey, New York, and Pennsylvania, U.S. Attorney Philip R. Sellinger announced today.

Ramel Harris, 42, of Brooklyn, and Neville Brown, 40, of Brooklyn, pleaded guilty on Aug. 14, 2024, before U.S. District Judge Claire C. Cecchi in Newark federal court to three counts of an indictment charging them with Hobbs Act conspiracy, Hobbs Act robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence, namely the Hobbs Act robbery.

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

Between January 2021 and January 2022, Harris and Brown attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in different parts of New Jersey while brandishing a firearm and using zip ties to restrain employees at each location. During those robberies, Harris and Brown stole over $578,00.     

Law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania. Law enforcement obtained video surveillance footage that ultimately linked Harris and Brown to the robberies. Cell phone records indicate that Harris’s and Brown’s cellular telephones were around the locations of the various robberies around the times that they were committed.

The Hobbs Act conspiracy and Hobbs Act robbery counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest. Sentencing for both defendants is scheduled for Dec. 17, 2024.

U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge James Smith; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Wayne A. Jacobs; members of the Hackettstown Police Department, under the direction of Police Chief Aaron Perkins; members of the Old Bridge Police Department, under the leadership of Chief of Police Thomas J. Montagna; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Benjamin Levin, Co-Chief of the General Crimes Unit in Newark.

NEWARK, N.J. – A Saudi Arabian man admitted transporting a stolen school bus across state lines, U.S. Attorney Philip R. Sellinger announced today.

Bader Alzahrani, 24, of Saudi Arabia, pleaded guilty on Aug. 14, 2024, before U.S. District Judge Evelyn Padin in Newark federal court to one count of an indictment charging him with interstate transportation of a stolen vehicle.

According to documents filed in this case:

On Jan. 15, 2023, a break-in was reported in an unoccupied residential home in Livingston, New Jersey. During a search of a backpack in that home, law enforcement saw a Saudi Arabian passport with the name Bader Alzahrani, along with other items that appeared to belong to Alzahrani. On Jan. 17, 2023, the Livingston, New Jersey Board of Education reported that a school bus was stolen from a parking lot across the street from the unoccupied residential home where the break-in was reported. During the ensuing investigation, law enforcement located Alzahrani in Stroudsburg, Pennsylvania. After Alzahrani was taken into custody, law enforcement searched Alzahrani and recovered the keys to the stolen school bus.

The count of possession of a stolen vehicle is punishable by a maximum penalty of 10 years in prison and carries a fine of up to $250,000. Sentencing is scheduled for Sept. 9, 2024.

U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked special agents of the FBI Field Office in Washington, D.C., under the direction of Assistant Director in Charge David Sunberg; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Monroe County, Pennsylvania Office of the District Attorney, under the direction of District Attorney Mike Mancuso; members of the Livingston Police Department, under the direction of Police Chief Gary Marshuetz; and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan.

The government is represented by Assistant U.S. Attorney Benjamin Levin, Co-Chief of the General Crimes Unit in Newark.

O Departamento de Justiça anunciou hoje que chegou a um acordo com o Judiciário de Nova Jérsei para aprimorar o acesso aos serviços do tribunal para pessoas com proficiência limitada em inglês (sigla em inglês LEP).

Este acordo encerra uma investigação da Divisão de Direitos Civis do Departamento de Justiça e da Procuradoria-Geral dos Estados Unidos para o Distrito de Nova Jérsei sobre alegações de que os Tribunais da Vicinagem de Monmouth (MVC), parte do Judiciário de Nova Jérsei, discriminaram usuários com LEP do tribunal, com base em sua origem nacional e retaliaram um funcionário do tribunal que fez uma reclamação ao departamento sobre a alegada discriminação, em violação ao Título VI da Lei de Direitos Civis de 1964 (Título VI).

“As pessoas com proficiência limitada em inglês podem perder seus filhos, suas casas e seus direitos fundamentais, ao se depararem com barreiras linguísticas no nosso sistema judiciário”, disse a procuradora-geral adjunta, Kristen Clarke, da Divisão de Direitos Civis do Departamento de Justiça. “A Divisão de Direitos Civis do Departamento de Justiça continuará lutando para garantir que os tribunais removam as barreiras linguísticas para o público.”

“A distribuição da justiça de forma justa e equitativa é uma pedra angular do nosso sistema democrático”, disse o procurador-geral dos EUA para Distrito de Nova Jérsei, Philip R. Sellinger. “Continuaremos empenhados para garantir que todos os litigantes de Nova Jérsei tenham acesso igualitário ao sistema judicial de Nova Jérsei, independentemente das barreiras linguísticas. Este acordo garantirá que os usuários do tribunal, com inglês limitado, tenham acesso igualitário aos tribunais estaduais de Nova Jérsei no Condado de Monmouth.”

O título VI proíbe discriminação por raça, cor ou origem nacional pelos recipientes de assistência financeira federal, tal como o Judiciário de Nova Jérsei. A investigação do departamento revelou barreiras linguísticas que impediam o acesso ao sistema judicial pelas pessoas com LEP. Tais barreiras incluíam a recusa em fornecer um intérprete para auxiliar com formulários; deixar de tradução ou explicar documentos vitais para os usuários dos tribunais com LEP; e a falta de informação adequada aos funcionários sobre as normas e os procedimentos referentes ao acesso linguístico.

Nos termos do acordo, o Judiciário de Nova Jérsei traduzirá formulários e materiais vitais dos tribunais e os disponibilizará para distribuição nos fóruns. O Judiciário de Nova Jérsei também revisará o seu plano de acesso linguístico durante o próximo ano, desenvolverá treinamento mandatório de acesso linguísticos para os seus tribunais, fornecerá treinamento contra retaliação do Título VI e emitirá avisos públicos para explicar a norma de não retaliação do Título VI e o processo de reclamação do Título VI em outras línguas que não o inglês. O departamento irá monitorar estes e outros requisitos por dois anos. O Judiciário de Nova Jérsei também concordou em pagar uma indenização no valor de US$89.718 para a pessoa que alegou retaliação.

A implementação do Título VI é uma das principais prioridades da Divisão de Direitos Civis e do gabinete do procurador-geral dos EUA para o Distrito de Nova Jérsei, ambos empenhados em garantir que as pessoas possam reclamar ou cooperar com investigações sem sofrer retaliação. Informações adicionais sobre a Divisão de Direitos Civis estão disponíveis no site: www.justice.gov/crt, e informações sobre proficiência limitada em inglês e o Título VI estão disponíveis em www.lep.gov. A divisão oferece informação sobre o acesso linguístico dos tribunais em www.lep.gov/state-courts.

O público poderá denunciar possíveis violações aos direitos civis através do site civilrights.justice.gov/report/.

Informações adicionais sobre a aplicação dos direitos civis no gabinete do procurador-geral dos EUA para o Distrito de Nova Jérsei, incluindo a Divisão de Direitos Civis do gabinete estão disponíveis no site www.justice.gov/usao-nj/civil-rights-enforcement.  

NEWARK, N.J. – A Mercer County, New Jersey, man formerly of Ocean County, New Jersey – a cargo pilot who traveled abroad frequently – was sentenced today to 144 months in prison for illicit sexual conduct abroad, including production of child pornography, U.S. Attorney Philip R. Sellinger announced.

Frank Maile, 68, of Hamilton, New Jersey, and formerly of New Egypt, New Jersey, pleaded guilty on Sept. 6, 2023, before U.S. District Judge Brian R. Martinotti in Newark federal court to Count Four of a five-count indictment, charging him with illicit sexual conduct abroad, that is, a sexual act with a person under 18 years of age, a commercial sex act, and production of child pornography.

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

From as early as 2013, Maile traveled to the Philippines and had sexual contact with two minor sisters. Maile had extensive, explicit chats with the minors’ pimp to arrange these meetings. Maile created images and videos of the two minor females engaging in multiple sex acts, in which Maile also participated. These sex acts constituted commercial sex acts because they were performed for compensation. Maile also possessed additional images of child sexual abuse when he was searched upon entering the United States in Alabama on April 6, 2018, and at the time of his arrest in New Jersey on May 1, 2018. Maile also admitted that he had distributed some of the child pornography to his then-roommate/tenant Dennis Nerolich. Nerolich pleaded guilty to possession of child pornography before Judge Martinotti on June 20, 2024, and is scheduled to be sentenced on Nov. 6, 2024.

In addition to the prison term, Judge Martinotti sentenced Maile to lifetime supervised release, registration as a sex offender, a $5,000 assessment under the Justice for Victims of Trafficking Act, and a $50,000 fine. Restitution will be determined at a later date.

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 today’s sentencing.

The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden.

Note: View the release in Polish here.

The Justice Department announced today that it has reached a settlement agreement with the New Jersey Judiciary to improve access to court services for people with limited English proficiency (LEP).

This agreement resolves an investigation by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey into allegations that Monmouth Vicinage Courts (MVC), part of the New Jersey Judiciary, discriminated against court users with LEP based on their national origin and retaliated against a court employee who complained to the department about this alleged discrimination, in violation of Title VI of the Civil Rights Act of 1964 (Title VI).

“People with limited English proficiency can lose their children, homes and fundamental rights when they face language barriers in our court systems,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue fighting to ensure that courts remove language barriers for the public.”

“Dispensing justice fairly and equitably is a cornerstone of our democratic system,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “We remain committed to ensuring that all litigants in New Jersey have equal access to New Jersey’s court system regardless of language barriers. This agreement will ensure that limited English court users will have equal access to the New Jersey state courts in Monmouth County.” 

Title VI prohibits race, color or national origin discrimination by recipients of federal financial assistance, such as the New Jersey Judiciary. The department’s investigation uncovered language barriers that impeded access to the court system for people with LEP. These barriers included refusing to provide an interpreter for assistance with forms, failing to translate or explain vital documents to court users with LEP and failing to adequately inform staff of language access policies and procedures.

Under the agreement, the New Jersey Judiciary will translate vital court forms and materials and make them available for distribution at courthouses. The New Jersey Judiciary will also review its language access plan over the next year, develop mandatory language access training for its courts, provide Title VI retaliation training and issue public notices that explain the Title VI nonretaliation policy and Title VI complaint process in non-English languages. The department will monitor these and other requirements for two years. The New Jersey Judiciary also agreed to pay damages in the amount of $89,718 to the individual who alleged retaliation. 

The enforcement of Title VI is a top priority of the Civil Rights Division and of the U.S. Attorney’s Office for the District of New Jersey, and both are committed to ensuring that individuals can complain or cooperate with investigations free from retaliation. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. The division provides information about courts language access at www.lep.gov/state-courts. Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.  

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

NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang admitted to his role in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced today.

Kareem Green, aka “Try Me,”, 32, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and a separate indictment charging him with distribution of cocaine.

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

From 2015 through Sept. 22, 2022, Green was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere. On April 5, 2021, Green worked with other members of the gang to shoot a victim. On April 11, 2021, Green worked with other members of the gang to shoot another victim. On March 5, 2021, Green worked with another member of the gang to distribute cocaine.

The racketeering conspiracy count is punishable by a maximum sentence of 20 years in prison and a fine of up to $250,000 and the controlled substance offense is punishable by a maximum sentence of 20 years in prison and a fine of up to $1 million. Sentencing is scheduled for Dec. 18, 2024.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti, as well as investigators of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Colonel Patrick J. Callahan; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Spotswood Police Department, under the direction of Chief Philip Corbisiero; and the North Carolina State Bureau of Investigation Fugitive and Missing Person Task Force, which includes members of the FBI, for the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. 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.

The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Division and Assistant U.S. Attorney Jake A. Nasar of the Organized Crime/Gangs Unit of the Criminal Division.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con la Judicatura de Nueva Jersey para mejorar el acceso a los servicios jurídicos para personas con dominio limitado del inglés (LEP, por sus siglas en inglés).

Este acuerdo resuelve una investigación de la División de Derechos Civiles del Departamento de Justicia y la Oficina del Fiscal Federal para el Distrito de Nueva Jersey sobre las alegaciones de que los tribunales del Distrito Judicial de Monmouth (MVC, por sus siglas en inglés), pertenecientes a la Judicatura de Nueva Jersey, discriminaron a los usuarios de los tribunales con LEP debido a su origen nacional y tomaron represalias contra un empleado de los tribunales que se quejó ante el departamento sobre esta alegada discriminación, en contra del Título VI de la Ley de Derechos Civiles de 1964 (Título VI).

«Las personas con un dominio limitado del inglés pueden perder a sus hijos, sus hogares y sus derechos fundamentales cuando enfrentan barreras lingüísticas en nuestros sistemas judiciales», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles seguirá luchando para garantizar que los tribunales eliminen las barreras lingüísticas para el público».

«Impartir justicia de manera justa y equitativa es una piedra angular de nuestro sistema democrático», afirmó Philip R. Sellinger, el Fiscal Federal para el Distrito de Nueva Jersey. «Seguimos comprometidos a garantizar que todos los litigantes en Nueva Jersey tengan igualdad de acceso al sistema judicial de Nueva Jersey, independientemente de las barreras lingüísticas. Este acuerdo garantizará que los usuarios de los tribunales con inglés limitado tengan igualdad de acceso a los tribunales estatales de Nueva Jersey en el condado de Monmouth». 

El Título VI prohíbe la discriminación por motivos de raza, color de piel u origen nacional por parte de los beneficiarios de ayuda financiera federal, como la Judicatura de Nueva Jersey. La investigación del departamento reveló la existencia de barreras lingüísticas que les impedían el acceso al sistema judicial a las personas con LEP. Estas barreras incluían negarse a proporcionar un intérprete para ayudar con los formularios, no traducir ni explicarles documentos importantes a los usuarios de los tribunales con LEP y no informar adecuadamente al personal de las políticas y los procedimientos de acceso lingüístico.

En virtud del acuerdo, la Judicatura de Nueva Jersey traducirá formularios y materiales judiciales importantes y los pondrá a disposición para su distribución en los juzgados. La Judicatura de Nueva Jersey también revisará su plan de acceso lingüístico durante el próximo año, desarrollará una capacitación de acceso lingüístico obligatoria para sus tribunales, proporcionará capacitación sobre el Título VI en materia de represalias y publicará avisos públicos que expliquen la política de no tomar represalias en contra del Título VI y el proceso de denuncia del Título VI en idiomas distintos del inglés. El departamento supervisará estos y otros requisitos durante dos años. La Judicatura de Nueva Jersey también acordó pagarle una indemnización por daños y perjuicios por un monto de $89,718 a la persona que alegó represalias. 

Una de las principales prioridades de la División de Derechos Civiles y la Oficina del Fiscal Federal para el Distrito de Nueva Jersey es hacer cumplir el Título VI, y ambas se comprometen a garantizar que las personas puedan presentar quejas o cooperar con las investigaciones sin sufrir represalias. Hay información adicional disponible sobre la División de Derechos Civiles en su sitio web en www.justice.gov/crt, y hay información disponible sobre el dominio limitado del inglés y el Título VI en www.lep.gov. La división ofrece información sobre el acceso lingüístico de los tribunales en www.lep.gov/state-courts. Los miembros del público pueden denunciar posibles violaciones de los derechos civiles en civilrights.justice.gov/report/. 

Hay información adicional disponible sobre los esfuerzos por hacer cumplir los derechos civiles en la Oficina del Fiscal Federal para el Distrito de Nueva Jersey, incluida la División de Derechos Civiles de la Oficina, en www.justice.gov/usao-nj/civil-rights-enforcement.

Depatman Lajistis te anonse jodi a ke li te rive jwenn yon akò ak sistèm Jidisyè New Jersey a pou amelyore aksè a sèvis tribinal pou moun ki gen yon konpetans limite nan Angle (LEP).

Akò sa a rezoud yon envestigasyon Divizyon Dwa Sivil Depatman Jistis la ak Biwo Avoka Ameriken pou Distri New Jersey a anba akizasyon ke Monmouth Vicinity Courts (MVC), yon pati nan sistèm jidisyè New Jersey a, te fè diskriminasyon kont itilizatè tribinal LEP yo akòz. orijin nasyonal yo ak reprezay kont yon anplwaye tribinal la ki te pote plent bay depatman an konsènan swadizan diskriminasyon sa a, an vyolasyon Tit VI Lwa sou Dwa Sivil 1964 (Tit VI).

“Moun ki gen konpetans limite nan anglè ka pèdi pitit yo, kay yo ak dwa fondamantal yo lè yo fè fas ak baryè lang nan sistèm tribinal nou yo,” Asistan Pwokirè Jeneral Kristen Clarke nan Divizyon Dwa Sivil Depatman Jistis la te di. “Divizyon Dwa Sivil la pral kontinye goumen pou asire ke tribinal yo retire baryè lang pou piblik la.”

Avoka Ameriken Philip R. Sellinger pou Distri New Jersey te di: “Distribisyon jistis san patipri ak ekitab se yon baz sistèm demokratik nou an. “Nou rete angaje pou asire ke tout pleyan nan New Jersey yo gen aksè egal a sistèm tribinal New Jersey kèlkeswa baryè lang yo. Akò sa a pral asire ke itilizatè nan tribinal la ki limite nan anglè pral gen aksè egal nan tribinal eta New Jersey nan Konte Monmouth.”

Tit VI entèdi diskriminasyon ras, koulè oswa orijin nasyonal pa moun k ap resevwa asistans finansye federal, tankou sistèm Jidisyè New Jersey a. Ankèt depatman an te dekouvwi baryè langaj ki te anpeche moun LEP ki gen aksè a sistèm tribinal la. Obstak sa yo enkli refize bay yon entèprèt pou asistans nan ranpli fòm yo, pa tradwi oswa eksplike dokiman enpòtan yo bay itilizatè tribinal yo ki LEP epi pa enfòme anplwaye yo nan yon fason adekwat sou règleman ak pwosedi aksè a lang.

Dapre akò a, sistèm Jidisyè New Jersey a pral tradwi fòm ak materyèl tribinal ki enpòtan anpil yo epi rann yo disponib pou distribisyon nan tribinal yo. Sistèm Jidisyè New Jersey a pral revize tou plan aksè a lang li pandan ane kap vini an, devlope fòmasyon obligatwa pou aksè a lang pou tribinal li yo, bay fòmasyon sou reprezay Tit VI, epi pibliye avi piblik ki esplike règleman Tit VI sou non reprezay ak pwosesis plent Tit VI pou lang ki pa anglè yo. Depatman an pral kontwole kondisyon sa yo ak lòt pou dezan. Lajistis New Jersey te dakò tou pou peye $89,718 nan domaj bay moun ki te swadizan soufri reprezay.

Ranfòsman Tit VI se pi gwo priyorite Divizyon Dwa Sivil la ak Biwo Avoka Ameriken an pou Distri New Jersey, epi tou de angaje yo pou asire moun yo ka pote plent oswa kolabore ak envestigasyon san reprezay. Gen plis enfòmasyon sou Divizyon Dwa Sivil la disponib sou sitwèb li a nan www.justice.gov/crt, epi enfòmasyon sou konpetans limite nan anglè ak Tit VI disponib nan www.lep.gov. Divizyon an bay enfòmasyon sou aksè a lang nan tribinal yo nan www.lep.gov/state-courts.

Manm piblik la ka rapòte vyolasyon dwa sivil posib yo nan civilrights.justice.gov/report/.

Gen plis enfòmasyon sou aplikasyon dwa sivil yo nan Biwo Avoka Ameriken pou Distri New Jersey a, ki gen ladan Biwo Divizyon Dwa Sivil la, disponib nan www.justice.gov/usao-nj/civil-rights-enforcement.

CAMDEN, N.J. – An Atlantic County health system entered into a settlement agreement with the United States resolving allegations that the non-profit company violated the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip R. Sellinger announced today.

According to the allegations in the complaint and the contentions of the United States contained in the settlement agreement:

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

Shore Memorial Physicians’ Group (SPG), an affiliate of the Shore Memorial Health System Inc., applied for and received a PPP loan for $2.78 million, even though it was ineligible for such a loan because it was affiliated with Shore Memorial Health System and was therefore not a small business within the meaning of the PPP program. Shore Memorial Physicians’ Group thereafter sought and received forgiveness of the total amount of the loan.  

Shore Memorial Health System fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement, Shore Memorial Health System agrees to pay the United States $3.15 million. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $315,000 as his share in the recovery. 

U.S. Attorney Sellinger credits special agents of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York, with the investigation.

The government is represented by Assistant U.S. Attorney Paul W. Kaufman of the Healthcare Fraud Unit.

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 qui tam case is captioned US ex rel. Zachary Holtzman v. Dr. David P. May; Shore Memorial Hospital d/b/a Shore Medical Center, 23-cv-3680 (JHR).

 NEWARK, N.J. – A Belarussian and Ukrainian national charged in the District of New Jersey and Eastern District of Virginia with leading international computer hacking and wire fraud schemes made his initial appearance in Newark today after being extradited from Poland.

As alleged in court documents unsealed today, Maksim Silnikau, also known as Maksym Silnikov, 38, led two multi-year cybercrime schemes. At different points, Silnikau has been associated with the online monikers “J.P. Morgan,” “xxx,” and “lansky,” among others. Silnikau appeared before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.

In the District of New Jersey, Silnikau, along with alleged co-conspirators Volodymyr Kadariya, a Belarussian and Ukrainian national, 38, and Andrei Tarasov, a Russian national, 33, are charged with cybercrime offenses associated with a scheme to transmit the Angler Exploit Kit, other malware, and online scams to the computers of millions of unsuspecting victim Internet users through online advertisements – so-called “malvertising” – and other means from October 2013 through March 2022. In the Eastern District of Virginia, Silnikau is charged for his role as the creator and administrator of the Ransom Cartel ransomware strain and associated ransomware operations beginning in May 2021.

“These conspirators are alleged to have operated a multiyear scheme to distribute malware onto the computers of millions of unsuspecting internet users around the globe. To carry out the scheme, they used malicious advertising, or ‘malvertising,’ to trick victims into clicking on legitimate-seeming internet ads. Instead, the victims would be redirected to malicious internet sites that delivered malware to their devices, giving the conspirators access to the victims’ personal information. The conspirators then sold that access and information to other cybercriminals on the dark net. Throughout the scheme, the conspirators attempted to hide their identities from law enforcement, including by using fraudulent aliases and online personas.”

U.S. Attorney Philip R. Sellinger

“Today, the Justice Department takes another step forward in disrupting ransomware actors and malicious cybercriminals who prey on victims in the U.S. and around the world,” said Deputy Attorney General Lisa Monaco. “As alleged, for over a decade, the defendant used a host of online disguises and a network of fraudulent ad campaigns to spread ransomware and scam U.S. businesses and consumers. Now, thanks to the hard work of federal agents and prosecutors, along with Polish law enforcement colleagues, Maksim Silnikau must answer these grave charges in an American courtroom.” 

“As alleged in the indictment, Silnikau and his co-conspirators distributed online advertisements to millions of internet users for the purpose of delivering malicious content,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These ads appeared legitimate but were actually designed to deliver malware that would compromise users’ devices or to deliver ‘scareware’ designed to trick users into providing their sensitive personal information. Silnikau’s arrest and extradition demonstrate that, working with its domestic and international partners, the Criminal Division is committed to bringing cyber criminals who target U.S. victims to justice, no matter where they are located.”

“This arrest underscores a long-term investigation by the U.S. Secret Service, in coordination with foreign, domestic and private partners, of cybercrime organizations that allegedly distributed the notorious Angler Exploit Kit, conducted malvertising, and operated the Ransom Cartel ransomware organization,” said Assistant Director of Investigations Brian Lambert of the U.S. Secret Service. “Cybercriminals should know that even if they attempt to hide their criminal conduct behind the anonymity of the internet that eventually, through the dedication of international law enforcement professionals, they will be apprehended and held accountable for their actions.”

“Silnikau and his co-conspirators allegedly used malware and various online scams to target millions of unsuspecting internet users in the United States and around the world,” said FBI Deputy Director Paul Abbate. “They hid behind online aliases and engaged in complex, far-reaching cyber fraud schemes to compromise victim devices and steal sensitive personal information. The FBI will continue to work with partners to aggressively impose costs on cybercriminals and hold them accountable for their actions.”

“The FBI will continue to work alongside our partners both overseas and in the states to identify and dismantle cyber threats, and to pursue those criminals who attempt to target and defraud victims in the United States,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office.

District of New Jersey Indictment

According to the indictment unsealed in the District of New Jersey, from October 2013 through March 2022, Silnikau, Kadariya, Tarasov, and others in Ukraine and elsewhere used malvertising and other means to deliver malware, scareware, and online scams to millions of unsuspecting Internet users in the United States and elsewhere. The malvertising campaigns were designed to appear legitimate, but often redirected victim Internet users who viewed or accessed the advertisements to malicious sites and servers that sought to defraud the users or delivered malware to the users’ devices. The conspirators’ scheme caused unsuspecting Internet users to be forcibly redirected to malicious content on millions of occasions, and defrauded and attempted to defraud various U.S.-based companies involved in the sale and distribution of legitimate online advertisements.

One strain of malware that Silnikau and others allegedly took a leading role in disseminating was the Angler Exploit Kit, which targeted web-based vulnerabilities in Internet browsers and associated plug-ins. At times during the scheme, the Angler Exploit Kit was a leading vehicle through which cybercriminals delivered malware onto compromised electronic devices. The conspirators also allegedly enabled the delivery of “scareware” ads that displayed false messages claiming to have identified a virus or other issue with a victim Internet user’s device. The messages then attempted to deceive the victim into buying or downloading dangerous software, providing remote access to the device, or disclosing personal identifying or financial information.

For years, the conspirators tricked advertising companies into delivering their malvertising campaigns by using dozens of online personas and fictitious entities to pose as legitimate advertising companies. They also developed and used sophisticated technologies and computer code to refine their malvertisements, malware, and computer infrastructure so as to conceal the malicious nature of their advertising. 

As alleged, Silnikau, Kadariya, Tarasov, and conspirators used multiple strategies to profit from their widespread hacking and wire fraud scheme, including by using accounts on predominantly Russian cybercrime forums to sell to cybercriminals access to the compromised devices of victim Internet users (so-called “loads” or “bots”), as well as information stolen from victims and recorded in “logs,” such as banking information and login credentials, to enable further efforts to defraud the victim Internet users or deliver additional malware to their devices.

In the District of New Jersey, Silnikau,  Kadariya, and Tarasov are charged with conspiracy to commit wire fraud, conspiracy to commit computer fraud, and two counts of substantive wire fraud. If convicted, Silnikau, Kadariya, and Tarasov face maximum penalties of 27 years in prison for wire fraud conspiracy, 10 years in prison for computer fraud conspiracy, counts, and 20 years in prison on each wire fraud count.

The U.S. Secret Service and FBI Kansas City Field Office are investigating the charges in the District of New Jersey, and the U.S. Secret Service is investigating the charges in the Eastern District of Virginia. The Department also appreciates the extensive cooperation and coordination by the United Kingdom’s National Crime Agency and Crown Prosecution Service over the course of several years, as well as significant support provided by the Security Service of Ukraine Cyber Department and Prosecutor General’s Office; Guardia Civil of Spain, Spanish Ministry of Justice, and the Public Prosecutor’s Office at the Audiencia Nacional; Policia Judiciaria of Portugal; Germany—Bundeskriminalamt (BKA) and Landeskriminalamt (LKA) Berlin; and Polish authorities, in particular assistance provided by Poland’s Central Cybercrime Bureau, Border Guard, Ministry of Justice, and National Prosecutors Office.

Assistant U.S. Attorney Samantha Fasanello, Chief of the Narcotics/OCDETF Unit, for the District of New Jersey, Senior Counsel Aarash A. Haghighat, Cyber Operations International Liaison Louisa K. Becker, and Trial Attorney Christen Gallagher of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), are prosecuting Silnikau and his co-defendants in the District of New Jersey. Assistant U.S. Attorneys Andrew M. Trombly of New Jersey and Christopher Oakley of Kansas City, Kansas also provided substantial assistance to the New Jersey case.

The Justice Department’s Office of International Affairs also provided substantial assistance in the extradition of Silnikau and collection of evidence.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

WASHINGTON – A Belarussian and Ukrainian dual-national charged in both the District of New Jersey and Eastern District of Virginia with leading international computer hacking and wire fraud schemes made his initial appearance in Newark, New Jersey, today after being extradited from Poland.

As alleged in court documents unsealed today, Maksim Silnikau, also known as Maksym Silnikov, 38, led two multiyear cybercrime schemes. At different points, Silnikau has been associated with the online monikers “J.P. Morgan,” “xxx,” and “lansky,” among others.

In the District of New Jersey, Silnikau, along with alleged co-conspirators Volodymyr Kadariya, a Belarussian and Ukrainian national, 38, and Andrei Tarasov, a Russian national, 33, are charged with cybercrime offenses associated with a scheme to transmit the Angler Exploit Kit, other malware, and online scams to the computers of millions of unsuspecting victim internet users through online advertisements — so-called “malvertising” — and other means from October 2013 through March 2022. In the Eastern District of Virginia, Silnikau is charged for his role as the creator and administrator of the Ransom Cartel ransomware strain and associated ransomware operations beginning in May 2021.

“Today, the Justice Department takes another step forward in disrupting ransomware actors and malicious cybercriminals who prey on victims in the U.S. and around the world,” said Deputy Attorney General Lisa Monaco. “As alleged, for over a decade, the defendant used a host of online disguises and a network of fraudulent ad campaigns to spread ransomware and scam U.S. businesses and consumers. Now, thanks to the hard work of federal agents and prosecutors, along with Polish law enforcement colleagues, Maksim Silnikau must answer these grave charges in an American courtroom.” 

“This arrest underscores a long-term investigation by the U.S. Secret Service, in coordination with foreign, domestic and private partners, of cybercrime organizations that allegedly distributed the notorious Angler Exploit Kit, conducted malvertising, and operated the Ransom Cartel ransomware organization,” said Assistant Director of Investigations Brian Lambert of the U.S. Secret Service. “Cybercriminals should know that even if they attempt to hide their criminal conduct behind the anonymity of the internet that eventually, through the dedication of international law enforcement professionals, they will be apprehended and held accountable for their actions.”

“Silnikau and his co-conspirators allegedly used malware and various online scams to target millions of unsuspecting internet users in the United States and around the world,” said FBI Deputy Director Paul Abbate. “They hid behind online aliases and engaged in complex, far-reaching cyber fraud schemes to compromise victim devices and steal sensitive personal information. The FBI will continue to work with partners to aggressively impose costs on cybercriminals and hold them accountable for their actions.”

“As alleged in the indictment, Silnikau and his co-conspirators distributed online advertisements to millions of internet users for the purpose of delivering malicious content,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These ads appeared legitimate but were actually designed to deliver malware that would compromise users’ devices or to deliver ‘scareware’ designed to trick users into providing their sensitive personal information. Silnikau’s arrest and extradition demonstrate that, working with its domestic and international partners, the Criminal Division is committed to bringing cybercriminals who target U.S. victims to justice, no matter where they are located.”

“These conspirators are alleged to have operated a multiyear scheme to distribute malware onto the computers of millions of unsuspecting internet users around the globe,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “To carry out the scheme, they used malicious advertising, or ‘malvertising’, to trick victims into clicking on legitimate-seeming internet ads. Instead, the victims would be redirected to malicious internet sites that delivered malware to their devices, giving the conspirators access to the victims’ personal information. The conspirators then sold that access and information to other cybercriminals on the dark net. Throughout the scheme, the conspirators attempted to hide their identities from law enforcement, including by using fraudulent aliases and online personas.”

“This case reemphasizes the importance of both cybersecurity and our crucial law enforcement partnerships worldwide,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Online threats emerge within the digital ecosystem among those who exploit the very tools that help us connect and collaborate. In turn, we must maximize our investigative collaborations globally to address those threats. This investigation demonstrates the positive results of leveraging international partnerships to combat international crimes.”

“The FBI will continue to work alongside our partners both overseas and in the states to identify and dismantle cyber threats, and to pursue those criminals who attempt to target and defraud victims in the United States,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office.

District of New Jersey Indictment

According to the indictment unsealed in the District of New Jersey, from October 2013 through March 2022, Silnikau, Kadariya, Tarasov, and others in Ukraine and elsewhere used malvertising and other means to deliver malware, scareware, and online scams to millions of unsuspecting Internet users in the United States and elsewhere. The malvertising campaigns were designed to appear legitimate, but often redirected victim Internet users who viewed or accessed the advertisements to malicious sites and servers that sought to defraud the users or delivered malware to the users’ devices. The conspirators’ scheme caused unsuspecting Internet users to be forcibly redirected to malicious content on millions of occasions, and defrauded and attempted to defraud various U.S.-based companies involved in the sale and distribution of legitimate online advertisements.

One strain of malware that Silnikau and others allegedly took a leading role in disseminating was the Angler Exploit Kit, which targeted web-based vulnerabilities in Internet browsers and associated plug-ins. At times during the scheme, the Angler Exploit Kit was a leading vehicle through which cybercriminals delivered malware onto compromised electronic devices. The conspirators also allegedly enabled the delivery of “scareware” ads that displayed false messages claiming to have identified a virus or other issue with a victim Internet user’s device. The messages then attempted to deceive the victim into buying or downloading dangerous software, providing remote access to the device, or disclosing personal identifying or financial information.

For years, the conspirators tricked advertising companies into delivering their malvertising campaigns by using dozens of online personas and fictitious entities to pose as legitimate advertising companies. They also developed and used sophisticated technologies and computer code to refine their malvertisements, malware, and computer infrastructure so as to conceal the malicious nature of their advertising.  

As alleged, Silnikau, Kadariya, Tarasov, and conspirators used multiple strategies to profit from their widespread hacking and wire fraud scheme, including by using accounts on predominantly Russian cybercrime forums to sell to cybercriminals access to the compromised devices of victim Internet users (so-called “loads” or “bots”), as well as information stolen from victims and recorded in “logs,” such as banking information and login credentials, to enable further efforts to defraud the victim Internet users or deliver additional malware to their devices.

Eastern District of Virginia Indictment

According to the indictment unsealed in the Eastern District of Virginia, Silnikau was the creator and administrator of the Ransom Cartel ransomware strain, created in 2021. Silnikau allegedly had been a member of Russian-speaking cybercrime forums since at least 2005 and was a member of the notorious cybercrime website Direct Connection from 2011 to 2016, when the site was shuttered after the arrest of its administrator.

Beginning in May 2021, Silnikau allegedly developed a ransomware operation and began recruiting participants from cybercrime forums. On various occasions, Silnikau allegedly distributed information and tools to Ransom Cartel participants, including information about compromised computers, such as stolen credentials, and tools such as those designed to encrypt or “lock” compromised computers. Silnikau also allegedly established and maintained a hidden website where he and his co-conspirators could monitor and control ransomware attacks; communicate with each other; communicate with victims, including sending and negotiating payment demands; and manage distribution of funds between co-conspirators.

On Nov. 16, 2021, Silnikau allegedly executed a ransomware attack on a company based in New York, and on March 5, 2022, Ransom Cartel ransomware was deployed against a company based in California. The hackers removed confidential data without authorization and demanded a monetary payment to refrain from releasing the victim’s data.

In the District of New Jersey, Silnikau, Kadariya, and Tarasov are charged with conspiracy to commit wire fraud, conspiracy to commit computer fraud, and two counts of substantive wire fraud. If convicted, Silnikau, Kadariya, and Tarasov face maximum penalties of 27 years in prison for wire fraud conspiracy, 10 years in prison for computer fraud conspiracy, counts, and 20 years in prison on each wire fraud count.

In the Eastern District of Virginia, Silnikau is charged with conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, conspiracy to commit access device fraud, and two counts each of wire fraud and aggravated identity theft. He faces a mandatory minimum of two years in prison and a maximum penalty of 20 years in prison.

The U.S. Department of State has also announced a reward of up to $2.5 million through its Transnational Organized Crime (TOC) Rewards Program for information that leads to the arrest or conviction of Kadariya. Information that may be eligible for the reward can be submitted by email at MostWanted@usss.dhs.gov.  

The U.S. Secret Service and FBI Kansas City Field Office are investigating the case in the District of New Jersey, and the U.S. Secret Service is investigating the case in the Eastern District of Virginia. The Department also appreciates the extensive cooperation and coordination by the United Kingdom’s National Crime Agency and Crown Prosecution Service over the course of several years, as well as significant support provided by the Security Service of Ukraine Cyber Department and Prosecutor General’s Office; Guardia Civil of Spain, Spanish Ministry of Justice, and the Public Prosecutor’s Office at the Audiencia Nacional; Policia Judiciaria of Portugal; Germany—Bundeskriminalamt (BKA) and Landeskriminalamt (LKA) Berlin; and Polish authorities, in particular assistance provided by Poland’s Central Cybercrime Bureau, Border Guard, Ministry of Justice, and National Prosecutors Office.

Senior Counsel Aarash A. Haghighat, Cyber Operations International Liaison Louisa K. Becker, and Trial Attorney Christen Gallagher of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Samantha Fasanello, Chief of the Narcotics/OCDETF Unit, for the District of New Jersey are prosecuting Silnikau and his co-defendants in the District of New Jersey. Assistant U.S. Attorneys Andrew M. Trombly, Chief of the General Crimes Unit, for New Jersey, and Christopher Oakley for the District of Kansas also provided substantial assistance to the New Jersey case. Assistant U.S. Attorneys Jonathan Keim and Zoe Bedell are prosecuting the case in the Eastern District of Virginia.

The Justice Department’s Office of International Affairs also provided substantial assistance in the extradition of Silnikau and collection of evidence.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

View the District of New Jersey indictment here.

View the Eastern District of Virginia indictment here.

NEWARK, N.J. – Four individuals have been charged with operating a series of illicit massage parlors in New Jersey and New York, U.S. Attorney Philip R. Sellinger announced today.

Zhejun Piao, 37, a Chinese national, Miyeon Choi, 37, a South Korean national, Shangxian Cui, 36, Chinese national, and Meixiang Jin, 34, of Palisades Park, New Jersey, are charged by complaint with one count of conspiracy to commit interstate travel or transportation in aid of a racketeering enterprise. All four defendants were arrested on Aug. 8, 2024 and made their initial appearances today before U.S. Magistrate Judge James B. Clark III in Newark federal court. They were all released.

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

From at least May 2017, the defendants owned, operated, and derived money from illicit massage parlors or spas in New Jersey and New York that, as the defendants knew, had been offering sexual services in exchange for money. The New Jersey spas include Coco Spa in Paterson, Gold Spa in Passaic, 785 Spa in Passaic, Bergen Acupressure in Fairview, Queen Spa in Edgewater, Hawaii Spa in Edgewater, Good Day Spa in East Brunswick, and Spa Wellness in Toms River. The New York spa includes New Soothing Day Spa in New Rochelle. 

Each of the spas allegedly advertised sexual services on various online platforms by posting images of the female sex workers and describing the sexual services offered. Law enforcement obtained evidence demonstrating each of the defendants’ personal knowledge of, and involvement in, the illegal operation. For example, emails obtained by law enforcement show that Choi received what appear to be draft advertisements for the spas, and other emails and records show Choi and Piao transferred cryptocurrency to an online advertisement company. Law enforcement also observed Cui transport supplies, including mouthwash and paper towels, to the spas, make suspected cash pickups, and deposit over $50,000 of cash with Jin to a bank account.

The charge of conspiracy to commit interstate travel or transportation in aid of a racketeering enterprise 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 Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; the U.S. State Department, Diplomatic Security Service; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation. He also thanked HSI New York, Hudson Valley Office; Customs and Border Protection; the Passaic County Prosecutors Office; Passaic County Sheriff; Bergen County Prosecutor’s Office; Bergen County Sheriff; Edgewater Police Department; Fairview Police Department; Paterson Police Department; East Brunswick Police Department; New Jersey Division of Criminal Justice; South Toms River Police Department; Edison Police Department; South Toms River Police Department; Morris County Prosecutor’s Office; Ocean County Prosecutor’s Office; New Rochelle Police Department; Westchester District Attorney’s Office; Federal Air Marshals; New York State Police; ICE Enforcement and Removal Operations; and the Palisades Park Police Department

The government is represented by Assistant U.S. Attorneys Casey S. Smith and Javon Henry of the General Crimes 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.

NEWARK, N.J. – A Queens, New York, man today admitted that he illegally laundered the proceeds of elder fraud and computer fraud schemes, U.S. Attorney Philip R. Sellinger announced.

Hector Claveria, 51, of Elmhurst, New York pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count Two of the indictment charging him with international money laundering.

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

In early 2020, Claveria acted as a money mule for a fraudulent scheme by picking up numerous packages that contained cash that he knew were proceeds of illegal activity. He then laundered some of this money in June 2020 by wiring $20,000 from his U.S. bank account to a foreign bank account. These funds were the proceeds of two fraudulent schemes: The first was an elder-fraud scheme in which the perpetrators tricked elder victims into believing that they owed money to various government agencies and companies, and then into sending payments to locations identified by the perpetrators. The second was a computer-fraud scheme in which perpetrators tricked victims into believing that they owed money to a computer services company, and then into sending payments to locations identified by the perpetrators, purportedly at the direction of the computer company. At the time Claveria wired the funds to a foreign account, he knew that the transfer was designed to conceal and disguise the nature of the funds.

The charge of international money laundering carries a maximum penalty of 20 years in prison and a maximum fine of $500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer. Sentencing is scheduled for Dec. 19, 2024.

U.S. Attorney Sellinger credited special agents of the Social Security Administration Office, of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker.

The government is represented by Assistant U.S. Attorneys Chana Zuckier of the OCDETF Unit and Jennifer Kozar of the Economic Crimes Unit in Newark.

NEWARK, N.J. – Four Essex County, New Jersey, men have been charged in connection with an armed robbery of a U.S. Postal Service employee, U.S. Attorney Philip R. Sellinger announced today.

Troy D. Corbett Jr., 28, Dyshawn Williams, 28, and Antwuan Brown, 24, all of Newark, are charged by complaint with conspiracy to commit Hobbs Act robbery. Corbett and Williams are also charged with assaulting or impeding a federal officer using a deadly weapon. Brown and Karieem Stamps, 25, also of Newark, are charged with wire fraud and aggravated identity theft.  Corbett is also charged with possession of ammunition by a convicted felon, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Stamps is also charged with possession of a firearm by a convicted felon. 

Corbett, Williams, and Stamps were arrested in Newark on Aug. 1, 2024, and made their initial appearances before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.  Corbett, Williams, and Stamps were detained. Brown was arrested on Aug. 1, 2024, in Mecklenburg, North Carolina, and made an initial appearance before U.S. Magistrate Judge David Keesler in North Carolina federal court. Brown was detained. 

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

In November 2023, three individuals – including Corbett and Williams – robbed a U.S. Postal Service employee at gunpoint in Newark. The assailants stole the victim’s cell phone, keys, and wallet – including a credit card and debit card. The robbery impeded the victim from delivering mail, which interfered with interstate commerce. Shortly after the robbery, Stamps and Brown used the stolen debit card to make separate purchases. Both transactions passed through servers located outside of New Jersey. 

On Jan. 18, 2024, Corbett – who was convicted of felony offenses in 2018 – possessed a distribution quantity of suspected methamphetamine and a pistol loaded with 16 rounds of ammunition that was manufactured outside of New Jersey. On Aug. 1, 2024, Stamps – who was convicted of a felony offense in 2020 – possessed a Glock 29 Gen5 handgun with an extended magazine and approximately 25 rounds of 9-millimeter ammunition.

The counts of conspiracy to commit Hobbs Act robbery and assaulting or impeding a federal employee carry a maximum penalty of 20 years in prison and a $250,000 fine. The counts of wire fraud carry a maximum penalty of 30 years in prison and a $1 million fine. The counts of aggravated identity theft carry a mandatory two-year prison sentence. The counts of possession of ammunition or a firearm by a convicted felon carry a maximum penalty of 15 years in prison and a $250,000 fine. The count of possession with intent to distribute methamphetamine carries a maximum penalty of 20 years in prison and a $1 million fine. The count of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory five-year prison sentence – which must run consecutively to any other sentence imposed – and a maximum potential penalty of life in prison. 

U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division, with the investigation. He also thanked special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; deputies of the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr.; police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; officers of the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti.

The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes 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.

NEWARK, N.J. – A Middlesex County, New Jersey, man admitted evading taxes through a check cashing scheme, U.S. Attorney Philip R. Sellinger announced today.

Alain Rodrigues, 49, of Old Bridge, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court on Aug. 1, 2024, to an information charging him with one count each of tax evasion and failure to collect and pay over taxes.

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

Rodrigues owned and operated a construction company in Old Bridge and Newark. Beginning around 2017, Rodrigues deposited a portion of the payments from customers into a business bank account and converted the balance to cash and money orders, which he deposited in a personal bank account or used to pay cash wages to employees. Rodrigues only reported the portion of the company’s revenue that was deposited in the business bank account on his business’s taxes. Rodrigues did not report the business revenue deposited directly into his personal bank account as income on his personal income taxes. The company, under Rodrigues’s direction, did not report to the IRS the cash wages it paid to employees and did not collect or pay over employment taxes on these wages. In total, Rodrigues and his company paid $554,873 less than they owed in income taxes and failed to collect and pay over $793,139 in employment taxes, for a total of approximately $1.35 million.

Each count of tax evasion and 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, Rodrigues has agreed to pay the government restitution of $1.35 million and to file amended tax returns. Sentencing is scheduled for Dec. 19, 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 Aaron L. Webman of the Economic Crimes Unit in Newark.

CAMDEN, N.J. – Four men from southern New Jersey were charged with negotiating fraudulent checks that had been stolen from the mail, U.S. Attorney Philip R. Sellinger announced today.

Tracy Felder-Carter, 23, of Blackwood, New Jersey; Dante Ford, 28, of Pennsauken and Sewell, New Jersey; and Quamell Keyes-Griffin, 21, and Donovan Bunch, 22, both of Sicklerville, New Jersey, are each charged by complaint with one count of conspiracy to commit bank fraud. They are scheduled to appear today before U.S. Magistrate Judge Elizabeth A. Pascal.

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

Felder-Carter, Ford, Keyes-Griffin, and Bunch conspired to commit bank fraud by first obtaining checks that had been stolen from the U.S. mail. Members of the conspiracy then would alter the stolen checks by increasing the value of the check and changing the name of the payee to either a member of the conspiracy or somebody else recruited by the conspiracy. Members of the conspiracy or others would negotiate each altered check and attempt to the withdraw the funds before the bank learned that the checks were illegitimate. The conspiracy involved the negotiation of hundreds of checks at banks across southern New Jersey and elsewhere, with each check written for amounts upwards of several thousand dollars.

The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service – Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to the charges. He also thanked the Pennsylvania State Police – Media Station, Pennsauken Police Department, and the Springfield Township (Pennsylvania) Police Department for their assistance in the investigation.

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 complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – Three residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars.

Juan Rafael Parra Arias, aka “Yofre,” 41; Miguel Angel Vasquez, aka “Miguel Disla,” 24; and Jose Ismael Dilone Rodriguez, 34, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey and unsealed on April 29. Following their initial appearance today, the court ordered the three men detained pending trial. The extradition of Parra Arias, Vasquez, and Dilone Rodriguez follows that of their co-conspirators Rafael Ambiorix Rodriguez Guzman, aka “Max Morgan,” 59, and Felix Samuel Reynoso Ventura, aka “Fili” and “Filly the Kid,” 37, who appeared in Newark federal court on July 22 to answer the indictment.

According to the indictment, Parra Arias, Vasquez, Dilone Rodriguez, and their conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania, and Massachusetts. Parra Arias is alleged to have led a network of call centers in Santiago, Dominican Republic, while Vasquez and Dilone Rodriguez worked in these centers to recruit co-conspirators in the United States. 

As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident and needed help.

Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers – including those recruited and dispatched by Parra Arias, Vasquez, and Dilone Rodriguez – from the victims’ homes, or mailed by victims at the direction of the closers.

Parra Arias, Vasquez, and Dilone Rodriguez each face multiple charges, including mail and wire fraud conspiracy, wire fraud, mail fraud, conspiracy to commit money laundering, and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count, a maximum fine of $250,000 for each count of mail and wire fraud and a maximum fine of $500,000 for money laundering conspiracy and money laundering.

“As alleged, these three defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars. In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Parra Arias, Vasquez, and Dilone Rodriguez allegedly operated the call centers or dispatched couriers to pick up money from the victims. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”

“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad.  We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”

“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Parra Arias, Vasquez, and Dilone Rodriguez were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public.”

“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG) Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”

“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”

HSI, SSA-OIG, NYPD and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Parra Arias, Vasquez, and Dilone Rodriguez pursuant to the treaty between the two countries.

Assistant U.S. Attorney Carolyn Silane for the District of Jersey and Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division's Consumer Protection Branch are prosecuting the case.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Three residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars.

Juan Rafael Parra Arias, also known as Yofre, 41; Miguel Angel Vasquez, also known as Miguel Disla, 24; and Jose Ismael Dilone Rodriguez, 34, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey and unsealed on April 29. Following their initial appearance yesterday, the court ordered the three men detained pending trial.  The extradition of Parra Arias, Vasquez and Dilone Rodriguez follows that of their co-conspirators Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59, and Felix Samuel Reynoso Ventura, also known as Fili and Filly the Kid, 37, who appeared in Newark federal court on July 22 to answer the indictment.

According to the indictment, Parra Arias, Vasquez, Dilone Rodriguez and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania, and Massachusetts. Parra Arias is alleged to have led a network of call centers in Santiago, Dominican Republic, while Vasquez and Dilone Rodriguez worked in these centers to recruit co-conspirators in the United States. 

As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident, and needed help.

Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers — including those recruited and dispatched by Parra Arias, Vasquez, and Dilone Rodriguez — from the victims’ homes, or mailed by victims at the direction of the closers.

“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”

“As alleged, these three defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Parra Arias, Vasquez and Dilone Rodriguez allegedly operated the call centers or dispatched couriers to pick up money from the victims. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”

“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Parra Arias, Vasquez and Dilone Rodriguez were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public."

“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG) Boston New York Field Division. “SSA-OIG proudly joined HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”

“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”

Parra Arias, Vasquez and Dilone Rodriguez each face multiple charges, including mail and wire fraud conspiracy, wire fraud, mail fraud, conspiracy to commit money laundering and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count, a maximum fine of $250,000 for each count of mail and wire fraud and a maximum fine of $500,000 for money laundering conspiracy and money laundering.

HSI, SSA-OIG, NYPD and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the U.S. Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Parra Arias, Vasquez and Dilone Rodriguez pursuant to the treaty between the two countries.

Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

NEWARK, N.J. – An Essex County man was sentenced to 440 months in prison for his role in three murders in furtherance of a large-scale narcotics enterprise, U.S. Attorney Philip R. Sellinger announced today.

Leevander Wade, 44, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Michael E. Farbiarz on Feb. 22, 2024, to racketeering conspiracy. Judge Farbiarz imposed the sentence on Aug. 1, 2024, in Newark federal court.

According to court documents and evidence presented in court:

In February 2018, the drug enterprise’s leader, Michael Healy, found out that one of his conspirators in the drug trafficking enterprise was providing information about the DTE to law enforcement. Healy ordered members of the Bloods in East Orange to kill the informant, referenced in the indictment as “A.S.” At the time, Wade was a manager in the enterprise and ran a series of “stash” houses in Essex County used to package heroin and fentanyl for street-level distribution.

Wade – who shared a close relationship with one of the leaders of the East Orange Bloods – assisted Healy in contracting the East Orange Bloods to carry out the murder of the informant. On Feb. 3, 2018, members of the East Orange Bloods, acting on Healy and Wade’s behalf, shot and killed a bystander, believing the bystander was the informant. At the time of his death, the bystander was parked outside of the informant’s residence in Bloomfield, New Jersey,  in a vehicle that appeared similar to the one that the informant drove. Realizing they killed the wrong person, Healy ordered the Bloods to finish the job. On March 12, 2018, in Bloomfield, the conspirators killed the informant while he was walking his dog in the area of his residence. On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also pose a risk to the enterprise, Healy shot and killed “J.C.” in Newark. Wade drove Healy to and from the murder scene, and then helped to destroy evidence by hiring someone to burn the vehicle.

In addition to the prison term, Judge Farbiarz sentenced Wade to five years of supervised release and ordered to pay restitution of $6,223.

Thomas Zimmerman, Tyquan Daniels, and Ali Hill – all members of the Brick City Brims subset of the Bloods street gang in East Orange – previously pleaded guilty to racketeering conspiracy for their respective roles in the murders of the bystander and A.S. Zimmerman was sentenced on July 6, 2023, to 37 years in prison; Daniels was sentenced on July 6, 2023, to 35 years in prison; and Hill was sentenced on July 6, 2023, to 25 years in prison.

On April 3, 2024, Healy was convicted after a jury trial of multiple counts of murder in aid of racketeering, racketeering conspiracy, and various gun and drug offenses. Healy is scheduled to be sentenced on Oct. 1, 2024. He faces multiple mandatory life sentences.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of special agent in charge James E. Dennehy in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutor’s Office; the Union County Prosecutor’s Office, the East Orange Police Department; and the Montclair Police Department.

The government is represented by Senior Trial Counsel Robert L. Frazer and Samantha C. Fasanello, Chief of the OCDETF Unit.

TRENTON, N.J. – A Trenton man today admitted assaulting a federal agent with a deadly weapon, armed robbery, and discharging a firearm during and in relation to a crime of violence, U.S. Attorney Philip R. Sellinger announced.

Jabree Johnson, 29, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on July 31, 2024, to an indictment charging him with one count each of assault on a federal officer with a deadly weapon, robbery with a dangerous weapon of an individual with custody of federal property, and using and carrying a firearm during and relation to a crime of violence, in which the firearm was discharged.  

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

On March 22, 2021, federal law enforcement officers were investigating firearms trafficking and other illegal activities in and around Trenton and Hamilton, New Jersey. A federal law enforcement agent, working in an undercover capacity, arranged to purchase multiple firearms from an individual later identified as Johnson. 

After arriving at an agreed-upon location for the firearms transaction, Johnson entered the undercover federal agent’s vehicle, and handed the agent a black, semi-automatic firearm. The undercover federal agent inspected the firearm and then returned it to Johnson and requested to see the other firearms that Johnson had agreed to sell. Instead, Johnson pointed the loaded firearm directly at the undercover federal agent and demanded money from the agent. The undercover federal agent provided Johnson with an amount of U.S. currency that the agent had on him to purchase the guns. Johnson then ordered the undercover federal agent out of the vehicle at gunpoint. The agent exited the vehicle as ordered and immediately drew a service-issued firearm and fired at Johnson, striking Johnson in the shoulder. Johnson also fired his handgun multiple times at the undercover federal agent. Johnson fled the area with the money. Johnson was later identified at a local hospital as the individual who had assaulted and robbed the undercover federal agent at gunpoint and placed under arrest.    

The charge of assault on a federal officer with a deadly weapon carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of robbery of federal property with a dangerous weapon carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and carrying a firearm during and in relation to a crime of violence, which was discharged, carries a statutory mandatory minimum sentence of 10 years in prison, which must run consecutive to any other sentence imposed, and a maximum of life imprisonment. Sentencing is scheduled for January 16, 2025.

U.S. Attorney Philip Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge­­­­ James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Satellite Office, under the direction of Acting Special Agent in Charge Ross A. Marchetti; officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; officers of the Hamilton Township Police Division, under the direction of Police Chief Kenneth DeBoskey; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Criminal Division in Trenton.

Three real estate investors have pleaded guilty to engaging in an extensive, multi-year conspiracy to fraudulently obtain a $74 million loan and a $45 million loan and fraudulently acquire multifamily properties.

Fredrick Schulman, 72, of New York, and Chaim “Eli” Puretz, 29, of New Jersey, pleaded guilty today to one count of conspiracy to commit wire fraud affecting a financial institution. Moshe “Mark” Silber, 34, of New York, pleaded guilty on July 9 to one count of conspiracy to commit wire fraud affecting a financial institution.

According to court documents, between 2018 and 2020, Silber, Schulman, and Puretz conspired with others to deceive lenders into issuing a mortgage loan for a multifamily property and Fannie Mae into funding or purchasing the mortgage loan. Silber and Schulman were managing members of Rhodium Capital Advisors, an entity that was involved in the acquisition and management of Williamsburg of Cincinnati, an apartment complex in Cincinnati, Ohio. Puretz was one of the owners of commercial property Troy Technology Park in Troy, Michigan. Silber, Schulman, Puretz, and their co-conspirators provided the lenders and Fannie Mae with falsified documents, including a purchase contract with an inflated purchase price and other fraudulent documents.

In March 2019, Williamsburg of Cincinnati was acquired for $70 million. However, Silber, Schulman, and other co-conspirators utilized a stolen identity to present a lender and Fannie Mae with a purchase and sale contract for $95.85 million and other fraudulent documents. On March 8, 2019, two closings were performed, one for the true $70 million sales price and another for the fraudulent $95.85 million sales price presented to the lenders. Based on the co-conspirators’ false statements, the lender and Fannie Mae funded a loan in the amount of $74.25 million for the purchase of Williamsburg of Cincinnati.

In September 2020, Troy Technology Park was acquired by Puretz and co-conspirators for $42.7 million. However, to support an inflated purchase price of $70 million, Puretz and his co-conspirators submitted to the lender and appraiser a fraudulent letter of intent to purchase the property from another party for $68.8 million and other fraudulent documents. Based on the fraudulent documents, the lender funded a loan for $45 million. To conceal the fraudulent nature of the transaction, Puretz and his co-conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the sale. On Sept. 25, 2020, a title company based in Lakewood, New Jersey, performed two closings, one for the true $42.7 million sales price and another for the fraudulent $70 million sales price presented to the lender.

Silber, Schulman, and Puretz are scheduled to be sentenced on Dec. 3 and each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; Inspector General Brian M. Tomney of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); and Postal Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.

The FHFA-OIG and USPIS are investigating the case.

Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Martha Nye for the District of New Jersey are prosecuting the case.

Anyone with information concerning similar multifamily or commercial mortgage fraud can report it by contacting the FHFA-OIG Hotline at 800-793-7724 or via the web at www.fhfaoig.gov/ReportFraud#hotlineform.