District of New Jersey

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy to steal and transport across state lines luxury cars stolen from towns in New York, Connecticut, and New Jersey, U.S. Attorney Philip Sellinger announced.

Malik Baker, 29, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiring to transport stolen vehicles in interstate commerce and one count of receiving a stolen vehicle that had crossed state lines after being stolen.

Baker’s conspirators – Hakeem Smith, Nafique Goodwyn, and Bilal Cureton – previously pleaded guilty to related charges. Smith was sentenced on April 25, 2023, to 41 months in prison. Sentencing is pending for Goodwyn and Cureton.

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

Since as early as July 2019, the defendants and others stole and conspired to steal at least 10 luxury cars from towns in New York, Connecticut, and New Jersey, and hid those cars at a location in Irvington, New Jersey. The cars include a 2019 BMW X4 M40i, stolen from Greenwich, Connecticut, on July 19, 2019; a 2017 BMW Alpina, stolen from Hewlett Bay Park, New York, on July 22, 2019; a 2017 Maserati GranTurismo, stolen from Manalapan, New Jersey, on Aug. 5, 2019; a 2018 Range Rover and a 2019 Porsche Cayenne, stolen from New City, New York, on Aug. 6, 2019; a 2017 Mercedes S550 and a 2019 Rolls Royce, stolen from Hewlett Bay Park, New York, on Aug. 13, 2019; a 2019 Land Rover, stolen from Kensington, New York, on Aug. 22, 2019; a 2019 Mercedes Maybach, stolen from Quogue, New York, on Aug. 29, 2019; a 2014 Lexus GS, stolen from West Long Branch, New Jersey, on Aug. 29, 2019; a 2017 BMW M4, stolen from Marlton, New Jersey, on Sept. 7, 2019; and a 2017 Mercedes AMG S63, stolen from Orangeburg, New York, in September 2019.

The defendants often used the stolen cars to steal more cars, and, in one instance, they used a Maserati GranTurisimo they stole from Manalapan to steal a Range Rover and a Porsche Cayenne. When law enforcement attempted to conduct a stop of the Maserati, the Maserati accelerated and crashed head-on into a police vehicle before the suspects fled the scene in another stolen vehicle. Law enforcement recovered one of the stolen cars in a shipping container at the port in Newark en route to Ghana, Africa. 

The charge of conspiracy to transport stolen vehicles is punishable by a maximum potential penalty of five years in prison. The charge of receiving stolen vehicles is punishable by a maximum potential penalty of 10 years in prison. Both charges are punishable by a fine up to $250,000, or twice the gross gain or loss from the offenses, whichever is greatest. Sentencing is scheduled for March 7, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé. He also thanked officers with the Irvington Township Police Department, under the direction of Director Tracy Bowers; the Clarkstown Police Department, under the direction of Chief Jeffrey Wanamaker; the Wall Township Police Department, under the direction of Chief Sean O’Halloran; the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; the Tewksbury Township Police Department, under the direction of Chief Tim Barlow; the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; the New Jersey State Police, under the direction of Colonel Patrick J. Callahan; the Hunterdon County Prosecutor’s Office, under the direction of Prosecutor Renée M. Robeson. He also thanked officers with Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Francis J. Russo; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; and the Department of Commerce-Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York, with the investigation leading to the charges.

This investigation 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 ATF, the 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, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

The government is represented by Assistant U.S. Attorney Christopher Amore, Chief of the General Crimes Unit.

 

baker.information.pdf

CAMDEN, N.J. – A New York man was sentenced today to 60 months in prison for spending hundreds of thousands of dollars using credit cards he fraudulently opened using the identities of others, U.S. Attorney Philip R. Sellinger announced.

Robert Lourenco, 52, of Queens, New York, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to one count of an indictment charging him with access device fraud.

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

During 2015, Lourenco opened 23 credit cards using the identities of three victims he had befriended, two of whom were senior citizens. Lourenco’s victims did not know he was using their identities to obtain the credit cards, nor did they authorize Lourenco to obtain the credit cards. Lourenco used the 23 credit cards to make more than $423,000 in unauthorized purchases.  He also used the debit card for a joint bank account belonging to two of the victims to make an additional $57,000 in unauthorized charges. Lourenco admitted that he knew at least one of his victims was a vulnerable victim when he used the victim’s identity to commit his crime. 

In addition to the prison term, Judge Rodriguez sentenced Lourenco to three years of supervised release and ordered him to pay $36,849 in restitution.

U.S. Attorney Sellinger credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office for its role in the investigation. 

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

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted inducing a minor to engage in sexually activity over an online messenger service, U.S. Attorney Philip R. Sellinger announced.

Sunil Vaid, 51, of North Brunswick, New Jersey, pleaded guilty before U.S. District Court Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of online enticement of a minor.

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

From Aug. 3, 2020, to Aug. 6, 2020, Vaid used an online messaging service to communicate with a minor victim, including requesting that the minor victim pose nude so he could take sexually explicit images. Vaid knowingly misrepresented his identity to induce the minor to engage in the sexual activity.

The charge of online enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. Sentencing is scheduled for Feb. 21, 2024.

U.S. Attorney Sellinger credited special agents and members of the FBI Newark Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea. He also thanked the Middlesex County Prosecutor’s Office and the North Brunswick Police for their assistance with the investigation.

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

 

vaid.information.pdf

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 24 months in prison for his role in a scheme to bribe mail carriers to steal postal arrow keys used to unlock mail receptacles and to use stolen items from the mail to fraudulently obtain funds from banks, U.S. Attorney Philip R. Sellinger announced.

Amin C. Jones, 29, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of bribery of U.S. Postal Service mail carriers and conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today in Newark federal court.

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

Jones schemed to bribe mail carriers in East Orange and Newark, New Jersey, by offering them cash, typically $5,000, in exchange for the mail carriers giving Jones a postal arrow key, which could be used to access a variety of postal service mail receptacles. Jones and others sought USPS arrow keys so that they could steal mail. From June to July 2021, Jones and another individual drove to various locations in East Orange and Newark, where they stopped over four different mail carriers, including an undercover postal inspector, who Jones believed was a mail carrier, and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.

From January to July 2021, Jones conspired with others to obtain funds fraudulently from banks by stealing mail and 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 Jones to three years of supervised release and ordered restitution of $6,361.

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

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

NEWARK, N.J. – A Passaic County, New Jersey man arrested in connection with seven armed robberies of pharmacies made his initial appearance today in Newark federal court, U.S. Attorney Philip R. Sellinger announced.

Onijee Burgess, 26, of Paterson, New Jersey, is charged by complaint with one count of conspiracy to commit Hobbs Act robbery. Burgess made his initial appearance today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was detained].

According to the complaint and statements made in court:

From November 2022 through April 5, 2023, Burgess conspired with Antonio Rivera and others to commit seven separate armed robberies of five different pharmacies in Paterson and Passaic, New Jersey to steal prescription medication. Rivera was previously charged by complaint for two of these robberies. During those robberies, Rivera fired a gun and pointed it at numerous victims. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.

The conspiracy to commit Hobbs Act robbery carries a maximum potential penalty of 20 years in prison and a potential $250,000 fine.

U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Denney, with the investigation leading to the charges. He also thanked members of the Paterson Police Department, under the leadership of Officer in Charge Isa M. Abbassi; members of the Passaic Police Department, under the leadership of Police Chief Luis Guzman; members of the Passaic County Sheriff's Office, under the leadership of Sheriff Richard H. Berdnik; members of the Clifton Police Department, under the leadership of Police Chief Thomas Rinaldi; members of the Bergen County Prosecutor's Office, under the leadership of Chief Jason Love; and members of the Cedar Grove Police Department, under the leadership of Police Chief John J. Kennedy; with their help in the investigation.

The government is represented by Assistant U.S. Attorney Sophie Kaiser 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.

 

burgess.complaint.pdf

NEWARK, NJ. – A New Jersey real estate investor and influencer was arrested today for committing a multimillion-dollar Ponzi-like investment fraud scheme, U.S. Attorney Philip R. Sellinger announced.

Cesar Humberto Pina, 45, of Franklin Lakes, New Jersey, is charged by complaint with one count of wire fraud. He appear before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was release on $1 million secured bond with electronic monitoring.

“As alleged in the complaint, Pina exploited celebrity status and social media to develop a devoted following of potential victims. Promising returns that were too good to be true, Pina allegedly defrauded dozens of people of millions of dollars. Our office is committed to protecting the public from these schemes and prosecuting those who lie to investors for their own personal gain.”

U.S. Attorney Philip R. Sellinger

 

"Investment fraud is simply a crime of greed," U.S. Postal Inspector in Charge Christopher A. Nielsen of the U.S. Postal Inspection Service, Philadelphia Division, said. "In this case, Cesar Pina allegedly solicited dozens of individuals to provide him with millions of dollars to purchase and invest in residential properties. However, instead of sharing the profits, he defrauded his investors in a Ponzi scheme. Postal Inspectors will continue to work with our law enforcement partners to combat financial fraud and protect the American people.

“Plain and simple, the defendant ran a fraudulent scheme. They falsely represented the nature of their business and lied about potential investment returns to bilk unsuspecting victims out of millions,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation Newark Field Office, said. “Today’s arrest highlights IRS Criminal Investigation and our law enforcement partners’ commitment to investigate and prosecute unlawful behavior.”

“We allege Pina offered a ridiculously high rate of return to investors, then took the millions he got and invested it in himself,” FBI – Newark Special Agent in Charge James E. Dennehy said. “History has proven time and again, Ponzi-schemes don't work. The pot of gold at the end of the rainbow eventually runs out. Investors take note – it’s your money, don’t let them steal it.” 

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

Pina partnered with a celebrity disc jockey and radio personality to conduct real estate seminars around the country. Through these seminars, self-promotional efforts, and other marketing strategies, Pina developed a significant social media following.

Starting in 2017, Pina began accepting investments from victim investors for the alleged purchase, remodel, and sale of specific real estate projects in New Jersey and other states. To induce his victims, Pina often promised 20 to 45 percent returns on investment within five months. But instead of using victims’ investments as promised, Pina engaged in a Ponzi-like scheme by commingling victim money, using new victim investments to pay off prior victims, and spending victim funds on personal expenditures. The investigation has revealed that Pina defrauded dozens of investors of millions of dollars.

The charge of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross amount of any pecuniary gain that any persons derived from the offense or of any pecuniary loss sustained by any victims of the offense, whichever is greatest.

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; special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; 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 FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked the Franklin Lakes Police Department for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Mark J. Pesce and Carolyn Silane of the Economic Crimes Unit in Newark.

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

 

pina.complaint.pdf

TRENTON, N.J. – U.S. Attorney Philip R. Sellinger for the District of New Jersey and Assistant Attorney General Kristen Clarke for the Civil Rights Division announced today that the Justice Department has opened a civil pattern or practice investigation into the City of Trenton and the Trenton Police Department (TPD).

The investigation will seek to determine whether there are systemic violations of the Constitution and federal law by TPD. The investigation will focus on TPD’s use of force and its stops, searches and arrests. The investigation will include a comprehensive review of TPD policies, training and supervision, in addition to complaint intake, internal investigation protocols, complaint reviews, complaint adjudications and disciplinary decisions. 

“Police officers have the difficult job of keeping us safe, and most officers do this work with honor and distinction. But if police officers abuse the trust the community places in them and fail to respect the constitutional rights of those in the community, and if the community feels threatened by those who wear the badge, it undermines public safety and endangers the very citizens they swore to protect and serve. Unfortunately, we have reviewed numerous reports that Trenton police officers may have used force inappropriately and conducted stops, searches, and arrests with no good reason in violation of individuals’ constitutional rights. Today’s announcement reflects our office’s commitment to ensuring effective, constitutional policing in Trenton and throughout New Jersey. Trenton residents should be assured that we will conduct a thorough and impartial investigation of the Trenton Police Department, and that we will address any unlawful conduct we find.”

U.S. Attorney Philip R. Sellinger

“The public must have trust and confidence that police officers will treat them fairly and with respect,” said Assistant Attorney General Clarke. “The Justice Department is opening an investigation into the Trenton Police Department after an extensive review of publicly available information and other information provided to us suggesting that officers used force, stopped motorists and pedestrians and conducted searches of homes and cars in violation of the Constitution and federal law. Such conduct, if true, creates an environment of distrust between police officers and the community. The Justice Department will conduct a full and fair investigation into these allegations, and if we substantiate those violations, the department will take appropriate action to remedy them.”  

Before this announcement, officials from the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division notified Trenton Mayor Reed Gusciora, Director Steve Wilson of TPD and Director Wes Bridges of the Trenton Law Department, who have all pledged to cooperate with the investigation. As part of this investigation, the Justice Department and U.S. Attorney’s Office will conduct outreach to community groups and members of the public to learn about their experiences with TPD.

The U.S Attorney’s Office and the Special Litigation Section of the Justice Department’s Civil Rights Division will jointly conduct this investigation pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments through their law enforcement officers from engaging in a pattern or practice of conduct by law enforcement officers that deprives people of rights protected by the Constitution and federal law. If the Justice Department has reasonable cause to believe that the law enforcement officers of a state or local government have engaged in a prohibited pattern or practice, the department is authorized to bring a lawsuit seeking court-ordered changes to remedy the violations. In this investigation, the department will assess the law enforcement practices under the Fourth and 14th  Amendments to the U.S. Constitution.

Individuals with relevant information are encouraged to contact the Justice Department via email at USANJ.Community.Trenton@usdoj.gov or by phone at 973-645-2801. Individuals can also report civil rights violations regarding this or other matters using the reporting portal of the Justice Department’s Civil Rights Division, available at www.civilrights.justice.gov or the U.S. Attorney’s Office for the District of New Jersey’s civil rights reporting portal, available at www.justice.gov/usao-nj/civil-rights-enforcement/complaint. 

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

 

prs_remarks_trenton.pdf

Assistant Attorney General Kristen Clarke for the Civil Rights Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey announced today that the Justice Department has opened a civil pattern or practice investigation into the City of Trenton, New Jersey, and the Trenton Police Department (TPD).

The investigation will seek to determine whether there are systemic violations of the Constitution and federal law by TPD. The investigation will focus on TPD’s use of force and its stops, searches and arrests. The investigation will include a comprehensive review of TPD policies, training and supervision, in addition to complaint intake, internal investigation protocols, complaint reviews, complaint adjudications and disciplinary decisions. 

“The public must have trust and confidence that police officers will treat them fairly and with respect,” said Assistant Attorney General Clarke. “The Justice Department is opening an investigation into the Trenton Police Department after an extensive review of publicly available information and other information provided to us suggesting that officers used force, stopped motorists and pedestrians and conducted searches of homes and cars in violation of the Constitution and federal law. Our experience has shown that policing practices that run afoul of the law and our Constitution can lead to distrust between police officers and the community. The Justice Department will conduct a full and fair investigation into these allegations, and if we substantiate those violations, the department will take appropriate action to remedy them.”  

“Police officers have the difficult job of keeping us safe, and most officers do this work with honor and distinction,” said U.S. Attorney Sellinger. “But if police officers abuse the trust the community places in them and fail to respect the constitutional rights of those in the community, and if the community feels threatened by those who wear the badge, it undermines public safety and endangers the very citizens they swore to protect and serve. Unfortunately, we have reviewed numerous reports that Trenton police officers may have used force inappropriately and conducted stops, searches, and arrests with no good reason in violation of individuals’ constitutional rights. Today’s announcement reflects our office’s commitment to ensuring effective, constitutional policing in Trenton and throughout New Jersey. Trenton residents should be assured that we will conduct a thorough and impartial investigation of the Trenton Police Department, and that we will address any unlawful conduct we find.”

Before this announcement, officials from the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey notified Trenton Mayor Reed Gusciora, Director Steve Wilson of TPD and Director Wes Bridges of the Trenton Law Department, who have all pledged to cooperate with the investigation. As part of this investigation, the Justice Department will conduct outreach to community groups and members of the public to learn about their experiences with TPD.

The Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S Attorney’s Office Civil Rights Division will jointly conduct this investigation pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments through their law enforcement officers from engaging in a pattern or practice of conduct by law enforcement officers that deprives people of rights protected by the Constitution and federal law. If the Justice Department has reasonable cause to believe that the law enforcement officers of a state or local government have engaged in a prohibited pattern or practice, the department is authorized to bring a lawsuit seeking court-ordered changes to remedy the violations. In this investigation, the department will assess the law enforcement practices under the Fourth and Fourteenth Amendments to the U.S. Constitution.

Individuals with relevant information are encouraged to contact the Justice Department via email at USANJ.Community.Trenton@usdoj.gov or by phone at 973-645-2801. Individuals can also report civil rights violations regarding this or other matters using the reporting portal of the Justice Department’s Civil Rights Division, available at www.civilrights.justice.gov or the U.S. Attorney’s Office for the District of New Jersey’s civil rights reporting portal, available at www.justice.gov/usao-nj/civil-rights-enforcement/complaint. 

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

The Justice Department will hold a virtual community meeting on October 23 at 6:00 p.m. ET. Members of the public are encouraged to attend to learn more about the investigation. Please join the meeting via this link.

NEWARK, N.J. – A Union County, New Jersey, man was arrested today for producing a video depicting images of child sexual abuse and receiving and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Michael Hamilton, 51, of Springfield, New Jersey, is charged by complaint with one count each of production, receipt and possession of child pornography. He made his initial appearance today before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.

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

From February 2023 through July 2023, Hamilton, a high school teacher, began an exchange with a minor victim on a messaging platform. Hamilton and the minor victim exchanged hundreds of sexually explicit messages, pictures, and videos, many of which constituted child pornography depicting the minor victim.

The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of receipt of child exploitation material carries a mandatory minimum penalty of five  years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child exploitation material carries a maximum potential penalty of 10 years in prison, and a $250,000 fine.

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

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

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

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

 

hamilton.complaint.pdf

NEWARK, N.J. – A Concord, New Hampshire, man pleaded guilty today in federal court in connection with the exploitation of a minor in New Jersey and possession of child sexual abuse material, U.S. Attorney Philip Sellinger and U.S. Attorney Jane E. Young announced.

Scott Wilkinson, 38, pleaded guilty to one count each of production of child pornography and one count of possession of child sexual abuse material before U.S. District Court Judge Joseph Laplante in federal court in New Hampshire.

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

Wilkinson traveled from New Hampshire to New Jersey in April 2022, where he engaged in sexual acts with a 12-year-old child. Wilkinson had been corresponding with the child online for approximately one year prior to traveling to New Jersey to meet the child. A video that Wilkinson created of himself engaged in sexual acts with the child was found on his cell phone, as were other images and videos of child sexual abuse material.

The count of production of child pornography is punishable by a mandatory minimum of 15 years in prison and a maximum of 30 years in prison. The count of possession of child pornography is punishable by a maximum of 10 years in prison, or a maximum of 20 years in prison if the court finds the defendant possessed child pornography of a child under the age of 12.

Wilkinson faces a maximum penalty of 30 years in prison, up to lifetime supervised release, a fine of $250,000 and mandatory restitution. Sentencing is scheduled for Jan. 22, 2024.

U.S. Attorney Sellinger and U.S. Attorney Young credited special agents of the FBI the Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy; and the Egg Harbor Township Police Department with the investigation leading to today’s guilty plea. Valuable assistance was provided by the Concord Police Department.

The government is represented by Assistant U.S. Attorney Lindsey Harteis of the District of New Jersey and Assistant U.S. Attorney Kasey Weiland of the District of New Hampshire.

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 228 months in prison for drug trafficking, firearm possession, and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced.

Ricky Hubbard, 46, of Newark, was convicted on March 13, 2023, following a four-day trial before U.S. District Judge Kevin McNulty on one count each of possession of a firearm by a convicted felon; possession with intent to distribute cocaine, heroin, and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime. Judge McNulty imposed the sentence today in Newark federal court.   

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

On Nov. 6, 2019, law enforcement officers pulled over Hubbard’s car in Union, New Jersey. Inside a secret compartment, Hubbard possessed over 369 doses of cocaine, heroin, and fentanyl packaged for distribution; drug-packaging materials; and a 9mm Taurus handgun loaded with seven rounds of ammunition, including one in the chamber. 

In addition to the prison term, Judge McNulty sentenced Hubbard to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union Township Police Department, under the direction of Police Director Chris Donnelly; the Union County Prosecutor’s Office under the direction of Prosecutor William A. Daniel; and the Union County Sheriff’s Office, under the direction of Union County Sheriff Peter D. Corvelli Jr., with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Two men and one woman of Middlesex County, New Jersey, have pleaded guilty on separate charges related to their roles in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced today.

Arlen G. Encarnacion, 37, of Perth Amboy, New Jersey, pleaded guilty today before U.S. District Judge Georgette Castner in Trenton federal court to a two-count information charging him with conspiracy to commit wire fraud and money laundering. On Aug. 8, 2023, Jacquelyn Pena, 37, and Kent Encarnacion, 30, both of Perth Amboy, also separately pleaded guilty before Judge Castner to informations charging each of them with conspiracy to commit wire fraud and money laundering.

“Enormous amounts of financial relief went to those Americans who were struggling with this unprecedented pandemic, but, sadly, a number of people saw this difficult time as an opportunity to enrich themselves illicitly. Our office is focused on combating all types of fraud, especially when it involves exploiting the suffering of others.”

U.S. Attorney Philip R. Sellinger

“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, U.S. Postal Inspection Service, Philadelphia Division, said. “However, as alleged, Arlen Encarnacion, and his co-conspirators, manipulated this critical lifeline through a complex scheme that fraudulently obtained more than $2 million 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.”

“IRS Criminal Investigations and our law enforcement partners will not tolerate criminal exploitation of this national emergency for personal gain,” Tammy Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “Today’s plea sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. The CARES Act also authorized the Small Business Administration to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.

To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.

Arlen Encarnacion submitted 11 fraudulent PPP loan applications and three fraudulent EIDL applications on behalf of purported businesses. Kent Encarnacion helped submit one of the fraudulent PPP applications, and Pena helped submit three of the other fraudulent PPP applications. Each application contained false representations, including bogus federal tax return documentation and fabricated information about the number of employees and wages paid. Based on these alleged misrepresentations, lenders, Federal Home Loan Bank members, and the Small Business Administration collectively provided the purported businesses with approximately $2.1 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Arlen Encarnacion received the bulk of the fraudulent proceeds, and together with Kent Encarnacion and Pena, they misappropriated all of the funds.  

Each count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison, and each count of money laundering carries a maximum penalty of 10 years in prison.  Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing for Arlen Encarnacion is scheduled for Feb. 13, 2024. Sentencing for Kent Encarnacion is scheduled for Dec. 12, 2023, and for Pena, Dec. 13, 2023.

U.S. Attorney Philip Sellinger credited postal inspectors of U.S. Postal Inspection Service in Newark, under the direction of Christopher A. Nielsen, Philadelphia Division; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; 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 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 Federal Housing Finance Agency – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System and the 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 Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; with the investigation leading to the guilty pleas. He also thanked the Middlesex County Prosecutor’s Office and the Perth Amboy Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Mark C. Orlowski 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.

 

encarnacion.information.pdf

NEWARK, N.J. – A Morris County woman charged with fraud and making false statements will make her initial court appearance today, U.S. Attorney Philip R. Sellinger announced.

Pamela VanSyckle, 60, of Oak Ridge, is charged by complaint with one count of federal employee compensation fraud and one count of making false statements. VanSyckle made her initial appearance this afternoon before U.S Magistrate Judge José R. Almonte in Newark federal court and was released on $100,000 unsecured bond.

According to documents filed in this case:

VanSyckle works for the U.S. Postal Service as a rural carrier. In September 2020, VanSyckle signed and filed a claim form alleging that she sustained an injury at work. As a result of that injury, VanSyckle claimed that she was unable to carry out her duties as a mail carrier. While she received disability benefits from September 2020 to September 2023, VanSyckle signed and filed multiple federal claim forms alleging that she had not worked or had outside employment. Based on the submission of those claims, VanSyckle received over $155,000 in disability benefits from the federal government.

During the time in which she received disability benefits, however, VanSyckle was in fact working as the owner and operator of a travel agency. While claiming that she was neither self-employed nor involved in any business enterprise, VanSyckle performed a variety of services for the travel agency including handling sales, marketing and financial operations. 

The fraud and false statement charges each carry a maximum potential sentence of five years in prison and a maximum of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense, whichever is greater.  

U.S. Attorney Sellinger credited special agents of the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modaferri; special agents of the U.S. Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone; and members of the Jefferson Township Police Department, under the direction of Chief Paul Castimore, with the investigation leading to the charges.

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

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

 

vansyckle.complaint.pdf

NEWARK, N.J. – A Middlesex County, New Jersey, man was convicted today of four counts of persuading, inducing, and enticing women to travel in interstate commerce to engage in prostitution, U.S. Attorney Philip R. Sellinger announced.

Jose Torres, 45, was convicted of all four counts of a second superseding indictment following a six-day trial before U.S. District Judge Brian R. Martinotti in Newark federal court.  

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

From May 2015 to October 2019, Torres persuaded, induced and enticed female victims, often commercial sex workers, to travel from out of state locations, including Canada and New York, to engage in prostitution with him. In each instance, Torres trolled prostitution websites and targeted out-of-state sex workers. He lured them to New Jersey with promises of large sums of payment. Once the women were in New Jersey, Torres refused to pay them. When the victims asked for payment, Torres became aggressive, often assaulting and raping them. 

Each charge of coercion and enticement carries a maximum term of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 27, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty verdict.

The government is represented by Assistant U.S. Attorneys Emma Spiro and Shawn Barnes of the U.S. Attorney’s Office’s Criminal Division in Newark.

CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Anthony Barbarino, 37, of Egg Harbor City, New Jersey, pleaded guilty before Chief U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of possession of child pornography.

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

From April 12, 2022, to Aug. 3, 2022, Barbarino knowingly possessed 93 still photographs and 108 videos of child sexual abuse across three electronic devices, including at least one image of a prepubescent minor or a minor under 12 years of age, and at least one image that portrayed sadistic or masochistic conduct or other depictions of violence. Barbarino was arrested and charged by federal criminal complaint on Aug. 3, 2022, with the same offense. Prior to that arrest, Barbarino was employed as a nurse.

The count of possession of child pornography that involved at least one image that involved a prepubescent minor or a minor under 12 years of age carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 13, 2024.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office for its assistance.

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

 

barbarino.information.pdf

TRENTON, N.J. –  A Burlington County, New Jersey, man today admitted his role in a scheme to possess and distribute methamphetamine and illegally possess firearms, U.S. Attorney Philip R. Sellinger announced.

Nicholas Layton, 43, of Mount Holly, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count each of conspiracy to distribute 50 grams or more of methamphetamine, possessing with intent to distribute 50 grams or more of methamphetamine and possession of firearms by a convicted felon.   

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

In December of 2018, Layton and his conspirator were stopped in Crawford County, Arkansas, in possession of over three kilograms of methamphetamine. In July of 2019, Layton possessed two firearms; a rifle and a shotgun after having been previously convicted in the District of New Jersey of a drug trafficking offense. At the time of his arrest in August of 2019, Layton possessed approximately 200 grams of methamphetamine. 

The drug trafficking counts to which Layton pleaded guilty carry a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a fine of up to $10 million. The firearms offense to which Layton pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 15, 2024.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration (DEA), Camden Resident Office, under the direction of Special Agent in Charge  Cheryl Ortiz in Newark; the DEA Fort Smith Post of Duty under the supervision of Special Agent in Charge Brad L. Byerley, New Orleans Field Division; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, Newark Field Division; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw; and officers of the Arkansas State Police, under the direction of Col. Mike Hagar, with the investigation leading to today’s guilty plea.

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

 

layton.information.pdf

NEWARK, N.J. – A New York man and owner of a marketing company today 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.

Eric Karlewicz, aka “Anthony Mazza,” 44, of Chestnut Ridge, New York, pleaded guilty before U.S. District Judge Esther Salas 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 June 2017 through May 2019, Karlewicz participated in a scheme with durable medical equipment (DME) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Karlewicz controlled a marketing company though which he and his conspirators identified Medicare and TRICARE beneficiaries to target for DME.  Employees of the company called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and his conspirators paid the company’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.

Karlewicz and his company then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain doctor’s orders for the DME. The doctors paid by the telemedicine companies signed the orders regardless of medical necessity, often without ever speaking to the patient.  Karlewicz and his business partner then steered the doctor’s orders to DME suppliers around the country, with which Karlewicz and his company had additional kickback arrangements. The DME companies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Karlewicz and his company as payment for the doctor’s orders generated through the conspiracy. The company received more than $63 million from DME suppliers in exchange for the referrals.  

In total, Karlewicz and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $127 million for DME. Using proceeds from the scheme, Karlewicz purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.

The kickback conspiracy charge is punishable by a maximum of five years in prison, and the health care fraud conspiracy charge is punishable by a maximum of 10 years in prison; both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 20, 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, under the direction of Special Agent in Charge Naomi Gruchacz; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty plea.

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

 

karlewicz.information.pdf

CAMDEN, N.J. – A Bridgeton police officer today admitted to violating an individual’s  civil rights by using excessive force during an arrest, U.S. Attorney Philip R. Sellinger announced.

John Grier III, 51, of Cedarville, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden in federal court to a superseding information charging him with one count of violating an individual’s civil rights. 

“This defendant admitted he broke his oath as a police officer by violating an arrestee’s civil rights. Those who wear the badge have an obligation to protect the civil rights of everyone in our communities, including those who are accused of a crime. Using pepper spray on a handcuffed suspect who posed no threat was an unreasonable use of force that violated the law. This office will continue to prioritize the protection of the civil rights for all of New Jersey’s people.”

U.S. Attorney Philip R. Sellinger

“The public trusts that when we take our oath as law enforcement to serve and protect, we will respect the gravity of our responsibilities,” FBI – Newark Special Agent in Charge James E. Dennehy said. “When we arrest and take someone into custody, we must ensure their safety, as well as our own. We can do a million things right, but one bad action erodes the faith people place in us."

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

Grier was sworn in as a Bridgeton police officer in August 2004. As a police officer, Grier knew that every citizen had the right to be free from unreasonable seizure which includes the right to be free from the use of unreasonable force by a police officer. On June 18, 2017, Grier was working as Bridgeton Police Officer in full uniform. That day Grier was dispatched to the Riggins Gas Station on West Broad Street in Bridgeton, New Jersey, and came into contact with the victim. The victim was arrested for driving while under the influence of alcohol. He was placed in handcuffed by other officers who were on scene, and was not resisting arrest or posing a threat to Grier or any other officers. As another officer walked the victim toward a police vehicle, Grier sprayed the victim, who was still in handcuffs, directly in the face with a crowd control-sized can of oleoresin capsicum (OC) spray. Grier then sprayed the victim a second time while the victim was still in handcuffs.

At today’s plea hearing, Grier agreed that his repeated use of OC spray was unnecessary, unreasonable, and an excessive use of force, in violation of the Fourth Amendment to the Constitution.

The violation of civil rights count carries a maximum penalty of one year in prison and a maximum fine of $100,000. Sentencing is scheduled for Feb. 6, 2024.

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 guilty plea. Sellinger also recognized the contributions of the Internal Affairs Unit of the Bridgeton Police Department, under the direction of Chief Michael A. Gaimari Sr.; investigators and detectives of the New Jersey Attorney General’s Office, under the direction of Attorney General  Matthew J. Platkin; and the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McCray.

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

 

grier.superseding.pdf

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 60 months in prison for his role in a conspiracy to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.

Lester Santana, 53, of Egg Harbor Township, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of conspiracy to distribute five kilograms or more of cocaine. Judge O’Hearn imposed the sentence today in Camden federal court.

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

Santana admitted that on numerous occasions from March 2019 to August 2020, he and his conspirators flew to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport. Santana and his conspirators purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Santana and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, including to Santana’s residence. After the cocaine shipments were delivered, a conspirator resold the cocaine to other drug dealers in the Philadelphia area for a profit. Santana admitted that he was jointly responsible for the possession with intent to distribute and distribution of 50 to 150 kilograms of cocaine.  

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

Two conspirators in this case, Jose Gonzalez and Iran Soler, both previously pleaded guilty before Judge O’Hearn to conspiring to distribute five kilograms or more of cocaine. Gonzalez is scheduled to be sentenced on Jan. 4, 2024, and Soler is scheduled to be sentenced on Nov. 6, 2023.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Christopher A. Nielsen; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; agents assigned to the FBI’s Atlantic City Resident Agency, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; agents assigned to the FBI’s Philadelphia Field Division, under the direction of Special Agent in Charge Jacqueline Maguire; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Interim Police Commissioner John Stanford, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.

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

Tre Byrd, aka “Bands,” aka “G Bandz,” 22, pleaded guilty before U.S. District Judge Susan D. Wigenton on Oct. 3, 2023, to a superseding indictment that charged him with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy.

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

From 2015 through Sept. 22, 2022, Byrd was a member of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere.

In March 2019, Byrd worked with other members and associates of the gang to murder a gang rival, who was fatally shot on March 20, 2019, in Irvington, New Jersey. On June 20, 2020, Byrd and at least one other member and associate of the gang robbed a victim at gunpoint in Newark.

The defendant faces a maximum sentence of life imprisonment and a fine of up to $250,000. Sentencing is scheduled for Feb. 7, 2024.

U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Cheryl Ortiz; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Bryan Miller; investigators of the U.S. Marshals Service, under direction of Marshal Juan Mattos; the Irvington Police Department, under the direction of Police Division Director Tracy Bowers; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Newark Police Department, under the direction of Public Safety Director Fritz Fragé; the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio; the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the East Orange Police Department, under the direction of Chief Phyllis L. Bindi; the Elizabeth Police Department, under the direction of Police Director Earl J. Graves; the Edison Police Department, under the direction of Chief of Police Tom Bryan; the New Jersey State Police, under the direction of Col. 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, with the investigations leading to the charges in the Rollin 60’s Neighborhood Crips investigation.

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

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

 

byrd.sindictment.pdf

NEWARK, N.J. – A Colombian citizen admitted conspiring to import hundreds of kilograms of cocaine into the United States from other countries including Colombia, Venezuela, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced today.

Raul Orlando Torres Cubides, aka “Jose Jota,” 56, pleaded guilty before U.S. District Judge Esther Salas to count one of an indictment charging him with conspiracy to import five kilograms or more of cocaine.

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

From 2016 through Jan. 10, 2020, Cubides conspired to import hundreds of kilograms of cocaine. Cubides admitted playing a managerial role in this conspiracy, which involved more than five individuals.

The count to which Cubides pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison, as well as a fine of up to $10 million. Sentencing is scheduled for Feb. 22, 2024.

U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration (DEA) operating in New Jersey, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, as well as special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico. He also thanked the Justice Department’s Office of International Affairs; the Criminal Division’s Narcotic and Dangerous Drug Section Judicial Attachés in Bogotá, Colombia; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.

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

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.

 

cubides.indictment.pdf

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 180 months in prison for distributing multiple images depicting child sexual abuse while on supervised release for possessing and receiving child pornography, U.S. Attorney Philip R. Sellinger announced.

Hugh Cohen, 65, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of distributing child pornography. Judge Martini imposed the sentence today in Newark federal court.

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

Cohen was previously convicted in federal court on a two-count indictment charging him with possessing and receiving child pornography in 2010, for which Cohen was sentenced to five years in prison followed by seven years of supervised release. Supervised release commenced on Oct. 29, 2014 and was to expire on Oct. 28, 2021.

While still on supervised release, from March 28, 2021, to April 24, 2021, Cohen engaged an undercover agent in an ongoing sexually graphic conversation on a web-based application. Cohen sent the undercover agent multiple images depicting the sexual abuse of children. Law enforcement also subsequently discovered numerous images of child sexual abuse on Cohen’s cellphone.

In addition to the prison term, Judge Martini sentenced Cohen to a lifetime term of supervised release. Cohen must also register as a sex offender.

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the U.S. Attorney’s Criminal Division in Newark.

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy that targeted residences belonging to Asian small business owners, U.S. Attorney Philip R. Sellinger announced.

Kevin Jackson, 57, of Rahway, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. 

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

From Dec. 2, 2016, to March 20, 2019, Jackson participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware, stealing large sums of money, valuable jewelry, and other items and transporting the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.

The charge of conspiracy to commit interstate transportation of stolen property 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 greatest. Sentencing is scheduled for Feb. 13, 2024.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.

 

jackson.information.pdf

NEWARK, N.J. – Two Essex County, New Jersey, men were charged today with unlicensed dealing in firearms and trafficking firearms in interstate commerce; one of the defendants was also charged with conspiracy to sell fentanyl, U.S. Attorney Philip R. Sellinger announced.

Carlo M. De Leon De Jesus, 26, and Victor Gonzalez, 36, both of Newark, are each charged by complaint with one count of dealing firearms without a license, one count of transferring firearms to an out-of-state resident, and one count of firearms trafficking. De Jesus is also charged with one count of conspiracy to distribute fentanyl. They appeared before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.

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

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

From July 2023 to September 2023, De Jesus sold four firearms, including two rifles and a semi-automatic handgun, as well as a substance that tested positive for fentanyl. Gonzalez sold a firearm with no serial number in September 2023. 

The counts of dealing firearms without a license and transferring firearms to an out-of-state resident are punishable by a maximum of five years in prison and a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of count of firearms trafficking is punishable by up to 15 years in prison and a fine of up to a fine of up to $250,000, or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to victim. The count of conspiracy to distribute fentanyl is punishable by a maximum of 20 years in prison and a fine of up to $1 million.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; special agents of the Drug Enforcement Administration in Newark, 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 Robert Kurtz, with the investigation leading to charges.

The government is represented by Assistant U.S. Attorney Barry O’Connell of the Criminal Division’s Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics 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.

gonzalez.complaint.pdf dejesus.complaint.pdf

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Department of Justice’s Civil Rights Division announced today that a company that manages large apartment properties in several states has agreed to pay $61,581 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA).

The complaint alleges that JAG Management Company LLC (JAG) imposed unlawful charges on at least nine servicemembers who had exercised their right under the SCRA to terminate their leases after receiving qualifying military orders. The servicemembers were residents of the Jefferson Mount Laurel apartment complex in Mount Laurel, New Jersey. The termination fees ran as high as $2,750 per servicemember.

“Our office is committed to protecting the rights of servicemembers who make tremendous sacrifices on behalf of our nation. Landlords and property managers may not unlawfully penalize members of our armed forces who are simply carrying out their duty. Through this consent order, we protect the rights of servicemembers and provide compensation to those who suffered harm when they were allegedly unlawfully charged early lease termination fees upon receiving military orders.”

U.S. Attorney Philip R. Sellinger

“Servicemembers should not have to pay any fees – much less exorbitant fees – to landlords when they are simply complying with their military orders and protecting our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution reaffirms the Justice Department’s unwavering commitment to protecting the rights of servicemembers, veterans and their families.”

The complaint filed today in the U.S. District Court for the District of New Jersey alleges that Coast Guard Lieutenant Daniel Pereira sought to terminate his lease with JAG Management after he received permanent change of station orders transferring him from Philadelphia to New London, Connecticut. Lt. Pereira provided JAG with timely written notice of his lease termination and a copy of his transfer orders before vacating his apartment. However, two months after moving, Lt. Pereira was notified – for the first time – that JAG was demanding that he repay a $2,100 rent concession he received when he signed his lease. Despite Lt. Pereira’s efforts to resolve the matter, including providing JAG with the relevant provisions of the SCRA and prior Justice Department cases on this issue, JAG reported the debt to credit reporting agencies, and Lt. Pereira’s credit score was downgraded. The complaint also alleges that JAG charged illegal fees to at least eight other servicemembers, representing the United States Air Force, Army, Coast Guard and Air National Guard, who had exercised their right to terminate their residential leases upon receipt of qualifying military orders.

Under the terms of the proposed consent order, which was filed with the complaint and is subject to court approval, JAG Management must pay a total of $41,581 in damages to the nine servicemembers. JAG must also pay a civil penalty of $20,000 to the federal government. In addition, JAG must implement policies to ensure it complies with the SCRA, trains employees on the protections afforded by the SCRA and reports future SCRA-related complaints to the federal government.

The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section investigated JAG Management’s leasing practices after receiving a referral from the Justice Department’s Servicemembers and Veterans Initiative.

The purpose of the SCRA is to allow servicemembers to devote their entire energy to the national defense. The SCRA provides protections to servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement without paying a penalty or an early termination charge.

Since 2011, the department has obtained over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov. Servicemembers and their dependents who believe their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.

Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

The government is represented by Assistant U.S. Attorney Thandiwe Boylan, Civil Rights Division.

ecf_no._2-1_consent_order.pdf

 

ecf_no._1_complaint.pdf

NEWARK, N.J. – A South Carolina doctor and his medical practice have agreed to pay more than $585,000 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.

Moustafa Moustafa M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Moustafa and his practice have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged kickback schemes.

“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. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”

U.S. Attorney Philip R. Sellinger

“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”

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 Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.

• Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Moustafa’s laboratory referrals.

• Clinical Staff Kickbacks. From August 2020 to December 2022, Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Moustafa’s practice unrelated to that laboratory, in return for Moustafa’s referrals for laboratory testing.

• Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Moustafa allegedly received from marketing company Ralston Health Group, Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Moustafa ordering laboratory testing from those laboratories.

“Rooting out healthcare fraud is a priority in the District of South Carolina,” U.S. Attorney Adair F. Boroughs for the District of South Carolina said. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”

“Health care providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions."

“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office, said. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”

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

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, Assistant U.S. Attorney Beth C. Warren in the U.S. Attorney’s Office for the District of South Carolina, 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.

 

moustafa.settlement.pdf

NEWARK, N.J. – A Somerset County, New Jersey, man was arrested for distributing fentanyl that resulted in four deaths and distributing cocaine, U.S. Attorney Philip R. Sellinger announced today.

Mauricio Gutierrez, 50, of Somerset, New Jersey, is charged by complaint with two counts of distribution of fentanyl that resulted in a death and one count of distribution of cocaine.  Gutierrez made his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.

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

On June 24, 2022, Gutierrez distributed controlled substances containing fentanyl in at least two separate transactions.

The first individual to whom Gutierrez distributed fentanyl used it, along with two other individuals. Shortly thereafter the three victims were located in a vehicle that was parked outside an establishment in North Brunswick, New Jersey, and all three were unresponsive. Two victims were pronounced dead and the third victim died two days later. Law enforcement located a white powder, which was determined to contain fentanyl, inside the vehicle.

In a separate transaction, Gutierrez distributed fentanyl to another individual who was located shortly thereafter in a vehicle in Franklin Township, New Jersey. The victim was unresponsive and was pronounced dead at the scene. Law enforcement located a white powder, which was determined to contain fentanyl, inside the vehicle.

Subsequent toxicology reports determined that the victims had lethal amounts of fentanyl in their blood.  

On Sept. 27, 2023, law enforcement officials arrested Gutierrez after observing him engage in a hand-to-hand narcotics sale in Piscataway, New Jersey. The controlled substance that Gutierrez distributed tested positive for cocaine.

The charges of drug distribution resulting in death each carry a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 20 years in prison. The charge of distributing controlled substances carries a maximum penalty of 20 years. The three charges each carry a fine of up to $1 million.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to the charges. He also thanked the North Brunswick Department, under the direction of Chief Joe Battaglia, and Franklin Township Police Department, under the direction of Public Safety Director Quovella Maeweather, for their assistance.

The investigations leading to these charges is part of Organized Crime Drug Enforcement Task Force’s (OCDETF) operations. 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 Shawn Barnes, Chief of the Office’s OCDETF/Narcotics Unit, and Assistant U.S. Attorney Christopher Fell of the Office’s OCDETF/Narcotics Unit, in Newark.

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

 

gutierrez.complaint.pdf

NEWARK, N.J. – A Middlesex County, New Jersey, company and two individuals who own or control the business admitted that they evaded U.S. customs duties on gold jewelry imported into the United States, U.S. Attorney Philip R. Sellinger announced today.  

According to the admissions and contentions of the United States in the settlement agreement:

21st Millennium Inc. is a company based in Iselin, New Jersey, that buys and sells gold jewelry and is owned or controlled by Iqbal Virani and Aqib Virani. From Jan. 1, 2017, through March 31, 2020, 21st Millennium was the importer of record on more than 80 customs entries, each of which consisted of jewelry manufactured in foreign countries and imported into the United States. 21st Millennium was responsible for making truthful and accurate disclosures to the U.S. Department of Homeland Security, Customs and Border Protection, concerning the total value of the merchandise that it imported into the United States. The Viranis caused 21st Millennium to provide the company’s customs broker with commercial invoices that failed to set forth the total value of the jewelry. By undervaluing the merchandise, 21st Millennium evaded paying $401,852 in customs duties that should have been paid. Under the settlement agreement, 21M and the Viranis agreed to pay a total of $1 million to the United States. 

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ivan J. Arvelo in New York, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.

 

21m.settlement.pdf

NEWARK, N.J. – A Guyanese citizen was sentenced today to 60 months in prison for his role in a conspiracy to import drugs into the United States, U.S. Attorney Philip R. Sellinger announced.

Dennis Edwards, aka “Death,” 38, previously pleaded guilty before U.S. District Judge Noel L. Hillman to a superseding information charging him with one count of conspiring to import over 20 kilograms of cocaine into the United States. Judge Hillman imposed the sentence today in Camden federal court. 

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

In 2012, Edwards was part of a criminal conspiracy that arranged to import cocaine into the United States via cruise ship. Edwards was arrested on Nov. 14, 2022, when he arrived at Newark Liberty International Airport after having been deported from the Dominican Republic.

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

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; deputies of the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr., and officers with Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Francis J. Russo, with the investigation leading to today’s sentencing. U.S. Attorney Sellinger thanked the Justice Department’s Office of International Affairs for its substantial assistance in the investigation. He also thanked officials in the Dominican Republic for their assistance.

The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the Criminal Division in Newark.

NEWARK, N.J. – A former Paterson, New Jersey, resident was sentenced today to 27 months in prison for his role in a bank fraud conspiracy, U.S. Attorney Philip R. Sellinger announced.

Brando Mancebo, 24, formerly of Paterson, previously pleaded guilty by videoconference before U.S. district Judge Kevin McNulty to an information charging him with possession of stolen mail and conspiracy to commit bank fraud. Judge McNulty imposed the sentence today in Newark federal court.

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

Mancebo and others conspired to break into U.S. Postal Service collection boxes in Bergen, Hudson, and Morris counties and steal mail. They agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, even though they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.

In addition to the prison term, Judge McNulty sentenced Mancebo to five years of supervised release and ordered him to pay restitution of $106,374 and forfeiture of $2,025.

U.S. Attorney Sellinger credited special agents of 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 today’s sentencing.

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

CAMDEN, N.J. – A Cumberland County man was sentenced today to 24 months in prison for possessing a destructive device and explosive materials, U.S. Attorney Philip R. Sellinger announced.

Thomas Petronglo, 64, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of possession of a destructive device and one count of unlawful storage of explosives. Judge Kugler imposed the sentence today in Camden federal court.

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

On March 12, 2021, Petronglo was found in possession of one destructive device, a 5 ¾-inch diameter metal can, containing a quantity of an explosive mixture of potassium perchlorate and aluminum, with a fuse sticking out of the device. Petronglo also possessed multiple intact improvised explosive devices and explosive materials at his residence.

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

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, with the investigation leading to today’s sentencing. He also thanked the Vineland Police Department, the Cumberland County Prosecutor’s Office, and the N.J. State Police for their assistance with the investigation.

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

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division will hold an outreach event in Newark to commemorate the 23rd anniversary of the signing of the Religious Land Use and Institutionalized Persons Act (RLUIPA), a federal law that protects persons and religious institutions from discriminatory land use regulations. 

The RLUIPA outreach event will take place at Seton Hall Law School in Newark on Oct. 30, 2023, and will include remarks from U.S. Attorney Sellinger, Civil Rights Division officials, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections, and attorneys who have experience litigating RLUIPA cases. For more information about this event and others the Civil Rights Division plans to hold around the country, please see the department’s RLUIPA’s website. All events will be open to the public. 

“RLUIPA provides important protections for religious groups throughout New Jersey. Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event at Seton Hall Law School.” 

U.S. Attorney Philip R. Sellinger

“RLUIPA provides important protections for religious groups throughout New Jersey,” U.S. Attorney Sellinger said. “Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event at Seton Hall Law School.” 

“Over the last 23 years, the Religious Land Use and Institutionalized Persons Act has helped to combat religious discrimination by protecting the civil rights of faith communities across the country,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “In light of continued anti-Semitism, Islamophobia and other forms of religious discrimination, the Justice Department stands ready to use federal civil rights law to ensure that communities can use their property for worship and to freely engage in religious exercise. The anniversary of RLUIPA provides an opportunity to underscore our commitment to protecting religious rights and ensuring that people are able to freely use land to worship and practice their faith.”

RLUIPA was passed unanimously by Congress and signed into law on September 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 4 lawsuits and 2 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 https://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. 

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced to 80 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Bruce Makley, 68, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of possession of child pornography. Judge Kugler imposed the sentence on Sept. 20, 2023, in Camden federal court.

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

On Aug. 14, 2020, law enforcement agents executed a search warrant at the defendant’s residence. Makley admitted possessing more than 600 images of child sexual abuse, including images of sadistic or masochistic conduct or other depictions of violence, or sexual abuse or exploitation of an infant or toddler.

In addition to the prison term, Judge Kugler sentenced Makley to 10 years of supervised release, and ordered him to pay $152,000 in restitution.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Camden County Prosecutor’s Office, under the direction of Camden County Prosecutor Grace C. MacAulay; officers of the Voorhees Police Department, under the direction of Chief Louis Bordi; and officers of the Mt. Laurel Police Department, under the direction of Chief Judy Lynn Schiavone, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office in Camden.

NEWARK, N.J. – Three doctors and two medical practices in Missouri have agreed to pay more than $650,000 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.

Doctors Gregory Stynowick, and his pain management practice, Pain Management Medical Center LLC, of Florissant, Missouri; Chad Shelton and Michael Boedefeld, and their pain management practice, Pro Pain LLC, of St. Louis, Missouri, have agreed to pay a total of $653,796 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.

“Kickbacks can compromise medical practitioners’ judgment by creating financial incentives for certain medical decisions. Doctors and clinical laboratories are on notice that kickback-for-test schemes like those alleged here can violate the Anti-Kickback Statute. We will continue to use all appropriate tools to safeguard the integrity of the federal healthcare systems.”

U.S. Attorney Philip R. Sellinger

“Kickbacks can compromise medical practitioners’ judgment by creating financial incentives for certain medical decisions,” U.S. Attorney Philip Sellinger said. “Doctors and clinical laboratories are on notice that kickback-for-test schemes like those alleged here can violate the Anti-Kickback Statute. We will continue to use all appropriate tools to safeguard the integrity of the federal healthcare systems.”

“Kickbacks are designed to improperly influence healthcare providers’ medical decisions,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “Patients should not have to wonder if their doctors’ medical decisions are being driven by unlawful inducements.”

“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,” Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General said. “Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and inappropriately steer medical tests to providers who may not return timely or quality results.”

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 Stynowick, Shelton, and Boedefeld, and their medical practices, received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in Texas, California, and Florida.

• Stynowick and Pain Management Medical Center.  Stynowick and his pain management practice, Pain Management Medical Center, have agreed to pay $257,436 to resolve two allegations. From May 2017 to July 2018, Pain Management Medical Center allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Beachwood Services LLC (Beachwood) in return for laboratory tests Stynowick ordered from Landmark Diagnostics LLC (Landmark), a clinical laboratory in Houston, Texas, and Sprint Diagnostics LLC (Sprint), a clinical laboratory in Santa Ana, California. From August 2018 to January 2020, Pain Management Medical Center allegedly received thousands of dollars in payments from a purported MSO named Alari Group LLC (Alari) in return for laboratory tests Stynowick ordered from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and InHealth Diagnostic LLC (InHealth), a clinical laboratory in Dallas, Texas.

• Shelton,  Boedefeld, and Pro Pain. Shelton, Boedefeld, and their pain management practice, Pro Pain, have agreed to pay $396,360 to resolve two allegations. From February 2017 to September 2018, Pro Pain allegedly received thousands of dollars in MSO payments from Beachwood in return for laboratory tests Shelton and Boedefeld ordered from Landmark and Sprint. Second, from July 2018 to October 2020, Pro Pain allegedly received thousands of dollars in MSO payments from Alari in return for laboratory tests Shelton and Boedefeld ordered from Genesis, InHealth, and American Institute of Toxicology Inc. (AIT), a clinical laboratory in Denton, Texas.

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 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 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.

propain.settlement.pdf pmmc.settlement.pdf

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

Louis Goldenberg, 41, of Philadelphia, Pennsylvania, is charged by complaint with one count of attempted online enticement of a minor to engage in prostitution. Goldenberg made his initial appearance on Sept. 19, 2023, before U.S. Magistrate Judge Sharon A. King in Camden federal court and was released on $100,000 unsecured bond.

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

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

The count of enticement carries a mandatory minimum term of incarceration of 10 years in prison, a potential maximum term of life in prison, and up to a $250,000 fine.

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

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

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

 

goldenberg.complaint.pdf

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to time already served – 14 months in prison – for his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced.

Justin Brooks, 24, of Vauxhall, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud. Judge Cecchi imposed the sentence today in Newark federal court.

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

From July 2019 to Oct. 6, 2020, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.

In addition to the prison term, Judge Cecchi sentenced Brooks to three years of supervised release and ordered him to pay $87, 080 in restitution.

Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks, Williams and Hutchins have all pleaded guilty to their roles in the conspiracy. Jarid Brooks and Hutchins are awaiting sentencing; Williams was previously sentenced.

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; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.

NEWARK, N.J. – Two Indian nationals were each sentenced today to 41 months in prison for their roles in a conspiracy to commit wire fraud by accepting illegally obtained $1.2 million in wire transfers from victims across the United States, U.S. Attorney Philip R. Sellinger announced.

Arushobike Mitra, 29,  and Garbita Mitra, 25, (no relation) both previously pleaded guilty before U.S. District Judge Esther Salas one count of conspiracy to commit wire fraud. Judge Salas imposed the sentences today in Newark federal court.

“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money. Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”

U.S. Attorney Philip R. Sellinger

“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money,” U.S. Attorney Sellinger said. “Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”

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

As part of an international fraud scheme, criminal India-based call centers utilized automated robocalls to victims across the country with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including the Mitras. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or DEA, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victim they were speaking with someone from a tech support company and coercing the victim into granting the caller remote access to their personal computers. The caller would then access the victim’s bank accounts and make it appear to the victim that the caller had inadvertently added money to the victim’s bank account, when in fact the caller had simply transferred money from another one of the victim’s own accounts. The caller would then instruct the victim to “return” the money by way of mail or wire transfer to other members of the conspiracy, including the Mitras.

In addition to the prison terms, Judge Salas sentenced Arushobike Mitra and Garbita Mitra each to three years of supervised release and ordered them to pay $835,324 in restitution.

U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Department of Homeland Security, Homeland Security Investigations, Cyber Intrusion Group, and El Dorado Task Force Asset Identification & Removal Group, under the direction of Special Agent in Charge Ivan J. Arvelo in New York; postal inspectors of the U.S. Postal Inspection Service in Newark Division, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s sentencings. He also thanked the Hoboken Police Department, the Hudson County Prosecutor’s Office, the New York City Police Department, and the Brunswick County, North Carolina, Sheriff’s Office for their assistance.

 

The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden. 

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

Sandy John Masselli, 62, of Columbia, South Carolina, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to nine counts of a superseding indictment charging him with bank fraud, wire fraud, and securities fraud. Masselli was initially charged by complaint in October 2017.

“Sandy Masselli today admitted defrauding his victims through a web of lies that induced them to invest in his company with the promise of substantial returns from an initial public offering that was never going to happen. He also concealed his ill-gotten gains from banks and credit card companies with more lies. Masselli’s guilty plea means that he will now be held accountable for putting his illegal pursuit of profit before his investors’ interests. This office is fully committed to combatting securities and investment fraud schemes of all kinds, and this case is another example of that commitment.”

U.S. Attorney Philip R. Sellinger

“Investment fraud has devastating consequences for victims, and today's guilty plea brings Masselli one step closer to accounting for the havoc he caused,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI and its law enforcement partners stand ready to protect investors, both large and small, from fraudsters like Masselli.”

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

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

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

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

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

The bank fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The securities fraud counts each carry a maximum potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Feb. 8, 2024. 

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

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

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

 

masselli.sindictment.pdf

NEWARK, N.J. – A member of a neighborhood street gang in Hudson County, New Jersey, was sentenced to 90 months in prison for stabbing a rival gang member during a retaliatory gang-related assault, U.S. Attorney Philip R. Sellinger announced today.

Sheldon Mays, aka “Thottie,” 23, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of assault with a dangerous weapon – a knife – in aid of racketeering. Judge McNulty imposed the sentence on Sept. 18, 2023, in Newark federal court.

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

On Aug. 3, 2020, Mays and seven others, all of whom are associated with a street gang operating in and around the Curries Woods Public Housing Complex in Jersey City – identified as “Curries Woods” or the “Tay Tay Shrimp Gang” or the “Sharks” – assaulted a rival gang member in retaliation for a prior gang-related assault. As the victim was walking down a street in Jersey City, Mays and the others approached in two cars, parked in the middle of the street, and violently assaulted the victim, who was punched, kicked, and stabbed by Mays, and suffered life-threatening injuries.

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

U.S. Attorney Sellinger credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Hudson County Department of Corrections with the investigation leading to the sentencing.

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

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

NEWARK, N.J. – Two pharmacy executives and a pharmacist were arraigned today on charges of defrauding Medicare and TRICARE by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced. The pharmacy executives are also charged with paying and conspiring to pay illegal kickbacks.

William B. Welwart 69, of Staten Island, New York; Ethan B. Welwart, 35, of Bolivar, New York; and Gary Kaczka, 62, of Saddle Brook, New Jersey, are each charged in a 22-count indictment with conspiracy to commit health care fraud and wire fraud, and health care fraud. William and Ethan Welwart are additionally charged with wire fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. The defendants appeared today before U.S. District Judge Esther Salas and were each released on $250,000 bond.

According to the indictment:

From January 2017 to December 2020, the defendants operated pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. William B. Welwart was the CEO and owner of Apogee. Ethan B. Welwart was director of operations at Apogee and the purported owner of additional pharmacies used to perpetuate the scheme. Kaczka was a pharmacist-in-charge at Apogee. The defendants and others agreed to engage in a scheme to defraud insurance payors, including Medicare and TRICARE, by working with marketing companies to generate medically unnecessary prescriptions through a telemarketing and telemedicine scheme. The Welwarts and others also agreed to pay kickbacks to marketing companies in return for the marketing companies referring prescriptions for expensive medications to the pharmacies.

The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. The defendants and their conspirators caused a loss to Medicare and other federal health care benefit programs of over $33 million.

The health care fraud and wire fraud conspiracy charges carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the wire fraud charges carry a maximum potential penalty of 20 years in prison; the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison; and the charges of payment of illegal kickbacks are punishable by 10 years in prison. All of the counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.

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

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

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

 

apogee.indictment.pdf

TRENTON, N.J. – An Ocean County, New Jersey, man made his initial court appearance today on charges of producing and distributing videos and images depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Christopher Budelman, 36, Brick, New Jersey, is charged by complaint with two counts of production of child pornography and one count of distribution of child pornography. He made his initial appearance before U.S. Magistrate Judge Douglas E. Arpert by videoconference and was detained.

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

In June 2022, while communicating via an online video chat site, Budelman enticed at least two minors to engage in sexually explicit conduct while he masturbated. Budelman recorded and saved those video chats on his computer. From September 2021 to June 2022, Budelman used two Kik Messenger accounts to send images and videos containing child sexual abuse, including images and videos depicting prepubescent minors, to others.

The charges of sexual exploitation of children each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of distribution of child exploitation material carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Ocean County Prosecutor’s Office High Tech Crime Unit, under the direction of Prosecutor Bradley D. Billhimer; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; and Brick Township Police Department, under the direction of Chief David Forrester, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the Criminal Division in Trenton.

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

 

budelman.complaint.pdf

NEWARK, N.J. – A Connecticut man today admitted orchestrating a $2.19 million scheme to defraud an alcohol company and its owner by causing them to overpay for champagne and cognac and collecting kickbacks based on the inflated prices, U.S. Attorney Philip R. Sellinger announced.

Mitchell E. Green, 44, of Westport, Connecticut, pleaded guilty today before U.S. District Court Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud.

“Though he was supposed to negotiate the best deal possible for his employer, Green set up secret side deals to inflate what his employer paid so that he could reap millions of dollars in kickbacks. Companies must be able to rely on the integrity of their agents to conduct business. When employees violate that trust and engage in fraud -- like the defendant did here -- this Office and our law enforcement partners are prepared to hold them accountable.”

U.S. Attorney Philip R. Sellinger

“As Green has discovered, there’s no such thing as easy money,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI works tirelessly to ensure that the consequences for this type of fraud far outweigh the initial payout.”

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

From June 2017 through February 2020, Green worked for a Hoboken, New Jersey-based liquor company owned by an internationally recognized music artist, producer, and entrepreneur. Green secretly negotiated side agreements with two French distilleries to pay him kickbacks through his company, Q Branch LLC, for each bottle of champagne and cognac that Green’s employer purchased from the distilleries. Green caused his employer to unknowingly pay the cost of his kickbacks by hiding it in the per-bottle price that the distilleries charged for the champagne and cognac. Based on those inflated prices, Green’s employer paid $14.8 million for the champagne and cognac, and Green collected $2.19 million in hidden kickbacks from the French champagne and cognac distilleries. 

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 or twice the gross loss suffered to the victims of his offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2024.

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

The government is represented by Assistant U.S. Attorneys Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division..

 

green.information.pdf

A New Jersey man pleaded guilty yesterday to tax evasion, employment tax crimes, aiding the filing of false tax returns and making false statements in bankruptcy.

According to court documents and statements made in court, Zeki Donuk, of Landing, operated a construction business first under the name Titan Builders LLC and later as Titan Steel Construction LLC (collectively, “Titan”). From at least 2016 through 2019, Donuk cashed checks payable to Titan instead of depositing them into business bank accounts. Donuk concealed the cashed checks and did not report them either as gross receipts on Titan’s corporate tax returns or as income on his or his wife’s personal returns.

As part of his plea, Donuk admitted that from the third quarter of 2016 through the third quarter of 2017, he also did not collect, account for or pay over to the IRS employment taxes withheld from employees’ wages, despite a legal obligation to do so. For those quarters, Donuk also did not file quarterly employment tax returns on behalf of the businesses.

In 2019, Donuk made false statements on documents he filed in a personal bankruptcy case. Specifically, he concealed from the bankruptcy court that he owned a vacation property in Pennsylvania, had signatory authority over certain bank accounts, owed tax debts to the IRS and operated his construction business as Titan Builders and Titan Steel.

U.S. District Judge Esther Salas for the District of New Jersey set sentencing for Jan. 4, 2024. Donuk faces a maximum penalty of five years in prison for each count of tax evasion, failure to account for and pay employment taxes and bankruptcy fraud, and a maximum penalty of three years in prison for each false return. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.

IRS-Criminal Investigation, the FBI and the Treasury Inspector General for Tax Administration are investigating the case.

Trial Attorney Melissa S. Siskind of the Tax Division and Assistant U.S. Attorney Benjamin Levin for the District of New Jersey are prosecuting the case.

NEWARK, N.J. – A Jersey City attorney today admitted defrauding his clients of more than $2 million dollars and other crimes, U.S. Attorney Philip R. Sellinger announced.

James R. Lisa, 68, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of wire fraud, one count of aggravated identity theft, one count of obstructing the IRS, one count of failing to file an individual income tax return, and one count of wire fraud while on pretrial release.

“James Lisa used his law license to execute a multimillion-dollar fraud scheme and rip off clients who placed their trust in him. Then, after being charged for that fraud, Lisa committed another when, posing as his own lawyer, he sent a bogus letter to a lender that falsely described the status of his criminal case. Lisa’s multiple criminal acts were serious violations of his oath as an officer of the court and a betrayal of his clients’ trust. He will now face justice for these crimes. The people of New Jersey must be able to rely on their attorneys without having to worry that they are being defrauded. Lisa’s guilty plea should reassure the public that our office will bring the full weight of the justice system on attorneys who violate federal the law.”

U.S. Attorney Philip R. Sellinger

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

In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.

Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so. When one member of the family was audited by the IRS, the IRS issued Lisa a summons for records related to the family’s assets. In response to the summons, Lisa produced false and fraudulent documents suggesting that the IRS had agreed to closing agreements with the family.

In January 2023, Lisa was arrested after being charged with this fraud scheme and placed on pretrial release.  One condition of his pretrial release was that he not commit another crime.  In April 2023, Lisa committed wire fraud when he applied for a $22,000 loan. In order to obtain the loan, Lisa caused the creation and submission to the lender of a fraudulent document that purported to be a letter from the attorney then representing him in his criminal prosecution. Lisa caused the letter to be sent in order to defraud the lender about the status of the criminal prosecution so that the lender would approve the loan. 

Lisa also admitted that he failed to file individual income tax returns for tax years 2015 through 2022, and as a result, caused a tax loss to the IRS of at least $550,000. 

The count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of obstructing the IRS carries a maximum penalty of three years in prison and a fine of up to $250,000. The count of failure to file a tax return carries a maximum penalty of one year in prison and a fine of up to $100,000. The count of wire fraud while on pretrial release carries a maximum penalty of 10 years in prison, which must run consecutively to any other term of imprisonment, and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. Sentencing is scheduled for Jan. 25, 2024.

U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, 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 Jeffrey Bender of the U.S. Attorney’s Office in Camden.

 

lisa.sinformation.pdf

NEWARK, N.J. – A New York man admitted his role in a conspiracy that targeted Asian and Asian-American small business owners for burglaries, U.S. Attorney Philip R. Sellinger announced today.

James Hurt, 47, of New York, pleaded guilty Sept. 13, 2023, before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. 

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

From Dec. 2, 2016, to March 20, 2019, Hurt and others participated in a conspiracy to burglarize the residences of certain Asian small business owners living in New Jersey, New York, Pennsylvania, and Delaware of large sums of money, valuable jewelry, and other items, and then transport the stolen goods in interstate commerce, including to residences in New Jersey and Pennsylvania.

The charge of conspiracy to commit interstate transportation of stolen property 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. Sentencing is scheduled for Feb. 20, 2023.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy, in Newark, with the investigation leading to today’s guilty plea. He also thanked the South Plainfield Police Department, the Middlesex County Prosecutor’s Office, the New Jersey State Police, the Port Authority of New York and New Jersey, the U.S. Department of Labor, the U.S. Department of State, the Drug Enforcement Administration, the U.S. Customs and Border Protection, the U.S. Department of Transportation, the U.S. Postal Inspection Service, the Union County Prosecutor’s Office, and the Bernards Township, Bethlehem Township, Cherry Hill, Cinnaminson, Clark, Colonial Regional, Cranford, Delaware State Police-Troop 2, Delran, Edison, East Brunswick, East Hanover, Eatontown, Elizabeth, Essex County Sheriff’s Office-Bureau of Narcotics, Evesham Township, Exeter Township, Fair Lawn, Forks Township, Fort Lee, Franklin Township, Glassboro, Gloucester Township, Hackensack, Haverstraw, Hazlet, Highland Park, Hillside, Hillsborough Township, Howell Township, Jackson, Kenilworth, Lawrence Township, Linden, Lyndhurst, Mahwah, Marlboro Township, Maywood, Middletown, Montgomery County, Montville, Morris Township, Mount Laurel, Mountainside, New Castle County, New Providence, New York Police Department’s 105th Detective Squad, North Brunswick, North Plainfield, Old Bridge, Paramus, Parsippany, Phillipsburg, Piscataway, Pocono Mountain Regional, Pocono Township, Raritan, Roselle Park, Sayreville, Somerville, South Brunswick, South River, South Whitehall Township, Spotswood, Town of Tuxedo, Tinton Falls, Toms River, Township of Ocean, Union, Upper Macungie Township, Wall Township, Warren, Washington Township, Watchung, Westfield, Whitehall Township, and Woodbridge Township police departments.

The government is represented by Assistant U.S. Attorneys Dong Joo Lee and Christopher Fell of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.

 

hurt.information.pdf

NEWARK, N.J. – Two members of the Rollin’ 60s Neighborhood Crips gang admitted their roles in a racketeering conspiracy, U.S. Attorney Philip R. Sellinger announced today.

Tyheim Terry, aka “Ty,” aka “Rollin’ Ty,” 25, and Amir Edmonds, aka “G Baby,” 22, each pleaded guilty on Sept. 13, 2023, before U.S. District Judge Susan D. Wigenton in Newark federal court to a superseding indictment that charged them with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Terry also pleaded guilty to carjacking and to brandishing a firearm in furtherance of the carjacking. Edmonds also pleaded guilty to possession with intent to distribute fentanyl and cocaine and to possessing a firearm in furtherance of a drug trafficking crime.

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

From 2015 through Sept. 22, 2022, Terry and Edmonds were members of the Rollin’ 60s Neighborhood Crips, a criminal enterprise responsible for acts of violence and the distribution of controlled substances in the District of New Jersey and elsewhere.

On Feb. 21, 2021, Terry worked with others, including members of the gang, to attempt to carjack a victim. On April 5, 2021, Terry worked with other members of the gang to shoot another victim. On April 11, 2021, Terry brandished a firearm and carjacked a third victim. Edmonds admitted to working with at least one other member of the enterprise to distribute controlled substances. On Jan. 7, 2020, Edmonds possessed with intent to distribute cocaine and fentanyl, and possessed a firearm in furtherance of that drug offense.

Each defendant faces a maximum sentence of 20 years in prison and a fine of up to $250,000 on the racketeering conspiracy. Terry faces a maximum sentence of 15 years in prison and a fine of up to $250,000 on the carjacking, and a mandatory minimum prison sentence of seven years, and a maximum sentence of life in prison, which must run consecutively to any sentence imposed for the carjacking, as well as a fine of up to $250,000 on the firearms offense. Edmonds faces a maximum sentence of 20 years in prison and a fine of up to $1 million on the controlled substance offense, and a mandatory minimum prison sentence of five years, and a maximum sentence of life in prison, which must run consecutively to any sentence imposed for the controlled substance offense, as well as a fine of up to $250,000 on the firearms offense. Sentencing for Edmond is scheduled for Jan. 17, 2024, and for Edmonds, Jan.16, 2024.

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

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

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

 

terryedmonds.sindictment.pdf

NEWARK, N.J. – A Florida man admitted that he illegally obtained more than $1.5 million in government benefits, U.S. Attorney Philip R. Sellinger announced today. 

Michael Blanc, 34, of Miami, Florida, pleaded guilty on Sept. 13, 2024, before U.S. District Judge Michael A. Shipp in Trenton federal court on to an information charging him with wire fraud.

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

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. It expanded states’ ability to provide assistance to many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits. The CARES Act also enabled the Small Business Association (SBA) to offer funding through the COVID-19 Economic Injury Disaster Loans (EIDL) program to business owners negatively affected by the COVID-19 pandemic.

Blanc and others applied for unemployment insurance benefits in others’ names without their knowledge or consent and provided false information to induce state workforce agencies to approve those applications. He and others applied for EIDLs in others’ names without their knowledge or consent and provided false information in the applications to induce the SBA to approve the loan applications. Blanc and others obtained more than $1.5 million through their fraudulent scheme.

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 Blanc or twice the gross loss suffered by the victims. Sentencing is scheduled for Jan. 24, 2024.

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, in New York, and the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge is Scott Moffit, Cybercrime Investigations Division, with the investigation leading to today’s guilty plea. He also thanked the FBI, Miami Division, and the New Jersey Department of Labor & Workforce Development for their assistance.

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

 

blanc.information.pdf

 

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted participating in schemes to negotiate fraudulent checks with forged signatures and to use credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.

Emmanuel Yirenkyi, 29, of Pine Hill, pleaded guilty 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 access device fraud conspiracy.

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

Yirenkyi conspired with Misty Sarfo-Adu, Eugene Koranteng, 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. In a separate scheme, Yirenkyi and Sarfo-Adu also conspired to use credit cards without the account holders’ knowledge or authorization. Yirenkyi admitted that the fraud schemes caused a loss to the credit card company of more than $150,000.

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 access device fraud carries a maximum penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 16, 2024.

Sarfo-Adu previously pleaded guilty before Judge Kugler to his participation in the same conspiracies and is scheduled to be sentenced Nov. 28, 2023.

Koranteng remains charged by complaint. The charge and allegations contained in the complaint against Koranteng are merely accusations, and Koranteng is presumed innocent unless and until proven guilty.

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

 

yirenkyi.information.pdf

NEWARK, N.J. –  A Bronx, New York, man today admitted possessing fentanyl with intent to distribute and resisting his arrest with a deadly or dangerous weapon, U.S. Attorney Philip R. Sellinger announced.

Miguel Nuñez, 50, of Bronx, New York, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to a superseding information charging him with one count of possessing 40 grams of fentanyl with intent to distribute and one count of resisting and impeding officers with a deadly or dangerous weapon.

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

On March 24, 2021, Nuñez and Jesus Higuera-Parra, 28, of Ontario, California, drove from New York City to Elizabeth, New Jersey, for the purposes of distributing fentanyl. When they arrived to meet the drug purchaser, they were approached by members of the Drug Enforcement Administration (DEA). Nunez, the driver of the vehicle, put his car in reverse and attempted to elude the law enforcement personnel, which resulted in a collision with a DEA car.

The narcotics offense to which Nunez pleaded guilty carries a mandatory minimum term of five years in prison, a maximum penalty of 40 years in prison, and a fine of $5 million. The resisting and impeding offense to which Nunez pleaded guilty carries a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Jan. 23, 2023.

Higuera-Parra previously pleaded guilty to an information charging him with possessing with intent to distribute fentanyl and is awaiting sentencing.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit and Benjamin Levin of the National Security Unit.

 

nunez.information.pdf

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Trenton next week at the fourth in a series of planned town hall meetings. The town hall series is one initiative of U.S. Attorney Sellinger to engage directly with citizens’ concerns and ultimately to improve public safety in New Jersey.

The town hall will be held on Tuesday, Sept. 12, 2023, doors opening at 6:00 p.m., with the program beginning promptly at 6:30 p.m. and running until 8:30 p.m. at the Greater Mt. Zion AME Church, 42 Pennington Ave., Trenton, New Jersey, 08618.  U.S. Attorney Sellinger and members of his staff will discuss the work of his office in a variety of areas, including federal civil rights enforcement, bias and hate crimes, environmental justice, violent crime, opioid-related crime, and post-incarceration programs.

This is a community event and is open to the public.