District of New Jersey

CAMDEN, N.J. – Two New Jersey men have been sentenced to prison for their roles in shooting a taxi driver during a late-night robbery, U.S. Attorney Philip R. Sellinger announced today.

Walter Williams-Lang, 22, of Elizabeth, New Jersey, was sentenced today to 87 months in prison and Naeem Jackson, 24, of East Orange, New Jersey, was sentenced on Nov. 29, 2023, to 103 months in prison. Both defendants previously pleaded guilty to informations charging them with one count each of attempted Hobbs Act robbery, conspiracy to use and possess a firearm during and in relation to a crime of violence and possession of a firearm by a convicted felon. Jackson also pleaded guilty to one count each of Hobbs Act robbery and carjacking. Both defendants were sentenced by U.S. District Judge Robert Kugler in Camden federal court. 

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

The defendants both admitted that on May 14, 2022, they brandished a loaded firearm to demand a taxi driver’s fares, and then proceeded to shoot the driver. Jackson also admitted that on May 5, 2022, he brandished a loaded firearm, demanded a taxi driver’s fares, cellphone, and wallet, and then stole the the driver’s vehicle.

In addition to the prison terms, Judge Kugler sentenced each of the defendants to three months of supervised release.

U.S. Attorney Sellinger credited the members of the Elizabeth Police Department, under the direction of Director Earl J. Graves and Police Chief Giacommo Sacca; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, Newark Field Division, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Barry O’Connell of the OCDETF Unit in Newark.

NEWARK, N.J. – A New York woman was sentenced to 12 months and one day in prison for her role in a scheme to bribe mail carriers to steal postal arrow keys in order to unlock mail receptacles and to use stolen items from the mail to obtain funds fraudulently from banks, U.S. Attorney Philip R. Sellinger announced.

Halimatou Ndiaye, 28, of the Bronx, New York, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of bribery of U.S. Postal Service mail carriers and one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence on Nov. 28, 2023, in Newark federal court.

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

Ndiaye schemed to bribe mail carriers in East Orange and Newark by offering them cash, typically $5,000, in exchange for the mail carriers giving her and another individual a postal arrow key, which could be used to access a variety of postal service mail receptacles. Ndiaye and others sought USPS arrow keys so that they could steal mail. For example, from June to July 2021, Ndiaye and the other individual drove to various locations in East Orange and Newark, where they stopped mail carriers and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.

In addition, from January 2021 to July 2021, Ndiaye conspired with others to obtain funds fraudulently from banks by using stolen checks and bank cards to draw funds from bank accounts linked to the stolen items and using the identification of others to fraudulently obtain funds.

In addition to the prison term, Judge Wigenton sentenced Ndiaye to three years of supervised release and ordered her to pay restitution of $6,361.

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

The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.

CAMDEN, N.J. – A Gloucester County, New Jersey, man who worked as a postal employee admitted today stealing more than $170,000 in cash that had been sent through the mail, U.S. Attorney Philip R. Sellinger announced.

Joseph Fenuto, 51, of Blackwood, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him withone count of mail theft. 

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

From November 2021 to August 2022, Fenuto was employed as a U.S. Postal Service letter carrier with delivery routes in Blackwood. Fenuto was assigned to a postal route which included the Gloucester Premium Outlets in Blackwood. Fenuto accepted parcels from numerous retail establishments, which he was required to place in the mail stream for delivery to the addresses listed on the parcels. Many of these parcels contained cash, which the retail stores had received from sales of their products and goods to customers. 

Fenuto admitted he had stolen more than 50 such parcels containing cash from numerous retail stores at the Gloucester Premium Outlets. Fenuto said he stole $171,110 from parcels that he was required to ensure remained in the mail stream for their delivery to a bank in Ohio. 

The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing is scheduled for April 2, 2024.

U.S. Attorney Sellinger credited 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 investigators of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea. He also thanked the Gloucester Township Police Department under the direction of Chief David J. Harkins for their assistance.

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

 

fenuto.information.pdf

NEWARK, N.J. – Five people have been charged for their respective roles in a drug trafficking organization that distributed fentanyl, heroin, and cocaine in Essex County, U.S. Attorney Philip Sellinger announced today.

The original complaint was filed on Nov. 1, 2023, and on Nov. 9, 2023, a superseding complaint was filed charging certain defendants with gun offenses based on the recovery of multiple firearms during searches that occurred when the defendants were arrested.   

Fuquan Williams, 33; Dwight Dixon, 52; Nafee Patterson, 41; Jabriel Mason, 20; and Daqwuan Barkley, 29, all of Essex County, New Jersey, are charged by superseding complaint with one count of conspiracy to distribute fentanyl, heroin, and cocaine. Williams, Patterson, Mason, Barkley and Dixon made their initial court appearances before U.S. Magistrate Judge James B. Clark III in Newark federal court. Mason, Patterson, and Barkley have been ordered released on bail, while Williams, and Dixon remain detained pending trial.

Patterson is also charged with one count of possession of a firearm by a convicted felon and one count of possession with intent to distribute fentanyl and cocaine, and Williams is charged with one count of possession of a firearm in furtherance of a drug trafficking crime.

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

The defendants are members of a drug trafficking organization that operated an open-air narcotics market in the area of Kent and Brenner streets in Newark. The drug trafficking organization is affiliated with, and the defendants are members and associates of, the Sex, Money, Murder subset of the Bloods street gang. When the defendants were arrested, law enforcement officers recovered multiple loaded firearms and additional quantities of narcotics.

U.S. Attorney Sellinger credited special agents of the FBI under the supervision of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked detectives of the Essex County Prosecutor’s Office, under the direction of Theodore N. Stephens, II; officers of the New Jersey State Department of Corrections; detectives of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; officers of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; and police officers and detectives of the East Orange Police Department, under the direction of Chief William C. Robinson, for their assistance with the investigation.

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

The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Jason Goldberg of the Criminal Division in Newark.

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

 

williamsetal.scomplaint.pdf

NEWARK, N.J. – An Essex County, New Jersey, man admitted his involvement in two shootings, as well as illegally possessing a handgun and possessing heroin he intended to distribute, U.S. Attorney Philip R. Sellinger announced today.

Antoine Hawkins, 31, of Newark, pleaded guilty on Nov. 28, 2023, before U.S. District Judge Katharine S. Hayden to an indictment charging him with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.

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

On Aug. 18, 2020, video surveillance footage depicted Hawkins as he fired a gun on a Newark street, striking a victim, who survived the shooting. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings were a ballistics match.

On Sept. 16, 2020, law enforcement encountered Hawkins and observed what appeared to be a firearm in Hawkins’s jacket. A subsequent search of Hawkins revealed a 9-millimeter pistol, which was loaded in an extended magazine containing 19 rounds of ammunition.

A search warrant executed at Hawkins’s residence revealed, among other items, 626 glassine envelopes containing heroin and three 9-millimeter magazines.

The firearm and ammunition offenses carry maximum potential penalties of 10 years in prison, and fines of $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison – which must run consecutively to any other sentence Hawkins receives – and a maximum potential penalty of life in prison. The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. Sentencing is scheduled for April 2, 2024.

U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Fritz G. Fragé; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges.

This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office National Security Unit in Newark.

 

hawkins.indictment.pdf

NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips gang was sentenced today to 60 months in prison for his role in a racketeering conspiracy and for possessing firearms and ammunition as a convicted felon, U.S. Attorney Philip R. Sellinger announced.

Rahjon Cox, aka “Tsu Surf,” 32, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to two counts of a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and possession of firearms and ammunition by a convicted felon. Judge Wigenton imposed the sentence today in Newark federal court.

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

From 2015 through Sept. 22, 2022, Cox was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in New Jersey and elsewhere. Cox held a leadership role within the enterprise. On March 18, 2017, Cox shot a firearm at a gang rival. On July 24, 2019, in Essex County, New Jersey, Cox, a convicted felon, knowingly possessed two loaded firearms.

In addition to the prison term, Judge Wigenton sentenced Cox to three years of supervised release and fined him $15,000.

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

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

The government is represented by Assistant U.S. Attorney Francesca Liquori of the Special Prosecutions Unit.

TRENTON, N.J. – A former airline corporate real estate director and former airline senior manager, as well as a former airline contractor, each admitted accepting bribes from a company in exchange for agreeing to assist the company obtain contracts from the airline, U.S. Attorney Philip R. Sellinger announced today.

Alok Saksena, 45, of Montclair, New Jersey, Anthony Rosalli, 44, of Burlington, New Jersey, and Lovella Rogan, 48, of Springfield, New Jersey each pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to informations that charged them with conspiracy to commit honest services wire fraud.

“The defendants compromised their positions by accepting bribes in the form of hundreds of thousands of dollars’ worth of home renovations, electronics, and jewelry. Commercial bribery of this kind corrupts the fairness of our economic system. We will hold to account those who unlawfully violate their duties to further their own economic interests.”

U.S. Attorney Philip R. Sellinger

“Federal law requires an honest bidding process because if everyone in a position of authority demanded goods and services for their approval, the cost of doing business would be astronomical and untenable,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These individuals admit to taking bribes in the form of home renovations, electronics and jewelry instead of money, thinking no one would notice. Greasing someone's palm for a lucrative contract not only isn't fair, but it's also illegal.”

“The Port Authority thanks our federal partners for the collaborative work to ensure fairness within the myriad industries that operate out of our facilities and to bring these individuals to justice,” Port Authority Inspector General John Gay said. 

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

Rosalli, Saksena, and Rogan all held positions with the airline that enabled them to influence which companies the airline would award certain contracts to at Newark Liberty International Airport (Newark Airport). The defendants conspired to receive bribes and kickbacks from a company that provided maintenance and construction services in exchange for helping that company obtain lucrative airline contracts at Newark Airport.

In September 2021, the maintenance and construction company bid on a contract to renovate restrooms at Newark Airport. The defendants sat on the selection committee and each of them voted to award the contract to the company. In exchange for the defendants’ help in obtaining the restroom renovation contract and with the expectation that they would use their positions to help the company obtain future contracts, the company agreed to pay for significant renovations at the defendants’ personal residences, including renovating and building bathrooms, renovating a deck, installing floors and sheetrock, and renovating a kitchen. The company gave the defendants valuable items, including electronics and jewelry. The total value of the bribes paid was approximately $539,000 to Saksena; approximately $276,000 to Rosalli; and approximately $409,000 to Rogan.

The defendants also conspired with an employee of the maintenance and construction company to fraudulently inflate change orders, which amended the contract’s scope of work, to recoup some of the bribe costs. With the defendants’ knowledge and consent, the company submitted change orders, which contained fraudulently high numbers, to obtain money not legitimately earned by the company so that the company could partially fund the bribe payments to the defendants.

The defendants face a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing for Saksena is scheduled for April 17, 2024. Sentencing for Rosalli and Rogan is scheduled for April 18, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, investigators from the Port Authority of New York & New Jersey Office of Inspector General, under the direction of Inspector General Gay, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorneys Katherine Calle and Francesca Liquori of the Special Prosecutions Division and First Assistant U.S. Attorney Vikas Khanna.

 

saksena.information.pdf

 

rosalli.information.pdf

 

rogan.information.pdf

TRENTON, N.J. – A Mercer County, New Jersey, man and a Bucks County, Pennsylvania,  man today admitted participating in a conspiracy to obtain overtime payments from the city of Trenton for work they did not perform by fraudulently inflating the overtime hours they claimed to have worked conducting residential lead inspections, U.S. Attorney Philip R. Sellinger announced today.

Michael Ingram, 71, of Trenton, and William Kreiss, 40, of Yardley, Pennsylvania, each pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to informations charging them with one count of conspiracy to embezzle, steal, and obtain by fraud more than $5,000 in funds from the city of Trenton.

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

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

Ingram, a public health investigator for BEH, and Kreiss, a registered environmental specialist for BEH, conducted residential lead inspections with other members of BEH from February 2018 through May 2022. The BEH employee to whom Ingram and Kreiss reported began directing them to bill overtime hours for work they did not perform. Ingram and Kreiss submitted their fraudulent and inflated overtime claims to this BEH employee, who then authorized overtime payments to each of them.

Ingram and Kreiss each admitted submitting claims for overtime work as directed by the BEH employee, including for work they had not performed. The two defendants also admitted they had inflated claims for overtime hours worked in connection with a meal delivery program administered by the city. Through this fraudulent overtime scheme, Ingram admitted he received $22,144 in overtime payments to which he was not entitled, while Kreiss separately admitted he received $32,806 in overtime payments to which he was not entitled.    

Ingram and Kreiss each face a maximum penalty of five years in prison and maximum fine of $250,000. Sentencing for both defendants is scheduled for April 24, 2024. 

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 the Environmental Protection Agency, under the direction of Special Agents in Charge Tyler Amon, Criminal Investigation Division, and Nic Evans, Office of Inspector General; and special agents of the Department  of Housing and Urban Development, under the direction of Acting Special Agent in Charge Janine Rocheleau, with the investigation leading to the charges.

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

kreiss.information.pdf

 

ingram.information.pdf

NEWARK, N.J. – A German man today admitted traveling from Germany to New Jersey in order to engage in illicit sex acts with a minor, U.S. Attorney Philip R. Sellinger announced.

Christian Stefan Walther, 39, of Erfurt, Germany, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of travel with intent to engage in illicit sexual conduct.

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

Law enforcement authorities have been investigating Walther since January 2023 for child exploitation offenses. Two undercover officers communicated with Walther via email, phone, and an encrypted messaging app concerning Walther’s desire for sexual encounters with young children. During the investigation Walther sent an undercover officer two videos, each of which depicted children being sexually abused. Walther also expressed his desire to engage in sexual conduct with children aged 8 to 12. On March 23, 2023, Walther traveled from Germany to New Jersey to meet the undercover officers in advance of what he believed would be a sexual encounter with one or more children at a hotel.

The charge of interstate travel with intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000. Sentencing is scheduled for April 10, 2024.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the guilty plea. He also thanked the New Jersey State Police, under the leadership of Col. Patrick J. Callahan, for its assistance.

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

 

walther.information.pdf

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 240 months in prison for his conviction on drug and weapon charges, U.S. Attorney Philip R. Sellinger announced.

Dyshawn Moss, 42, of Manchester, New Jersey, was convicted on Oct. 27, 2022, following a four-day trial before U.S. District Judge Michael A. Shipp on five charges: possession with intent to distribute fentanyl, possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Judge Shipp imposed the sentence today in Trenton federal court.

According to documents in this case and evidence at trial:

On May 24, 2019, law enforcement agents went to arrest Moss outside of his apartment building in Manchester, New Jersey. Inside his apartment, Moss possessed over 1,000 grams of fentanyl, over 1,300 grams of heroin, and over 2,600 grams of cocaine; drug-packaging materials; over $150,000 in cash; and a 9mm Taurus handgun loaded with 10 rounds of ammunition. 

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

U.S. Attorney Sellinger credited members of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, with the investigation leading to the conviction.

The government is represented by Assistant U.S. Attorneys Vera Varshavsky and Olta Bejleri of the Criminal Division in Newark.

TRENTON, N.J. – A New York man today admitted evading personal income taxes for the tax years 2016 through 2018, U.S. Attorney Philip R. Sellinger announced.

Khuram Raja, 37, of Locust Valley, New York, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count of tax evasion.

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

During tax years 2016, 2017, and 2018, Raja owned and operated a company that provided construction and building services. Raja earned income from the company, and filed business tax returns for the company for tax years 2016 and 2017 that materially understated the company’s income. Raja failed to report certain taxable income that the company received in cash and checks cashed at check-cashing facilities, and deducted expenses from the company’s reported income that included certain personal expenses that were not, in fact, expenses of the company. Raja failed to file business tax returns for tax year 2018 by the applicable deadline. Raja did not file personal income tax returns for tax years 2016, 2017, and 2018 by the applicable deadlines, and failed to report the income from the company that would have flowed through to his personal income tax returns. As a result of this conduct, Raja evaded $543,815 in personal income taxes for tax years 2016, 2017, and 2018.

The charge of tax evasion carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross pecuniary gain or loss, whichever is greatest.  Sentencing is scheduled for April 16, 2024.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s guilty plea.

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

 

rajainformation.pdf

NEWARK, N.J. – Three New Jersey man were charged in connection with their respective roles in a series of armed robberies in Passaic County, New Jersey, in August 2022, U.S. Attorney Philip R. Sellinger announced today.

Kareem Powell, 30, of Willingboro, New Jersey, is charged by superseding indictment with two counts of Hobbs Act robbery and two counts of brandishing a firearm during and in relation to a crime of violence. Following his arrest on Nov. 21, 2023, Powell made his initial appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.

Powell’s co-defendants, Carlos Diaz, 30, and Edward Porter, 30, both of Paterson, New Jersey, previously were charged by indictment with three counts of Hobbs Act robbery and three counts of brandishing a firearm during and in relation to a crime of violence. The superseding indictment charges Diaz and Porter with an additional count of Hobbs Act robbery as well as an additional count of brandishing a firearm during and in relation to a crime of violence. 

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

On the evening of Aug. 22, 2022, Powell, Diaz, and Porter robbed a Passaic bodega of several thousand dollars while pointing their guns at a victim and threatening to kill him. Later that same evening, Powell, Diaz, and Porter also robbed a Paterson business of several thousand dollars. During both robberies, Powell, Diaz, and Porter menaced customers with handguns and ordered them to lie on the ground. 

On the evening of Aug. 23, 2022, Diaz and Porter robbed a Passaic liquor store of several thousand dollars at gunpoint. While inside the store, Porter used his gun to pistol-whip a victim on the face. Later that evening, Diaz and Porter committed an additional gunpoint robbery of a business in Paterson. While inside the store, Porter pushed one victim and wrestled with a different victim, dragging the victim to the floor while attempting to take the victim’s handbag. 

Each count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be served consecutively to any other sentence imposed. Hobbs Act robbery carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard Berdnik, the Passaic Police Department, under the direction of Police Chief Luis A. Guzman, and the Paterson Police Department, under the direction of Officer in Charge Isa Abbassi, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.

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

 

powell.sindictment.pdf

TRENTON, N.J. – A Pennsylvania doctor and his wife have admitted their roles in schemes to solicit and receive kickbacks and bribes in exchange for ordering genetic tests, U.S. Attorney Philip R. Sellinger announced today.

Yitzchok “Barry” Kurtzer, 63, and his wife, Robin Kurtzer, 62, both of Monsey, New York, pleaded guilty this week before U.S. District Judge Zahid N. Quraishi in Trenton to an indictment charging them with conspiracy to violate the Federal Anti-Kickback Statute. Two of Barry Kurtzer’s employees, Amber Harris and Shanelyn Kennedy, have each pleaded guilty for their roles in the kickback scheme, and Dr. Lee Besen and Kimberly Schmidt have also each pleaded guilty for a related cash-for-genetic tests scheme. Sentencings for each of those defendants is pending.  

“The defendants admitted that they and others worked together to solicit and accept kickbacks in exchange for referring expensive tests to particular labs. Bribes and kickbacks have no place in a doctor’s office. Patients need to be sure that their doctor is acting in their interest, uncorrupted by the promise of lucrative bribes and kickbacks. This office is always ready to work with our law enforcement partners to ensure that those who violate the Anti-Kickback Statute are held accountable.”

U.S. Attorney Philip R. Sellinger

“Patients trust their doctors because those doctors swear to an oath to do no harm,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Ripping off the federal government may not have a direct impact on the patient. It does, however, erode the faith we all have in the healthcare industry, and causes costs to go up for us all. Criminals forget there is a paper trail, and our job in the FBI is to follow it until we catch the culprit.”

“When patients visit their doctor, they expect medical decisions to be made in the best interest of their health,” Tammy Tomlins, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “These defendants allowed greed to become a part of their medical decision making which the IRS and our law enforcement partners will not tolerate.”

“Kickbacks impose hidden costs on the health care system and compromise medical decision-making,” Maureen R. Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General, said. “We take allegations of kickbacks and bribery seriously, and today’s guilty pleas reflect our commitment to working with our law enforcement partners to ensure the integrity of federal health care programs."

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

Barry Kurtzer was a primary care physician with offices in the Scranton, Pennsylvania, area. Robin Kurtzer helped manage those offices. Beginning in 2018, Barry Kurtzer and Robin Kurtzer solicited and received monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The Kurtzers used their employees in the scheme, including Harris and Kennedy, who each helped collect the DNA swabs in exchange for payments to them. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Barry Kurtzer’s offices, at times behind locked doors. At one point, the Kurtzers complained that they were not getting paid enough and negotiated for higher kickbacks and bribes.

As a result of these schemes, Medicare was billed over $1.3 million for tests generated from Barry Kurtzer’s practice.

The charge of conspiracy to violate the Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 28, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Special Agent in Charge James E. Dennehy in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.

The government is represented by Assistant U.S. Attorneys George L. Brandley and Katherine Romano of the Health Care Fraud Unit.

 

kurtzer.indictment.pdf

NEWARK, N.J. – A construction company based in Old Bridge, New Jersey, admitted violating Occupational Safety and Health Administration (OSHA) standards, leading to the death of an employee, U.S. Attorney Philip R. Sellinger announced today.

Zona Roofing LLC (Zona Roofing), via its owner Yilbert Segura, pleaded guilty on Nov. 20, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court to an information charging it with one count of willfully violating OSHA standards by failing to provide fall protection and fall protection training to employees engaged in the replacement of a residential roof, which caused the death of an employee. 

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

On Aug. 6, 2019, Segura and four employees began a roof replacement project on a residential home located in Haledon, New Jersey. Despite working more than 20 feet from the ground, employees for Zona Roofing were not equipped with any personal fall protection equipment, such as safety harnesses, lanyards, tie-off ropes, guard rails, safety nets, or other feasible means of fall protection. None of the employees had received fall protection training to recognize the hazards of falling or the procedures to be followed to minimize those hazards.

On Aug. 8, 2019, while working on the roof, one of Zona Roofing’s employees lost his balance and fell approximately 22 feet to the ground, sustaining blunt force injuries to his head that resulted in his death. The employee was not equipped with any fall protection gear, and he had not received any fall protection training. Zona Roofing was previously cited by Maryland OSHA in February 2019 for failing to provide fall protection to its employees.

If the court accepts the terms of the plea agreement, Zona Roofing will be sentenced to five years of probation and will pay restitution of $75,000 to the employee’s family members. Zona Roofing must also follow specified conditions, including providing training procedures to all its employees and a requirement to follow enhanced safety provisions for future construction jobs. Sentencing is scheduled for March 25, 2024.

U.S. Attorney Philip R. Sellinger credited special agents of the U.S. Department of Labor, Office of the Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; Daniel Hennefeld, Counsel for Occupational Safety and Health, Office of the Solicitor of Labor, Region 2, and OSHA Compliance Officers with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Garrett Schuman of the Criminal Division in Newark.

 

zonaroofing.information.pdf

TRENTON, N.J. – A Florida man admitted 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 today.

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

“The defendant admitted falsifying documents to obtain millions of dollars from government programs that were intended to provide financial help to Americans who were struggling to cope with the COVID-19 pandemic. My office continues to work with all of our law enforcement partners to find and punish those who take advantage of these vital programs.”

U.S. Attorney Philip R. Sellinger

“The defendant’s abuse of a program designed for those in need is appalling,” Tammy Tomlins, Special Agent in Charge of the Newark Field Office, said. “Today’s plea demonstrates the significant consequence for fraudulently accessing government programs to steal from taxpayers. IRS Criminal Investigation and our law enforcement partners are committed to protecting the integrity of relief programs.”

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.

The charge of wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The charge of money laundering carries a maximum penalty of 20 years in prison and a maximum fine of $500,000, or twice the value of the monetary instrument or funds involved in the laundering offense, whichever is greater. Sentencing is scheduled for April 9, 2024.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; 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, under the direction of Special Agent in Charge Sharon MacDermott; 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.

 

awad.information.pdf

NEWARK, N.J. – A New York man was sentenced to 24 months in prison for assaulting a female passenger on a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced today.

Ryan Manuella, 30, of Cheektowaga, New York, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to assault with intent to commit another felony, namely, stalking, while on an airplane. Manuella was ordered detained without bond. Judge Wigenton imposed the sentence on Nov. 16, 2023, in Newark federal court.

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

On a flight from Denver, Colorado, to Newark, on April 16, 2021, Manuella moved to a vacant seat next to a female passenger and touched the passenger without her consent. Manuella admitted the victim then yelled at him and left the row of seats. He admitted that touching the victim caused her substantial emotional distress.

In addition to the prison term, Judge Wigenton sentenced Manuella to three 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, and officers of the Port Authority Police Department with the investigation leading to the sentencing.

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

TRENTON, N.J. – A Monmouth County, New Jersey, man was convicted on five counts of tax evasion for his role in a $39 million investment fraud, U.S. Attorney Philip R. Sellinger for the District of New Jersey announced today.

Joseph Cammarata, 49, of Monmouth Beach, New Jersey, was found guilty on Nov. 15, 2023, on five counts of tax evasion following a two-week trial before U.S. District Judge Peter G. Sheridan in Trenton federal court. Cammarata was previously convicted in the Eastern District of Pennsylvania of conspiracy to commit wire fraud and mail fraud, wire fraud, money laundering conspiracy, and money laundering in connection with this scheme. He was sentenced to 10 years in prison on those charges.

“This defendant has now been convicted by two separate juries of serious crimes. First, he was convicted by a jury in Philadelphia federal court for his role in a scheme to defraud investors out of millions of dollars. Now, a Trenton jury has convicted him of hiding from the IRS the more than $16 million he pocketed as he tried to avoid paying his fair share of taxes. Cammarata will now be held to account for his crimes at sentencing.”

U.S. Attorney Philip R. Sellinger

“Last year, a jury in the Eastern District of Pennsylvania found that Cammarata and his partners engaged in a multi-year fraud in order to steal over $40 million,” U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania said. “Cammarata then concealed more than $16 million of his proceeds of that fraud from the IRS. The verdict in the New Jersey case makes clear that those who hide income gained by fraud will face the same consequences as those who try to evade their tax obligations from legal sources of income. Thanks to the dedicated efforts of the investigators and prosecutors on this case, this defendant has been brought to justice for the full scale of his criminal conduct.”

“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “Mr. Cammarata and his partners stole millions from his victims. IRS Criminal Investigation Special Agents are committed to working with our law enforcement partners to hold account fraudsters like the defendant.” 

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

Cammarata and two conspirators, David Punturieri and Erik Cohen, were the principals of Alpha Plus Recovery, a claims aggregator firm based in Old Bridge, New Jersey. Punturieri and Cohen previously pleaded guilty to tax evasion, fraud, and money laundering charges.

Cammarata, Punturieri, and Cohen used Alpha Plus Recovery to make false and fraudulent claims on the proceeds of securities fraud class action settlements and SEC enforcement actions. They falsely claimed that corporate clients of Alpha Plus Recovery had purchased shares of securities that were the subject of the lawsuits and enforcement actions. In reality, the supposed clients, which were entities actually controlled by the defendants, had not purchased the subject securities and were not entitled to any recovery from the settlements or enforcement actions. To substantiate their false claims, the defendants created fraudulent brokerage and other financial documents to provide to claims administrators. Cammarata and his partners then transferred the fraudulently obtained funds into accounts that they controlled, stealing more than $39 million from 2015 to 2019.

Cammarata’s share of the illegally obtained fraud proceeds amounted to more than $18 million. Cammarata failed to declare or pay taxes on income of $1.72 million in 2015; $2.56 million in 2016; $4.82 million in 2017; $3.56 million in 2018; and $3.35 million in 2019. Cammarata hid this income, which he received through corporate entities, from his accountant in order to conceal these sums from the IRS.

Each count of tax evasion is punishable by up to five years in prison. Sentencing has not yet been scheduled.

U.S. Attorney Sellinger credited special agents of the IRS, under the direction of Special Agent in Charge Tomlins, Special Agents of the FBI, under the direction of Acting Special Agent in Charge Richard Langham, and U.S. Postal Inspectors, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea. He also thanked the SEC, for the assistance provided by its Enforcement Division.

The government is represented by Assistant U.S. Attorneys David Ignall and Paul Shapiro of the Eastern District of Pennsylvania.

NEWARK N.J. – A Middlesex County, New Jersey, man admitted that he conspired to illegally obtain over $400,000 in COVID-19 unemployment benefits, U.S. Attorney Philip R. Sellinger announced today.

Christopher Valerio, 33, of Perth Amboy, New Jersey, pleaded guilty on Nov. 16, 2023,  before U.S. District Judge Robert Kirsch to an information charging him with one count of conspiracy to commit wire fraud. Valerio’s conspirator, Yanira Abreu, 42, of Keasby, New Jersey, pleaded guilty on Sept. 12, 2023, on charges stemming from the same scheme. A third conspirator, Jose Tavares, 35, of New York, is charged by complaint and his case remains pending.

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

From July 2020 through February 2021, Valerio, Abreu and others submitted false and fraudulent applications for unemployment insurance benefits to the New York Department of Labor (NYDOL) through fictitious online profiles that they created using personally identifiable information, including names, dates of birth, and Social Security numbers, of other individuals without their consent. Once the NYDOL processed and approved the fraudulent applications, Valerio and his conspirators obtained debit cards with illegally obtained funds totaling $444,738, which they used for personal gain. 

The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for March 19, 2024.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso; special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.  

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 government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.

The charges and allegations against Tavares are merely accusations, and Taveras is presumed innocent unless and until proven guilty.

 

cvalerio.information.pdf

NEWARK, N.J. – Four Philadelphia men were charged for their roles in a conspiracy to burglarize approximately 55 United Parcel Service (UPS) warehouses across the United States, resulting in the theft of approximately $1.6 million worth of merchandise, U.S. Attorney Philip R. Sellinger announced today.

Aboudramane Karamoko, 20, Sekou Fofanah, 20, Shamaire Brown, 19, and Quamaire Brown, 19, all of Philadelphia, were charged by complaint in the District of New Jersey with one count of conspiracy to commit cargo theft. Karamoko was arrested on Nov. 15, 2023, in State College, Pennsylvania, and had his initial appearance in the Middle District of Pennsylvania on Nov. 15, 2023. Fofanah, Shamaire Brown, and Quamaire Brown were arrested on Nov. 16, 2023, in Philadelphia and had their initial appearances in the Eastern District of Pennsylvania. All four defendants were detained.

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

From January 2021 through April 2023, the defendants and others conspired to commit burglaries of UPS facilities throughout the United States, including warehouses in New Jersey, New York, Pennsylvania, Indiana, and Rhode Island. The four defendants and their conspirators would enter a targeted UPS facility – usually from late Saturday night into Sunday morning – by breaking the window of the loading bay door or by prying the loading bay door up so that a conspirator smaller in stature could squeeze through. Once inside, the defendants and their conspirators would look for parcels marked with “lithium-ion battery” warnings, which indicated that they contained high-value electronic devices, such as a cell phone. The defendants and their conspirators would take the packages, which typically contained Apple products or other electronic devices, and would then flee by vehicle or on foot when law enforcement arrived. On at least one occasion, the defendants also stole a firearm from a UPS warehouse.

The charge of conspiracy to commit cargo theft carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the charges. He also thanked the South Brunswick Police Department; Warwick, Rhode Island, Police Department; Clarkstown, New York, Police Department; Livonia, Michigan, Police Department; State College Police Department; New York State Police; Fulton County Sheriff’s Office; Homeland Security Investigations Philadelphia; Homeland Security Investigations New England; New Jersey State Police; Philadelphia Police Department; Pennsylvania State Police; Ohio State Highway Patrol; Taylor Police Department; Brookfield Police Department; Summit County Prosecutor’s Office; and Centre County District Attorney’s Office, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Jake A. Nasar and Sophie Kaiser of the General Crimes Unit in Newark.

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

 

karamokoetal.complaint.pdf

CAMDEN, N.J. – A Burlington County, New Jersey, man admitted participating in schemes to negotiate fraudulent checks with forged signatures and to launder money from another fraud scheme, U.S. Attorney Philip R. Sellinger announced today.

Eugene Koranteng, 30, of Medford, New Jersey, pleaded guilty on Nov. 16, 2023, before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of bank fraud conspiracy and one count of money laundering conspiracy.

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

Koranteng conspired with Misty Sarfo-Adu, Emmanuel Yirenkyi, and others to commit bank fraud by obtaining blank checks containing the names and account information of unsuspecting customers of a credit card company. They made the checks payable to members of the conspiracy, forged the customers’ signatures on the checks, and negotiated the checks at financial institutions. Koranteng admitted that the bank fraud conspiracy caused an actual loss of at least $95,000.

Koranteng also conspired to launder the proceeds of a separate fraud scheme. Koranteng used his personal bank account to negotiate checks that constituted the proceeds of unlawful activity. Koranteng then converted the fraud proceeds to cash to conceal and disguise the nature, location, source, ownership, and control of the proceeds. Koranteng admitted that he laundered at least $47,000.

The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million. The count of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison and a fine of up to $500,000. Sentencing is scheduled for March 21, 2024.

Sarfo-Adu and Yirenkyi previously pleaded guilty before Judge Kugler to their participation in the same bank fraud conspiracy. 

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Michael Alfonso, with the investigation leading to the guilty plea. U.S. Attorney Sellinger also thanked the Moorestown Police Department for its assistance in the investigation.

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

 

koranteng.information.pdf

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced to 12 months and one day in prison for defrauding New Jersey state health benefits programs out of millions of dollars by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced today.

Corey Sutor, 42, of Egg Harbor Township, New Jersey, formerly a Ventnor City firefighter, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit health care fraud. Judge Kugler imposed the sentence on Nov. 13, 2023, in Camden federal court.

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

Compounded medications are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are 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.

Sutor was one of the owners of a company formed to market prescription compounded medications. From May 2015 through February 2016, Sutor and others associated with the company persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications. 

The conspirators learned that certain compound medication prescriptions – including pain, scar, and antifungal creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also learned that the New Jersey State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents, would cover compound medication prescriptions.  

Sutor and his conspirators entered into an agreement in which Sutor’s company would receive a percentage of the amounts paid to compounding pharmacies for prescriptions secured by Sutor and his conspirators. Sutor and his conspirators then recruited public employees, offered them hundreds of dollars per month, and persuaded them to agree to obtain prescription compounded medications they did not need without any physical examination by a medical professional. Sutor would obtain insurance and personal information from the public employees and give that information to conspirators.  Sutor’s company then would receive a percentage of the amounts paid on these fraudulent prescriptions, which Sutor and others would divide. 

Sutor and his conspirators caused New Jersey to pay more than $2 million in fraudulent claims for compounded medications for public employees.

Sutor received $150,398 in gross proceeds for his role in the scheme.

In addition to the prison term, Judge Kugler sentenced Sutor to two years of supervised release. As part of his plea agreement, Sutor must forfeit his criminal proceeds and pay restitution of at least $2.09 million.

Attorney for the United States Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.

The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Daniel Friedman of the U.S. Attorney’s Office in Camden.

CAMDEN, N.J. – An Atlantic City woman today admitted engaging in a fraudulent scheme through which she defrauded elderly victims of over $100,000, U.S. Attorney Philip R. Sellinger announced today.

Victoria Crosby, 46, of Atlantic City, New Jersey, pleaded guilty on Nov. 16, 2023, before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging her with wire fraud.

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

Crosby used a prepaid cellular phone to contact victims whose spouses or family members recently died. Many of the victims were over the age of 70 and their spouses had recently passed away. Crosby used fictitious names and purported to be employees of either a retirement benefit office and/or a life insurance company. Victims were told that life insurance policies, obtained by their deceased family member and for which they were the beneficiary, were in arrears and that in order to correct the underpayment, victims needed to pay thousands of dollars in arrearages. Victims were instructed to purchase prepaid cards at various retailers and provide the caller with the 10-digit codes on the back. The money was loaded on the prepaid cards at the time of purchase, which are linked to an online account so the owner of the cards can manage their account. Once Crosby had the 10-digit number, she took over the account and transferred the money from the prepaid card account to her own accounts. Crosby withdrew victim funds from various ATMs in Atlantic City, Brigantine and Absecon, New Jersey. 

Crosby also admitted that at the time that Crosby was involved in the fraud scheme, she was receiving Supplemental Security Income (SSI) Benefits from the Social Security Administration and Medicaid Benefits. Crosby was also living in public housing in Atlantic City and receiving housing assistance through HUD’s Public and Indian Housing Program.

Between January 2020 and December 2020, Crosby received $110,380 into her bank account. Had SSA or HUD been aware of her income, Crosby would have been ineligible for SSI, Medicaid or HUD benefits.

The wire fraud count carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 28, 2024.

U.S. Attorney Sellinger credited criminal investigators of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the FBI Newark Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Christina D. Scaringi in Newark, with the investigation leading to today’s guilty plea.  He also thanked the Maryland Office of the Attorney General for its assistance.

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

 

crosby.information.pdf

NEWARK N.J. – A Sussex County, New Jersey, man was sentenced to 36 months in prison for defrauding several financial institutions and illegally obtaining more than $2 million in COVID-19 funding meant to help small businesses impacted by the pandemic, U.S. Attorney Philip R. Sellinger announced today.

John Jhong, 54, of Sparta, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of bank fraud, money laundering, and misuse of a Social Security number. Judge Wigenton imposed the sentence on Nov. 15, 2023, in Newark federal court.

“The defendant took money from government programs that were established to provide financial assistance to Americans who were struggling to cope with the COVID-19 pandemic. The sentence handed down today is his reward for attempting to turn these vital relief programs into his personal ATM. We will continue to work with our law enforcement partners to find and punish those who have tried to take advantage of the federal government.”

U.S. Attorney Philip R. Sellinger

“The theft of taxpayer funds is inexcusable,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “IRS Criminal investigation will hold accountable anyone who steals from government programs intended to help those in need.  We remain committed to working with our law enforcement partners to ensure fraudsters are brought to justice. Today’s sentence punishes the defendant’s criminal conduct and should serve as a significant deterrent to others who would selfishly steal from their fellow citizens to unlawfully enrich themselves.”

“Ensuring the Postal Service is not being used to perpetuate frauds against the U.S. Government, or its citizens, is one of our top priorities,” Christoper A. Nielsen, Inspector in Charge, Philadelphia Division, said. “The Postal Inspection Service will continue to investigate CAREs Act fraud schemes through our participation in the NJ COVID-19 Fraud Enforcement Strike Force.”

“Today the defendant in this case was brought to justice for fraudulently obtaining more than $2 million in COVID-19 relief funding that was designed to assist struggling businesses during the pandemic,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) saod. “The FDIC OIG will continue to work with our law enforcement partners to investigate and hold accountable those who took advantage of pandemic relief programs and threatened to undermine the integrity of our Nation’s financial institutions.”

“As the nation was struggling with the damaging effects of the pandemic, Mr. Jhong callously attempted to deceive lenders and fraudulently secure Paycheck Protection Program loans by knowingly misusing several Social Security numbers,” Gail S. Ennis, Inspector General for the Social Security Administration, said. “I thank the investigating agencies and the U.S. Attorney’s Office for their efforts in holding Mr. Jhong accountable for these crimes.”

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

Jhong submitted numerous fraudulent loan applications in which he sought over $15 million in federal pandemic aid and illegally obtained $2 million of that money. Jhong used false and fraudulent tax returns, government forms, and other people’s names and documents, including Social Security numbers of individuals who were deceased for over a decade. He spent his ill-gotten gains on personal expenses.

In addition to his prison sentence, Judge Wigenton ordered three years of supervised release and restitution of $2.13 million.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of U.S. Postal Inspection Service, under the direction of Inspector in Charge Nielsen, Philadelphia Division; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; 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. Secret Service, under the direction of Special Agent in Charge Jose Riera. He also thanked the Sparta Township Police for their assistance.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorney Chad M. Davis of the U.S. Department of Justice’s Criminal Division, Money Laundering and Asset Recovery 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.

NEWARK N.J. – A Middlesex County, New Jersey, woman was arrested on charges that she fraudulently obtained Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) funds and unemployment insurance benefits totaling $694,212, U.S. Attorney Philip R. Sellinger announced today.

Damaris Valerio, 41, of Perth Amboy, New Jersey, is charged by complaint with one count of wire fraud and one count of money laundering. She made her initial appearance on Nov. 15, 2023, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $100,000 unsecured bond.

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

From April 2020 through December 2021, Valerio fraudulently obtained $694,212 in COVID-19 emergency relief funds, which included loans and cash advances meant for distressed small businesses under the EIDL program and PPP and unemployment insurance benefits meant for unemployed workers, by submitting false and fraudulent applications inflating her business’ revenue, payroll expenses, and number of employees. After receiving the fraudulent funds, she diverted virtually all of the proceeds for her personal gain.

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

U.S. Attorney Sellinger credited special agents of the of the Department of Homeland Security Investigations, under the direction of Acting Special Agent in Charge Michael Alfonso, special agents of U.S. Department of Labor, Office of Inspector General, Northeast Region under the direction of Special Agent in Charge Jonathan Mellone, and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.

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

 

valerio.complaint.pdf

NEWARK, N.J. – A former broker and investment advisor was indicted for stealing more than $3 million from five clients, U.S. Attorney Philip R. Sellinger announced today.

Kenneth A. Welsh, 42, of River Edge, New Jersey was indicted by a federal grand jury on Nov. 15, 2023, on four counts of wire fraud and one count of investment advisor fraud. He will be arraigned at a date to be determined.

“As alleged in the indictment, this defendant used his position as an investment advisor to gain the trust of his victims and then exploited that trust. Investors need to know that the advice they are getting from their financial advisors is sound, and that they can trust them to do the right thing with their hard-earned money. My office is committed to prosecuting those that abuse that trust to enrich themselves.”

U.S. Attorney Philip R. Sellinger

“We put our faith in several occupations during the course of our lives because we don't necessarily have the expertise they do, such as doctors, lawyers and investment advisors,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Some of those professionals violate that trust, and we allege that's what Welsh did when he stole millions from his clients. Our laws protect the general public from fraudsters, and the FBI Newark is responsible for bringing these criminals to justice.”

According to documents filed in this case:

From July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $3 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control.

Each of the wire fraud counts 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. The investment advisor fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the indictment.

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 indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

 

welsh.indictment.pdf

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

Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 60, of Kingston, Pennsylvania, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 14, 2023, to an information charging him with one count of conspiracy to commit bank fraud and one count of money laundering.

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

U.S. Attorney Philip R. Sellinger

“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation Newark Field Office. “Let today’s plea serve as a proof of the commitment of IRS-CI and our law enforcement partners dedication to vigorously pursue those who took advantage of government programs intended to provide financial assistance to Americans in need during the COVID-19 pandemic.”

 “The CARES Act was created to assist to American citizens and businesses that were impacted financially by the COVID-19 Pandemic,” Christopher A. Nielsen, Inspector in Charge, Philadelphia Division, said. “However, as alleged, Darryl Young, and his co-conspirators, manipulated this critical lifeline through a sophisticated scheme that fraudulently obtained millions of dollars in Paycheck Protection Program (PPP) loans.  Postal Inspectors will continue to work with the U.S. Attorney’s Office, and our law enforcement partners, to identify and hold accountable, those individuals who steal pandemic relief to fulfill their own greed.” 

“Mr. Young admittedly obtained money from the Paycheck Protection Programs intended to assist those with critical needs during the pandemic,” Gail S. Ennis,  Social Security Administration Inspector General, said. “His criminal actions allowed him and his fellow conspirators to selfishly profit. We will continue to collaborate with our law enforcement partners to hold those accountable who misuse Social Security numbers, falsify documents, and fraudulently obtain access to federal benefit programs. I appreciate the collective efforts of the investigating agencies and the U.S. Attorney’s Office for prosecuting this case.”    

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

“Today, Darryl Duanne Young admitted his role in stealing nearly $5 million in relief funds intended to support small businesses impacted by the COVID-19 global pandemic,” Homeland Security Investigations (HSI) Newark acting Special Agent in Charge Michael Alfonso said. “This is an egregious case of an individual taking advantage of an unprecedented public health crisis for personal gain. HSI Newark and our law enforcement partners will aggressively pursue those who perpetrate these illicit schemes and see that they are brought to justice.”

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

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

The applications Young submitted each allegedly contained fraudulent representations to the lender – including a victim lender that was a member bank of the Federal Home Loan Bank system – including bogus federal tax documents. According to IRS records, none of the purported tax documents that Young submitted in support of the loan applications were ever in fact filed with the IRS. Based on Young’s misrepresentations, loan applications for his purported businesses and the purported businesses of other applicants were approved for approximately $4.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses.

The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The charge of money laundering carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. As part of his guilty plea, Young agreed to make restitution to the victim lenders for the full amount of the fraudulent PPP and EIDL loans.  Sentencing is scheduled for March 18, 2024.

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

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

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

NEWARK, N.J. – An owner of several New Jersey businesses was charged with fraudulently obtaining over $3.2 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Philip R. Sellinger announced today.

Daniel Dadoun, 47, formerly of South Plainfield, New Jersey, and who holds French, Canadian and Israeli passports, was charged by complaint with four counts of bank fraud and two counts of transacting in criminal proceeds. Dadoun made his initial appearance on Nov. 13, 2023, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.

“The allegations in this complaint describe the falsifying of documents in order to secure loans and then submitting fraudulent documents to have those loans forgiven. These programs were designed to help Americans struggling through the pandemic. Our office will combat this type of fraud whenever we encounter it.”

U.S. Attorney Philip R. Sellinger

“Daniel Dadoun is alleged to have engaged in COVID-19 Paycheck Protection Program (PPP) fraud for personal gain without any regard for the United States taxpayer and undermined the public trust in government programs,” Homeland Security Investigations (HSI) Newark Acting Special Agent in Charge Michael Alfonso said. “HSI takes allegations of fraud seriously and will continue to pursue these crimes vigorously.”

“It is not only alleged that Dadoun defrauded the Paycheck Protection Program by submitting false loan applications, but he anted up the game by submitting fraudulent loan forgiveness applications,” Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York, said. “Dadoun may have known how to work the benefit system for his own financial gain, but now it’s law enforcement and the judicial system that will work to hold him accountable for his crimes.”

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

From April 2020 through August 2022, Dadoun engaged in a scheme to illegally obtain over $3.2 million in PPP loans on behalf of businesses located in New Jersey by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications. The loan applications misrepresented information about the companies, including the number of employees and payroll expenses. In support of the loan applications and subsequent applications for loan forgiveness, Dadoun submitted falsified tax documents, altered and falsified bank statements, an altered and falsified lease agreement, and a false letter purportedly signed by a New Jersey accountant.

The charges of bank fraud each carry a maximum penalty of 30 years in prison and a maximum fine of $1 million, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The charges of transacting in criminal proceeds each carry a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, or twice the amount of criminally derived property involved in the transaction, whichever is greatest.

U.S. Attorney Sellinger credited special agents Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Alfonso; special agents of IRS – Criminal Investigation, New York Field Office, under direction of Special Agent in Charge Thomas M. Fattorusso Jr.; special agents of the Social Security Administration – Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon Mac Dermott; 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; and the Canada Revenue Agency with the investigation leading to the charges.

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

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

 

dadoun.complaint.pdf

CAMDEN, N.J. – A Middlesex County, New Jersey, man was sentenced today to 15 months in prison for transmitting via the internet a manifesto containing threats to attack a synagogue and Jewish people, U.S. Attorney Philip R. Sellinger announced.

Omar Alkattoul, 19, of Sayreville, New Jersey, previously pleaded guilty to an information charging him with one count of transmitting a threat in interstate and foreign commerce on or about Nov. 1, 2022. U.S. District Judge Christine P. O’Hearn imposed the sentence today in Camden federal court.

“This defendant admitted using social media to send a manifesto containing a threat to attack a synagogue based on his hatred of Jews. This prompted a state-wide alert and put the community on edge. No one should be targeted for violence or with acts of hate because of how they worship. Protecting our communities of faith and places of worship is at the heart of this office’s mission. The sentence that was imposed today holds this defendant accountable for his hateful words.”

U.S. Attorney Philip R. Sellinger

“Threatening someone's life because of who they are or what they believe is simply unacceptable in civilized society,” FBI -Newark Special Agent in Charge James E. Dennehy said. “Alkattoul admitted to breaking the laws we enforce to protect our communities from hate and threats of violence. Now more than ever, the FBI and our law enforcement partners need the public's help reporting anything they see, so the threats don't turn into physical attacks.”

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

On Nov. 1, 2022, Alkattoul used a social media application to send an individual a link to a document entitled “When Swords Collide” and admitted to this individual that he wrote the document. He admitted targeting a synagogue. He stated in the document: “It’s in the context of an attack on Jews.” According to a second individual, Alkattoul also sent the document to at least five other people using another social media application.

In addition to the prison term, Judge O’Hearn sentenced Alkattoul to three years of supervised release.

U.S. Attorney Sellinger credited special agents and task force officers with the Newark FBI Joint Terrorism Task Force, under the direction of Special Agent-in-Charge Dennehy, with the investigation leading to today’s guilty plea. He also thanked agents of the FBI Field Office in Tampa, Florida, under the direction of Special Agent in Charge David Walker; the FBI Field Office in New York, under the direction of Assistant Director in Charge James Smith; and the FBI Washington Field Office, under the direction of Assistant Director in Charge David Sundberg; as well as the New Jersey Office of the Attorney General, under the direction of Attorney General Matthew J. Platkin; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and officers of the Sayreville Police Department, under the direction of Chief Daniel Plumacker.

The government is represented by Christopher Amore, Chief of the U.S. Attorney’s Office’s General Crimes Unit, and Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit, with assistance from the U.S. Department of Justice’s Counterterrorism Section of the National Security Division. 

On Veterans Day, the nation joins together to honor veterans of the United States Armed Forces. The U.S. Attorney’s Office will use every tool at its disposal to protect the rights of the men and women who have made tremendous sacrifices to defend our freedoms.

Earlier this year, we issued findings that the residents of the New Jersey Veterans Memorial Homes at Menlo Park and Paramus faced unreasonable harm and risk, in violation of the U.S. Constitution, and we are now working to ensure that the veterans and their families receive the care that they so richly deserve. We also protected the rights of active duty servicemembers when we sued a housing provider who we alleged charged servicemembers – who were simply following orders to relocate for a permanent change of station – exorbitant lease termination fees. We were pleased that the lawsuit resulted in an agreement from the defendant to end that illegal practice and compensate the impacted servicemembers.

My office remains committed to protecting servicemembers and veterans across the state, and we remain very engaged in the Justice Department’s Servicemembers and Veterans Initiative.

NEWARK, N.J. – A Gloucester County, New Jersey, man was sentenced today to 21 months in prison for illegally obtaining more than $400,000 in unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced. 

Willie Carter, 24, of Paulsboro, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Reneé Marie Bumb to an information charging him with wire fraud. Judge Bumb imposed the sentence today in Camden federal court.

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

From July 2020 to October 2020, Carter submitted fraudulent unemployment insurance benefit applications to various states. These states provided, and Carter falsely obtained, more than $400,000 in unemployment insurance benefits.

In addition to the prison term, Judge Bumb sentenced Carter to three years of supervised release and ordered restitution of $469,582.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Charles A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Acting Special Agent in Charge Richard Langham in Philadelphia, and special agents of the Department of Homeland Security, Office of Inspector General, under the direction of Inspector General Joseph V. Cuffari, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – The Justice Department announced today that it plans to monitor compliance with federal voting rights laws in several jurisdictions for the Nov. 7 general election.

The department will assign federal observers to monitor the election in Union County, New Jersey, to observe the county’s compliance with the Voting Rights Act. Earlier this year, a federal court approved a consent decree to resolve the department’s claims under Section 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency in Union County. The consent decree authorizes federal observers to monitor election day activities in the county’s polling places.

For this election, the Civil Rights Division will also monitor for compliance with the federal voting rights laws on Election Day in the following jurisdictions: Pawtucket and Woonsocket, Rhode Island; Madison County and Panola County, Mississippi; and Prince William County, Virginia.

The Civil Rights Division enforces the federal voting rights laws that protect the rights of all citizens to access the ballot. The division regularly deploys its staff to monitor for compliance with the federal civil rights laws in elections in communities all across the country. In addition, the division also deploys federal observers from the Office of Personnel Management, where authorized by federal court order. 

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, the National Voter Registration Act, the Help America Vote Act, the Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act.

Civil Rights Division personnel is also available to receive complaints from the public related to possible violations of federal voting rights laws by a complaint form on the department’s website at civilrights.justice.gov/ or by telephone toll-free at 800-253-3931.

Visit www.justice.gov/crt/voting-section for more information about the Voting Rights Act and other federal voting rights laws.

More information about the federal civil rights laws is available at the Civil Rights Division’s website at justice.gov/crt.

 

spanish_version.pdf

NEWARK, N.J. – The U.S. Attorney’s Office filed a civil forfeiture action today to recover $54 million of cryptocurrency that it previously seized and is traceable to the proceeds of an illegal narcotics distribution scheme operating in and around New Jersey, U.S. Attorney Philip R. Sellinger announced.

“The civil action we are taking today seeks to recover millions of dollars of cryptocurrency, which the defendant allegedly obtained from drug sales. Whether it’s as simple as bags of cash or as sophisticated as cryptocurrency, we will take the steps necessary to seize financial gains defendants obtain from criminal activity.”

U.S. Attorney Philip R. Sellinger

“Many criminals use cryptocurrency on the darknet to operate away from the prying eyes of law enforcement,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our forfeiture action of $54 million should serve as a lesson to those who mistakenly believe we can't trace their illicit behavior or their ill-gotten proceeds. We will successfully hold all criminals responsible in the open, with real world consequences.”

According to the complaint:

From 2010 to 2015, Christopher Castelluzzo and others conspired to sell various narcotics. Around 2013, Castelluzzo and his conspirators began to sell narcotics on darknet sites in exchange for Bitcoin. Castelluzzo then used some of the Bitcoin he had earned from narcotics sales to purchase 30,000 Ether in Ethereum’s Initial Coin Offering in July 2014. Castelluzzo also received an amount of an additional cryptocurrency – 30,000 Ethereum Classic – in 2016. Castelluzzo used the additional cryptocurrency to purchase various other cryptocurrencies. The complaint seeks the forfeiture of all of the cryptocurrency Castelluzzo obtained as a result of his narcotics sales.

Castelluzzo is currently serving concurrent 20-year federal and state prison sentences for drug distribution convictions. While Castelluzzo was incarcerated as a result of these convictions, and as Ethereum increased in value, Castelluzzo plotted from prison to avoid taxes and to move the 30,000 Ether outside of the United States. Before he could do so, however, the United States learned of Castelluzzo’s efforts to launder the cryptocurrency through recorded prison telephone calls in 2021, intervened, and seized Castelluzzo’s cryptocurrency holdings traceable to his drug trafficking crimes.

Today, the value of the 30,000 Ether is approximately $54 million.

U.S. Attorney Sellinger credited members of the FBI’s Virtual Assets Unit (VAU) under the direction of Assistant Director Luis Quesada of the Financial Crimes Section of the Criminal Investigative Division; FBI Newark Atlantic City Resident Agency under the direction of Special Agent in Charge James E. Dennehy; the FBI-Denver Field division, under the direction of Special Agent in Charge Mark D. Michalek; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; the New Jersey Special Investigation Division under the direction of Timathy Gonzalez; and the Colorado Springs, Colorado, Police Department, under the direction of Chief Adrian Vasquez, with the investigation.

The government is represented by Assistant U.S. Attorneys Robert Frazer of the Organized Crime and Gangs Unit, DeNae M. Thomas of the Health Care Fraud Unit, and Jordan M. Anger of the Asset Recovery and Money Laundering Unit.

The accusations in the complaint, and the description of the complaint, constitute only allegations.

 

castelluzzo.complaint.pdf

NEWARK, N.J. – A Union County, New Jersey, man was arrested for possessing videos depicting child pornography, U.S. Attorney Philip R. Sellinger announced today.

Matthew T. Williams, 43, Westfield, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance before U.S. Magistrate Judge James B. Clark III in Newark federal court on Nov. 1, 2023, and was released on $100,000 unsecured bond.

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

From February 2023 to November 2023, Williams possessed on devices in his home videos depicting child sexual abuse, which he made available for distribution through a peer-to-peer file-sharing service. Law enforcement officers executed a search warrant of Williams’s home on the morning of Nov. 1, 2023 and discovered software open on a computer downloading child pornography. Williams had previously been convicted of sexual misconduct in New York.

The charge of possession of child exploitation material carries a minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000 or the gross pecuniary harm to victims of the offense.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, Child Exploitation Group under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to the charge. 

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

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

 

williams.complaint.pdf

NEWARK, N.J. – A Passaic County, New Jersey, attorney today admitted that he illegally obtained more than $300,000 in COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced. 

Morton Chirnomas, 61, of Clifton, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with wire fraud.

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

From May 2020 to September 2020, Chirnomas fraudulently obtained a $150,000 loan through the COVID-19 Economic Injury Disaster Loans program. He also falsely obtained $200,000 in unemployment insurance benefits using the names and identities of other people without their authorization.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Chirnomas or twice the gross loss suffered by the victims. Sentencing is scheduled for June 17, 2024.

U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; 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 plea.

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

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.

 

chirnmoas.information.pdf

NEWARK, N.J. – The owner of a marketing company located in India admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced today.

Chintan Anjaria, of India, pleaded guilty on Oct. 31, 2023, before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.   

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

From February 2017 to May 2022, Anjaria participated in a kickback and bribery scheme with orthotic brace supply companies, telemedicine companies, and testing laboratories, resulting in the submission of false and fraudulent claims to Medicare.  Anjaria controlled a marketing company in India through which he and his conspirators identified Medicare beneficiaries to target for orthotic braces and cancer genetic tests (CGX).  Employees of the company called beneficiaries and pressured them to agree to accept orthotic braces and/or CGX, regardless of medical necessity.

Anjaria and his company paid kickbacks to telemedicine companies to obtain doctor’s orders for the orthotic braces and CGX tests. Anjaria then steered the doctor’s orders to orthotic brace suppliers and testing laboratories located in the U.S., with which Anjaria and his company had additional kickback arrangements. The orthotic brace suppliers and laboratories submitted claims for reimbursement to Medicare, and thereafter sent a portion of the proceeds to Anjaria and his company as payment for the doctor’s orders generated through the conspiracy.

In total, Anjaria and his conspirators caused a loss to Medicare of more than $11.5 million.

The conspiracy to commit health care fraud count is punishable by a maximum of 10 years in prison and the conspiracy to pay illegal kickbacks 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 March 12, 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; U.S. Department of Health and Human Services Office of Inspector General, New York Regional Office, under the direction of Special Agent in Charge Naomi Gruchacz; U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Garrett J. Schuman of the Health Care Fraud Unit, Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit, and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.

 

anjaria.information.pdf

NEWARK, N.J. – A Hunterdon County, New Jersey, man has been charged with defrauding a New Jersey-based title insurance company of approximately $1.5 million, U.S. Attorney Philip R. Sellinger announced today.

Ralph Divino, 62, of Annandale, New Jersey, was indicted on two counts of wire fraud.  He appeared on Oct. 31, 2023, before U.S. Magistrate Judge James B. Clark III in Newark federal court, entered a plea of not guilty, and was released on unsecured bond.

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

From October 2018 through November 2018, Divino executed a scheme to defraud a New Jersey-based title insurance company through which he fraudulently obtained a residential property and funds exceeding $900,000. Through Divino’s scheme, the title insurance company lost approximately $1.5 million.

Divino advised the title insurance company of his purported intention to purchase two residential properties in Warren, New Jersey, and Annandale, New Jersey. Divino then falsely represented that he had wired $1.5 million for the purchase of both properties when, in fact, he never sent any funds. Divino advised the title insurance company that he no longer wished to purchase the Warren property. Relying on Divino’s false assurances that he had wired $1.5 million to the title insurance company, the title insurance company issued Divino a check for $987,000 as a refund, which Divino cashed and used to purchase personal items, including luxury cars. Divino also closed on and assumed ownership of the Annandale property, still never having provided any funds to title insurance company.

In November 2018, after the closing on the Annandale property, the title insurance company discovered that Divino had never wired any money to purchase either property. When representatives from the title insurance company asked Divino about this, Divino provided them with two checks from his purported business account totaling $1.5 million. After the bank refused to honor Divino’s checks, citing insufficient funds, Divino engaged in an email exchange with an employee of the title insurance company in which he falsely assured the employee that the checks could be used to reimburse the title insurance company, or that Divino would otherwise provide the missing funds. In truth, at the time of those communications, the business account from which Divino had issued the checks had a negative balance. Divino never reimbursed the title insurance company for the fraudulently obtained funds.

Each wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the 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 charges.

The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Cybercrime 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.

 

divino.indictment.pdf

TRENTON, N.J. – A former co-founder and top executive of an investment fund pleaded guilty today for conspiring to defraud dozens of victim investors out of $294 million in funds, U.S. Attorney Philip R. Sellinger announced.

John Hughes, 56, of Mahwah, New Jersey, pleaded guilty before U.S. District Court Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud.

“John Hughes admitted today that he orchestrated a complex and sophisticated scheme to bilk investors of their hard-earned money. Securities fraud enforcement is a top priority for this office. Investors need to be able to trust that the people who are handling their money are behaving honorably. The defendant broke that trust to enrich himself. He will now face just punishment for his crimes.”

U.S. Attorney Philip R. Sellinger

“Hughes actively led clients to believe they were investing responsibly, putting their money into low-risk funds,” Richard Langham, Acting Special Agent in Charge of the FBI’s Philadelphia Division, said. “As these lies continued and the losses mounted, he engaged in a cover-up, trying to conceal the staggering fraud. Securities schemes like this can be simply devastating for the victim investors. That’s why the FBI is committed to bringing financial fraud to light and perpetrators like Hughes to justice.”

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

Hughes co-founded Prophecy Asset Management LP (Prophecy) and worked as its chief operating officer and chief compliance officer. Prophecy solicited investments and operated funds that, at their peak, had over $360 million in assets under management. Prophecy’s other co-founder worked as its CEO and portfolio manager. From January 2015 to March 2020, Hughes conspired with his co-founder to falsely represent to investors that Prophecy employed a “first-loss” trading strategy that purportedly allocated investor money to a diverse array of traders, called sub-advisors, who were required to provide cash collateral in order to gain access to the investors’ pooled money and backstop any potential losses. Hughes and his co-founder also falsely represented to investors that if a sub-advisor began to experience trading losses that approached the amount of their required cash collateral, Prophecy would contact the sub-advisor to increase or replenish their collateral and, if necessary, suspend allocations and trading, or even terminate the sub-advisor if losses were substantial. These false claims induced victims to believe that Prophecy operated low-risk, transparent, and diversified funds.

In reality, over time, Hughes and his co-founder allocated most of the funds’ capital to a single, primary sub-advisor without requiring him to provide cash collateral to back potential losses. They also failed to suspend his allocations or trading, even though he sustained approximately $290 million in losses that far exceeded his cash collateral. Hughes and his co-founder fraudulently concealed this and other information from victim investors, causing the victims to believe their investments were far more secure than they actually were. Hughes, his co-founder, and the sub-advisor also actively covered up these spiraling losses and collateral deficiencies by using, among other things, bogus transactions and forged documents.

In turn, the sub-advisor helped Hughes and his co-founder conceal millions of dollars in losses they caused Prophecy’s funds through bad investments. They used fake documents and money that the sub-advisor provided to paper over and hide these bad investments from victim investors and Prophecy’s auditor.  

The fraud ultimately resulted in trading losses that wiped out Prophecy’s funds and caused over $294 million in losses to the victims.  

The conspiracy to commit securities fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing for Hughes is scheduled for March 21, 2024.

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

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Richard J. Langham, Philadelphia Division, with the investigation leading to today’s plea. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement.

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

 

hughes.information.pdf

NEWARK, N.J. – A clinical laboratory located in Orlando, Florida, has agreed to pay more than $1.1 million to resolve kickback allegations, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today.

Genesis Reference Laboratories LLC (Genesis) has agreed to pay $1,195,845.82 to resolve False Claims Act allegations that its marketers paid illegal kickbacks to health care providers in violation of the Anti-Kickback Statute to induce the providers’ laboratory testing referrals. Genesis has agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged scheme.

“Kickbacks have no place in our healthcare system. Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper and may violate the Anti-Kickback Statute. Our office is committed to holding responsible individuals and entities who commit and profit from health care fraud. We have pursued and will continue to pursue the laboratories who enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments by promising unjust financial enrichment.”

U.S. Attorney Philip R. Sellinger

“The payment of kickbacks by laboratories or their representatives to induce laboratory test orders undermines the integrity of federal healthcare programs,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will pursue those who offer or receive kickbacks for patient referrals regardless of how those unlawful inducements are characterized or provided.”

“Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and influence physicians’ decision-making inappropriately,” Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General said. “Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The settlement announced today resolves allegations that from 2019 to 2021, Genesis paid marketing companies Corum Group LLC, Provisional Medical Consultants LLC, and RMC Medical LLC to arrange for and recommend that health care providers in Missouri and Texas order Genesis’ laboratory tests, and the marketing companies kicked back a portion of those payments to referring health care providers, in violation of the Anti-Kickback Statute. The health care providers allegedly were paid using purported management services organizations (MSOs), which attempted to disguise the kickbacks as investment returns but actually offered the payments to health care providers to induce laboratory testing referrals to Genesis. The settlement resolves allegations that, despite knowing of the MSO kickbacks to health care providers and receiving those providers’ subsequent patient referrals, Genesis nevertheless submitted to Medicare the claims for laboratory testing ordered by those providers, in violation of the False Claims Act.

The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.

The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit, and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).

The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

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

 

genesis.settlement.pdf

Clinical laboratory Genesis Reference Laboratories LLC (Genesis), of Orlando, Florida, has agreed to pay $1,195,845 to resolve False Claims Act allegations that its marketers paid illegal kickbacks to healthcare providers in violation of the Anti-Kickback Statute to induce laboratory testing referrals. Genesis has agreed to cooperate with the Justice Department’s investigations of, and litigation against, other participants in the alleged scheme.

“The payment of kickbacks by laboratories or their representatives to induce laboratory test referrals undermines the integrity of federal healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue those who offer or receive kickbacks for patient referrals regardless of how those unlawful inducements are characterized or provided.”

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The settlement announced today resolves allegations that from 2019 to 2021 Genesis paid marketing companies Corum Group LLC, Provisional Medical Consultants LLC and RMC Medical LLC to arrange for and recommend that healthcare providers in Missouri and Texas order Genesis’ laboratory tests, and the marketing companies kicked back a portion of those payments to referring healthcare providers, in violation of the Anti-Kickback Statute. The health care providers allegedly were paid using purported management services organizations (MSOs), which attempted to disguise the kickbacks as investment returns but actually offered the payments to health care providers to induce laboratory testing referrals to Genesis. The settlement resolves allegations that, despite knowing of the MSO kickbacks to health care providers and receiving those providers’ subsequent patient referrals, Genesis nevertheless submitted to Medicare the claims for laboratory testing ordered by those providers, in violation of the False Claims Act.

“Kickbacks have no place in our healthcare system,” said U.S. Attorney Philip Sellinger for the District of New Jersey. “Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper and may violate the Anti-Kickback Statute. Our office is committed to holding responsible individuals and entities who commit and profit from health care fraud. We have pursued and will continue to pursue the laboratories who enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments by promising unjust financial enrichment.”

“Violations of the Anti-Kickback Statute can induce medically unnecessary testing and influence physicians’ decision-making inappropriately,” said Special Agent in Charge Naomi Gruchacz for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG. The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey. The United States has recovered over $36 million relating to conduct involving MSO kickbacks to health care providers, including False Claims Act settlements with 41 physicians, two laboratories, four medical practices, three healthcare executives and one office manager.

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).

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

Settlement

TRENTON, N.J. – A resident of Canada today admitted conspiring with a twice-convicted fraudster to defraud investors of more than $35 million, U.S. Attorney Philip R. Sellinger announced.

Alaa Mohamed Hattab, 35, of Ottawa, Ontario, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud. Hattab admitted conspiring with others, including Eliyahu “Eli” Weinstein, whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million.“This defendant admitted scheming with others – including Eli Weinstein – to defraud investors of millions of dollars,” U.S. Attorney Sellinger said. “Using phony identities and empty promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine, they ripped off their victims. We will continue to pursue justice for everyone involved in this case. Securities and investment fraud enforcement is a top priority of this office, and this case reflects our firm commitment to protecting investors and our markets.”

“This defendant admitted scheming with others – including Eli Weinstein – to defraud investors of millions of dollars. Using phony identities and empty promises of access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine, they ripped off their victims. We will continue to pursue justice for everyone involved in this case. Securities and investment fraud enforcement is a top priority of this office, and this case reflects our firm commitment to protecting investors and our markets.”

U.S. Attorney Philip R. Sellinger

“Fraudsters will use any and every method they can to steal as much as they can, even using a deadly war raging in Europe,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Hattab aligned himself with another well-known, twice-convicted Ponzi schemer carrying out a plan to rip off investors who thought they were helping war victims in Ukraine. The FBI warns people about these types of criminals each time there is a natural disaster or tragic event in the U.S. or around the world for this very reason. Human suffering does not deter them from seeing dollar signs.”

Two of Hattab’s conspirators, Christopher Anderson, 47, and Richard Curry, 36, previously pleaded guilty to conspiracy to commit securities fraud and are awaiting sentencing.

Charges are still pending against Hattab’s other conspirators, Weinstein, Aryeh “Ari” Bromberg, Joel Wittels, and Shlomo Erez.

Weinstein was convicted two times in New Jersey federal court for defrauding investors. His first case involved a real estate Ponzi scheme, and his second case stemmed from additional fraud Weinstein committed while on pretrial release. For these crimes, which resulted in combined losses to investors of approximately $230 million, Weinstein was sentenced to serve 24 years in prison, followed by three years of supervised release. On Jan. 19, 2021, after Weinstein had served less than eight years, the President of the United States at that time commuted Weinstein’s term to time served, leaving intact the rest of his sentence.

Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. Hattab served as a broker for Optimus and helped conceal Weinstein’s involvement in various business ventures from investors.

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

Hattab admitted that from February 2022 to July 2023, Hattab’s business partners raised money from investors to fund purported business ventures with Weinstein, including a company

called Saniton Plastic LLC. On Aug. 26, 2022, Hattab met with Curry, Anderson, Weinstein, and Bromberg at a hotel in Branchburg, New Jersey, and discussed continuing to conceal Weinstein’s identity from investors and others. Hattab admitted he became aware that Weinstein had raised money from investors for specific deals on medical supplies and baby formula and used that money for other purposes, including to fund Hattab’s business ventures. Hattab admitted he understood that information concerning Weinstein’s misappropriation from investors and others was important for investors to know, and that he agreed with others to mislead investors by not disclosing Weinstein’s misappropriations.

The count of conspiracy to commit securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for March 20, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to today’s guilty plea. He also thanked  the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.

The government is represented by Assistant U.S. Attorneys Jonathan Fayer, Emma Spiro, and Carolyn Silane of the Economic Crimes Unit in Newark.

 The charges and allegations against Weinstein, Bromberg, Wittels, and Erez are merely accusations, and they are presumed innocent unless and until proven guilty.

 

hattab.information.pdf

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division held an outreach forum yesterday on combatting religious discrimination and promoting religious liberty through enforcement of the Religious Land Use and Institutionalized Persons Act (RLUIPA).

RLUIPA is a federal law that protects persons and religious institutions from discriminatory and overly burdensome land use regulations. U.S. Attorney Philip R. Sellinger for the District of New Jersey and Deputy Assistant Attorney General Johnathan Smith of the Justice Department’s Civil Rights Division held the first of a series of public education and outreach events convened by the Civil Rights Division to ensure that communities know about their protections under RLUIPA and the work that the Justice Department is doing to enforce this important law. 

“Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. RLUIPA provides important protections for religious groups throughout New Jersey. At the same time, we will continue to use every legal authority at our disposal to bring justice to those who commit illegal acts of hate, and we will confront anti-Semitism, Islamophobia and any form of religious hatred wherever it occurs. No one in the United States of America should have to live in fear of violence or discrimination because of how they worship or where they or their family came from.”

U.S. Attorney Philip R. Sellinger

“The ability to practice one’s faith freely, and without interference, is a fundamental right, enshrined in our constitution and protected by our nation’s civil rights laws,” said Deputy Assistant Attorney General Smith. “The Justice Department is committed to protecting religious liberty. Recent events both domestically and abroad, have resulted in increasing threats to people of faith, including Jewish, Muslim, and other communities and institutions. It is in moments like this that we must refocus our efforts on protecting religious freedom for all people in our country.”

U.S. Attorney Sellinger, Deputy Assistant Attorney General Smith, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections and attorneys who have experience litigating RLUIPA cases spoke at the event. Approximately 100 members of many religious communities, including Muslim, Jewish and Christian communities, attended the event. 

For more information about the event and others the Civil Rights Division plans to hold around the country, please see the department’s RLUIPA’s website. All events are open to the public.

RLUIPA was passed unanimously by Congress and signed into law on Sept. 22, 2000, and contains provisions covering religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the Department has opened over 150 formal investigations and filed 28 lawsuits and 34 friend of the court briefs related to RLUIPA’s land use provisions, including several in the District of New Jersey. Since 2016, the U.S. Attorney’s Office has filed four lawsuits and two friend of court brief’s related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.

Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal on the Place to Worship Initiative website. 

NEWARK, N.J. – A former U.S. Army major and his wife were sentenced today for a fourth time for their respective roles in abusing their adopted children – who all were less than 4 years old and developmentally delayed – through neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Philip R. Sellinger announced.

Carolyn Jackson, 46, was sentenced to 140 months in prison and her husband, John E. Jackson, 48, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, was sentenced to 108 months in prison.

“Carolyn Jackson and John Jackson inflicted cruel and devastating abuse on three child victims over five years. The defendants’ systematic abuse was horrifying, and included physical assaults, withholding of food, water, and medical care, and forcing them to ingest hot sauce, among other inhumane treatment. Their victims were innocent and vulnerable children placed in their care, but who were treated with unimaginable cruelty. For over a decade, this Office has pursued justice for these victims whose childhoods and lives were irretrievably damaged by the defendants’ abuse. The prison sentences imposed today hold Carolyn Jackson and John Jackson accountable for their horrific crimes, and bring a measure of justice for their victims.”

U.S. Attorney Philip R. Sellinger

“We work tirelessly to seek justice for victims of the cases we investigate,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Many times, the punishments do not fit the crime. This couple abused developmentally challenged toddlers in ways that seem unimaginable and unbelievably inhumane. They are now facing the justice they deserve – and their victims deserve.”

The Jacksons were each found guilty in July 2015 following a four-month trial in Newark federal court of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child.

At the first sentencing in December 2015, Carolyn Jackson received 24 months in prison and John Jackson received probation and 400 hours of community service. The government appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which in July 2017  found several errors in the sentencing process. The defendants were resentenced on April 11, 2018, at which time Carolyn Jackson received a sentence of 40 months in prison, with credit for time served, and John Jackson received the same probationary sentence. The government appealed for a second time and the U.S. Court of Appeals vacated and remanded for another resentencing after finding errors again.

At the third sentencing hearing, Carolyn Jackson received a time-served sentence with an additional year of supervised release. John Jackson received an 18-month term of home confinement. The government appealed for a third time and the U.S. Court of Appeals vacated and remanded for a third resentencing after finding additional errors. The Court of Appeals also ordered that the case be reassigned. In April 2023, it was reassigned to U.S. District Judge Susan D. Wigenton, who imposed the sentences today.

The case falls under federal jurisdiction because the crimes were committed on a military base. John Jackson was discharged from the Army in May 2015.

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

From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.

After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.

As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries, leading to the partial amputation of one child’s finger and the near-death of another; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple. 

In addition to the prison terms, Judge Wigenton sentenced each of the defendants to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s sentencings. He also thanked the Department of the Army Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Joel Kirch; and the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll.

The government is represented by Assistant U.S. Attorneys Desiree L. Grace and John F. Romano of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – Two California men were each sentenced today to 24 months in prison for conspiring to distribute and possess with intent to distribute fentanyl and methamphetamine in New Jersey and elsewhere, U.S. Attorney Philip R. Sellinger announced.

Erik Eduardo Velazquez Bautista, 25, and Jesus Alejandro Rodriguez Velasquez, 27, both of San Diego, California, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an informations charging them with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine. Judge Martinotti imposed the sentences today in Newark federal court.

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

On Dec. 2, 2021, Velazquez Bautista and Rodriguez Velasquez were driving across the country to deliver narcotics to a purchaser in New York when they were stopped by law enforcement. Law enforcement seized approximately 20 kilograms of methamphetamine and approximately five kilograms of fentanyl. 

In addition to the prison terms, Judge Martinotti sentenced both defendants to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to today’s sentencings.

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

NEWARK, NJ. – A New Jersey-based employee of an international financial institution was arrested today for accepting bribes to facilitate millions of dollars of money laundering, U.S. Attorney Philip R. Sellinger announced.

Oscar Marcelo Nunez-Flores, 32, of North Plainfield, New Jersey, is charged by complaint with one count of money laundering conspiracy and one count of accepting bribes as an employee of a financial institution. He appeared before U.S. Magistrate Judge James B. Clark III in Newark federal court and was released on $150,000 unsecured bond.

“As alleged, Nunez corruptly exploited his position inside a bank to help launder millions of dollars in drug money in exchange for bribes. Today’s arrest shows that my office will expose and prosecute those who abuse positions of trust and seek to corrupt our financial institutions.”

U.S. Attorney Philp R. Sellinger

“The DEA will continue to work diligently to pursue and dismantle all elements from Drug Trafficking Organizations,” Special Agent in Charge for the DEA Caribbean Division Denise Foster said. “Money launderers help drug trafficking organizations flourish and poison our communities. We will continue to allocate all our law enforcement resources to make a greater impact in vulnerable areas where criminal organizations dedicated to drug trafficking are causing greater damage.”

“IRS - Criminal Investigation and our law enforcement partners will continue to work together to hold accountable and disrupt bad actors like the defendant, who allegedly accepted bribes to facilitate millions of dollars of money laundering,” Tammy Tomlins, Special Agent in Charge of IRS - Criminal Investigation Newark Field Office, said. “We are committed to protecting the integrity of our financial institutions by investigating and prosecuting individuals involved in financial crimes.”

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

Nunez works for an international financial institution, at a branch located in Scotch Plains, New Jersey. Starting in early 2022, Nunez exploited his position as a bank employee to facilitate money laundering activities in exchange for bribes. Nunez used his position and inside access to open bank accounts in the names of shell companies with nominee owners. Those accounts were then used to launder narcotics proceeds, including to Colombia. Nunez assisted the money laundering efforts by giving those who bribed him online access to the accounts, along with dozens of debit cards for the accounts that were later used to withdraw cash from ATMs in Colombia. Nunez received thousands of dollars in bribes for each account he opened.  The investigation has revealed that millions of dollars were laundered to Colombia through accounts opened by Nunez since early 2022.

The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. The charge of bank bribery carries a maximum penalty of 30 years in prison and a fine of $1 million, or three times the value of the thing given, whichever is greater.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agents in Charge Denise Foster in San Juan, Puerto Rico, David F. Reames in Seattle, Washington, and Cheryl Ortiz in Newark; special agents and task force officers of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation leading to the charges. He also thanked the U.S. Attorney’s Office for the District of Puerto Rico and the U.S. Attorney’s Office for the Western District of Washington for their assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Angelica Sinopole of the Health Care Fraud Unit in Newark and Trial Attorneys D. Zachary Adams, Chad Davis, and Chelsea Rooney of the Justice Department’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorneys Daniel J. Olinghouse (District of Puerto Rico) and Vince Lombardi (Western District of Washington) also assisted with the investigation.

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

 

nunez.complaint.pdf

NEWARK, N.J. – Two members of the Sex, Money, Murder (SMM) street gang operating in the Bradley Court Housing Complex were charged by criminal complaint with murder in aid of racketeering, conspiracy, and firearms offenses, U.S. Attorney Philip R. Sellinger announced today.

Tyler Shorter, aka “Money Bags,” aka “Bags,” 19; and Amir Canty, aka “Blast,” 20; both of Newark, are charged by complaint with one count each of conspiracy to commit murder in aid of racketeering, murder in aid of racketeering and discharging a firearm during and in relation to a crime of violence. They made their initial court appearances on Oct. 25, 2023, before U.S. magistrate Judge José R. Almonte in Newark federal court and were detained.

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

Shorter and Canty were members of the SMM street gang set operating in the Bradley Court Housing Complex, known as M-Blok. SMM is known for drug distribution in and around its controlled territory, fraud schemes, and interstate transportation of stolen property, as well as for violence against numerous rival neighborhoods and gangs. Among other things, Shorter and Canty used social media and rap music to tout the power of SMM in an effort to keep victims and rivals in fear of the gang. SMM has been involved in an escalating feud with a rival neighborhood-based gang known as GBlock, whose members are affiliated with the Grape Street Crips and operate in the area of Goodwin Avenue in Newark.

Shorter and the victim, Nyshon Anthony, were rival rappers representing their respective gangs and neighborhoods. After an exchange of threatening and disrespectful music videos and songs released between the rival gangs, on Nov. 8, 2022, Shorter allegedly shot and killed the Anthony on South Orange Avenue in Newark, with the assistance of Canty.

The murder in aid of racketeering charges are punishable by a mandatory sentence of life in prison and a potential capital punishment.

U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; detectives with the Essex County Prosecutor’s Office Homicide Task Force, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to the charges. He also thanked the Newark Police Department, under the direction of Director Fritz G. Fragé, the New Jersey State Police under the direction of Superintendent Col. Patrick J. Callahan, and the Nassau County Police Department, under the direction of Commissioner Patrick J. Ryder.

This case is part of the Violent Crime Initiative (VCI) in Newark. The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety to combat violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, New Jersey Division; the U.S. Marshals; the Newark Department of Public Safety; the Essex County Prosecutor’s Office; the Essex County Sheriff’s Office; the N.J. State Board of Parole; the Union County Jail; the N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center; the N.J. Department of Corrections; the East Orange Police Department; and the Irvington Police Department.

The government is represented by Assistant U.S. Attorney Jason Goldberg of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

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

 

shortercanty.complaint.pdf

CAMDEN, N.J. – A Pennsylvania man was sentenced to 151 months in prison for robbing two banks in Camden County, U.S. Attorney Philip R. Sellinger announced today.

Leon I. Stanford, 54, of Wilkes Barre, Pennsylvania, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with two counts of bank robbery. Judge Rodriguez imposed the sentence on Oct. 24, 2023, in Camden federal court.

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

On Feb. 22, 2020, Stanford entered the TD Bank in Oaklyn, New Jersey, and handed the bank teller a note which announced a robbery and demanded cash. The bank teller complied, and witnesses saw him depart in a white SUV. On Feb. 24, 2020, Stanford entered the Republic Bank in Cherry Hill, New Jersey, and handed the bank teller a note which announced a robbery and demanded cash. The bank teller complied, and witnesses saw Stanford depart in a white SUV.

Law enforcement officers were able to obtain a partial license plate number for the white SUV from surveillance videos in the area of both bank robberies, which generated a lead to a vehicle driven by Stanford, who was subsequently identified as the person in the bank surveillance videos. 

At the time of these bank robberies, Stanford was on federal supervised release as a result of prior bank robbery convictions, for which he served a 10-year term of imprisonment. 

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

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Richard Langham in Philadelphia; the New York/New Jersey U.S. Marshals Regional Task Force Camden Division, under the direction of U.S. Marshal Juan Mattos Jr.; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Oaklyn Police Department, under the direction of Chief Jayne Jones; and the Cherry Hill Police Department, under the direction of Chief Robert Kempf, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden. 

TRENTON, N.J. – A Mercer County, New Jersey, man was convicted of carjacking, brandishing a firearm during the carjacking, two attempted carjackings resulting in serious bodily injury, and possession of a firearm by a convicted felon, U.S. Attorney Philip R. Sellinger announced today.

Cedrick Hodges, 40, of Trenton, New Jersey, was convicted on Oct. 24, 2023, of all five counts of a second superseding indictment following a seven-day trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court.

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

On the evening of Dec. 16, 2017, Hodges entered the rear passenger seat of a Toyota Camry and pointed a loaded sawed-off shotgun at the driver, demanding that she operate the vehicle while Hodges entered the rear seat. The driver exited the vehicle and ran, in response to which Hodges discharged the shotgun towards her as she fled.

Moments later, Hodges approached a Honda Accord occupied by a driver and one passenger. Hodges pointed the shotgun at the driver’s window demanding that the driver and passenger exit the vehicle. When the driver refused, and instead began to drive the vehicle away from Hodges, Hodges discharged the firearm into the driver’s side window, striking the driver in his torso, causing permanent and serious bodily injury. 

Hodges fled the area and several minutes later approached a man who was entering a Nissan Rogue. Hodges demanded that the man hand Hodges the keys to the Nissan Rogue.  When the man refused, Hodges brandished the shotgun and discharged the firearm at the man, causing permanent and serious bodily injury. 

The count of carjacking carries a maximum potential sentence of 15 years in prison. The counts of attempted carjacking resulting in serious bodily injury each carry a maximum potential sentence of 25 years in prison. The count of brandishing a firearm during a crime of violence is punishable by a mandatory minimum of seven years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges. The possession of firearm by a convicted felon carries a maximum sentence of 10 years in prison. Sentencing has not yet been scheduled.

U.S. Attorney Sellinger credited 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; the Hamilton Township Police Department, under the direction of Chief of Police Kenneth R. DeBoskey; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to the guilty verdict. 

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 330 months in prison for his role in a January 2021 gunpoint robbery of a cell phone store in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Kenneth Graham, 50, of Newark, was convicted of one count of Hobbs Act robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Graham was convicted following a one-week trial before Senior U.S. District Court Judge William J. Martini, who imposed the sentence on Oct. 25, 2023, in Newark federal court. 

According to court documents and the evidence presented at trial: 

On Jan. 18, 2021, Graham was in the cell phone store when he pulled out a gun and pointed it at a store employee. He ordered the employee to place several cell phones from the display case and cash from the register into a bag. Video surveillance footage near the store showed Graham enter a black Nissan Altima after the robbery and drive away. A witness confirmed that Graham was the person entering the Nissan Altima after robbing the store.

Historical cell phone records indicate that Graham’s cellular telephone was in East Orange near the store around the time of the robbery, and photographs on Graham’s cell phone showed Graham wearing a sweatshirt with a distinct logo. In the video surveillance footage from the robbery, Graham wore that same sweatshirt.

In addition to the prison term, Judge Martini sentenced Graham to five years of supervised release and ordered him to pay restitution of $2,773.

U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the East Orange Police Department, under the direction of Chief Phyllis Bindi, with the investigation leading to the sentencing. 

The government is represented by Assistant U.S. Attorneys Benjamin Levin and Jennifer S. Kozar of the Criminal Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 27 months in prison for conspiring to commit wire fraud and wire fraud in connection with an online romance scam, U.S. Attorney Philip R. Sellinger announced today.

Mahmoud Bowler, 40, of Newark, was convicted on April 13, 2023, of one count of conspiracy to commit wire fraud and four counts of wire fraud following a four-day trial before U.S. Circuit Court Judge Joseph A. Greenaway Jr., sitting by designation to hold a District Court trial within the Circuit. U.S. District Judge Brian R. Martinotti imposed the sentence on Oct. 24, 2023, in Newark federal court.

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

From February 2015 through June 2019, Bowler and a conspirator participated in an online romance scheme. Bowler’s conspirator created a fraudulent profile on an online dating site and then pretended to strike up a romantic relationship with a woman living in Florida. In the online profile, Bowler’s conspirator falsely represented that he, and a company he owned, had been awarded multimillion-dollar oil contract. After establishing a virtual romantic relationship with the victim, the conspirator repeatedly solicited alleged loans from the victim, claiming that he could not access his own accounts because a foreign government had frozen his assets. 

From April 2018 to September 2018, the victim was directed to wire money to Bowler’s bank account on four separate occasions. After receiving the funds, Bowler withdrew a portion of the funds in cash, sent money to other individuals in Ghana through a money remitter, and wired some of the money to family members in Ghana.

In addition to the prison term, Judge Martinotti sentenced Bowler to three years of supervised release and ordered restitution of $44,821.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; detectives from the New York City Police Department Intelligence and Counterterrorism Unit, under the direction of Chief Thomas Galati; detectives from the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens; and detectives from the Port Authority Police Department, under the direction of Superintendent of Police, Edward Cetnar, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division and Assistant U.S. Attorney Dong Joo Lee of the Criminal Division.

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 170 months in prison for his role in drug distribution and possession of a firearm as a felon, U.S. Attorney Philip R. Sellinger announced.

Clay Brown, 30, of Pleasantville, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of distribution of methamphetamine and one count of possession of a firearm as a previously convicted felon. Judge Rodriguez imposed the sentence today in Camden federal court. 

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

Brown distributed methamphetamine and fentanyl on multiple occasions to a confidential informant. The day that agents arrested Brown for drug distribution, Brown possessed a backpack containing a firearm and controlled substances that Brown intended to distribute to others. Brown has multiple prior felony convictions that make it unlawful for him to possess a firearm. 

In addition to the prison term, Judge Rodriguez sentenced Brown to five years of supervised release.

U.S. Attorney Sellinger credited special agents Homeland Security Investigations Newark, Atlantic City office, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s sentencing. He also thanked the Drug Enforcement Administration, Newark Division, and the New Jersey State Police, Crime Suppression South Unit, for their assistance.

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