District of New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted illegally possessing cocaine for distribution, U.S. Attorney Philip R. Sellinger announced.

Luis Cepeda-Capellan, 27, of Paterson, New Jersey, pleaded guilty to before U.S. District Judge Katharine S. Hayden to an information charging him with one count of possession with intent to distribute controlled substances in Newark federal court.

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

On Feb. 26, 2021, law enforcement officers recovered a total of over five kilograms of cocaine from a vehicle he was driving. Cepeda-Capellan admitted possessing the controlled substances with the intent to distribute.

The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. Sentencing is scheduled for Dec. 10, 2024.

U.S. Attorney Sellinger credited the New York Drug Enforcement Task Force, which comprises special agents and task force officers of the Drug Enforcement Administration (DEA), New York City Police Department, and New York State Police, with the investigation leading to today’s guilty plea.

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

cepedacapellan.information.pdf

NEWARK, N.J. – A Middlesex County, New Jersey man was convicted for his role in a conspiracy to distribute fentanyl and heroin, U.S. Attorney Philip R. Sellinger announced today.

Kenneth Strickland, 57, of New Brunswick, New Jersey, was convicted on July 29, 2024, of all six counts of a superseding indictment: one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and 100 grams or more of heroin, and five counts of distribution and possession with intent to distribute fentanyl. The jury deliberated for less than two hours before returning the guilty verdict following an eight-day trial before U.S. District Judge Brian R. Martinotti in Newark federal court.

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

From Nov. 12, 2019, through June 30, 2020, Strickland was a member of a drug trafficking organization responsible for distributing bulk quantities of fentanyl in Paterson, New Brunswick, and other areas of New Jersey. Strickland engaged in 16 drug sales to an undercover police officer, during which he sold brick quantities of fentanyl containing hundreds of doses of the deadly drug stamped with labels such as “MY SHADOW,” “DEATH ROW,” and “VENOM.” Law enforcement learned that Strickland was sourcing his drug supply from the drug trafficking organization and selling to multiple other customers in New Jersey as part of his membership in the organization. On June 30, 2020, law enforcement lawfully searched locations in Paterson and Passaic associated with the drug trafficking organization, where they recovered more than 350 additional grams of fentanyl and drug paraphernalia, such as stamping tools that corresponded to those found on fentanyl that Strickland sold to the undercover detective.

The charge of conspiracy to distribute 400 grams or more of fentanyl carries a minimum sentence of 10 years in prison and a maximum potential sentence of life in prison, as well as a $10 million fine. The charges of distribution and possession with intent to distribute fentanyl each carry a maximum penalty of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 12, 2024.

U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolando Ciccone, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorneys James Graham and Garrett Schuman of the Criminal Division in Newark.

CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 42 months in prison for defrauding his employer’s health insurance plan out of more than $4 million by submitting fraudulent claims for medically unnecessary compounded medications, Attorney for the United States Vikas Khanna announced.

Christopher Gualtieri, 51, of Franklinville, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to one count of an indictment charging him with conspiracy to commit health care and mail fraud and one count charging him with obtaining oxycodone through fraud. U.S. District Judge Christine P. O’Hearn imposed the sentence today in Camden federal court.

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

Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded drugs can be properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.

Gualtieri and others learned that certain compound medication prescriptions were reimbursed by their health insurance plan for up to thousands of dollars for a one-month supply. Gualtieri recruited co-workers who were covered by their employer’s self-funded health insurance plan to agree to receive medically unnecessary compounded medications for themselves and their family members. Gualtieri and others caused the submission of fraudulent prescriptions to compounding pharmacies, which filled the prescriptions and billed the health insurance plan’s pharmacy benefits administrator. The pharmacy benefits administrator paid the compounding pharmacies more than $4 million for compounded medications arranged by Gualtieri and two conspirators for themselves, their dependents, and other family members. Gualtieri received a portion of the amount paid by the pharmacy benefits administrator to the compounding pharmacies. Gualtieri admitted to paying cash to his conspirators for their participation in the scheme. When questioned by special agents of the FBI, Gualtieri falsely denied recruiting others to receive compounded medications and falsely denied paying cash to others for their participation in the scheme.

During the same time period as the conspiracy involving compounded medications, Gualtieri also prepared and caused the filling of fraudulent prescriptions for oxycodone for himself and a family member.

In addition to the prison term, Judge Kugler sentenced Gualtieri to three years of supervised release and ordered him to pay $5.4 million in restitution.

Attorney for the United States Khanna credited agents of the FBI, Philadelphia Field Office, Health Care Fraud Task Force, under the direction of Special Agent in Charge Wayne A. Jacobs; task force members from the Pennsylvania Attorney General’s Office, Department of Health and Human Services – Office of Inspector General; the Philadelphia Police Department; and diversion investigators of the Drug Enforcement Administration, New Jersey Division, Camden District Office, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to the sentencing. Attorney for the United States Khanna also thanked U.S. Postal Service – Office of Inspector General.

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

NEWARK, N.J. – A resident of the Dominican Republic today admitted participating in a conspiracy to distribute and transport bulk quantities of fentanyl into northern New Jersey communities from a drug mill located in the Philadelphia area, as well as possession with intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.

Hector Luis de la Cruz Nunez, 32, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of conspiracy to distribute fentanyl and one count of possession with intent to distribute fentanyl.

Two other individuals, Emmanuel F. Almonte Mejia, 39, and Loanny F. Duran Hiciano, 43, were also charged in March 2022 for the same offense. Their cases are pending.

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

In February 2022, law enforcement officers learned that a drug-trafficking organization was utilizing a private residence in the Philadelphia area to operate a large-scale fentanyl production and distribution mill from which they were regularly transporting bulk quantities of fentanyl into northern New Jersey communities. On March 8, 2022, law enforcement officers observed Nunez exit the mill carrying a large, weighted bag which he placed in a clandestine compartment hidden inside of his private vehicle. Nunez then departed in the vehicle and left the Philadelphia area before proceeding onward into New Jersey.

Law enforcement agents stopped Nunez’s vehicle in Union, New Jersey and discovered four large, wrapped bricks each of which contained approximately 100 individual packages of fentanyl, for a total of 400 individual packages, which Nunez stated were destined to be distributed to individuals located in northern New Jersey.

The two charges of conspiracy to distribute fentanyl and possession with intent to distribute fentanyl each come with a maximum penalty of 20 years in prison, and a maximum fine of $1 million. Sentencing for Nunez is scheduled for Dec. 5, 2024.

U.S. Attorney Sellinger credited the U.S. Department of Homeland Security Investigations (HSI) Newark, under the direction of Acting Special Agent in Charge William S. Walker, HSI Philadelphia, under the direction of Acting Special Agent in Charge Katie Bay, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.

The charges against Almonte Mejia and Duran Hiciano are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

nunez.information.pdf

NEWARK, N.J. – A Trinidadian and Tobagonian man who has been a fugitive for over 10 years has been arrested and will face charges in connection with the armed robbery of a steakhouse in 2009, U.S. Attorney Philip R. Sellinger announced today.

Kofi Edwards, 51, of Trinidad and Tobago, was charged by indictment in 2014 with one count of conspiracy to commit armed Hobbs Act robbery, one count of Hobbs Act robbery, and one count of brandishing a firearm in furtherance of a crime of violence. Edwards appeared before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court today, entered a plea of not guilty and was detained. He was arrested in California and had an initial appearance on July 10, 2024, before U.S. Magistrate Judge Chi Soo Kim in Sacramento, and was detained and transported to the District of New Jersey.

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

In March 2009, Edwards conspired with other individuals to rob a steakhouse restaurant in Woodbridge, New Jersey, at gunpoint. A conspirator, who was an employee of the restaurant at the time, called the restaurant to determine if any managers were present, because he knew that only managers would be able to open the restaurant’s safe. After confirming that a manager was present, Edwards and another individual entered the restaurant – Edwards carrying a fake gun and the other individual armed with a firearm – and brandished the weapons while demanding that employees open the safe. After the employees complied, Edwards and the other individual bound the employees with plastic zip ties and fled with approximately $150,000 in cash.

Edwards later left New Jersey and began living under a false identity. He was added to the FBI’s “Most Wanted” list and the FBI offered a reward of up to $10,000 for information leading directly to his arrest. Three other defendants have been convicted and sentenced in connection with the Hobbs Act robbery conspiracy.

Edwards faces a maximum penalty of 20 years in prison on the counts of conspiracy to commit Hobbs Act robbery and Hobbs Act robbery. On the count of brandishing a firearm in furtherance of a crime of violence, Edwards faces a mandatory minimum prison sentence of seven years – which must run consecutively to any other sentence Edwards receives – and a maximum potential penalty of life in prison. Each count also carries a fine of up to $250,000, or twice the gain or loss from the offenses, whichever is greatest.

These charges are the result of an investigation by the Newark Central Jersey Safe Streets Task Force. Led by the FBI, the Task Force focuses on violent crime and gang violence, and is made up of agents and task force officers from the New Brunswick Police Department, Middlesex County Prosecutors Office, Raritan Township Police Department, Woodbridge Police Department, Hackettstown Police Department, Clinton Township Police Department, and Hunterdon County Prosecutors Office.

U.S. Attorney Sellinger credited the special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked the FBI’s Sacramento, California, Field Office, under the direction of Special Agent in Charge Siddhartha Patel; and Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris.

The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the General Crimes Unit in Newark.

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

edwards.indictment.pdf

TRENTON, N.J. – Four New Jersey men were charged with conspiring to illegally traffic in firearms, including privately manufactured handguns, in Ocean County, U.S. Attorney Philip Sellinger announced today.

James Hyres, 38, of Toms River, New Jersey, Dennis McMickle, 35, of Brick, New Jersey, James Opalenik, 51, of Ocean Gate, New Jersey, and Edward Trost, III, 36, of Toms River, are each charged by criminal complaint with conspiracy to traffic in firearms and trafficking in firearms. Hyres and McMickle are also charged with two counts of possession of a firearm by a previously convicted felon. McMickle and Opalenik are also charged with one count of unlawfully possessing a firearm with an obliterated serial number.

Hyres and Opalenik were arrested this morning in Ocean County. Opalenik is scheduled to appear today before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court. Hyres is scheduled to have his initial appearance on July 30, 2024, before Judge Bongiovanni.  McMickle and Trost were already in custody in Monmouth County and Ocean County, respectively, on unrelated state criminal charges.

According to the complaint:

From April 2024 through May 2024, Hyres, McMickle, Opalenik, and Trost were members of a gun trafficking conspiracy that operated in and around Ocean County. During that time, Hyres manufactured privately made firearms, also known as PMFs or “ghost guns,” for resale using various component parts, including firearm frames manufactured by Hyres using a 3D printer. Hyres, assisted by McMickle and Trost, then sold PMFs and other traditional firearms for profit to others, including a confidential source working at the direction and supervision of the FBI. Opalenik, assisted by McMickle, sold a semi-automatic rifle to the confidential source in furtherance of the firearms trafficking conspiracy. McMickle also sold the confidential source a 9-millimeter semi-automatic handgun in January 2024. Law enforcement’s investigation revealed that none of these defendants held a federal license to deal or manufacture firearms. Hyres, McMickle, and Trost each have prior felony convictions and are prohibited from possessing a firearm under federal law.

The counts of conspiracy to traffic in firearms, trafficking in firearms, and possession of a firearm by a previously convicted felon each carry a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of unlawfully possessing a firearm with an obliterated serial number carries a maximum penalty of five years in prison and a $250,000 fine.    

U.S. Attorney Sellinger credited agents with the FBI Newark Red Bank Jersey Shore Safe Streets Task Force, under the direction of FBI Special Agent in Charge James E. Dennehy, with the investigation leading to the charges and arrests. He also thanked the Ocean County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, the Lakewood, New Jersey, Police Department, and the Toms River, New Jersey, Police Department for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

hyresetal.complaint.pdf

NEWARK, N.J. – A former assistant dean and two other former employees of an Essex County graduate school pleaded guilty to defrauding their former employer of more than $1.3 million, U.S. Attorney Philip R. Sellinger announced.

Teresina DeAlmeida, 59, of Warren, New Jersey and Rose Martins, 44, of East Hanover, New Jersey, pleaded guilty today to wire fraud conspiracy, before U.S. District Judge Julien Xavier Neals in Newark federal court. Silvia Cardoso, 61, of Warren, pleaded guilty to the same charge on July 25, 2024, before Judge Neals.

“Through an elaborate, years-long embezzlement scheme, these defendants violated their obligation to the students and exploited their role at this institution of higher learning to line their own pockets. Through forgery, fraudulent invoices, unauthorized transactions and phony shell companies, they stole money intended to benefit the school and its student body and abused their positions. These arrests are yet another example of this office’s commitment to holding accountable those who commit financial fraud.”

U.S. Attorney Philip R. Sellinger

“As employees of a higher learning institution, the defendants in this investigation had an obligation to act in the best interest of the students they served, but instead they prioritized enriching themselves,” Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “IRS Criminal Investigation is dedicated to investigating individuals who commit financial crimes and fostering confidence in the legal system.”

“The genesis of most fraud schemes happens when people have access to money, they believe they are entitled to, and no one will notice it’s gone,” FBI Special Agent in Charge James E. Dennehy said. “However, these three subjects fell into the same trap other criminals do - the money wasn’t theirs, and the Essex County graduate school went in search of the missing $1.3 million. FBI Newark and our law enforcement partners who worked on this investigation excel at following the paper trail and evidence left behind by almost every fraudster.”

“Today’s action shows that these individuals knowingly and willfully abused their positions for personal gain and will now be held accountable for their criminal actions,” Andrew Balceniuk, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office, said. “The OIG will continue to work with our law enforcement partners to aggressively pursue those who misappropriate Federal education funds for their own selfish purposes.”

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

Between 2009 and July 2022, DeAlmeida, Martins, and Cardoso conspired to fraudulently misappropriate more than $1.3 million from their former employer, a graduate school of a university in Essex County, New Jersey. DeAlmeida was an assistant dean responsible for financial functions, and Martins served as her assistant. Cardoso, DeAlmeida’s sister, was also employed by the graduate school in a support staff role.  

The defendants used a variety of methods to defraud the university:

• Beginning in 2009, DeAlmeida directed a graduate school vendor to pay Martins and Cardoso as though they worked for the vendor, even though they did not perform any services. DeAlmeida and Martins then caused the vendor to submit false invoices to the graduate school over the course of approximately four years in order to reimburse the vendor for the amounts fraudulently paid to Martins and Cardoso. 

• From 2010 through 2022, DeAlmeida and Martins directed graduate school vendors to order hundreds of thousands of dollars of gift cards and prepaid debit cards the conspirators used for their personal benefit, and then to submit fraudulent invoices to the school purporting to be for goods and services that were never provided. The conspirators also misused DeAlmeida’s school-issued credit card to purchase hundreds of thousands of dollars of gift cards and prepaid debit cards from the school’s bookstore. DeAlmeida routinely fraudulently approved these charges and Martins forged the signatures of other employees on internal approvals.

• In 2015, Martins opened a shell entity called CMS Content Management Specialist LLC.  Although CMS never rendered any services to the graduate school, Martins submitted, and DeAlmeida approved, fraudulent invoices totaling more than $208,000. 

• The conspirators also used DeAlmeida’s school-issued credit card to make tens of thousands of dollars in unauthorized personal purchases. DeAlmeida and Martins used the card to make over $70,000 in purchases at an online retailer shipped directly to their homes, including woman’s shoes, smart watches, and bed linens. DeAlmeida and Martins fraudulently altered certain receipts before submitting them to the school for payment. 

The wire fraud conspiracy charge carries a maximum potential penalty of up to 20 years in prison and a fine equal to the greater of $250,000 or twice the gain or loss resulting from the offense, whichever is greatest. Sentencing for Cardoso is scheduled for Nov. 26, 2024; for DeAlmeida, Dec. 2, 2024; and for Martins, Dec. 3, 2024.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Department of Education Office of Inspector General, under the direction of Acting Special Agent in Charge Andrew Balceniuk, with the investigation.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.

martins.information.pdf dealmeida.information.pdf cardoso.information.pdf

TRENTON, N.J. – An Essex County, New Jersey, man was convicted on charges of sex trafficking and prostitution-related offenses, U.S. Attorney Philip R. Sellinger announced today.

Amin Sharif, 49, of Newark, was convicted on July 25, 2024, of one count of attempted transportation of a victim with intent to engage in prostitution, one count of sex trafficking of a minor, one count of use of an interstate facility to promote unlawful activity, one count of transporting a victim with intent to engage in prostitution, and one count of persuading a victim to travel to engage in prostitution. Sharif was convicted following a seven-day jury trial before U.S. District Judge Michael A. Shipp in Trenton federal court.

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

In January 2021, the FBI began investigating Sharif for transporting and attempting to transport women and minors from various states to New Jersey and elsewhere for the purpose of engaging in commercial sex acts. Sharif recruited four females from New York, Pennsylvania, Idaho, and Utah. Sharif used five social media accounts on Instagram and Facebook to recruit and entice victims, creating personas, and calling himself different names: Dallas Love, Chance, Razzile Dazzile, Truman Peterman, and “Daddy.” He promised certain victims housing, payment of bills and expenses, and the potential to earn up to thousands of dollars a day. Sharif advertised the minor victim online offering her for 32 sexual services.

When Sharif committed these offenses, he was on supervised release for a prior conviction for conspiracy to transport a minor to engage in prostitution, for which he was sentenced to a 10-year prison term.

The sex trafficking of a minor charge carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. The transportation of a victim with intent to engage in prostitution charges each carry a maximum penalty of 30 years in prison, and the persuading a victim to travel to engage in prostitution charge carries a maximum penalty of 60 years in prison. The use of an interstate facility to promote unlawful activity charge carries a maximum penalty of five years in prison. Each count also carries a potential fine of up to $250,000. Sentencing is scheduled for Nov. 5, 2024.

U.S. Attorney Sellinger credited special agents of the FBI Newark Field Office, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the conviction.  He also thanked the FBI’s Offices in Rochester, New York; Houston, Texas; and Salt Lake City, Utah; and the Dansville Police Department for their assistance.

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

TRENTON, N.J. – A Florida man was sentenced today to 36 months in prison for fraudulently obtaining over $2.4 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) payments, U.S. Attorney Philip R. Sellinger announced.

Mohamed A. Awad, 61, of Ocala, Florida, pleaded guilty on Nov. 20, 2023, before Judge Michael A. Shipp to an information charging him with wire fraud and money laundering. Judge Shipp imposed the sentence today in Trenton federal court.

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. Awad engaged in a scheme to illegally obtain over $2.4 million in PPP and EIDL loans through numerous misrepresentations to lenders. He submitted fraudulent loan applications that fabricated numbers of employees and misrepresented company information, to induce PPP and EIDL lenders to approve the loan applications that they otherwise would not have approved. Awad submitted falsified tax documents in support of PPP applications. According to IRS records, none of the purported tax documents that Awad submitted in support of the loan applications were ever in fact filed with the IRS. Awad thereafter transferred the loan proceeds among various bank accounts he controlled, withdrawing significant amounts in cash and transferring loan proceeds out of the country via wire transfers to banks based in Egypt.

In addition to the prison term, Judge Shipp sentenced Awad to three years of supervised release and ordered restitution of $2.41 million and forfeiture of $1.49 million.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer I. Piovesan; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Acting Special Agent in Charge Bradley Parker special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Brian Tucker; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation 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, 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.

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

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

TRENTON, N.J. – A Lebanon, Indiana, man was sentenced today to 288 months in prison for his conviction on four counts of sex offenses, U.S. Attorney Philip R. Sellinger announced.

Randal Wise, 45, was previously convicted of attempted online enticement of a minor, transportation of child pornography, possession of child pornography, and attempted transfer of obscenity to a minor following a three-day trial before U.S. District Judge Michael A. Shipp, who imposed the sentence today in Trenton federal court.

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

On Oct. 24, 2019, Wise traveled into New Jersey, approached an individual he believed was a 14-year-old boy on an internet dating application, and started a sexual dialogue. The individual was actually an undercover officer posing as a minor. Wise sent the undercover officer multiple photographs of his genitalia and requested similar photographs from him. The following day, Wise approached another individual that he believed was a minor boy on the same application. Unbeknownst to Wise, this individual was a second undercover officer posing as a minor. Wise engaged the second undercover officer in a highly sexual dialogue over the ensuing 24-hour period, sending sexually explicit photographs, questioning the second undercover officer about his sexual preferences and interests, and inviting the individual to his hotel for sex. On Oct. 26, 2019, Wise traveled to the second undercover officer’s location to engage in sexual activity with a minor, at which time he was arrested.

Law enforcement seized Wise’s phone and subsequently discovered multiple items of child pornography embedded in a sexually graphic conversation.

In addition to the prison term, Judge Shipp sentenced Wise to 10 years of supervised release.

U.S. Attorney Sellinger credited the Newark Child Exploitation and Human Trafficking Task force 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 sentencing. He also thanked the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Thomas J. Chirichella, detectives with the Bayonne Police Department, and detectives with the Indianapolis Police Department.

The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Criminal Division in Newark.

CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 60 months in prison for his role in a drug trafficking conspiracy to distribute more than two kilograms of cocaine in Burlington and Camden counties in New Jersey and Philadelphia, Pennsylvania, U.S. Attorney Philip R. Sellinger announced.

Orlando Ayala, 30, of Westampton, New Jersey, pleaded guilty on March 21, 2024, before U.S. District Judge Karen M. Williams to a two-count information charging him with conspiracy to distribute and possess with intent to distribute cocaine, and with possessing with intent to distribute cocaine. Judge Williams imposed the sentence today in Camden federal court. Ayala’s conspirator, Angel Correa, pleaded guilty before Judge Williams and is awaiting sentencing.

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

From February 2022 to January 10, 2023, Ayala conspired with Correa and others to distribute substantial quantities of cocaine. Ayala and Correa together sold more than one kilogram of cocaine during drug deals in 2022. On Jan. 10, 2023, they together picked up a package containing cocaine that had been mailed to a house in Philadelphia and drove the package to Correa’s residence in Camden. Law enforcement agents then searched Correa’s residence and recovered one kilogram of cocaine and two firearms located within several feet of the cocaine.

In addition to the prison term, Judge Williams sentenced Ayala to five years of supervised release.

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 sentencing. He also thanked the FBI - Philadelphia Field Office, U.S. Postal Inspection Service -Philadelphia Division, Willingboro Police Department, Burlington Township Police Department, Atlantic City Police Department, and Philadelphia Police Department.

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 Jeffrey Bender of the U.S. Attorney’s Office in Camden.

NEWARK, N.J. – A British citizen today admitted possessing multiple images of child sexual abuse and traveling with the intent to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced.

Stephen Hudson, 53, of Ealing, England, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with possession of child pornography and travel with intent to engage in illicit sexual conduct.

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

From April 14, 2022, to May 6, 2022, Hudson used an encrypted email account to communicate with federal law enforcement, acting in an undercover capacity, to facilitate his access to and sexual abuse of two minor female children. Hudson agreed to travel from Massachusetts to New Jersey and pay approximately $1,200 in cash in exchange for, among other things: engaging in sexual acts with 11- and 12-year-old girls; supplying Hudson with illicit drugs; and  administering the illicit drugs and alcohol to the 11- and 12-year-old girls. On May 6, 2022, Hudson traveled to an agreed-upon location in New Jersey for the purpose of engaging in sexual activity with the two minors and provided approximately $1,200 in cash to the undercover law enforcement agents as previously agreed. After providing the cash to law enforcement, Hudson was arrested.

A subsequent search of a laptop computer belonging to Hudson revealed 1,751 images depicting child sexual abuse, including material portraying prepubescent minor or minors who had not attained the age of 12 years and material portraying the sexual abuse and exploitation of infants and toddlers.

The charge of possession of child pornography carries a statutory maximum of 20 years in prison, and a $250,000 fine.

The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 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, with the investigation leading to the guilty plea.

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

hudson.information.pdf

NEWARK, N.J. – A Union County, New Jersey, woman was charged in connection with her role in embezzling more than $350,000 from a Union County synagogue, U.S. Attorney Philip R. Sellinger announced today.

Stacy Margaritondo, 51, of Scotch Plains, New Jersey, is charged by complaint with one count of wire fraud. She appeared 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:

In 2010, Margaritondo began working at a synagogue in Union County, New Jersey. She was promoted to office manager and bookkeeper in July 2020.  Margaritondo’s duties included accounting/bookkeeping, payroll, preparing checks for accounts payable, and reporting to the synagogue’s board of directors regarding the synagogue’s financial condition. From December 2019 through May 2023, Margaritondo abused this position of trust by engaging in a fraudulent scheme to misappropriate approximately $350,000 from the synagogue’s accounts. Margaritondo routinely issued unauthorized checks made payable to herself drawn on the synagogue’s bank accounts; obtained unauthorized additional funds to conceal the embezzlement scheme by fraudulently using the synagogue’s name, bank statements, and balance sheet to obtain short-term financing from cash advance companies; and intentionally kept inaccurate accounting records and altered bank statements that she provided to the board of directors to conceal her scheme. 

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

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 charge. He also thanked the Scotch Plains Police Department, under the direction of Chief Jeffrey J. Briel.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the 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.

margaritondo.complaint.pdf

NEWARK, N.J. – Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States and made their initial appearance in Newark federal court on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars, the U.S. Attorney’s Office for the District of New Jersey and the Justice Department announced today.

Rafael Ambiorix Rodriguez Guzman, also known as “Max Morgan,” age 59, and Felix Samuel Reynoso Ventura, also known as “Fili” and “Filly The Kid,” age 37, are among eleven Dominican Nationals charged in a 19-count indictment filed in the United States District Court for the District of New Jersey that was unsealed on April 29, 2024. Following their initial appearance on July 22, 2024, before U.S. Magistrate Judge André M. Espinosa both defendants were detained pending trial.

According to the indictment:

Rodriguez Guzman, Reynoso Ventura, 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.  Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.

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”—including Rodriguez Guzman and Reynoso Ventura—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 sent to the victims’ homes or mailed by victims at the direction of the closers.

Rodriguez Guzman and Reynoso Ventura each face multiple felony charges, including mail and wire fraud conspiracy, wire fraud, mail fraud, and conspiracy to commit money laundering.  If convicted, they face a maximum penalty 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for money laundering conspiracy.

“As alleged, these two 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 Rodriguez Guzman and Reynoso Ventura allegedly impersonated a variety of people – police officers, lawyers and others – to convince the victims to pay up, which the panic-stricken grandparents often did. 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.”

U.S. Attorney Philip R. Sellinger

“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 HSI New York. “Rafael Ambiorix Rodriguez Guzman and Felix Samuel Reynoso Ventura 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 Rodriguez Guzman and Reynoso Ventura 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.

 

NEWARK, N.J. – Six South Carolina individuals have been sentenced for conspiring to illegally sell firearms, including nine handguns, in New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Kendell McFadden, 31, of Florence, South Carolina, was sentenced today by U.S. District Judge Michael E. Farbiarz in Newark federal court to 48 months in prison for his role in the scheme after previously pleading guilty to the conspiracy.

His conspirators – Laronmir McFadden, Savon Harrison, Dontavian Jones, Michael Gamble, and Donjanea McClary – were previously sentenced after each of them had also previously pleaded guilty to the conspiracy. Laronmir McFadden, 30, had also pleaded guilty to unlawfully possessing a firearm by a convicted felon, and was sentenced to 49 months in prison.  Harrison, 27, was sentenced to 30 months in prison; Jones, 26, was sentenced to 22 months in prison; Gamble, 33, was sentenced to 14 months in prison; and McClary was sentenced to 2 years of probation.

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

From August 2019 through September 2021, the defendants conspired to traffic firearms from South Carolina to New Jersey. Although Kendell McFadden was prohibited from possessing a firearm as a prior convicted felon, he and his conspirators utilized straw purchasers to purchase firearms in South Carolina and then transport the firearms to Paterson, New Jersey, and elsewhere for resale. On Sept. 26, 2021, law enforcement intercepted a vehicle containing Kendell McFadden, Laronmir McFadden, Harrison, and Jones travelling from South Carolina to New Jersey and recovered nine firearms. 

In addition to the prison term, Judge Farbiarz sentenced Kendell McFadden to three years of supervised release and fined $1,000.

U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Ross A. Marchetti in the Newark Field Division and Special Agent in Charge Bennie Mims in the Charlotte Field Division; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the sentencings. 

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

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 480 months in prison for a series of violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today.

Dion Marsh, 29, of Manchester, New Jersey, previously pleaded guilty before U,S. District Judge Zahid N. Quraishi to a six-count information charging him with five counts of violating the federal Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the hate crimes violations, Marsh admitted to willfully causing bodily injury to five victims, and attempting to kill and cause injuries with dangerous weapons to four of them, all because they were Jewish.

“The threat from hate-fueled violence is a sad reality that impacts far too many people across our state and our nation. This defendant previously admitted to violently attacking five men, driving a car into four of them, stabbing one of them in the chest, and attempting to kill them simply because they were visibly identifiable as Orthodox Jews. The sentence imposed today holds Marsh accountable for his brutal and hate-filled rampage. We have no higher priority than protecting the civil rights of our New Jersey  residents.”

U.S. Attorney Philip R. Sellinger

“Enough is enough – hate-fueled attacks on the Orthodox Jewish community are abhorrent, unlawful and contrary to our values as Americans” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we aggressively work to confront and eradicate antisemitic violence, we recognize the unique vulnerabilities faced by Orthodox Jews who are often targeted because of religious clothing and yarmulkes. The Justice Department will continue to vigorously investigate and prosecute senseless hate crimes and we will protect people exercising their constitutional right to practice their religion.”

“These victims were targeted by Marsh because of the way they were dressed, which is in accordance with their religious beliefs,” FBI – Newark Special Agent in Charge James E. Dennehy said. “They have that right in this country. Marsh, however, did not have the right and broke federal law, when he attacked, stabbed and carjacked innocent people. The rise of hate crimes in our communities has become a noxious disease. FBI Newark and our law enforcement partners will aggressively pursue anyone who violates someone’s constitutionally protected civil rights to simply be who they are. We ask anyone who thinks they've been a victim, or knows someone who is, to contact us so we can help them.”

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

At 1:18 p.m. on April 8, 2022, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him in the process. Marsh took control of the man’s car and drove away. A surveillance video in the area captured Marsh arriving in the area prior to the carjacking and assault.

At 5:20 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim.

At 6:06 p.m., Marsh then used that second vehicle to deliberately strike another visibly identifiable Orthodox Jewish man, attempting to kill the victim and causing him to suffer several broken bones.

At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, attempted to kill another visibly identifiable Orthodox Jewish man. Marsh used the stolen vehicle to deliberately strike the man, who was walking in Lakewood. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer a stab wound and other injuries.

At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.

In addition to the prison term, Judge Quraishi sentenced Marsh to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; officers of the Lakewood Police Department, under the direction of Chief of Police Gregory H. Meyer; officers of the Jackson Township Police Department, under the direction of Chief of Police Matthew Kunz; officers of the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy; prosecutors and detectives of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney R. Joseph Gribko, Deputy Chief of the U.S. Attorney’s Office’s Civil Rights Division, with assistance from the Justice Department’s Civil Rights Division.

A New Jersey man was sentenced today to 40 years in prison to be followed by five years of supervised release for committing a series of bias-motivated violent assaults on members of the Orthodox Jewish community in and around Lakewood, New Jersey.

Dion Marsh, 29, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with five counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and one count of carjacking. With respect to the Shepard Byrd Act violations, Marsh admitted to willfully causing bodily injury to five victims and attempting to kill and cause injuries with dangerous weapons to four of the victims because they are Jewish.

“Enough is enough – hate-fueled attacks on the Orthodox Jewish community are abhorrent, unlawful and contrary to our values as Americans” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we aggressively work to confront and eradicate antisemitic violence, we recognize the unique vulnerabilities faced by Orthodox Jews who are often targeted because of religious clothing and yarmulkes. The Justice Department will continue to vigorously investigate and prosecute senseless hate crimes and we will protect people exercising their constitutional right to practice their religion.”

“The threat from hate-fueled violence is a sad reality that impacts far too many people across our state and our nation,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “This defendant previously admitted to violently attacking five men, driving a car into four of them, stabbing one of them in the chest, and attempting to kill them simply because they were visibly identifiable as Orthodox Jews. The sentence imposed today holds Marsh accountable for his brutal and hate-filled rampage. We have no higher priority than protecting the civil rights of our New Jersey residents.”

“These victims were targeted by Marsh because of the way they were dressed, which is in accordance with their religious beliefs,” said Special Agent in Charge James E. Dennehy of the FBI Newark Field Office. “They have that right in this country. Marsh, however, did not have the right and broke federal law, when he attacked, stabbed and carjacked innocent people. The rise of hate crimes in our communities has become a noxious disease. FBI Newark and our law enforcement partners will aggressively pursue anyone who violates someone’s constitutionally protected civil rights to simply be who they are. We ask anyone who thinks they've been a victim, or knows someone who is, to contact us so we can help them.”

According to court documents and statements made in court, on April 8, 2022, Marsh carried out a series of violent assaults on members of the Orthodox Jewish Community in and around Lakewood. Each of Marsh’s victims were attired in traditional garments worn by members of the Orthodox Jewish community and were assaulted because they were visibly identifiable Orthodox Jews.

Specifically, at 1:18 p.m. on April 8, 2022, Marsh forced a visibly identifiable Orthodox Jewish man out of his car in Lakewood, assaulting and injuring him. Marsh took control of the man’s car and drove away.

At 5:20 p.m., Marsh was in Lakewood driving a different car when he deliberately struck another visibly identifiable Orthodox Jewish man with the vehicle, attempting to kill the victim.

At 6:06 p.m., Marsh used that second vehicle to deliberately strike another visibly identifiable Orthodox Jewish man, attempting to kill the victim and causing him to suffer several broken bones.

At 6:55 p.m., Marsh, once again driving the vehicle that he had stolen from the first victim, attempted to kill another visibly identifiable Orthodox Jewish man who was walking in Lakewood by deliberately striking him with the vehicle. Marsh got out of the vehicle and stabbed the man in the chest with a knife, causing the victim to suffer a stab wound and other injuries.

At 8:23 p.m., Marsh, still driving the vehicle that he had stolen from the first victim, used it to deliberately strike another visibly identifiable Orthodox Jewish man who was walking in nearby Jackson Township, New Jersey, attempting to kill the man and causing him to suffer several broken bones and internal injuries.

The FBI Newark Field Office, Red Bank Resident Agency, Lakewood Police Department, Jackson Township Police Department, Ocean County Sheriff’s Office, Ocean County Prosecutor’s Office and New Jersey State Police investigated the case.

Assistant U.S. Attorney and Deputy Chief of the Civil Rights Division R. Joseph Gribko for the District of New Jersey prosecuted the case with assistance from the Justice Department’s Civil Rights Division.

TRENTON, N.J. – A Monmouth County, New Jersey, woman and her son from Mercer County, New Jersey, have admitted their roles in a years-long scheme to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized under the governing contracts, U.S. Attorney Philip R. Sellinger announced.

Linda Mika, 73, of Jackson, New Jersey, pleaded guilty today before U.S. District Judge Georgette Castner in Trenton federal court to count one of an indictment charging her with conspiracy to commit wire fraud. Kenneth Mika, 53, of Ewing, New Jersey, pleaded guilty on June 25, 2024, to the same count of the indictment.

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

From March 2016 through April 2020, Linda and Kenneth Mika conspired with each other and others to defraud the DoD and one of its combat logistic support arms, the Defense Logistics Agency (DLA), by engaging in a pattern of unlawful product substitution. The Mikas were employees of Monmouth Marine Monmouth Marine Engines Inc. (Monmouth Marine), a maritime equipment and servicing facility, which, as an approved federal contractor, also entered into contracts with DLA to supply DoD contracting entities with replacement hardware for DoD’s military branches.

The Mikas, on behalf of Monmouth Marine, obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be exact products furnished by authorized manufacturers or suppliers. Once awarded the contracts, however, the Mikas sourced non-conforming substitute parts at a significantly reduced cost to fill the contracts. They did this to maximize their profit margin while also suppressing fair competition in the bidding of federal contracts. Upon receipt by Monmouth Marine, the non-conforming parts were then shipped to DLA or various military purchasers in packaging disguising the parts’ identities in an effort by the Mikas to deceive DLA and its unwitting downstream purchasers.

The charge of conspiracy to commit wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine.    

U.S. Attorney Sellinger credited special agents of the U.S. Department of Defense, D.C.I.S. Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty pleas.

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

mika.indictment.pdf

TRENTON, N.J. – A Burlington County, New Jersey, man today admitted possessing five destructive devices, U.S. Attorney Philip R. Sellinger announced.

Jeremy Giliberti, 52, of Mount Laurel, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an information charging him with possessing destructive devices.

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

On July 26, 2023, Hamilton Township Police Division officers conducted a motor vehicle stop of Giliberti. During a subsequent search of Giliberti’s vehicle, one of the officers found a duffle bag on the front passenger-side floor which contained four pipe bombs. Two of the devices were encased in 5-inch steel pipes and two of the devices were encased in cardboard tubing wrapped in duct tape. Following a search of Giliberti’s residence, law enforcement recovered a fifth destructive device. All five of the devices contained numerous metal pellets, an explosive mixture, and a pyrotechnic fuse.

The charge of possession of a destructive device is punishable by a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 3, 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; members of the Hamilton Township Police Division, under the direction of Chief Kenneth R. DeBoskey; members of the New Jersey State Police Bomb Unit, under the direction of Col. Patrick J. Callahan; and members of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to today’s plea.

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

giliberti.information.pdf

CAMDEN, N.J. – A New York man was found guilty today on charges stemming from his travel to have sex with a 13-year old New Jersey resident and his production and possession of child pornography, U.S. Attorney Philip R. Sellinger announced.

Zachary Williams, 37, of New York, was convicted of two counts of interstate travel to engage in illicit sexual conduct with a minor, production of and possession of child pornography, and coercion and enticement of a minor, following a 13-day trial before U.S. District Judge Christine P. O’Hearn in Camden federal court. 

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

In September 2020, Williams met the minor via Snapchat. He lied about his age, telling the victim that he was 17 years old, when he was in fact 33 years old. Williams asked the victim for nude photographs of the victim, after receiving them, began to “sextort” the minor by threatening to send the nude photographs to the minor’s friends and family. He ultimately convinced the minor to meet him at a hotel in Atlantic County, New Jersey, and agreed to allow the victim to delete the nude photographs from his phone. On Oct. 2, 2020, Williams traveled to a hotel in Atlantic County and, two days later, engaged in sexual intercourse with the minor in his hotel room. Afterward, despite his earlier promises, Williams continued to send messages to the minor threatening to expose the minor’s nude photographs.

Law enforcement officers arrested Williams in March 2021 in a sting operation through which they lured him to the same Atlantic County hotel by posing as the minor victim. Williams’ phone contained numerous images of child pornography, which have led to the identification of additional child victims in both the Eastern District of New York and the District of Connecticut, where additional charges remain pending against Williams.

Williams faces a maximum of 30 years in prison on each of the two counts of interstate travel to engage in illicit sexual conduct with a minor, a mandatory minimum of 15 years and a maximum of 30 years on the production of child pornography, a maximum of 20 years on the possession of child pornography, and a maximum of 10 years on the coercion and enticement of a minor. In addition, Williams faces a $250,000 fine, mandatory restitution to the victims, and lifetime supervised release. Sentencing is scheduled for Dec. 4, 2024.

U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and officers from the Galloway Township Police Department, under the direction of Chief Richard D. Barber,  and also recognizes the efforts of the Atlantic City Police Department under the direction of Chief James Sarkos and the Atlantic County Prosecutor’s Office under the direction of Prosecutor William Reynolds, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Patrick C. Askin of the Criminal Division, Camden.

NEWARK, N.J. – A Queens, New York, man today admitted his role in a Paterson, New Jersey, kidnapping, U.S. Attorney Philip R. Sellinger announced today.

Reginald Law, 38, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an indictment charging him with kidnapping and Hobbs Act robbery.  

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

On Oct. 8, 2020, Law and his conspirator, Maurice Cottman, entered a retail store in Paterson, where they accosted the victim, who was working in the store. Law and Cottman dragged the victim from the store, threw him into the back of a U-Haul truck, and drove him from Paterson to New York. The victim suffered serious bodily injury from the kidnapping. Law admitted that during the kidnapping, he and Cottman called the victim’s family, told them that he had the victim, and demanded ransom for his return.

That afternoon, law enforcement officers saw the U-Haul parked in Harlem, New York.  When the officers approached, Law and Cottman fled in the U-Haul and a motor-vehicle pursuit ensued. Law and Cottman crashed the U-Haul and tried to flee on foot. Officers apprehended Cottman, but Law got away. Officers retrieved the victim from the back of the U-Haul. Law was a fugitive until his arrest on May 26, 2021.

The kidnapping charged in Count One is punishable by a maximum penalty of life in prison. The Hobbs Act robbery charged in Count Two is punishable by a maximum penalty of 20 years in prison. Both are also punishable by a fine of $250,000, or twice the gross loss or gain, whichever is greatest. Sentencing is scheduled for Jan. 7, 2025.

Cottman previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an Information charging him with one count of kidnapping. On March 29, 2022, Judge Chesler sentenced Cottman to 15 years in prison with five years of supervised release.

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 guilty plea.  He also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit.

law.indictment.pdf

CAMDEN, N.J. – A North Carolina woman admitted conspiring to submit fraudulent applications leading to the issuance of 29 Paycheck Protection Program (PPP) loans totaling more than $3.5 million, U.S. Attorney Philip R. Sellinger announced today.

Lisa Smith, 61, of Cornelius, North Carolina, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court on July 17, 2024, to an information charging her with one count of bank fraud conspiracy.

According to documents filed in these cases and statements made in court:

In early 2021, Smith submitted PPP loan applications for two companies that she controlled. The applications included fake bank statements and fake IRS tax forms, and significantly overstated the companies’ number of employees and payroll expenses. Smith obtained $125,000 in PPP loans based on these fraudulent applications. Smith and her conspirators recruited individuals who owned companies with little or no operations to apply for PPP loans. Smith helped the recruited individuals submit PPP loan applications that contained fake bank statements and fake IRS tax forms, and that contained materially false representations about the companies’ number of employees and payroll expenses. Based on these fraudulent PPP loan applications, more than 25 PPP loans totaling more than $3.5 million were approved and funded. Smith received a percentage of the loan proceeds as compensation for her role.

The count of conspiracy to commit bank fraud is punishable by a maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2024.

U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Patricia Tarasca; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs in Philadelphia; 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 of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office’s Camden Office.

smith.information.pdf

NEWARK, N.J. – U.S. Attorney for the District of New Jersey Philip R. Sellinger and U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a summit today focused on promoting the health, safety, and civil rights of tenants living in HUD-assisted housing. The program focused on combatting sexual misconduct and eliminating environmental hazards in HUD-assisted housing.

The summit, which took place at the U.S. Attorney’s Office in Newark, was part of the U.S. Department of Justice’s and Inspector General’s complementary initiatives to promote safe housing strategies related to environmental justice, and how to recognize and report sexual harassment and misconduct in housing.

“Everyone deserves to feel safe in their home, free from exposure to environmental hazards, and without being subjected to sexual harassment and assault by those with control over their housing. We convened this summit today to raise awareness that all New Jerseyans have protections under federal law and that the U.S. Attorney’s Office, together with our partners at HUD OIG, will continue to work every day to eradicate sexual harassment and environmental injustices in housing throughout the state.”

U.S. Attorney Philip R. Sellinger

“Through summits like the one we cohosted today with U.S. Attorney Sellinger, HUD OIG remains focused on raising awareness that HUD tenants and applicants seeking housing have a right to housing that is environmentally safe and and free from sexual misconduct,” Inspector General Oliver Davis said. “We remain committed to working closely with our partners at the U.S. Attorney’s Office to aggressively investigate violations of federal law in these areas and pursue bad actors who victimize vulnerable people receiving HUD assistance.”

Attendees included representatives from organizations who routinely work with vulnerable populations most likely to be impacted by environmental injustices, such as lead-based paint in their homes, or subjected to sexual harassment in housing by their landlords, property managers, or others with control over housing. The organizations represented included legal services offices, fair housing organizations, civil rights groups, shelters, and social service organizations.

If you or someone you know has information about environmental hazards and unsafe conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.  You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at www.hud.gov/fairhousing/fileacomplaint.

Individuals who believe they have been victims of environmental injustices, sexual harassment in housing, or discrimination may also contact the U.S. Attorney’s Office at 1-855-281-3339 or visit the website at www.justice.gov/usao-nj/civil-rights-enforcement.

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NEWARK, N.J. – Two Paterson, New Jersey, residents today admitted conspiring with a doctor to distribute opioids without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced.

Jasmine McGregor, 32, and Jhenelle Lewis, 35, both of Paterson, each pleaded guilty this week before U.S. District Judge Susan D. Wigenton in Newark federal court to one count of knowingly and intentionally conspiring and agreeing with others, including Dr. Lisa Ferraro, of Hillsdale, New Jersey, to distribute oxycodone, a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.

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

McGregor and Lewis each participated in a conspiracy with Ferraro to prescribe oxycodone, an opioid pain medication, to individuals who were not actually Ferraro’s patients and whom Ferraro never physically examined or questioned about symptoms to determine whether there was a legitimate medical need for oxycodone. McGregor conspired with Ferraro from July 2022 to Oct. 3, 2023, and Lewis conspired with Ferraro from January 2019 to September 2023.

Over the course of the conspiracy with McGregor, Ferraro wrote prescriptions for approximately 630 20mg oxycodone pills and approximately 11,410 30mg oxycodone pills. Over the course of the conspiracy with Lewis, Ferraro wrote prescriptions for approximately 9,450 30mg oxycodone pills.

Ferraro has also been charged with the same offense. The charges and allegations with regard to Ferraro are merely accusations, and she is presumed innocent unless and until proven guilty.

The charge of conspiracy to distribute controlled substances to which McGregor and Lewis pleaded guilty carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing hearings are scheduled for McGregor on Nov. 20, 2024, and Lewis on Dec. 9, 2024.

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.

The government is represented by Assistant U.S. Attorneys Ray A. Mateo and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit in Newark.

mcgregor.information.pdf lewis.information.pdf

NEWARK, N.J. –Two foreign nationals pleaded guilty today in Newark federal court to participating in the LockBit ransomware group – at various times the most prolific ransomware variant in the world – and to deploying LockBit attacks against victims in the United States and worldwide.

According to court documents:

Ruslan Magomedovich Astamirov (АСТАМИРОВ, Руслан Магомедовичь), 21, a Russian national of Chechen Republic, Russia, and Mikhail Vasiliev, 34, a dual Canadian and Russian national of Bradford, Ontario, were members of LockBit. The LockBit ransomware variant first appeared in January 2020. Between that time and February 2024, LockBit grew into what was at times the most active and destructive ransomware group in the world. The LockBit group attacked more than 2,500 victims in at least 120 countries around the world, including 1,800 in the United States. Those victims ranged from individuals and small businesses to multinational corporations, and they included hospitals, schools, nonprofit organizations, critical infrastructure, and government and law-enforcement agencies. LockBit’s members extracted at least approximately $500 million in ransom payments from their victims and caused billions of dollars in broader losses, including costs like lost revenue and incident response and recovery.

LockBit’s “affiliate” members, including Vasiliev and Astamirov, would first identity and unlawfully access vulnerable computer systems. They would then deploy LockBit ransomware on victim computer systems and both steal and encrypt stored data. After a successful LockBit attack, LockBit’s affiliate members would then demand a ransom from their victims in exchange for decrypting the victims’ data and deleting stolen data. When victims did not pay the demanded ransoms, LockBit’s affiliates would then leave the victim’s data permanently encrypted and publish the stolen data, including highly sensitive information, on a publicly accessible Internet site under LockBit’s control.

“Astamirov and Vasiliev thought that they could deploy LockBit from the shadows, wreaking havoc and pocketing massive ransom payments from their victims, without consequence. They were wrong. We, in New Jersey, along with our domestic and international law enforcement partners will do everything in our power to hold LockBit’s members and other cybercriminals accountable, disrupt and dismantle their operations, and put a spotlight on them as wanted criminals – no matter where they hide.

U.S. Attorney Philip R. Sellinger

“Today’s convictions reflect the latest returns on the Department’s investment in disrupting ransomware threats, prioritizing victims, and holding cybercriminals accountable,” said Deputy Attorney General Lisa Monaco. “In executing our all-tools cyber enforcement strategy, we’ve dealt significant blows to destructive ransomware groups like LockBit, as we did earlier this year, seizing control of LockBit infrastructure and distributing decryption keys to their victims. Today’s actions serve as a warning to ransomware actors who would attack Americans: we will find you and hold you accountable.”  

“The defendants committed ransomware attacks against victims in the United States and around the world through LockBit, which was one of the most destructive ransomware groups in the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “But thanks to the work of the Computer Crime and Intellectual Property Section, along with its domestic and international partners, LockBit no longer claims that title. Today’s convictions represent another important milestone in the Criminal Division’s ongoing effort to disrupt and dismantle ransomware groups, protect victims, and bring cybercriminals to justice.”

“It's a common misconception that cyber hackers won't get caught by law enforcement because they're smarter and savvier than we are,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Two members of the LockBit affiliate pleading guilty to their crimes in U.S. federal court illustrate we can stop them and bring them to justice. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. FBI Newark and our law enforcement partners around the globe have the technology and intelligence to go after these criminals – regardless of where they hide.”

Between 2020 and 2023, Astamirov deployed LockBit against at least 12 victims, including businesses in Virginia, Japan, France, Scotland, and Kenya. Operating under the online aliases “BETTERPAY,” “offtitan,” and “Eastfarmer,” he derived at least $1.9 million in ransom payments from those victims. As part of his plea agreement, Astamirov agreed to forfeit, among other assets, $350,000 in seized cryptocurrency that he extorted from one of his LockBit victims. Astamirov was first charged and arrested in this matter in June 2023.

Between 2021 and 2023, Vasiliev, operating under the online aliases “Ghostrider,” “Free,” “Digitalocean90,” “Digitalocean99,” “Digitalwaters99,” and “Newwave110,” deployed LockBit against at least 12 victims, including businesses in New Jersey, Michigan, the United Kingdom, and Switzerland. He also deployed LockBit against an educational facility in England and a school in Switzerland. Through these attacks, Vasiliev caused at least $500,000 in damage and losses to his victims. Vasiliev was first charged in this matter and arrested in Canada by Canadian authorities in November 2022, and extradited to the United States in June.

Astamirov pleaded guilty to a two-count information charging him with conspiracy to commit computer fraud and abuse and conspiracy to commit wire fraud. He faces a maximum penalty of 25 years in prison. Vasiliev pleaded guilty to a four-count information charging him with conspiracy to commit computer fraud and abuse, intentional damage to a protected computer, transmission of a threat in relation to damaging a protected computer, and conspiracy to commit wire fraud. He faces a maximum penalty of 45 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The LockBit Investigation

Today’s guilty pleas follow a recent a disruption of LockBit ransomware in February by the U.K. National Crime Agency’s (NCA) Cyber Division, which worked in cooperation with the Justice Department, FBI, and other international law enforcement partners. As previously announced by the Department, authorities disrupted LockBit by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and by seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. This disruption succeeded in greatly diminishing LockBit’s reputation and its ability to attack further victims, as alleged by documents filed in this case.

Today’s guilty pleas also follow charges brought in the District of New Jersey against other LockBit members, including its alleged creator, developer, and administrator, Dmitry Yuryevich Khoroshev. An indictment against Khoroshev unsealed in May alleges that Khoroshev began developing LockBit as early as September 2019, continued acting as the group’s administrator through 2024, a role in which Khoroshev recruited new affiliate members, spoke for the group publicly under the alias “LockBitSupp,” and developed and maintained the infrastructure used by affiliates to deploy LockBit attacks. Khoroshev also took 20 percent of each ransom paid by LockBit victims, allowing him to personally derive at least $100 million over that period. Khoroshev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime (TOC) Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov.

Both defendants are scheduled to be sentenced on Jan. 8, 2025.

A total of six LockBit members, including Khoroshev, the alleged developer, and Astamirov and Vasiliev, both affiliates, have now been charged in the District of New Jersey. Other LockBit charges include:

• In February, in parallel with the disruption operation, an indictment was unsealed in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries.

• In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Mikhail Matveev, also known as Wazawaka, m1x, Boriselcin, and Uhodiransomwar, with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s TOC Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/.

The U.S. Department of State’s TOC Rewards Program is offering rewards of:

• Up to $10 million for information leading to the arrest and/or conviction in any country of Khoroshev;

• Up to $10 million for information leading to the arrest and/or conviction of Matveev;

• Up to $10 million for information leading to the identification and location of any individuals who hold a key leadership position in LockBit; and

• Up to $5 million for information leading to the arrest and/or conviction in any country of any individual participating or attempting to participate in LockBit.

Information is accepted through the FBI tip website at www.tips.fbi.gov/.

Khoroshev, Matveev, Sungatov, and Kondratyev have also been designated for sanctions by the Department of the Treasury’s Office of Foreign Assets Control for their roles in launching cyberattacks.  

Victim Assistance

LockBit victims are encouraged to contact the FBI and submit information at https://lockbitvictims.ic3.gov/. As announced by the Department in February, law enforcement, through its disruption efforts, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Submitting information at the ICE site will enable law enforcement to determine whether affected systems can be successfully decrypted.

LockBit victims are also encouraged to visit https://www.justice.gov/usao-nj/lockbit for case updates and information regarding their rights under U.S. law, including the right to submit victim impact statements and request restitution, in the litigation against Astamirov and Vasiliev.

The FBI Newark Field Office, under the supervision of Special Agent in Charge James E. Dennehy, is investigating the LockBit ransomware variant. The FBI Atlanta Field Office, under the supervision of Special Agent in Charge Keri Farley; U.S. Attorney’s Office for the Northern District of Georgia; Ontario Provincial Police in Ontario, Canada; and Crown Attorney’s Office in Toronto, Canada, provided significant assistance in the Vasiliev matter. The United Kingdom’s NCA; France’s  Gendarmerie Nationale Cyberspace Command; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Police, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust have provided significant assistance and coordination in both matters and in the LockBit investigation generally.

Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and are prosecuting the charges against Astamirov and Vasiliev.

The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust, Office of International Affairs, and National Security Division also provided significant assistance.

Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A. 

vasiliev.information.pdf

      

astamirov.information.pdf

 

CAMDEN, N.J. – A Guatemalan man was indicted by a federal grand jury for traveling to Cape May County, New Jersey, to kidnap a minor, U.S. Attorney Philip R. Sellinger announced today.

Sergio Gomez, aka “Abner Abigail Chub-Choc,” 22, of Guatemala, made his initial appearance today before U.S. Magistrate Judge Matthew J. Skahill in Camden federal court and was detained. Gomez was indicted on July 17, 2024, on one count each of enticement of a minor to engage in sexual activity, transportation of a minor to engage in sexual activity, and kidnapping.

According to the indictment:

Gomez used the internet and cellphone to entice a minor to engage in sexual activity. On July 30, 2023, Gomez arrived in Cape May County, New Jersey, and took the minor to Georgia with the intent to engage in sexual activity with the minor. The FBI recovered the minor in Georgia on Aug. 3, 2023.

The count of enticement of a minor to engage in sexual activity carries a mandatory minimum sentence of 10 years and a maximum sentence of 20 years in prison; the count of transportation of a minor to engage in sexual activity carries a mandatory minimum sentence of 10 years and a maximum sentence of life in prison; and the count of kidnapping carries a maximum sentence of life in prison. All of the counts also carry a maximum fine of $250,000 per count.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, in Newark. He also thanked the Cape May County Prosecutor’s Office, Middle Township Police Department, FBI Atlanta office, and the Cherokee County, Georgia, Sheriff’s Office..

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

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

gomez_indictment.pdf

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

Nygee Johnson, aka “Gito,” 25, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court on July 17, 2024, to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations conspiracy.

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

From 2015 through Sept. 22, 2022, Johnson 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. While a member of the enterprise, Johnson conspired with others, including members and associates of the enterprise, to commit bank fraud and distribute controlled substances.

The defendant faces a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Dec. 3, 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, multiagency 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 Nasar of the Organized Crime/Gangs Unit of the Criminal Division.

johnson.sindictment.pdf

NEWARK, NJ. – A former partner at a New Jersey broker-dealer firm was arraigned on charges of engaging in an insider trading scheme that netted millions of dollars in illegal trading profits, U.S. Attorney Philip R. Sellinger announced today.

Christopher Matthaei, 44, of Brielle, New Jersey, was arraigned before U.S. District Judge Georgette Castner in Trenton federal court on July 17, 2024. Matthaei was indicted by a federal grand jury on June 21, 2024, with two counts of securities fraud conspiracy (Counts One and Nine) and seven counts of securities fraud (Counts Two through Eight).

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

Matthaei was a partner and senior salesperson at a Charlotte, North Carolina-based broker-dealer with offices in Red Bank, New Jersey. From May 2020 through February 2021, Matthaei illegally traded on material, non-public information (MNPI) that he received from Sean Wygovsky, a conspirator and friend who worked at a large Canadian asset management firm. The MNPI pertained to Special Purpose Acquisition Companies (SPACs) that were engaged in confidential merger negotiations and shared information with the asset management firm as a potential investor in the SPAC deals. Wygovsky received this MNPI every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, Wygovsky shared the MNPI with Matthaei, who then purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with Wygovsky and their families to a luxury resort on the island of St. Barts, where they continued to engage in the insider trading scheme.

In total, Matthaei made approximately $3.4 million in illegal trading profits from the insider trading scheme.    

Wygovsky pleaded guilty on May 25, 2023, before Judge Castner to an information charging him with securities fraud in connection with the insider trading scheme.

The securities fraud conspiracy charged in Count One carries a maximum potential penalty of five years in prison and a $250,000 fine; the securities fraud counts charged in Counts Two through Seven each carry a maximum potential penalty of 20 years in prison and a $5 million fine; the securities fraud count charged in Count Eight and the securities fraud conspiracy charged in Count Nine each carry a maximum potential penalty of 25 years in prison and a $250,000 fine.

The U.S. Securities and Exchange Commission previously filed a civil complaint against Matthaei based on the same 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 the indictment. 

The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Shontae D. Gray of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

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

matthaei.indictment.pdf

TRENTON, N.J. – A U.S. Air Marshal admitted selling “Law Enforcement Family Member” cards that were embossed with the insignia of the U.S. Department of Homeland Security (DHS) and making a false statement to a federal officer who was investigating an individual who possessed one of the cards, U.S. Attorney Philip R. Sellinger announced today.

Jonathan J. Ledesma, 38, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court on July 17, 2024, to a two-count information that charged him with making false statements and selling official insignia without authorization.

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

From October 2021 through January 2023, Ledesma purchased cards that identified their bearers as being a “family member” of “Jonathan J. Ledesma,” a “Federal Officer.” These cards were each embossed with the apparent insignia of DHS as well as a QR code that was linked to Ledesma’s cellular phone. Though Ledesma was not authorized to sell the insignia of DHS, or any colorable imitation of the insignia, Ledesma then sold the cards to others.

In July 2022, Ledesma sold a card to a person who was arrested on Jan. 30, 2023, while in possession of the card. A federal officer scanned the QR code and spoke with Ledesma, who indicated that he had provided the card to person because he was a friend and business associate of the person’s father. This statement was false because, as Ledesma well knew, he had never met or done business with person’s father. On Jan. 18, 2023, Ledesma sold a second card to another individual.

Making a false statement is punishable by a maximum penalty of five years imprisonment and a maximum fine of $250,000. The unauthorized sale of official insignia is punishable by a maximum penalty of six months in prison and a maximum fine of $5,000. Sentencing is scheduled for Nov. 20, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the New York Field Office of the Department of Homeland Security – Office of Inspector General, under Acting Special Agent in Charge Luke Devlin; the Detroit Field Office of the Department of Homeland Security – Office of Inspector General, under the direction of Special Agent in Charge John Pias; and the Detroit Field Office of the Transportation Security Administration, under the direction of Special Agent in Charge Phil Spampinato, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked the U.S. Attorney’s Office for the Eastern District of Kentucky for its assistance with this investigation.

The government is represented by Assistant U.S. Attorneys Francesca Liquori and Thomas S. Kearney of the Special Prosecutions Division.

ledesma.information.pdf

NEWARK, N.J. – A former Essex County correctional officer admitted accepting $14,000 in bribe payments to smuggle in contraband tobacco and a cell phone to inmates being detained at the Essex County Correctional Facility in Newark, U.S. Attorney Philip R. Sellinger announced today. 

Efrin Wade, 36, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court on July 17, 2024, to an information charging him with one count of extortion under color of official right. 

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

In January 2023, Wade, who had served as a correctional officer at Essex County Correctional Facility (ECCF) from approximately February 2020 through March 2023, began communicating with an individual whom he believed was seeking to smuggle in contraband to inmates at ECCF for sale to other inmates.  Unbeknownst to Wade, this individual was in reality an undercover FBI agent. Wade agreed to smuggle in tobacco and cell phones, both of which inmates at ECCF are forbidden to possess. On Feb. 1, 2023, Wade sent his associate, Yairisa Lizardo, to meet with the undercover agent in a parking lot in Bayonne, New Jersey. At the meeting, Lizardo accepted $10,000 in cash and a substantial quantity of tobacco for Wade to smuggle into ECCF.  Over the subsequent weeks, Wade left this tobacco in concealed locations within ECCF believing it would be retrieved by inmates. However, law enforcement recovered these items after Wade relayed the concealed locations to the undercover agent. 

On Feb. 8, 2023, Wade met the undercover agent in a parking lot in Jersey City where Wade took possession of a cell phone concealed within tobacco. After smuggling this contraband into ECCF, law enforcement recovered it in a concealed location where Wade had left it for inmates to retrieve. On Feb.15, 2023, Wade met with the undercover agent in the same parking lot in Jersey City where Wade accepted an additional $4,000 for his smuggling activities. Wade also explained his plans to smuggle in an additional 15 contraband cell phones, which were to be supplied to him by the undercover agent. Wade expected to be paid at least $30,000 for smuggling these cell phones into ECCF in late March. Wade expected that the cell phones would then be resold to inmates for approximately $5,000 per phone. In addition, when approached by agents during his shift at ECCF during the early morning hours of March 14, 2003, Wade was found to be in possession of multiple packs of contraband cigarettes as well as tobacco packs and cigars.

The extortion charge is punishable by a maximum potential penalty of 20 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Nov. 19, 2024.

The charges and allegations contained in the criminal complaint in this matter, which was filed in March of 2023, remain pending as to codefendant Lizardo.  Lizardo was charged along with Wade and the allegations in the criminal complaint are merely accusations as to her, and she is presumed innocent unless and until proven guilty.

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and investigators of the Internal Affairs Unit of the Essex County Department of Corrections, under the direction of Ronald Charles, with the investigation leading to the charges.

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

wade.information.pdf

NEWARK, N.J. – An Essex County, New Jersey, man has been charged in connection with distributing cocaine, possessing distribution quantities of fentanyl and heroin, trafficking multiple firearms, and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced today.

Kyrell Domnie, aka “Fly Ky,” 39, of Irvington, is charged by complaint with six counts of distributing, and possessing with intent to distribute, cocaine, one count of possessing with intent to distribute heroin and fentanyl, two counts of firearms trafficking, three counts of possessing a firearm and ammunition by a convicted felon, and one count of possessing a firearm in furtherance of a drug trafficking crime. He appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on July 17, 2024, and was detained. 

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

In December 2023, law enforcement began investigating Domnie for his involvement in distributing narcotics and firearms trafficking. Law enforcement conducted several controlled purchases of large quantities of cocaine from Domnie between January 2024 and April 2024, as well as controlled purchases of handguns on Jan. 30, 2024, and Feb. 19, 2024.

During searches of two apartments and a vehicle belonging to Domnie, law enforcement recovered distribution quantities of fentanyl, heroin, and cocaine along with materials used to package, store, and transport the narcotics for distribution. Law enforcement also recovered an additional handgun in a hidden compartment in Domnie’s vehicle along with narcotics.

Domnie faces a maximum penalty of 20 years in prison on the counts of distribution of, and possession with intent to distribute, controlled substances, and a fine of $1 million. On the counts of possession of a firearm and ammunition by a convicted felon and firearms trafficking, Domnie faces a maximum penalty of 15 years in prison. On the count of possession of a firearm in furtherance of a drug trafficking crime, Domnie faces a mandatory minimum prison sentence of five years, which must run consecutively to any other sentence Domnie receives, and a maximum potential penalty of life in prison. Each firearm count carries a maximum fine of $250,000.

U.S. Attorney Sellinger credited the special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Ross A. Marchetti; detectives of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; and the New Jersey Division of Criminal Justice, under the direction of New Jersey Attorney General Matthew J. Platkin, with the investigation leading to the charges.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth 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.

domnie.complaint.pdf

CAMDEN, N.J. – A Camden County man today admitted to schemes to submit fraudulent Payroll Protection Program (PPP) and unemployment insurance applications, U.S. Attorney Philip R. Sellinger announced.

Ralston Boswell, 34, of Collingswood, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with two counts of wire fraud.

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

From March 2021 through April 2021, Boswell submitted three fraudulent PPP loan applications that falsely stated his employment and income. Based on the three fraudulent applications, Boswell received a total of $56,250 in PPP loan funds. From May 2020 through March 2021, Boswell submitted multiple fraudulent unemployment insurance applications, including applications to the New York Department of Labor, the Rhode Island Department of Labor, and the Michigan Department of Labor. The applications falsely stated the name and employment status of the application and Boswell received $152,961 in unemployment insurance.

The counts of wire fraud each carry a maximum penalty of 20 years in prison and a $250,00 fine. Sentencing is scheduled for Nov. 20, 2024.

U.S. Attorney Sellinger credited special agents of the Department of Labor, Office of the Inspector General, under the direction of Jonathan Mellone, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Joseph McFarlane of the Camden office.

boswell.information.pdf

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 94 months in prison for illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in the middle of a crowded street in Jersey City, U.S. Attorney Philip R. Sellinger announced.

Christian Freire, 29, of Jersey City, previously pleaded guilty before U.S. District Judge William J. Martini to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Martini imposed the sentence today in federal court in Newark.

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

A little after midnight on Aug. 29, 2020, Freire was walking with a group of individuals toward Martin Luther King Drive in Jersey City when he observed two men approaching and – as caught on a surveillance camera from a nearby residence – fired multiple rounds at the men in the middle of the street. This sent a large group of bystanders running from the area.

When Jersey City Police Department officers arrived on the scene, Freire attempted to hide, but then fled as officers approached him. Officers observed Freire tossing a handgun towards a church lawn as he was fleeing. After apprehending Freire, a previously convicted felon, the officers ultimately recovered the black Taurus PT111 G2 9mm handgun with an obliterated serial number that Freire threw.  

A victim of the shooting was transported to Jersey City Medical Center with a gunshot wound to the leg.

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

U.S. Attorney Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation. He also thanked the FBI, under the direction of Special Agent in Charge James E. Dennehy.

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 Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s 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, 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 Joseph Stern of the General Crimes Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted defrauding victims by orchestrating a multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.

Warren Guerrier, 47, of Newark, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiracy to commit wire fraud. 

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

From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. Guerrier and his conspirators identified vehicles to steal, then photographed, tracked, and advertised them for sale on the internet. The buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.    

The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims. As a result of the scheme, Guerrier and his conspirators collected approximately $285,000.

The conspiracy to commit wire fraud count is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Sentencing is scheduled for Nov. 19, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Douglas Williams in New Orleans, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Kendall Randolph of the Criminal Division in Newark.

guerrier.indictment.pdf

Note: View the criminal complaint here.

Andrew Takhistov, 18, of East Brunswick, New Jersey, was arrested yesterday and made his initial appearance in court today for allegedly soliciting another individual to destroy energy facilities.

“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” said Attorney General Merrick B. Garland. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”

“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters, and discussed causing death and destruction on a large scale,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”

According to court documents, in January, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters. 

Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July to join the Russian Volunteer Corps, explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids and other infrastructure sabotage.

Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.

On two occasions in June and July, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick, New Jersey. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.

On July 5, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.

Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris on his way to Ukraine.

Takhistov is charged with one count of soliciting another individual to engage in criminal conduct that involved destroying a public service enterprise group circuit breaker and substation. If convicted, he faces a maximum penalty of 10 years in prison and a $125,000 fine.

The FBI is investigating the case.

Assistant U.S. Attorney Vera Varshavsky for the District of New Jersey and Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.

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

NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested for allegedly soliciting another individual to destroy energy facilities, Attorney General Merrick B. Garland and U.S. Attorney Philip R. Sellinger of the District of New Jersey announced today.

Andrew Takhistov, 18, of East Brunswick, New Jersey, is charged by complaint with one count of soliciting another individual to engage in criminal conduct that involved destroying a Public Service Enterprise Group (PSE&G) circuit breaker and substation. Takhistov was arrested on July 10, 2024, appeared today before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court, and was detained.

“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” Attorney General Merrick B. Garland said. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”

“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters and discussed causing death and destruction on a large scale. The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”

U.S. Attorney Philip R. Sellinger

“Imagine the chaos and number of life-threatening emergencies if a large population of people in New Jersey lost power in the middle of the current heat wave,” FBI – Newark Special Agent in Charge James E. Dennehy said. “We allege Takhistov, who is only 18 years old, planned to travel overseas so he could learn lessons from Russians fighting in Ukraine on how to destroy power grids and other critical infrastructure. His alleged conversations and planned actions are chilling and were inspired by racially motivated violent extremism. Disrupting all of our lives was the goal. I want to commend the agents and detectives of the Newark Joint Terrorism Task Force, other local and state law enforcement partners, and prosecutors who moved with exceptional speed in this investigation. Their work is saving lives.”

“This defendant exemplifies the threat posed by racially and ethnically motivated violent extremism,” NYPD Commissioner Edward A. Caban said. “Whether in his efforts to instruct our undercover officer on how to sabotage critical infrastructure, or in his attempted travel overseas to join a National Socialist paramilitary force, he sought to advance his ideological goals through destruction and violence. The NYPD and our law enforcement partners will remain relentless in our mission to identify, investigate, and inhibit anyone who has designs on plotting acts of terror.”

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

In January 2024, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters.  

Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May 2024, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July 2024 to join the Russian Volunteer Corps (RVC), explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids, and other infrastructure sabotage.

Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons, or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.

On two occasions in June and July 2024, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.

On July 5, 2024, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.

Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris, France on his way to Ukraine.

The charge of solicitation to destruct an energy facility is punishable by a maximum penalty of 10 years in prison and a $125,000 fine.

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 Dennehy in Newark, and the New York City Police Department Intelligence Division, under the direction of Commissioner Caban, with the investigation leading to the arrest. He also thanked the East Brunswick Police Department, under the direction of Chief Frank LoSacco, the Milltown Police Department, under the direction of Chief Chris Johnson, the New Brunswick Police Department, under the direction of Chief Vincent Sabo, and the Port Authority Police Department, under the direction of Superintendent Edward T. Cetnar.

The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney James Donnelly of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division. 

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

takhistov.complaint.pdf

CAMDEN, N.J. – An Essex County, New Jersey, woman was sentenced today to 120 months in prison for possessing with intent to distribute cocaine and methamphetamine, U.S. Attorney Philip R. Selling announced.

Mahogany Hawkins, 32, of Newark, was previously convicted of one count of possession with intent to distribute cocaine and methamphetamine following a two-day trial before U.S. Circuit Judge Stephanos Bibas, who imposed the sentence today in Camden federal court.   

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

In March 2021, two FedEx parcels addressed to “John Brown” in Newark, were lawfully intercepted by law enforcement and found to contain cocaine. On March 15, 2021, an undercover officer dressed as a FedEx driver delivered the package to the addressee, and a woman – later identified as Mahogany J. Hawkins – answered the door and accepted the packages. Officers again knocked on Hawkins’s door, this time identifying themselves as law enforcement.  Hawkins said she was “getting dressed” but didn’t open the door. The officers forced entry and found Hawkins in the bedroom.

After obtaining a search warrant, the officers searched Hawkins’ apartment and entered a backroom – locked by a keypad – that was a workstation for packaging narcotics. The two FedEx packages from the controlled delivery were found inside a garbage can in the backroom, and the room also contained methamphetamine pills, two plastic bags containing additional cocaine, numerous empty vials used for packaging narcotics, and a heat sealer. Laboratory analysis confirmed substances were cocaine and methamphetamine. Officers also found a loaded handgun and an extended magazine. 

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

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; Customs and Border Protection, under the direction of Port Director TenaVel Thomas, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to today’s sentencing. He also thanked the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, and the FBI - Newark, under the direction of Special Agent in Charge James E. Dennehy in Newark.

The government is represented by Assistant U.S. Attorneys Rebecca A. Sussman and Jake A. Nasar of the U.S. Attorney’s Office’s Criminal Division in Newark.

NEWARK, NJ. –A Brooklyn man was sentenced today to 57 months in prison for his role in a drug trafficking conspiracy to distribute 4 kilograms of fentanyl in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Juan De La Cruz Infante Torres, 52, of Brooklyn, New York, pleaded guilty on June 14, 2023, before U.S. District Judge Michael A. Shipp to a two-count information charging him with conspiracy to distribute and possess with intent to distribute fentanyl, and with possessing with intent to distribute fentanyl. Judge Shipp imposed the sentence today in Trenton federal court. Infante’s conspirator, Billy Castro, pleaded guilty before Judge Shipp and is awaiting sentencing.

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

In May and June 2021, Infante Torres conspired with Castro and others to distribute substantial quantities of fentanyl. On June 15, 2021, Infante and Castro took approximately 2 kilograms of fentanyl from Castro’s Queens, New York apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately two additional kilograms of fentanyl.

In addition to the prison term, Judge Shipp sentenced Infante Torres to two years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, 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; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and postal inspectors with 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 sentencing. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor.

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 Mark J. Pesce and Aja Espinosa of the Economic Crimes Unit in Newark.

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 120 months in prison for illegally possessing methamphetamine for distribution and possessing a firearm as a convicted felon, U.S. Attorney Philip R. Sellinger announced.

Dywann Pugh, 44, of Asbury Park, New Jersey, previously pleaded guilty before former-U.S. District Judge Peter G. Sheridan to one count of possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine and one count of unlawful possession of a firearm and ammunition by a convicted felon. U.S. District Judge Zahid N. Quraishi imposed the sentence today in Trenton federal court. 

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

On Nov. 21, 2022, law enforcement executed search warrants at Pugh’s residence and discovered over three kilograms of methamphetamine; over three kilograms of cocaine; approximately 150 grams of fentanyl; approximately $19,000 in cash; and various drug distribution paraphernalia, including a pill press and approximately seven kilograms of cutting agents used in connection with the processing of drugs. Law enforcement also recovered a Hi-Point .380 caliber pistol loaded with six rounds of ammunition.

In addition to the prison term, Judge Quraishi sentenced Pugh to five years of supervised release. Judge Sheridan previously ordered Pugh to forfeit the firearm and ammunition that law enforcement seized.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, and the Neptune Township Police Department, under the direction of Chief Anthony Gualario, with the investigation leading to the sentencing.

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

NEWARK, N.J. – A federal jury today convicted the former chief executive officer of SCWorx Corp. (SCWorx), a publicly traded health care company, on two counts of securities fraud for his participation in a scheme to mislead investors about SCWorx’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic.

According to court documents and evidence presented at trial:

Marc Schessel, 64, of New Paltz, New York, caused SCWorx to make four false and misleading public statements, claiming that the company had a binding contract to acquire millions of needed COVID test kits during the very beginning of the pandemic from an Australian supplier. In reality, Schessel knew that the Australian supplier did not have FDA approval for the COVID test kits and that his company did not have nearly enough money to pay for them. Nevertheless, Schessel made four false and misleading statements during a five-day period: an April 13, 2020, press release, an April 15, 2020, investor conference call, an April 16, 2020, 8-K filing with the U.S. Securities and Exchange Commission, and an April 17, 2020, press release. Schessel made these false statements even though investors had started to raise questions about the accuracy of the statements and the legitimacy of SCWorx’s supposed contract to acquire the COVID test kits. Ultimately, Schessel and SCWorx did not obtain a single COVID test kit as part of the supposed transaction he had announced during the week.

In the wake of these public announcements, SCWorx’s share price surged, rising by over 400 percent, from approximately $2.25 to an intraday high of $14.88. After SCWorx announced that it was terminating these COVID-19 rapid test kit agreements without having acquired any tests, SCWorx’s share price quickly dropped below its pre-April 13, 2020, announcement price.

“This defendant took advantage of the global COVID pandemic by illegally pumping up the value of SCWorx’s stock by over 400 percent with multiple fraudulent public statements that he had binding contracts to obtain and resell COVID-19 test kits, when in reality the test kits did not have FDA authorization. When the truth came out, the value of the SCWorx stock crashed, causing investors to suffer substantial losses. Duping investors out of  millions of dollars in the middle of a serious health emergency to salvage a failing business is especially egregious. Working with our partners, we will continue to investigate and bring to justice anyone who tried to profit from this crisis.”

U.S. Attorney Philip R. Sellinger

“If we think back to those very early days of the pandemic, the confusion and frustration about testing, the spread of the virus and social distancing had everyone frantically searching for answers,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Schessel witnessed that chaos and chose to capitalize on it - promising a vital resource with rapid COVID tests that never existed. The passage of time dulls memories of traumatic events, but FBI Newark and our partners are methodically investigating and bringing to justice the fraudsters who mistakenly believe they'll escape unscathed.”

The jury convicted Schessel of two counts of securities fraud. He is scheduled to be sentenced on Dec. 17, 2024, and faces a maximum penalty of 20 years in prison on count one and a maximum penalty of 25 years on count two.

U.S. Attorney Sellinger; Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.

The FBI’s Newark Division investigated the case. The Justice Department appreciates the assistance of FINRA’s Criminal Prosecution Assistance Group.

Assistant U.S. Attorneys George Brandley and Angelica Sinopole of the District of New Jersey Health Care Fraud Unit and Principal Assistant Deputy Chief Lucy Jennings and Trial Attorneys Kate McCarthy and Spencer Ryan of the Justice Department’s Fraud Section and are prosecuting the case.

The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing Victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

A federal jury in New Jersey convicted the former CEO of SCWorx Corp. (SCWorx), a publicly traded health care company, today for his role in a scheme to mislead investors about SCWorx’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic.

According to court documents and evidence presented at trial, Marc Schessel, 64, of New Paltz, New York, caused SCWorx to issue multiple public statements claiming that SCWorx was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. Specifically, Schessel made, or caused to be issued, four false and misleading statements during a five-day period in April 2020: an April 13 press release; an April 15 investor conference call; an April 16 8-K filing with the U.S. Securities and Exchange Commission; and an April 17 press release. All four announcements claimed that SCWorx would be receiving millions of COVID-19 rapid test kits within two weeks, but Schessel and SCWorx never acquired a single COVID-19 test kit as part of the announced transaction.

In the wake of these public announcements, SCWorx’s share price surged, rising by over 400%, from approximately $2.25 to an intraday high of $14.88. After SCWorx announced that it was terminating these COVID-19 rapid test kit agreements without having acquired any tests, SCWorx’s share price quickly dropped below its pre-April 13, 2020, announcement price.

The jury convicted Schessel of two counts of securities fraud. He is scheduled to be sentenced on Dec. 17 and faces a maximum penalty of 20 years in prison on count one and a maximum penalty of 25 years on count two. 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; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.

The FBI Newark Field Office investigated the case. The Justice Department appreciates the assistance of FINRA’s Criminal Prosecution Assistance Group.

Principal Assistant Deputy Chief Lucy Jennings and Trial Attorneys Kate McCarthy and Spencer Ryan of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys George Brandley and Angelica Sinopole for the District of New Jersey are prosecuting the case.

The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

NEWARK, N.J. – An Egyptian citizen extradited to the United States on wire fraud and aggravated identity theft charges today admitted defrauding a peer-to-peer rideshare company out of hundreds of thousands of dollars in fraudulent referral fees, U.S. Attorney Philip R. Sellinger announced today.

Hatem Ghouneim, 35, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an indictment charging him with three counts of wire fraud.

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

From January through December 2019, Ghouneim engaged in a scheme to defraud a technology company that operates a rideshare service. By creating fraudulent accounts and using stolen identities, Ghouneim induced the victim company to pay him referral fees for each new fraudulently created account. Through the scheme, Ghouneim defrauded the company of hundreds of thousands of dollars in referral fees.

The wire fraud charges each carry a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 13, 2024.

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 guilty plea. He also thanked the U.S. Department of Justice’s Office of International Affairs and the FBI Attaché’s Office in Spain for their assistance, as well as the government of Spain for their substantial assistance arresting and extraditing Ghouneim to the United States.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

ghouneim.indictment.pdf

TRENTON, N.J. – A Costa Rican man, illegally in the United States, was sentenced today to 97 months in prison for his role in laundering over $2 million in proceeds of a number of wire fraud schemes, U.S. Attorney Philip R. Sellinger announced.

Esteban De Jesus Campos Chanto, 43, of Trenton, previously pleaded guilty before U.S.  District Judge Zahid N. Quraishi to an information charging him with one count of conspiracy to commit money laundering. Judge Quraishi imposed sentence today in Trenton federal court.

According to documents filed in the case:

Between August 2019 and October 2021, Chanto participated in a multimillion-dollar money laundering conspiracy operating out of Costa Rica that targeted elderly victims in the United States. Conspirators in Costa Rica called senior citizens in the United States over the phone and induced them to mail or wire money to Chanto by claiming that the victims needed to pay off taxes and fees on lottery winnings or taxes and penalties to the United States government. In total, Chanto received more than $2 million from elderly victims who had been defrauded by Chanto’s co-conspirators. Chanto then wired the majority of the funds to his co-conspirators in Costa Rica and retained approximately $400,000 for himself as payment for his money laundering services.

In addition to the prison term, Judge Quraishi sentenced Chanto to three years of supervised release and ordered him to pay restitution of $2.07 million.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the FBI, Cleveland Division, Youngstown Resident Agency, under the direction of Special Agent in Charge Gregory D. Nelsen, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing four destructive devices, U.S. Attorney Philip R. Sellinger announced.

Robert J. Moser, 32, of Mays Landing, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with possessing destructive devices.

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

On March 17, 2023, law enforcement officers responded to Moser’s residence to assist him after he overdosed on drugs. Officers recovered at least four destructive devices in Moser’s bedroom. All four destructive devices contained explosive powder with a fuse sticking out of each device. One of the destructive devices contained metal pieces, the second destructive device contained a metal nail and a protruding metal screw hook, the third destructive device contained a protruding metal screw hook, and the fourth destructive device contained five metal dart tips.  Moser admitted that the four destructive devices were operable weapons. 

The charge to which Moser pleaded guilty is punishable by a maximum of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for November 13, 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; officers of the Township of Hamilton Police Department, under the direction of Chief Gregory K. Ciambrone; members of the Atlantic City Police Department Bomb Squad, under the direction of Chief James A. Sarkos; and personnel from the Atlantic City Prosecutor’s Office, under the direction of Prosecutor William Reynolds, with the investigation leading to today’s plea.

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

moser.information.pdf

NEWARK, N.J. – Two people were arrested Tuesday morning for shipping an Air Data Inertial Reference Unit (ADIRU) from New Jersey to the United Arab Emirates (UAE) without having obtained the required license and authorization, U.S. Attorney Philip R. Sellinger announced today.

Fadi Nammas, 43, of Fairfax, Virginia, and Tara Jamhour, 24, of Rockaway, New Jersey, are charged by complaint with one count of conspiracy to export and smuggle goods from the United States, one count of unlawfully exporting goods from the United States without having first obtained the required license or authorization, and one count of smuggling goods from the United States. Nammas made his initial appearance on July 2, 2024, before U.S. Magistrate Judge William E. Fitzpatrick in federal court in the Eastern District of Virginia, and is scheduled to have a preliminary hearing, detention hearing, and identity hearing on July 3, 2024, before Judge Fitzpatrick. Jamhour made her initial appearance today before U.S. Magistrate Judge Jessica S. Allen 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 November 2023 through March 2024, Nammas and Jamhour were working under the auspices of Star Aero, an aircraft service and part provider with a purported address in Garfield, New Jersey. The defendants obtained an ADIRU, a component that supplies air data and inertial reference information to pilots’ electronic flight instrument system displays, from a Vermont-based aviation company. Nammas and Jamhour arranged to have the ADIRU shipped to Star Aero’s purported Garfield address. In procuring the ADIRU, Nammas and Jamhour represented that the ADIRU was being purchased for Star Aero’s stock purposes and that Star Aero understood and would comply with United States export laws. The defendants did not disclose that they intended to ship the ADIRU to another company in the UAE. Once the defendants received the ADIRU, they repackaged it with false documentation that undervalued and falsely described the item and attempted to ship it to the UAE. Neither Nammas nor Jamhour obtained the required license or authorization to ship the ADIRU, which was controlled for missile technology and anti-terrorism reasons, to the UAE.

The charge of conspiracy is punishable by a maximum penalty of five years in prison and a maximum fine of $250,000 fine. The charge of unlawfully exporting controlled goods is punishable by a maximum penalty of 20 years in prison and a $1 million fine. The charge of smuggling is punishable by a maximum penalty of 10 years and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the charges. He also thanked the U.S. Attorney’s Office for the Eastern District of Virginia, under the direction of U.S. Attorney Jessica D. Aber, and agents of the HSI Field Office in Fairfax, Virginia.

The government is represented by Assistant U.S. Attorney Vera Varshavsky of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Monica Svetoslavov of the U.S. Department of Justice’s Counterintelligence and Export Control Section of the National Security Division. 

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

nammasjamhour.complaint.pdf

NEWARK N.J. – A Sussex County, New Jersey, man was indicted today for fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) funds and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.

Nikenson Jean Mathurin, aka “Nik Mathurin,” aka “Jean Mathurin”, 44, of Sparta, New Jersey, is charged with three counts of wire fraud and one count of money laundering. Mathurin was previously charged by complaint in relation to the same scheme.

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

From April 2020 through November 2022, Mathurin participated in a scheme to defraud a lender and the Small Business Administration to obtain federal COVID-19 emergency relief money by submitting several fraudulent PPP and EIDL applications on behalf of several purported businesses. Mathurin’s fraudulent applications included false information concerning, among other things, the applicant entities’ average monthly payroll, gross revenue, and number of employees, and fake supporting tax documents. As a result of his fraudulent applications, Mathurin unlawfully obtained millions of dollars in federal COVID-19 emergency relief money.

Each 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 defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorneys Matthew Stark and Fatime Meka Cano of the Economic Crimes Unit in Newark and Trial Attorney David D. Hamstra of the U.S Department of Justice’s Fraud Section.

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, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

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

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

mathurin.indictment.pdf

NEWARK, N.J. – An Essex County, New Jersey, man admitted his role in embezzling federal benefits meant for the disabled child of his former girlfriend shortly after she went missing, U.S. Attorney Philip R. Sellinger announced.

Asmar Earp, 37, of Newark, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court on June 26, 2024, to three counts of an indictment charging him with two counts of wire fraud and one count of aggravated identity theft. 

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

Earp was in a romantic relationship and shared a house in Newark with V.W. Through a program administered by Social Security Administration, V.W. received monthly payments on behalf of her disabled minor son, who was not capable of managing these benefits on his own.  On Dec. 24, 2017, V.W. went missing and her whereabouts remain unknown. Six days after V.W.’s disappearance, Earp fraudulently gained control of V.W.’s son’s benefits by changing the PIN code on the debit card used to access those funds. In March and April 2018, Earp also fraudulently used V.W.’s name, date of birth, and Social Security number to receive a replacement debit card to continue accessing and using V.W.’s son’s benefits. From December 2017 through February 2020, Earp and others acting at his direction repeatedly and fraudulently took the money intended to help V.W.’s son and used it on themselves.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain of the defendant, whichever is greatest.  The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain of the defendant, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, under the direction of Acting Special Agent-in-Charge Bradley Parker of the New York Boston Field Division, and the Essex County Prosecutor’s Office, under the leadership of Prosecutor Theodore N. Stephens II, with the investigation.

The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the General Crimes Unit in Newark.

earp.indictment.pdf

NEWARK, N.J. – A Essex County, New Jersey, man admitted committing a spree of robberies and a carjacking, U.S. Attorney Philip R. Sellinger announced today.

Deion Nance, 28, pleaded guilty before U.S. District Judge Susan D. Wigenton on June 27, 2024, to a five-count information charging him with two counts of Hobbs Act robbery, one count of carjacking, and two counts of using and carrying a firearm during and in relation to a crime of violence.

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

Nance admitted that on Dec. 30, 2020, he used a firearm to steal a 2016 Toyota Corolla from the occupant of the vehicle. He pointed a handgun at the victim, pulled the victim out of their vehicle and pushed the firearm into her face. He got into the driver's seat and drove away in the victim’s car.

Nance admitted that on Jan. 4, 2021, he robbed two restaurants. At the first restaurant, he pointed a loaded firearm at a restaurant employee and demanded money. The employee gave Nance $176. That same day, he attempted to rob a restaurant by threatening an employee and pointing a firearm at the employee.

The count of carjacking is punishable by a maximum of 15 years in prison; Hobbs Act Robbery is punishable by a maximum of 20 years in prison, and use of a firearm during a crime of violence is punishable by a maximum of life in prison. Each firearms offense carries a statutory minimum prison sentence of five years in prison, which must run consecutively to any other prison term imposed. All counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 29, 2024.

U.S. Attorney Sellinger credited law enforcement from the Newark and Harrison police departments, and special agents and task force officers with the FBI Newark Field Division, under the direction of James E. Dennehy, with the investigations leading to the plea hearing.

The government is represented by Assistant U.S. Attorney Megan Linares of the Organized Crime and Gangs unit in Newark.

nance.information.pdf

NEWARK, N.J. – A Georgia chiropractor who owned or operated multiple durable medical equipment (DME) companies and a cancer genetic testing (CGx) company admitted her role in a health care fraud and illegal kickback conspiracy, Attorney for the United States Vikas Khanna announced today.

Tefylon Cameron, 57, of Powder Springs, Georgia, pleaded guilty on June 20, 2024, before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging her with conspiracy to commit health care fraud and conspiracy to violate the Federal Anti-Kickback statute.

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

Cameron and her conspirators owned, operated, and had a financial interest in DME companies through which they obtained doctors’ orders for durable medical equipment, namely orthotic braces, for Medicare beneficiaries without regard to medical necessity. Cameron and her conspirators obtained DME orders using marketing call centers and telemedicine companies (including multiple Florida-based companies), caused the submission of false and fraudulent claims to Medicare, and paid illegal kickbacks.  

Cameron and her conspirators also owned, operated, and had a financial interest in a CGx company through which she agreed to provide a clinical laboratory with leads of beneficiaries who were qualified to receive federal health care benefits for cancer genetic tests. Cameron submitted invoices to the clinical laboratory seeking payment on a per-lead basis, but entered into a sham agreement to disguise kickback and bribe payments.

In total, Cameron and her conspirators caused a loss to Medicare of more than $14.9 million.

Conspiracy to commit health care fraud is punishable by a maximum of 10 years in prison and conspiracy to violate the Federal Anti-Kickback Statute is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 29, 2024.

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; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.

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

cameron.information.pdf

NEWARK, N.J. – A resident of Florida was convicted of four counts of tax evasion, Attorney Philip R. Sellinger announced today.

Jason Kronick, 50, of Boca Raton, Florida, was convicted by a federal jury on June 26, 2024, of four counts of tax evasion following a trial before U.S. District Judge Susan D. Wigenton in Newark federal court.

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

From 2010 through 2017, Kronick evaded payment of more than $8.6 million in income and employment taxes, including penalties and interest, despite having earned more than $20 million in taxable income. Kronick also collected approximately $200,000 in payroll taxes from employees of his company, but failed to remit those withholdings to the IRS and evaded his obligation to do so. Kronick evaded these taxes by, among other things, using approximately $1.8 million from accounts controlled by him to buy more than 40 luxury watches; spending more than $4.7 million to pay for home renovations and interior decorating; transferring more than $1.8 million, including funds originating from business accounts, to various casinos, where he converted the money to chips, gambled, and then redeemed chips for approximately $1.8 million in cash; and cashed approximately $159,000 in checks at check-cashing businesses to conceal his income and assets from the IRS.

Each of the four counts of tax evasion carries a maximum penalty of five years in prison and a fine of up to $250,000. Kronick’s sentencing is scheduled for Nov. 14, 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 conviction.

The government is represented by Assistant U.S. Attorneys Rachelle M. Navarro and Christopher Fell of the Criminal Division in Newark.