District of New Jersey

NEWARK, N.J. – Two physicians and a medical practice in Missouri have agreed to pay more than $520,000 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.

Imran Chishti M.D. and his medical practice, C Care LLC, both of Chesterfield, Missouri; Shamim Justin Badiyan, of Frisco, Texas; and Psych Care Consultants LLC, of St. Louis, Missouri, have agreed to pay $525,610 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, and both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.

“Kickbacks can undermine the integrity of our healthcare system. Patients should be able to count on their doctors’ ordering tests and recommending treatment based on what is best for them, and not because they are receiving payments on the side. We will continue to pursue anyone responsible for unlawful actions that can put at risk the medical decision-making process.”

“The prohibition against paying or receiving kickbacks is an important safeguard for ensuring the objectivity of medical decisions that affect federal health care beneficiaries,” Principal Deputy Assistant Attorney General Boynton said. “We will continue to pursue those who knowingly violate the law and undermine the integrity of our federal healthcare system.”

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 Chishti and his medical practice, Badiyan, and Psych Care Consultants received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Texas, and Florida.

• Chishti and C Care have agreed to pay $125,504 to resolve two allegations. First, from July 2016 to August 2018, C Care allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Infinity Nine Health Group MSO LLC (Infinity) in return for Chishti ordering laboratory tests from American Institute of Toxicology Inc. d/b/a HealthTrackRx, a clinical laboratory in Denton, Texas, and InHealth Diagnostic LLC d/b/a RealLab (InHealth), a clinical laboratory in Dallas, Texas. Second, from August 2018 to July 2020, C Care allegedly received thousands of dollars in payments from a purported MSO named Alari Group LLC (Alari) in return for Chishti ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey.

• Badiyan has agreed to pay $182,676 to resolve allegations that from November 2018 to June 2022, he received thousands of dollars in payments from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from RDx and Genesis. RDx and Genesis allegedly paid commissions to an independent contractor recruiter, Corum Group LLC (Corum), which used Avior to pay kickbacks to Badiyan and other healthcare providers in return for their referrals.

• Psych Care Consultants has agreed to pay $217,430 to resolve allegations that from January 2019 to March 2020, it received thousands of dollars in payments from Alari in return for ordering laboratory tests from Genesis and InHealth. Genesis and InHealth allegedly paid commissions to Corum, which used Alari to pay kickbacks to Psych Care Consultants and other healthcare providers in return for their referrals.

“Those who 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 (HHS-OIG) said. “Our agency collaborates frequently with our law enforcement partners to investigate parties alleged to violate the Anti-Kickback Statute.”

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.

NEWARK, N.J. – A Passaic County, New Jersey, man was charged today with being a convicted felon in possession of ammunition, U.S. Attorney Philip R. Sellinger announced.

Justin Pope, 36, of Clifton, New Jersey, was indicted by a federal grand jury on two counts of being a convicted felon in possession of ammunition. He was arrested on July 13, 2023, and was charged by complaint with the same two counts. Pope appeared before U.S. Magistrate James B. Clark III on the complaint earlier this week and was detained without bail.

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

On July 12, 2023, law enforcement officers responded to a report of shots fired in a public parking lot in Clifton, New Jersey. A review of the surveillance footage from the area showed Pope and a female individual engaged in an altercation while inside of a vehicle. As the female individual exited the vehicle, Pope pointed a handgun and fired multiple shots at the victim at close range. 

The following day law enforcement reviewed a video on a social media account depicting Pope firing a gun in the air in which he stated, “Can’t find me . . . Police. Y’all never gonna find me.”

Pope was arrested a few hours later after he attempted to board a bus in New York City and brandished a firearm to bus employees. At the time of his arrest, law enforcement recovered a firearm from Pope, which was later identified as a privately made 9mm firearm with a large capacity magazine attached and which was loaded with one round of 9mm ammunition.

The felon in possession of ammunition charges each carry a maximum penalty of 15 years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; officers of the Clifton Police Department, under the direction of Chief Thomas Rinaldi; officers of the Paterson Police Department, under Officer in Charge Isa M. Abbassi; officers of the Passaic County Sheriff's Department under Sheriff Richard H. Berdnik; officers of the Passaic Police Department, under Chief Luis Guzman; and officers of New York City Police Department, under the direction of Commissioner Edward Caban, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the U.S. Attorney’s Office’s Criminal 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.

Imran Chishti, M.D. and his medical practice, C Care LLC, both of Chesterfield, Missouri; Shamim Justin Badiyan, M.D., of Frisco, Texas, and Psych Care Consultants LLC, of St. Louis, Missouri, have agreed to pay a total of $525,610 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.

“The prohibition against paying or receiving kickbacks is an important safeguard for ensuring the objectivity of medical decisions that affect federal health care beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who knowingly violate the law and undermine the integrity of our federal health care system.”

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 health care 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 Dr. Chishti and his medical practice, Badiyan, and Psych Care Consultants received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Texas, and Florida.

• Chishti and C Care. Chishti and his medical practice, C Care, have agreed to pay $125,504 to resolve two allegations. First, from July 2016 to August 2018, C Care allegedly received thousands of dollars in payments from a purported management service organization (MSO) named Infinity Nine Health Group MSO LLC (Infinity) in return for Dr. Chishti ordering laboratory tests from American Institute of Toxicology Inc. doing business as HealthTrackRx, a clinical laboratory in Denton, Texas, and InHealth Diagnostic LLC doing business as RealLab (InHealth), a clinical laboratory in Dallas. Second, from August 2018 to July 2020, C Care allegedly received thousands of dollars in payments from a purported MSO named Alari Group LLC (Alari) in return for Dr. Chishti ordering laboratory tests from Genesis Reference Laboratories LLC (Genesis), a clinical laboratory in Orlando, Florida, and RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey.
• Badiyan. Badiyan has agreed to pay $182,676 to resolve allegations that, from November 2018 to June 2022, he received thousands of dollars in payments from a purported MSO named Avior Group LLC (Avior) in return for ordering laboratory tests from RDx and Genesis. RDx and Genesis allegedly paid commissions to an independent contractor recruiter, Corum Group LLC (Corum), which used Avior to pay kickbacks to Dr. Badiyan and other health care providers in return for their referrals.
• Psych Care Consultants. Psych Care Consultants has agreed to pay $217,430 to resolve allegations that, from January 2019 to March 2020, it received thousands of dollars in payments from Alari in return for ordering laboratory tests from Genesis and InHealth. Genesis and InHealth allegedly paid commissions to Corum, which used Alari to pay kickbacks to Psych Care Consultants and other health care providers in return for their referrals.

“Kickbacks can undermine the integrity of our health care system,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Patients should be able to count on their doctors ordering tests and recommending treatment based on what is best for them, and not because they are receiving payments on the side. We will continue to pursue anyone responsible for unlawful actions that can put at risk the medical decision-making process.”

“Those who participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency collaborates frequently with our law enforcement partners to investigate parties alleged to violate the Anti-Kickback Statute.”

The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey. The United States has recovered over $33 million relating to conduct involving MSO kickbacks to health care providers, including False Claims Act settlements with three dozen physicians.

The 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.

NEWARK, N.J. – A Middlesex County, New Jersey man was sentenced to one year and one day in prison for filing a false tax return on behalf of his company, U.S. Attorney Philip R. Sellinger, Acting Assistant Attorney General David A. Hubbert, and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced today.

Gabriel M. Ferrari of Edison, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count Four of an indictment that charged him with subscribing to a false tax return. Judge Chesler sentenced Ferrari on July 19, 2023, in Newark federal court.

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

Ferrari was the sole owner of Buses and Trucks Inc., an automotive repair business in Linden, New Jersey. In January 2015, Ferrari subscribed to and caused to be filed a corporate tax return for Buses and Trucks for tax year 2011. As Ferrari knew at the time, that return was false in that it understated Buses and Trucks’ gross receipts for tax year 2011. In fact, Ferrari had diverted Buses and Trucks’ gross receipts to pay personal expenses, including gambling on horse races, and did not report those diverted receipts on the Buses and Trucks 2011 corporate tax return.

In addition to the prison term, Judge Chesler sentenced Ferrari to one year of supervised release and ordered to pay restitution of $87,926.

U.S. Attorney Sellinger, Acting Assistant Attorney General Hubbert, and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly, Chief of the General Crimes Unit, and Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.

CAMDEN, N.J. – An Essex County man admitted failing to withhold and pay over payroll taxes stemming from his ownership of two formerly prominent Newark restaurants, U.S. Attorney Philip R. Sellinger announced.

Jorge Fernandes, 76, of West Orange, New Jersey pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with two counts of failing to collect payroll taxes for the tax period of 2016 through 2017.   

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

Fernandes was the 50-percent owner of two restaurants in the Ironbound section of Newark, Iberia Tavern and Iberia Peninsula. Fernandes was fully aware of his legal obligation to collect payroll taxes from the restaurants’ employees, but instead paid a number of the employees “off the books,” or “under the table,” failing to collect any payroll taxes from them. Fernandes’ conduct caused the government a total tax loss of $715,780 for tax years 2016 through 2017.

The failing to collect payroll taxes charges to which Fernandes pleaded guilty each carry a maximum penalty of five years in prison and a $10,000 fine. Sentencing is scheduled for Nov. 20, 2023.

U.S. Attorney Sellinger credited special agents of the IRS - Criminal Investigation under the direction of Special Agent in Charge Tammy Tomlins, and special agents with the U.S. Department of Labor, Office of the Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.

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

NEWARK, N.J. – An Essex County, New Jersey, man was arrested and charged with bank robbery, U.S. Attorney Philip R. Sellinger announced today.

Sufyan A. Abdullah, 54, of Newark, is charged by complaint with two counts of bank robbery. He appeared on July 20, 2023, 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 July 8, 2023, Abdullah entered a bank in Elizabeth, New Jersey, and handed a note to a teller claiming to have multiple firearms and threatening a “mass shooting.” Abdullah fled the bank without obtaining any money. On July 15, 2023, Abdullah entered a bank in Springfield, New Jersey, and placed an object – which he claimed to be an explosive device – on the counter in front of a teller, demanding money and threatening to blow up the bank. The teller gave Abdullah cash, and Abdullah said he would blow up the bank if anyone followed him or he heard sirens. Law enforcement subsequently determined that the purported explosive device was an imitation explosive device.

The counts of bank robbery each carry a maximum penalty of 20 years in prison, and a fine of $250,000. 

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked the Springfield Police Department, under the direction of Chief of Police John Cook, and the Elizabeth Police Department, under the direction of Police Chief Giacommo Sacca, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Christopher Fell of the Narcotics/OCDETF 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.

TRENTON, N.J. – A Raleigh, North Carolina, man with ties to Trenton was sentenced to 151 months in prison for distributing heroin and unlawfully possessing a firearm as a convicted felon, U.S. Attorney Philip R. Sellinger announced today.

Dennis Cheston Jr., aka “Beans,” 42, previously pleaded guilty before former Chief U.S. District Judge Freda L. Wolfson to two counts of an indictment charging him with distributing heroin and unlawfully possessing a firearm as a convicted felon. Following Judge Wolfson’s retirement, the case was assigned to U.S. District Judge Georgette Castner, who imposed the sentence on July 18, 2023, in Trenton federal court.

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

From October 2017 to October 2018, law enforcement investigated a large narcotics conspiracy that operated in Trenton and elsewhere. Conspirators Jakir Taylor, aka “Jak,” and Jerome Roberts, aka “Righteous,” obtained regular supplies of hundreds of bricks of heroin from conspirator David Antonio, aka “Papi,” which Taylor, Roberts, and their conspirators then redistributed for profit in Trenton and elsewhere.

On multiple occasions, Cheston – a convicted felon with ties to the Trenton area – traveled from North Carolina to Trenton and obtained quantities of heroin from Taylor for redistribution. During one intercepted telephone call between Taylor and Cheston, Cheston advised Taylor that the heroin bearing an ink stamp that read “Top Secret” was of high quality and that Cheston’s customers in North Carolina liked it. During the course of these drug transactions, Cheston agreed to travel from North Carolina to Trenton to supply Taylor with multiple firearms in exchange for future supplies of heroin. Cheston had previously brought multiple firearms from North Carolina to New Jersey, but had provided them to other individuals instead of Taylor. In an Aug. 25, 2018, intercepted call however, Cheston promised to bring all future guns to Taylor first. On Sept. 8, 2018, law enforcement tracked Cheston as he traveled from North Carolina to Trenton. Shortly after his arrival, law enforcement officers arrested Cheston as he exited the Trenton Transit Center. During a subsequent search of Cheston’s backpack, law enforcement recovered a 9-millimeter Smith & Wesson handgun – one of the guns that Cheston had agreed to provide to Taylor over the wiretap.

In addition to the prison term, Judge Castner sentenced Cheston to three years of supervised release. Taylor and Antonio previously pleaded guilty and Roberts was previously convicted at trial.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Office, under the direction of Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief Jonathan Bucchere; officers of the Ewing Police Department, under the direction of Chief Albert Rhodes; officers of the Burlington Township Police Department, under the direction of chief John Fine; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.

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

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.

NEWARK, N.J. – A federal jury convicted a Gloucester County, New Jersey, man for narcotics trafficking and firearms offenses, U.S. Attorney Philip R. Sellinger announced today.

Javier Osorio, 43, of Deptford, New Jersey, was convicted following a one-week trial before U.S. District Judge Brian R. Martinotti in Newark federal court. Osorio was convicted of conspiracy to distribute and possess with the intent to distribute heroin and cocaine, possession with the intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and unlawful possession of a firearm by a convicted felon.

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

Osorio conspired with others to distribute cocaine and over one kilogram of heroin, which was recovered from his apartment. Osorio was arrested while driving with his conspirators from New Jersey to Brooklyn to sell an additional quantity of heroin, which was recovered from the vehicle. In addition to the drugs recovered from his apartment, law enforcement also recovered a loaded stolen firearm from under Osorio’s mattress.

At sentencing, Osorio faces a maximum potential penalty of 20 years on each count of conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin is punishable by a maximum penalty of life in prison. The count of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of five years in prison, which must be served consecutively to any other prison term; the count of unlawful possession of a firearm by a convicted felon carries a maximum potential penalty of 10 years in prison. Each count also carries a potential $250,000 fine. 

U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to these charges. He also credited the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez for its assistance.

The government is represented by Assistant U.S. Attorney George L. Brandley of the Office’s Health Care Fraud Unit in Newark, and Assistant U.S. Attorney Kendall Randolph of the Office’s Organized Crime/Gangs Unit in Newark.

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.

CAMDEN, N.J. – Five individuals were charged for their roles in fraudulently obtaining federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) and for laundering the loan proceeds, U.S. Attorney Philip R. Sellinger announced today. Two other individuals pleaded guilty to fraudulently obtaining PPP and EIDL loans.

Eric Rivera, 43, of Norcross, Georgia, is charged by complaint with one count of conspiracy to commit bank fraud, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. He made is initial appearance in federal court in the Northern District of Georgia and was released on $10,000 unsecured bond. Lisa Smith, 60, of Cornelius, North Carolina, and Sieff Robert Sargeant, 43, of Island Park, New York, are charged by complaint with one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. Smith had her initial appearance in the Western District of North Carolina and was released on $25,000 unsecured bond. Sargeant is scheduled to make his initial appearance today before Magistrate Judge Ann Marie Donio in Camden federal court.

Adrienne Ponzo, 48, of Bear, Delaware, is charged by complaint with one count of conspiracy to commit wire fraud, and remains at-large. James Wessels, 53, of Middletown, Delaware, is charged by complaint with one count of conspiracy to commit money laundering. He made his initial appearance before Judge Donio and was released on $100,000 unsecured bond.

According to the criminal complaints:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  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 a program referred to as the Paycheck Protection Program (PPP).  The CARES Act also authorized the Small Business Administration to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.

To obtain 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.

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

In one conspiracy, Rivera conspired with Smith, Sargeant, and others to defraud the PPP loan program. Rivera recruited individuals – including Sargeant – who owned businesses with minimal operations, employees, revenues, and profits, and introduced them to Smith. Smith prepared fraudulent PPP applications for these businesses and created false tax returns that were created solely for purposes of applying for the PPP and EIDL loans and were never submitted to the IRS. The applicants, including Sargeant, electronically signed the applications, which were then submitted to lenders. Rivera received payments of 15 to 50 percent of the loan proceeds for his role in orchestrating this scheme.

In the second conspiracy, Rivera conspired with Ponzo and others to defraud the EIDL loan program. He recruited individuals who owned businesses with minimal operations, employees, revenues, and profits and introduced them to Ponzo, who prepared fraudulent EIDL applications for these businesses and caused them to be electronically submitted to the Small Business Administration. Rivera received payments of 15 to 50 percent of the loan proceeds for his role in orchestrating this scheme.

In the third conspiracy, Rivera conspired with Smith, Wessels, and Sargeant to structure the PPP loan proceeds and paperwork to conceal that the proceeds actually were being spent on non-payroll expenses. Rivera and Smith introduced Sargeant to Wessels, who created fake payroll checks and provided them to Sargeant.  Sargeant distributed the fake payroll checks to friends and family members, who cashed the checks and returned the majority of the cash to Sargeant. Smith then used the fake payroll documentation to submit a loan forgiveness application for Sargeant’s business that falsely stated that Sargeant spent 66 percent of the loan amount on payroll expenses.

The counts of conspiracy to commit bank fraud are each punishable by a maximum of 30 years in prison and a $1 million fine. The counts of conspiracy to commit wire fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The count of conspiracy to commit money laundering is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Earlier this month, Yasha Barjona, 67, and William Ingram, 43, each pleaded guilty before U.S. District Judge Karen Williams to one count of bank fraud conspiracy.

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

Ingram and Barjona owned businesses with minimal operations, employees, revenues, and profits. Rivera introduced Ingram and Barjona to Ponzo and Smith. Ponzo prepared fraudulent EIDL applications for Ingram’s and Barjona’s businesses and Smith prepared fraudulent PPP applications for Ingram’s and Barjona’s businesses. Ingram and Barjona electronically signed and submitted these applications, which contained materially false and fraudulent information about the businesses and included false tax returns that were created solely for purposes of applying for the PPP and EIDL loans and were never submitted to the IRS.  Ponzo and Smith also prepared fraudulent EIDL and PPP applications for businesses controlled by associates of Barjona.

Barjona and his associates received approximately $724,300 in PPP and EIDL proceeds and paid kickbacks to Rivera of approximately 50 percent of the loan amounts. Ingram received approximately $551,600 in PPP and EIDL proceeds and paid kickbacks to Rivera of approximately 15 percent of the loan amounts. After Ingram received the PPP loans, Rivera and Smith introduced Ingram to Wessels, who prepared fake payroll documents to conceal that the proceeds were being spent on non-payroll expenses. Sentencing for Ingram’s sentencing is scheduled for Nov. 7, 2023, and for Barjona, Nov. 15, 2023.

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

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

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

NEWARK, N.J. – A New Jersey man whose 24-year federal prison sentence was commuted after being twice convicted of defrauding investors of a total of $230 million was charged today with four other men for committing additional crimes, including conspiring to defraud investors of more than $35 million, and with conspiracy to obstruct justice, U.S. Attorney Philip R. Sellinger announced.

A criminal complaint was unsealed today charging each of the five defendants with one count of wire fraud conspiracy and one count of conspiracy to obstruct justice. The defendants are: Eliyahu “Eli” Weinstein, aka Mike Konig, 48, Aryeh “Ari” Bromberg, 49, and Joel Wittels, 57, all of Lakewood, New Jersey, along with Shlomo Erez, 55, a citizen and resident of Israel, and Alaa Hattab, 34, of Otttowa, Canada. The three defendants who were arrested are scheduled to make their initial appearances today before U.S. Magistrate Judge Tonianne Bongiovanni in Trenton federal court; Wittels and Hattab remain at large.

“As alleged in the complaint, Weinstein, along with four other individuals, has once again perpetrated a sophisticated fraud scheme causing losses of millions of dollars. He did so by using a fake name and falsely promising access to deals involving scarce medical supplies, baby formula, and first-aid kits supposedly destined for wartime Ukraine. These were brazen and sophisticated crimes that involved multiple conspirators and drew right from Weinstein’s playbook of fraud. No matter how many times someone attempts to prey on innocent investors, my office will dedicate whatever resources are necessary to root out and punish fraudsters.”

“We allege Mr. Weinstein took part in a new scheme to rip off investors by hiding his real identity,” Special in Charge James E. Dennehy of the Newark FBI said. “He was aware his actions were against the terms of his release on a previous investment fraud conviction, and we allege he engaged in criminal activity anyway. I want to commend everyone who worked on this investigation. Cases like this can be tedious, and at times very frustrating, but the investigative team does the work to prevent more people from being victimized and to ensure career criminals face the justice they deserve." 

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

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

Soon after being released from prison, Weinstein began orchestrating a new scheme to solicit money from investors through a company called Optimus Investments Inc. (Optimus). Using the fake name “Mike Konig,” Weinstein ran Optimus with Bromberg and Wittels. They kept Weinstein’s true name and identity hidden because, as Weinstein acknowledged in a secretly recorded conversation, investors wouldn’t give them “a penny” if they learned of Weinstein’s involvement.

Weinstein, Bromberg, and Wittels received the bulk of investor money through a second company, Tryon Management Group LLC, which was owned and controlled by two other conspirators. Tryon promised these individual investors – consisting mostly of friends and family – lucrative opportunities to invest in deals involving COVID-19 masks, scarce baby formula, and first-aid kits supposedly bound for wartime Ukraine. Posing as Mike Konig, Weinstein provided the information for these supposed deals. Based on that information, investors gave money to Tryon, believing the deals were legitimate and not knowing about Weinstein’s involvement. In turn, Tryon transferred those funds to Weinstein, through Optimus.  

In February 2022, almost immediately after Tryon and Optimus started receiving investor money, Tryon was unable to pay its investors.  Rather than reveal this information to investors, Weinstein, Bromberg, and Wittels agreed with Tryon’s owners to pool money from existing investors of both Optimus and Tryon and use it to make monthly payments to other investors in a Ponzi-like fashion. Bromberg, Wittels, and the Tryon owners concealed this arrangement from investors by falsely telling investors that the payments derived from legitimate investment returns, not other investors’ money.

In late August 2022, Weinstein revealed his true identity to the Tryon owners, admitting in a secretly recorded meeting, “I am Eli Weinstein.” In another recorded August 2022 meeting, Weinstein admitted to misappropriating Tryon investor money and making various false statements about the purported Optimus deals. Weinstein acknowledged that he was conducting a Ponzi scheme, stating, “I finagled, and Ponzied, and lied to people to cover us.”

Erez claimed to be Weinstein’s attorney and helped conceal Weinstein’s true identity by, among other things, receiving and managing money on Weinstein’s behalf.. Hattab served as a broker for Optimus and helped conceal Weinstein’s involvement from investors and his business activities from the United States Probation Office.

Once the Tryon owners learned that Mike Konig was actually Weinstein, they agreed with the defendants to continue concealing Weinstein’s identity from investors and to raise additional money to pay off existing Tryon investors, all in an effort to stop the Ponzi scheme from falling apart and to cover up the fraud.

In addition to defrauding investors, the defendants also conspired to obstruct justice. They helped hide Weinstein’s assets that should have been used to pay over $200 million in restitution that he still owes his previous victims. The defendants also concealed Weinstein’s myriad business activities, which he was required to disclose to the court and which were expressly prohibited by the terms of his supervised release. In multiple secretly recorded conversations, Weinstein discussed his intent to conceal his various assets from the government. In one such conversation, Weinstein referenced hidden assets that he “can’t touch” while on supervised release because he’d otherwise “go to jail.” Weinstein then boasted, “I just told you something that no one in the world knows because I hid money. Get it?”

The wire fraud conspiracy charge is punishable by a maximum of 20 years in prison. The obstruction conspiracy charge is punishable by a maximum of five years in prison. Each count is also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Weinstein, Bromberg, Wittels, Hattab, and two other individuals based on the same and additional conduct.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to the charges in this case. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Antonia Apps, Director of the SEC’s New York Regional Office.

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

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

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 300 months in prison for heroin trafficking and firearms charges, U.S. Attorney Philip R. Sellinger announced.

Timothy Wimbush, aka “Young Money,” 33, was convicted in October 2021 of conspiracy to distribute 100 grams or more of heroin, distribution of heroin, possession of a firearm in furtherance of his heroin distribution, and unlawful possession of firearms and ammunition by a convicted felon following a three-week trial before former Chief U.S. District Judge Freda L. Wolfson. Following Judge Wolfson’s retirement, the case was assigned to U.S. District Judge Georgette Castner, who imposed the sentence today in Trenton federal court.

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

In 2018, defendant Wimbush and others participated in a large drug trafficking conspiracy that operated in various areas of Trenton, which sought to profit from the distribution of heroin.

On Sept. 6, 2018, law enforcement officers stopped Wimbush’s green 2002 Volkswagen Passat after observing Wimbush’s co-defendant, Taquan Williams, a previously convicted felon, enter the vehicle carrying a yellow plastic bag believed to contain contraband. The Passat was driven by and registered to Wimbush, who also was a previously convicted felon. During a subsequent search of Wimbush’s vehicle, law enforcement recovered from a secret trap compartment installed under the rear passenger’s seat 57 bricks of heroin, four semiautomatic firearms – including a .223 caliber assault rifle linked to a shooting in Trenton four days earlier – hundreds of rounds of ammunition, and the yellow plastic bag that Williams had carried into the vehicle moments earlier. Law enforcement discovered in the yellow bag two boxes of .45 caliber ammunition and three .45 caliber firearm magazines, which matched one of the semiautomatic firearms also found in the trap compartment. One of the firearms concealed in Wimbush’s secret trap compartment was used in connection with a violent and reckless shooting in the City of Trenton. On Sept. 2, 2018, four of Wimbush’s associates, including one of his co-defendants, one of his relatives, and one of co-defendant Williams’s relatives, were shot in a drive-by shooting in the area of Stuyvesant and Bryn Mawr Avenues in Trenton. Evidence also showed that a likely retaliatory shooting in the area of Lee and West State Street occurred shortly thereafter the same day. Ballistics analysis of a shell casing recovered from the site of the Lee and West State Street shooting conclusively linked the .223 caliber assault rifle Wimbush possessed in the trap compartment of his vehicle on September 6 with the Lee and West State Street shooting on September 2. Telephone communications intercepted during the court-authorized wiretap between Wimbush’s conspirators linked Wimbush and his associates to back-and-forth shootings on and after September 2 and to heroin trafficking activity in the City of Trenton.

Law enforcement identified the heroin in the trap compartment of Wimbush’s vehicle as having been supplied by Wimbush’s conspirators, including Jakir Taylor and Tacques Hall. Taylor pleaded guilty to conspiracy to distribute heroin and firearms charges and was sentenced by Judge Wolfson earlier this year. Hall pleaded guilty to conspiracy to distribute heroin and was sentenced by Judge Wolfson in 2019. Wimbush’s codefendant Taquan Williams was convicted at trial of possessing firearms or ammunition as a convicted felon and was sentenced by Judge Wolfson in 2022.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of under the direction of Special Agent in Charge James E. Denney in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Satellite Office, under the direction of Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief Jonathan Bucchere; officers of the Ewing Police Department, under the direction of Chief Albert Rhodes; officers of the Burlington Township Police Department, under the direction of chief John Fine; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing. He also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.

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

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.

NEWARK, N.J. – A Bergen County, New Jersey, man and a New York woman were charged for their roles in a fentanyl trafficking conspiracy operating in and around Bergen County, U.S. Attorney Philip R. Sellinger announced today.

Plinio Junior Pineda Lopez, 33, of Oakland, New Jersey, is charged by complaint with one count of conspiracy to distribute and possess with intent to distribute fentanyl; Lorendy Diaz Beltre De Inoa, 27, of Yonkers, New York, is charged by complaint with possession with intent to distribute fentanyl. They appeared on July 12, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court. Lopez was detained and De Iona was released with electronic monitoring.

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

Lopez conspired with others to distribute large quantities of fentanyl between Florida and New Jersey out of his home. On July 11, 2023, Lopez and De Inoa were arrested in Wallington, New Jersey, while attempting to conduct a drug deal. Law enforcement officers found on De Inoa 1.5 kilograms of fentanyl. Following the arrest, and pursuant to a court-authorized search warrant, law enforcement conducted a search of Lopez’s home and recovered further kilograms of fentanyl hidden throughout the home. The home also contained packaging materials and paraphernalia consistent with those used to package controlled substances. Law enforcement officers recovered a total in excess of approximately 9 kilograms of fentanyl and 1 kilogram of cocaine.

The count charging Lopez with conspiracy to distribute controlled substances carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 10 years in prison, and a fine of $1 million. The count charging De Inoa with possession with intent to distribute fentanyl carries a maximum punishment of 20 years in prison and a fine of $1 million.

U.S. Attorney Sellinger credited special agents of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky J. Patel; HSI Miami; HSI Jacksonville, Florida; Customs and Border Protection Air and Marine Operations and CBP Office of Field Operations; the Jacksonville Sheriff’s Office; Drug Enforcement Administration NY Z-43; the Bergen County Prosecutor's Office; the Oakland Police Department; and the Paterson Police Department with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Jason Goldberg of the Organized Crime/Gang 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.

CAMDEN, N.J. – Two New Jersey firefighters were sentenced to prison today for their respective roles in a multi-million-dollar health care fraud conspiracy, Attorney for the United States Vikas Khanna announced.

Thomas Sher, 50, of Northfield, New Jersey, was sentenced to 96 months in prison. Sher, a Margate firefighter, was found guilty on Sept. 8, 2022, of one count of conspiracy to commit health care fraud and three counts of health care fraud following a 12-day trial before U.S. District Judge Robert B. Kugler in Camden federal court.

Christopher Broccoli, 51, of West Deptford, New Jersey, was sentenced to 24 months in prison. Broccoli, a Camden firefighter, pleaded guilty before Judge Kugler on July 28, 2022, to a superseding information charging him with one count of conspiracy to commit health care fraud.

According to documents filed in these cases, statements made in court, and the evidence at trial:

Sher and Broccoli were part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Sher and his direct conspirators recruited almost 70 people into the scheme and caused the pharmacy benefits administrator to pay out more than $7 million for medically unnecessary compound prescription medications. Sher directly received approximately $115,000 from the scheme.  At today’s sentencing, Judge Kugler likewise found that Sher obstructed justice when he lied during his trial testimony and when he attempted to tamper with witnesses and devise a cover-up story in advance of trial.

Broccoli caused the pharmacy benefits administrator to pay out millions of dollars for medically unnecessary compound prescription medications for individuals he recruited into the scheme and directly received $150,315.

To date, 50 people have been charged in the overarching conspiracy, and 46 defendants have pleaded guilty or been convicted at trial.

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

The government is represented by Christina O. Hud, Senior Trial Counsel of the Office’s Health Care Fraud Unit; Desiree L. Grace, Deputy Chief of the Criminal Division; and R. David Walk Jr., Deputy Chief of the Criminal Division.

TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted transmitting via the internet a manifesto containing threats to attack a synagogue and Jewish people, U.S. Attorney Philip R. Sellinger announced today.

Omar Alkattoul, 19, of Sayreville, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with one count of transmitting a threat in interstate and foreign commerce on or about Nov. 1, 2022.

“This defendant admitted using social media to send a manifesto containing a threat to attack a synagogue based on his hatred of Jews. This prompted a state-wide alert and put the community on edge, ” U.S. Attorney Sellinger said. “Alkattoul will now face sentencing for his crime, and we intend to seek a sentence that will hold him accountable. No one should be targeted for violence or with acts of hate because of how they worship. Protecting our communities of faith and places of worship is at the heart of this office’s mission.”

“The laws of our nation allow for everyone to express themselves,” FBI-Newark Special Agent in Charge James E. Dennehy said. “However, when that expression turns into a specific threat toward others, the FBI and other law enforcement agencies must take action. We allege Alkattoul posted and planned to carry out his online manifesto targeting synagogues in our communities, and specifically stated it was an intended attack on Jews. I want to commend the incredibly quick response by the Newark Joint Terrorism Task Force and our partners. Crime driven by hate has no place in our society.”

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

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

The charge of transmitting a threat in interstate and foreign commerce to which Alkattoul pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 14, 2023.

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

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

NEWARK, N.J. – A husband and wife from Passaic County, New Jersey, have been sentenced to prison for their roles in a sex trafficking scheme, U.S. Attorney Philip Sellinger announced today.

Enna Gonzalez, 58, of Paterson, New Jersey, was sentenced on July 6, 2023, by U.S. District Judge Madeline Cox Arleo to four years in prison and five years of supervised release. Gonzalez previously pleaded guilty to an indictment charging her with conspiracy to commit sex trafficking.

Gonzalez husband, Jean Noriega, 52, of Paterson, was sentenced June 14, 2023, to 20 years in prison and five years of supervised release. Noriega previously pleaded guilty to an indictment charging him with conspiracy to commit sex trafficking and the sex trafficking of six different victims. Judge Arleo imposed the sentences in Newark federal court.

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

From 2016 through 2017, Noriega coerced multiple women to engage in commercial sex acts in New Jersey and New York. Noriega used violence, threats of violence, threats of drug withdrawal, and other means, to compel the victims to engage in commercial sex for his profit, including after his incarceration in New York on unrelated charges in 2017. Gonzalez helped Noriega control the victims through various means, including, collecting the proceeds of the commercial sex acts. She also carried out Noriega’s sex trafficking activities while Noriega was incarcerated. 

U.S. Attorney Sellinger credited special agents of the FBI’s Newark Child Exploitation Human Trafficking Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the Passaic County Prosecutor’s Office’s Human Trafficking Unit, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the U.S. Attorney’s Cybercrime Unit in Newark. 

TRENTON, N.J. – A Monmouth County, New Jersey, financial counselor with the United States Army and major in the U.S. Army Reserves who allegedly defrauded two dozen Gold Star families has been indicted, U.S. Attorney Philip R. Sellinger announced today.

Caz Craffy, a/k/a “Carz Craffey,” 41, of Colts Neck, New Jersey, is charged by indictment with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency. Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse.

“Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” said Attorney General Merrick B. Garland. “As alleged in the indictment, the defendant in this case used his position as an Army financial counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.”

“The families of our fallen service members have laid the dearest sacrifice on the altar of freedom,” U.S. Attorney Sellinger said. “These Gold Star families deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. They must be off-limits for fraudsters. But, as the indictment alleges, this defendant took advantage of his role as an Army financial counselor to prey upon these families, using lies and deception to steer their investments in a way that would make him money. There is no room for those who seek to rip off families of fallen servicemembers to make a buck. We will use every means at our disposal to ensure that those who defraud military families are held accountable.”

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

“The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said James R. Ives, Principal Deputy Director of the Defense Criminal Investigative Service, the law enforcement arm of the DoD Office of Inspector General.  “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.”

"Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special in Charge James E. Dennehy of the Newark FBI. The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, however no amount of money can replace what they’ve lost. We allege Craffy took advantage of his position and defrauded families already going through a tremendous amount of suffering.”

“Craffy disgraced the position he was entrusted in to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Homeland Security Investigations Newark Special Agent in Charge Ricky J. Patel. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.”

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

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

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

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

From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the alleged scheme, the Gold Star family accounts had lost more than $3.4 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.

The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest.

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

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

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

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

NEWARK, N.J. – Three members and associates of a drug trafficking enterprise who were also members of a neighborhood street gang in Essex County, New Jersey, were sentenced today to prison for their respective roles in multiple gang-related murders, including the murder of a federal informant, U.S. Attorney Philip R. Sellinger announced today.

Thomas Zimmerman, 28, was sentenced to 37 years in prison, Tyquan Daniels, 27, was sentenced to 35 years in prison, and Ali Hill, 30, was sentenced to 25 years in prison. All of the defendants were also sentenced to five years of supervised release. All of the defendants are East Orange residents, and all were sentenced by U.S. District Judge John Michael Vazquez in Newark federal court.

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

In February, 2018, the leader of a Newark, New Jersey-based drug trafficking enterprise operating in East Orange, Newark, New York City, Maryland and California, among other states,  found out that one of his conspirators in the drug enterprise was cooperating with federal law enforcement by providing information against the drug enterprise. The gang leader ordered members of the Brick City Brims Bloods (“BCB”) in East Orange, of which all three defendants were active members, to kill the informant. On February 3, 2018, outside the informant’s residence in Bloomfield, New Jersey, Zimmerman and other gang members shot and killed an innocent bystander, believing the bystander was the informant. Hill conspired with Zimmerman and later Daniels in the plot to kill the informant.

Realizing they killed the wrong person, the defendants planned another attempt to murder the informant. On March 12, 2018, in Bloomfield, Zimmerman and other BCB members  approached the informant and fired multiple shots at him at close range, killing him.

Daniels aided the murder conspiracy by helping to hide the murder weapon after the fact. Daniels was also sentenced for the separate murder of a rival gang member committed in furtherance of the activities of the BCB, specifically to protect the BCB’s drug territory. Daniels shot and killed the rival gang member in Orange, New Jersey on May 13, 2018.

Hill was sentenced after pleading guilty to racketeering conspiracy for his role in the planning of the murder of the informant in March 2018.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of special agent in charge James E. Dennehy in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutors Office; the Union County Prosecutor’s Office, East Orange PD; Montclair PD, and the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division, under the direction of Secretary Robert Green with the investigation leading to sentencings.

The government is represented by Senior Trial Counsel Robert Frazer of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.

NEWARK, N.J. – A Somerset County man appeared in federal court yesterday on charges including drug distribution that resulted in a death, U.S. Attorney Philip Sellinger announced today.

Thomas Kane Miller, 38, of Somerset, New Jersey, is charged by federal complaint with one count of possession with the intent to distribute fentanyl and heroin and one count of distribution of fentanyl and heroin that resulted in a death. Miller had an initial appearance before the Honorable Jessica S. Allen, United States Magistrate Judge, in Newark federal court and was detained.

According to documents filed in this case:

In October 2022, Miller distributed a mixture of fentanyl and heroin to an individual who died as a result of using the substance. Law enforcement located the deceased victim at a residence in Plainfield, New Jersey. Inside the victim’s residence were two wax folds containing fentanyl and heroin bearing a unique stamp, which law enforcement linked to Miller. Shortly before the victim’s death, the victim and Miller were communicating about arranging to meet.

Miller is also charged with possession with intent to distribute fentanyl and heroin arising from an incident ten days prior where he was found in possession of multiple wax folds of heroin and fentanyl bearing the same unique stamp.

The count of drug distribution resulting in death carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 20 years’ imprisonment, and a fine of $1 million.  The count of possession with intent to distribute fentanyl and heroin carries a maximum punishment of 20 years in prison and a fine of $1 million.

U.S. Attorney Sellinger credited special agents of the New York DEA Strike Force, under the direction of Special Agent in Charge Frank A. Tarentino, III, and members of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, and members of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation, leading to the charges.

This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.

The government is represented by Assistant U.S. Attorney Jenny Chung 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.

TRENTON, N.J. – A Brooklyn man was convicted of conspiring with others in a week-long strongarm extortion scheme in 2019, U.S. Attorney Philip R. Sellinger announced.

Endrit Kllogjeri, 29, was convicted on June 27, 2023, of conspiracy to commit Hobbs Act extortion and attempt to commit Hobbs Act extortion following a one-week trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court. On June 13, 2023, co-defendant Francis Garzon pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to his role in the scheme.

According to court documents and evidence presented at trial:

From Dec. 1, 2019, through Dec. 9, 2019, Kllogjeri and Garzon conspired and attempted to extort a resident of Monmouth County, New Jersey, and the resident’s son, who lived in Brooklyn, New York. The victim was threatened with physical harm if the victim did not recover a bag containing property allegedly valued at $100,000 from the victim’s son. Kllogjeri and Garzon further demanded an additional payment of $100,000 as “interest” for the son’s possession of the bag. In connection with issuing threats against the victim, including threats to the victim’s family members, Garzon additionally brandished a revolver, pointing the weapon at the victim and cocking the revolver’s hammer. Over the ensuing week, Kllogjeri and Garzon communicated regularly with the victim telephone, continuing to threaten victim. Kllogjeri and Garzon were arrested together in a vehicle on Dec. 9, 2019 in Brooklyn. Moments before the arrest, Garzon had attempted to send the victim a text message confirming the victim’s plan to pay the demand.

Kllogjeri faces a maximum potential penalty of 20 years on each count of conspiracy to commit Hobbs Act extortion and attempted Hobbs Act extortion. Each count also carries a potential $250,000 fine. 

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the conviction. He also thanked the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; and the New York City Police Department for their assistance.

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

NEWARK, N.J. – An Ocean County, New Jersey, man admitted his role in a durable medical equipment kickback scheme, U.S. Attorney Philip R. Sellinger announced today.

Alexander Schleider, 57, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit health care fraud and one count of wire fraud.

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

Schleider owned and operated durable medical equipment (DME) companies in New Jersey that provided orthotic braces to beneficiaries of Medicare and other federal and private health care benefit programs without regard to medical necessity. Schleider and his conspirators obtained prescriptions for the DME braces through the payment of kickbacks and bribes to individuals operating marketing call centers, who in turn utilized the service of telemedicine companies to obtain prescriptions for the DME. Schleider caused losses to Medicare and other health care benefit programs of $21.7 million.

Schleider also committed wire fraud in connection with funds made available in response to the COVID-19 pandemic. After one of his DME companies received $322,237 from the Department of Health and Human Services’ Health Resources and Services Administration Provider Relief Fund, Schleider submitted a fraudulent attestation to HRSA in which he claimed that the DME company provided diagnoses, testing, and care for individuals with possible or actual cases of COVID-19 after Jan. 31, 2020. In reality, the DME company had ceased billing for any services in April 2019. The attestation also falsely claimed that the payment would only be used to prevent, prepare for, and respond to coronavirus, and that the payment shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Schleider did not use the funds for those purposes, but transferred them into other accounts and subsequently used them to purchase real estate and vehicles, among other things.

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing is scheduled for Nov. 8, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Naomi Gruchacz; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty plea.

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

NEWARK, N.J. – A former sales representative was sentenced to 60 months in prison for his role in a scheme to defraud public health benefits programs by billing for medically unnecessary compound prescriptions, U.S. Attorney Philip R. Sellinger announced today. 

Matthew Puccio, 41, of Randolph, New Jersey, was convicted on July 19, 2022, of conspiracy to commit health care fraud following a seven-day jury trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court.

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

Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compound drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.

From November 2014 to March 2016, Puccio participated in a conspiracy that involved submitting fraudulent prescriptions for compound medications to public health benefits programs. Marketing companies recruited and paid sales representatives, such as Puccio, to obtain compound medications for themselves and others regardless of medical necessity, targeting health plans that reimbursed for compound medications at high rates.

Puccio exploited this opportunity through working as a sales representative for several compounding pharmacies. He targeted individuals who had health plans that covered compound medications and then convinced those individuals to obtain prescriptions for compound medications, regardless of medical necessity. Puccio and others induced two New Jersey-based physicians to sign medically unnecessary prescriptions for beneficiaries that Puccio and others had recruited.

Once the prescriptions were written, they were filled by the compounding pharmacies with which Puccio worked. The compounding pharmacies would then receive reimbursement from the health plans and would pay Puccio a percentage of the reimbursement amount. Puccio and his conspirators caused a significant loss to public health benefits programs.  

In addition to the prison term, Judge Vazquez sentenced Puccio to three years of supervised release and ordered him to pay $2.65 million in restitution.

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

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

NEWARK N.J. – A New Jersey and Texas man and woman were arrested in Texas on charges related to fraudulently obtaining Economic Injury Disaster Loans (EIDL) totaling approximately $790,000, U.S. Attorney Philip R. Sellinger announced today.

Diana Valteri, 40, and Edmond Haxhillari, 42, of Sparta, New Jersey, and Cypress, Texas, are charged by complaint with one count of wire fraud and one count of money laundering. Both are scheduled to appear before U.S. Magistrate Judge Jessica S. Allen in Newark federal court on July 7, 2023.

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

Valteri and Haxhillari are a married couple who from June through August 2020, participated in a fraudulent scheme to receive $790,000 in COVID-19 emergency relief loans and cash advances meant for distressed small businesses under the EIDL program. Valteri and Haxhillari submitted fraudulent loan applications on behalf of several businesses that purported to have employees and revenue, but were actually shell companies with no actual business operations. After receiving the EIDL funds based on their fraud, Valteri and Haxhillari diverted the proceeds for their own personal gain.

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

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and special agents from the Small Business Administration, Office of the Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, Eastern Regional Office, with the investigation leading to the charges.

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

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

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

NEWARK, N.J. – A New Jersey-based political consultant was sentenced today to 288 months in prison for hiring two men to kill a longtime associate who had worked for him on various political campaigns, U.S. Attorney Philip R. Sellinger announced.   

Sean Caddle, 45, of Hamburg, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez imposed the sentence today in Newark federal court.

“Sean Caddle unleashed two violent hitmen to stab Michael Galdieri to death and set fire to his apartment,” U.S. Attorney Sellinger said. “Despite being lifelong friends, Caddle paid to have Galdieri murdered because he thought that his own business interests were at risk. Today’s sentence is a just punishment for a heinous crime and provides some measure of justice for the victim and his family. I want to credit the dedicated agents of the Federal Bureau of Investigation and the members of my Office who doggedly pursued this cold case murder investigation for years and have now brought to justice all three individuals responsible for the death of Michael Galdieri.”

“Regardless of any dispute or argument a person has with someone, hiring hitmen to solve it is not only cold-hearted and despicable, but also against the law,” FBI Special Agent in Charge James E. Dennehy said. “Caddle now faces justice for paying to having his former colleague and friend murdered. He will spend years in federal prison contemplating his actions, a small price to pay when another man lost his life.”

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

In April of 2014, Caddle solicited George Bratsenis of Monroe, Connecticut, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis recruited Bomani Africa a longtime accomplice from Philadelphia, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.

On May 22, 2014, Bratsenis and Africa traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Bratsenis and Africa stabbed the victim to death and then set fire to the victim’s apartment. After Caddle learned that the victim had been murdered, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.

In addition to the prison term, Judge Vazquez sentenced Caddle to five years of supervised release.

Bratsenis was sentenced on March 29, 2023, to 16 years in prison; Africa was sentenced on Feb. 23, 2023, to 20 years in prison.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy, with the investigation leading to today’s sentencing. He also thanked the Hudson County Prosecutor’s Office and IRS-Criminal Investigation for their assistance.

The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr., Sean Farrell, Chief, New York Office, Department of Justice, Antitrust Division.

NEWARK, N.J. – Fifteen members and associates of a Paterson-based street gang were charged today in connection with their roles in the distribution of narcotics, including heroin, fentanyl, and cocaine, U.S. Attorney Philip R. Sellinger announced.

The 11 defendants arrested today are scheduled to appear before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Two defendants were already in custody on state charges and two defendants remain at large. All of the defendants are charged with conspiracy to distribute and possess with intent to distribute controlled substances, including heroin, fentanyl, and cocaine. A number of the defendants are also charged with weapons offenses. (See chart below.)

“As alleged in the criminal complaint, these defendants were affiliated with a street gang that trafficked fentanyl, an extremely dangerous synthetic opioid that can kill users with a single dose,” U.S. Attorney Sellinger said. “Not only did they deal these dangerous drugs in Paterson, certain gang members are alleged to have had guns to solidify their control of the drug trade. We have no higher priority than taking apart these gangs and addressing the drivers of violence. Independent of this case, thanks to the efforts of our federal, state, and local partners there have been fewer shooting incidents in New Jersey and fewer shooting victims in Paterson this year than in 2022. We are committed to building upon this progress and keeping our communities safe.”

“ATF is dedicated to identifying, disrupting, and dismantling gangs and criminal organizations,” Bryan Miller, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, said. “We appreciate the commitment and tireless efforts of our federal, state and local partners and our personnel in bringing accountability to criminals. Our collaborative and unified efforts are essential to reducing violent crime and removing those offenders that terrorize our communities and threaten public safety.” 

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

The defendants are all members and associates of the UpTop street gang, based in the Fourth Ward of Paterson, in the area of Governor and Carroll streets, the Incca Village housing complex, and Harrison Street. The gang members and associates are involved in the distribution of controlled substances.

Jamal Ricks, aka “Bop,” and Rahjohn Leary, aka “Rah,” are high-ranking members of UpTop who worked with the other conspirators to control the sale of drugs in and around Paterson. Quadair Williams, aka “Fed Baby,” aka “Mega,” is a close associate of senior members of UpTop, including Ricks and Leary, and one of the gang’s drug suppliers.

Some members of the gang, including Marquis Turner, aka “June Bug,” and Quajamir Price, aka “Porkchop,” used and possessed and conspired to use and possess firearms in furtherance of the gang’s drug trafficking activities. Turner is charged with possession of a firearm and ammunition by a convicted felon and possession of a firearm during and in relation to a drug trafficking crime. Price is charged with conspiracy to possess a firearm during and in relation to a drug trafficking crime.

The count of conspiracy to distribute and possess with intent to distribute controlled substances is punishable by a mandatory minimum of five years in prison, a maximum penalty of 40 years in prison, a fine of up to $5 million. The count of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 15 years in prison, a fine of up to $250,000. The count of possession of a firearm during and in relation to a drug trafficking crime is punishable by a mandatory minimum of five years in prison and a maximum penalty of life in prison, which must be served consecutively to any other term of imprisonment imposed, and a fine of up to $250,000. The count of conspiracy to possess a firearm during and in relation to a drug trafficking crime carries a maximum penalty of 20 years in prison, a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents and task force officers of the (ATF), under the direction of Special Agent in Charge Miller; officers of the Paterson Police Department, under the direction of Officer in Charge Isa M. Abbasi of the Office of the Attorney General; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera in Newark; special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under the direction of Newark Field Office Director John Tsoukaris; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Elizabeth Police Department, under the direction of Police Director Earle Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Drug Enforcement Administration, Homeland Security Investigations Newark, Newark Police Department, Passaic Police Department, and Hillside Police Department for their assistance with the case.

This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

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 James Graham of the Organized Crime and Gangs Unit and Assistant U.S. Attorney Clara Kim of the OCDETF/Narcotics Unit.

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

DEFENDANTS

NAME

AGE

RESIDENCE

Quadair Williams   aka “Fed Baby”   aka “Mega”

41

Hackensack, New Jersey

Jamal Ricks   aka “Bop”

35

Paterson

Rahjohn Leary   aka “Rah”

29

Newark

Ronald Taylor   aka “Fat Cat”   aka “Cat”

29

Passaic, New Jersey

Malachi Fields   aka “Chicago”

28

Paterson

Marquis Turner   aka “June Bug”

26

Paterson

Prince Carter   aka “Eighty”   aka “Eight”

41

Paterson

*Terrance Drakeford
 

30

Prospect Park, New Jersey

Xavier Classen   aka “Swaggy”

25

Paterson

Quajamir Price   aka “Porkchop”

20

Paterson

*Jamah Godwin

29

Paterson

Troy Blair

48

Paterson

Elton Baker

45

Paterson

Justin Carlos   aka “Spaz”

36

Paterson

Marecius Samuels   aka “Re-Up”

35

Paterson

*denotes at large

23-190

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced criminal charges against three defendants in connection with health care fraud prosecuted in the District of New Jersey, part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. The charges include the owner of a counseling center who filed false insurance claims and two men who pleaded guilty to their roles in a scheme to defraud Amtrak.

“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” Attorney General Merrick B. Garland said. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.” 

“Our health care system exists to provide people with access to the medical services and treatment they need, but it also is a target for criminals who see it as a lucrative source of money to be plundered through elaborate schemes,” U.S. Attorney Sellinger said. “Working with our law enforcement partners, we continue to make sure that the resources that people need will always be there, and those who seek to enrich themselves illegally will be brought to justice.”

“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.” 

The charges announced today by U.S. Attorney Sellinger are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 90 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.6 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.

Devon Burt and Hallum Gelzer

Devon Burt, 50, of Blue Bell, Pennsylvania, and Hallum Gelzer, 44, of Enola, Pennsylvania, each pleaded guilty before U.S. District Judge Madeline C. Arleo in Newark federal court to separate informations charging them with conspiracy to commit health care fraud and conspiracy to communicate extortionate threats. 

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

Burt, a former Amtrak employee, and Gelzer worked with health care providers to recruit Amtrak employees to participate in a health care fraud scheme through the offer of cash payments in exchange for the employees allowing health care providers to use their patient and insurance information to submit false claims. The health care providers benefitted from the scheme by receiving payments from the Amtrak health care plan for services that were never provided or that were medically unnecessary. Burt received cash payments from providers in return for allowing the providers to use his personal and insurance information, and that of his dependents, to submit fraudulent claims. Both Burt and Gelzer received cash payments from providers in return for recruiting others to participate in the scheme. 

From April 2022 through June 2022, Burt and Gelzer conspired to communicate extortionate threats to a health care provider who participated in the scheme. Burt and Gelzer threatened the provider by interstate telephone calls and text messages, indicating that the provider would be injured if the provider did not pay Gelzer several thousand dollars.

In total, the Amtrak health care plan paid over $9 million as a result of claims associated with providers connected to the health care fraud scheme.

The charge of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. The charge of conspiracy to communicate extortionate threats in interstate commerce carries a maximum penalty of five years in prison, and a maximum fine of $250,000, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. As part of their guilty pleas, Burt agreed to pay $959,072 in restitution, while Gelzer agreed to pay approximately $1.66 million restitution. Sentencing for Burt is scheduled for Nov. 16, 2023, and for Gelzer, Nov. 15, 2023.

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

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

Maria P. Cosentino

Maria P. Cosentino, 60, of Garfield, New Jersey, is charged by complaint with four counts of health care fraud and one count of obstruction of justice. She made her initial court appearance before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 unsecured bond.

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

Cosentino, the owner of a Paramus, New Jersey counseling center providing counseling services and mental health treatment to children, families, couples, and adults, for years submitted false claims to private health insurance plans for counseling sessions that were never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment.

When law enforcement sought to interview individuals at Cosentino’s counseling practice about Cosentino’s conduct, Cosentino tried to persuade at least one employee to cover up her billing practices and to lie to law enforcement.

The charge of health care fraud is punishable by a maximum of 10 years in prison. The charge of obstructing justice is punishable by a maximum of 20 years in prison. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

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

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

The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the department’s website at LINK.

The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing victimassistance.fraud@usdoj.gov. Victims with questions about the cases charged by the U.S. Attorney’s Office may call 1-973-645-2700. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.

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

TRENTON, N.J. – A Louisiana man was charged with using an internet-based chat application to entice an adolescent to engage in prohibited sexual activity, interstate travel with the intent to engage in illicit sexual activity with a minor, and possession of child pornography, U.S. Attorney Philip R. Sellinger announced today.

Spencer W. Caudle, 34, of Prairieville, Louisiana, is charged by complaint with one count each of persuading, inducing, enticing, or coercing a minor through a facility of interstate commerce into prohibited sexual activity; interstate travel with the intent to engage in illicit conduct with a minor; and possession of child pornography. He appeared before U.S. Magistrate Rukhsanah L. Singh in Trenton federal court on June 27, 2023, and was detained.

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

In April 2023, Caudle began interacting on online social media applications with the victim. Caudle’s communications with the victim were sexual in nature despite the victim informing Caudle the victim’s minor status. Caudle even expressed nervousness about being on the television show “To Catch a Predator,” but continued informing the victim of his desire to have sex with the victim. On May 26, 2023, Caudle drove from Louisiana to meet and have sex with the victim in Toms River, New Jersey. On May 27, 2023, Caudle, in fact, committed sexual acts on the victim. Later that night, Caudle left New Jersey to drive back to Louisiana.

Local law enforcement became aware of Caudle’s prohibited sexual activity with the victim and began an investigation. In June 2023, an undercover law enforcement officer assumed the victim’s online and cellular presence and communicated with Caudle. During these conversations, Caudle confirmed his prior sexual acts with the victim and expressed a desire for further sexual activity. While communicating with the undercover officer, Caudle made plans to fly to New Jersey on June 16, 2023, to commit additional sexual acts on the victim. 

On June 16, 2023, Caudle flew from New Orleans, Louisiana to Newark Liberty International Airport.  Law enforcement arrested Caudle in the airport. A search of a laptop Caudle brought to New Jersey revealed at least 10 images and five videos of child sexual abuse.   

The charge of persuading, inducing, enticing, or coercing a minor into prohibited sexual activity through an internet-based chat application carries a minimum penalty of 10 years in prison and a maximum penalty of life in prison. The charge of interstate travel with the intent to engage in illicit conduct with a minor carries a maximum penalty of 30 years in prison. The charge of possession of child pornography carries a maximum penalty of 20 years in prison.  Each count also carries a fine of up to $250,000 or twice the gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, Atlantic City, under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer; and the Toms River Police Department, under the direction of Police Chief Mitchell A. Little, with the investigation leading to the complaint.

The government is represented by Assistant U.S. Attorney Richard G. Shephard of the General Crimes Unit in Newark.

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

CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, was sentenced today to 30 months in prison for failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.

John Degan, 69, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.

Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).

Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.

Degan also submitted a fraudulent application to a lender to obtain a PPP loan. In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.

Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.

In addition to the prison term, Judge Kugler sentenced Degan to three years of supervised release. Restitution will be determined at a later date.

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

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

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 78 months in prison for paying $20,000 in bitcoin to have a 14-year old child murdered, U.S. Attorney Philip R. Sellinger announced.

John Michael Musbach, 34, of Haddonfield, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed. Judge Rodriguez imposed the sentence today in Camden federal court.

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

In the summer of 2015, Musbach exchanged via the internet sexually explicit photographs and videos with the victim, a 13-year-old living in New York. The victim’s parents found out about the inappropriate contact and contacted the local police. Upon identifying Musbach, then a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO). In March 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey.

Musbach decided to have the victim killed so that the victim could not testify against him in the pending criminal case. During the period from May 7, 2016, through May 20, 2016, Musbach repeatedly communicated with the administrator of a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency, and arranged for a murder-for-hire. Musbach asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000 at the time) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.

In addition to the prison term, Judge Rodriguez sentenced Musbach to three years of supervised release and fined him $30,000.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Jamie Holt in St. Paul, Minnesota, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.

NEWARK, N.J. – A Camden County, New Jersey, man and a Nevada man were sentenced to prison terms for their roles in defrauding multiple victims through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced today.

Roy Johannes Gillar, 51, of Las Vegas, was sentenced to six years in prison; Harold Mignott, 60, of Voorhees, New Jersey, was sentenced to three years in prison. They were each convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud following a five-week jury trial before U.S. District Judge John Michael Vazquez. Gillar was also convicted of one count of transacting in criminal proceeds. Judge Vazquez imposed the sentences on June 22, 2023, in Newark federal court. A co-defendant, Jerrid Douglas of Freehold, New Jersey, who was also convicted, is scheduled to be sentenced on July 26, 2023.

According to documents in this case and evidence at trial:

From March 2016 through June 2016, Douglas, Gillar, and Mignott, along with a fourth conspirator, agreed to defraud the owners of the victim company of approximately $1 million. The defendants fraudulently induced the two victim company owners to enter a joint venture agreement with the defendants’ New Jersey-based shell company. The defendants falsely represented that their company could acquire and provide a “standby letter of credit” (SBLC) backed by either €1 billion in cash or highly lucrative Mexican gold bonds. An SBLC is a guarantee of payment issued by a bank on behalf of a client that is used should the client fail to fulfill a contractual commitment with a third party.

The victim company wanted access to the standby letter of credit so it could purchase raw gold overseas and sell it to gold refineries. As part of the joint venture agreement, the company agreed to pay the defendants $1 million for the bank fee associated with the standby letter of credit.

In order to cover up the scheme and convince the victims to approve the transfer of the funds, the defendants made numerous verbal and written misrepresentations, including providing the victims with a phony letter from a major international bank saying that it was ready, willing, and able to provide a €1 billion SBLC to the defendants’ shell company.

However, after the victim company owners transmitted $800,000 of the $1 million to the defendants, the defendants failed to provide an SBLC or anything of value. Instead, the defendants misappropriated the money for their personal use.

In addition to the prison terms, Judge Vazquez sentenced Gillar to three years of supervised release and ordered to pay restitution of $1.1 million and forfeiture of $1 million. Mignott was sentenced to three years of supervised release and ordered to pay restitution of $1.1 million and forfeiture of $219,000.

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 sentencing.

The government is represented by Assistant U.S. Attorneys Jason S. Gould and Joshua L. Haber of the U.S. Attorney’s Office Criminal Division in Newark.

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced to 168 months in prison for his role in drug distribution scheme, U.S. Attorney Philip R. Sellinger announced today.

Ricardo Clavijo, 42, of Egg Harbor Township, New Jersey, previously pleaded guilty before the U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to distribute over one kilogram of heroin, one count of possession with intent to distribute over one kilogram of heroin, and one count of maintaining a drug-related premises. Judge Bumb imposed the sentence on June 22, 2023, in Camden federal court.

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

On July 12, 2021, a search warrant was executed at Clavijo’s residence, where law enforcement authorities encountered Clavijo and his brother, Christopher Gonzalez. Authorities found a drug packaging facility in the basement, as well as 4.3 kilograms of heroin, 5.5 kilograms of fentanyl, 10.8 kilograms of cocaine, drug packaging materials and equipment, and a money counting machine. Some of the heroin was already packaged in tens of thousands of individual doses, ready for street-level distribution. Agents also seized a .45 caliber handgun, a loaded magazine for the handgun, a 9mm 50-round drum magazine, and $8,457 in cash, all of which will be forfeited by Clavijo as part of his guilty plea.

In addition to the prison term, Judge Bumb sentenced Clavijo to five years of supervised release.

Gonzalez pleaded guilty in October 2022 to his role in the conspiracy and is awaiting sentencing.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration’s New Jersey Division, DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to the sentencing. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor William Reynolds, and the Egg Harbor Township Police Department, under the direction of Chief Frederick Spano, for their assistance.

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

NEWARK, N.J. – The Justice Department announced today that it has secured an agreement that provides for a comprehensive Spanish-language election program for voters in Union County, New Jersey. The consent decree was approved by a three-judge court in the U.S. District Court of New Jersey.

The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s lawsuit brings claims under Sections 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency. Section 203 requires that certain jurisdictions, including Union County, provide election materials and assistance in other languages, in addition to English. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive that assistance from the person of their choice, with certain limited exceptions. 

Under the consent decree, the Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information displayed in polling places and online. The Union County Board of Elections will also ensure that in-person language assistance is available at all early voting sites and at each election district with at least 100 Spanish-surnamed registered voters. Spanish-language assistance will continue to be available to all voters by telephone during elections. In addition, the consent decree provides that any voter covered by Section 208 who needs assistance to vote may be assisted by the person of that voter’s choice, other than an agent of the voter’s employer or union, during any stage of the voting process. The consent decree also provides that federal observers may monitor election day activities in polling places in Union County.

“The right to vote is the bedrock of our democracy,” U.S. Attorney Philip R. Sellinger, District of New Jersey, said.  “We remain committed to ensuring that every eligible New Jersey voter can vote without language barriers.  Now that a court order is in place, we look forward to working with Union County to accomplish this goal.” 

“The Justice Department is committed to protecting the right to vote,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “This agreement will ensure that Spanish-speaking residents of Union County can fully access the ballot box. The Civil Rights Division will continue to use every tool available to protect the rights of all voters seeking to participate in our democracy.”

Individuals may file voting rights complaints with the Civil Rights Division either online here, or may call (800) 253-3931. Individuals may also contact the U.S. Attorney’s Office for the District of New Jersey either online here or may call (855) 281-3339.

More information about the Voting Rights Act and other federal voting rights laws are available on the Justice Department’s website at www.justice.gov/crt/voting-section.

The government is represented by Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Division; Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division; Bert Russ, Deputy Chief of the Voting Section in the Justice Department’s Civil Rights Division; Bruce Gear, Trial Attorney, Voting Section; and Michelle Rupp, Trial Attorney, Voting Section.

CAMDEN, N.J. – A Gloucester County, New Jersey, man was charged today with  possession of child pornography, U.S. Attorney Philip R. Sellinger announced.

Kyle Daniel Reese, 29, of Williamstown, New Jersey, is charged by complaint with one count of possession of child pornography. He appeared before U.S. Magistrate Judge Elizabeth A. Pascal in Camden federal court and was detained.

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

In October and November 2020, while Reese was serving a term of home detention due to a prior federal conviction for receipt of child pornography, Reese accessed child pornography using his iPhone. The child pornography was subsequently uncovered after his iPhone was seized by Reese’s probation officer. A search of the phone revealed 86 files containing child pornography.

The count of possession of child pornography carries a mandatory minimum sentence of 10 years in prison, a maximum of 20 years in prison, and a fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to today’s charge.

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

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

NEWARK, N.J. – The former president of the Jersey City Board of Education (JCBOED) and former acting executive director of the Jersey City Employment and Training Program (JCETP) today admitted embezzling JCETP funds and committing wire fraud in connection with his use of funds from his 2016 JCBOED campaign account, U.S. Attorney Philip R. Sellinger announced.

Sudhan M. Thomas, 47, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge William J. Martini to two counts of an indictment charging him with embezzling funds from JCETP, an organization that received federal funds, and wire fraud for embezzling money from his 2016 JCBOED campaign.

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

Thomas served as JCETP’s acting executive director from January 2019 until his resignation in July 2019. JCETP was a nonprofit organization that operated to assist Jersey City residents to prepare for and enter the workforce. JCETP received substantial amounts of funding from federal grants from the U.S. Department of Labor and the U.S. Department of Housing and Urban Development.

Using his access to JCETP funds and control of JCETP’s bank accounts, from March 2019 through July 2019, Thomas embezzled more than $45,000 from JCETP. Thomas caused checks to be drawn from JCETP accounts that were made payable to others, but ultimately received by Thomas or used to pay his debts and expenses. Thomas embezzled JCETP funds by issuing JCETP checks made out to cash that Thomas either cashed himself or used to obtain bank checks that he made payable to Next Glocal, an entity for which Thomas was a director, which were deposited into a bank account for his personal use.

Thomas ran for and was elected to a seat on the JCBOED in 2016, ultimately serving as vice president and then president of the JCBOED. From September 2016 to November 2016, Thomas collected campaign contributions and caused them to be deposited into a bank account opened for the 2016 campaign that he controlled. Under the guise of collecting repayments for loans to the campaign or reimbursement for other purported campaign-related expenses, Thomas embezzled more than $8,000 from his 2016 campaign for his own personal use.

The embezzlement charge is punishable by a maximum potential penalty of 10 years in prison. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison. Both charges carry a maximum fine of up to $250,000. Sentencing is scheduled for Nov. 1, 2023.

Thomas originally was charged by indictment in November 2020 with Paul Appel, 81, of Point Pleasant, New Jersey, who is an attorney and who also served as treasurer for Thomas’ 2016 campaign.  Appel’s case is pending before Judge Martini, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.

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, and Assistant U.S. Attorney Katherine J. Calle of the Special Prosecutions Division in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 360 months in prison for producing multiple videos depicting the sexual assault of children, U.S. Attorney Philip R. Sellinger announced.

Antonio Del Prado, 62, of Millburn, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of production of child pornography and production of child pornography abroad with intent to transport into the United States. Judge Wigenton imposed the sentence today in Newark federal court.

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

In October 2020, law enforcement officials learned that Del Prado had uploaded multiple items of suspected child pornography to an internet-based cloud storage system. The investigation also revealed that Del Prado had a woman livestream a video of a child being sexually assaulted for Del Prado. Del Prado was arrested at his home in November 2020, at which time agents seized multiple electronic devices that were found to contain child pornography. Further investigation revealed that on multiple occasions, Del Prado sexually assaulted children in the Philippines and transmitted video recordings of those assaults into the United States.

In addition to the prison term, Judge Wigenton sentenced Del Prado to 10 years of supervised release.

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, in Newark, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – A New York man today admitted assaulting a female passenger on a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.

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

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

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

The charge carries a maximum term of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 1, 2023.

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

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

CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 48 months in prison for trafficking methamphetamine and fentanyl in southern New Jersey and Philadelphia, U.S. Attorney Philip R. Sellinger announced.

John Munson, 48, of Deptford, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to one count of the superseding indictment charging him with possessing with intent to distribute methamphetamine. His codefendant, Kevin Salmon, 26, of Philadelphia, previously pleaded guilty to two counts of a superseding indictment charging him with conspiring to distribute fentanyl and methamphetamine and distributing methamphetamine. Judge Hillman imposed Munson’s sentence today in Camden federal court

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

Munson admitted obtaining methamphetamine from the conspiracy in order to distribute the methamphetamine to others. Salmon acted as a “runner” or “courier” for the drug-trafficking organization that distributed methamphetamine and fentanyl. Salmon was sentenced in March 2023 to 168 months in prison.  

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

U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Cheryl Ortiz, with the investigation leading to today’s sentencing. He also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.

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. Attorneys Jeffrey Bender and Diana Carrig of the U.S. Attorney’s Office in Camden.

NEWARK, N.J. – The Justice Department today announced charges against a Russian national for his involvement in deploying numerous LockBit ransomware and other cyberattacks against victim computer systems in the United States, Asia, Europe, and Africa.

Ruslan Magomedovich Astamirov, 20, (АСТАМИРОВ, Руслан Магомедовичь), of Chechen Republic, Russia, is charged by complaint unsealed today in Newark federal court with conspiring to commit wire fraud and conspiring to intentionally damage protected computers and to transmit ransom demands. Astamirov was arrested on the complaint in Arizona and is scheduled to make his initial appearance in the District of Arizona.

“Astamirov is the third defendant charged by this office in the LockBit global ransomware campaign, and the second defendant to be apprehended,” U.S. Attorney Sellinger said. “The LockBit conspirators and any other ransomware perpetrators cannot hide behind imagined online anonymity. We will continue to work tirelessly with all our law enforcement partners to identify ransomware perpetrators and bring them to justice.”

“This Lockbit-related arrest, the second in six months, underscores the Justice Department’s unwavering commitment to hold ransomware actors accountable,” Deputy Attorney General Lisa O. Monaco said. “In securing the arrest of a second Russian national affiliated with the LockBit ransomware, the department has once again demonstrated the long arm of the law.  We will continue to use every tool at our disposal to disrupt cybercrime, and while cybercriminals may continue to run, they ultimately cannot hide.”

“These cyber criminals hide in a virtual world but cause very real harm when they seize control of computer systems, putting companies and customers in an unimaginable bind,” FBI Newark Special Agent in Charge James E. Dennehy said. “Either pay the ransoms or lose control of your entire information technology infrastructure. It is too high a price for anyone to be forced to pay. Astamirov's arrest, along with the others charged in this case, is a simple but devastating illustration of how we are following through on our promise - we are bringing these hackers to justice."

According to documents filed in this case:

The LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving at least as much as tens of millions of dollars in actual ransom payments made in the form of bitcoin.

In furtherance of his LockBit-related activities, Astamirov owned, controlled, and used a variety of email addresses, Internet Protocol (IP) addresses, and other online provider accounts that allowed him and his co-conspirators to deploy LockBit ransomware and to communicate with their victims. Additionally, in at least one circumstance, law enforcement was able to trace a portion of a victim’s ransom payment to a virtual currency address in Astamirov’s control.

This announcement follows LockBit-related charges in two other cases from the District of New Jersey. In November 2022, the department announced criminal charges against Mikhail Vasiliev, and Canadian national, who is currently in custody in Canada awaiting extradition to the United States. In May 2023, the department announced the indictment of Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, for his alleged participation in separate conspiracies to deploy LockBit, Babuk, and Hive ransomware variants against victims in the United States and abroad.

The charge of conspiring to intentionally damage protected computers and to transmit ransom demands is punishable by a maximum of five years in prison. The charge of conspiring to commit wire fraud is punishable by a maximum of 20 years in prison. Both charges are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case. The FBI Phoenix Division, the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and the international partners from Europol’s European Cybercrime Centre, Eurojust, National Police Agency of Japan, France’s Gendarmerie Nationale Cyberspace Command (Cyber Crime Investigation Unit / C3N), National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt of Germany, and Swedish Police Authority of Sweden also provided valuable assistance.

The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, Vinay S. Limbachia, and David E. Malagold of the Cybercrime Unit in Newark and DOJ Trial Attorneys Jessica C. Peck and Jorge Gonzalez of the Computer Crime and Intellectual Property Section.

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

NEWARK, N.J. – An Essex County woman was sentenced to 21 months in prison for her role in defrauding insurers by submitting fraudulent claims for chiropractic services that were never rendered, U.S. Attorney Philip R. Sellinger announced today.

Tiffany Marsh, 45, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiracy to commit health care fraud. Judge Cecchi imposed the sentence on June 14, 2023, in Newark federal court.   

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

Marsh was a medical billing professional who submitted false claims to two employer-provided health insurance plans for chiropractic services that were never provided. Marsh, who worked for the chiropractors at issue, falsely claimed that various individuals with employer-provided health insurance had incurred out-of-network medical costs, causing the insurance plans to issue reimbursement checks to the individual employees. The employees received the checks, and then paid Marsh a portion of the reimbursements in cash. As a result of the scheme, the victim health insurance plans incurred losses of approximately $334,000.

In addition to the prison term, Judge Cecchi sentenced Marsh to three years of supervised release and ordered her to pay $334,837 in restitution.

U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, and the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – An Essex County, New Jersey, man admitted committing three armed robberies of pharmacies in Elizabeth, New Jersey, for oxycodone and other prescription medication, U.S. Attorney Philip R. Sellinger announced today.

Charles Johnson, 28, of Irvington, New Jersey, pleaded guilty on June 14, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with three counts of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. 

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

Throughout June and July 2022, Johnson robbed three different pharmacies in Elizabeth using a similar approach for each of the robberies, including brandishing a firearm, committing the robberies in the morning, demanding that employees of the pharmacies provide Johnson with oxycodone, promethazine, and other prescription medication, and threatening to shoot individuals in the pharmacies with a firearm. Law enforcement officials collected extensive video surveillance footage that linked Johnson to the robberies.

The Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000, or twice the gain or loss from the offenses, whichever is greatest. Sentencing is scheduled for Oct. 18, 2023.

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 County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, for the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the General Crimes Unit in Newark.

NEWARK, N.J. – A South Korean company today admitted that it evaded customs duties on clothing that it imported into the United States, U.S. Attorney Philip R. Sellinger announced.  

Anyclo International Inc. (Anyclo) pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging the company with evading customs duties.  Anyclo was also sentenced on this charge today to a criminal fine of $250,000 and ordered to pay restitution to the United States in the amount of $2.05 million.  

Anyclo also agreed to a civil settlement with the United States, which includes paying $2.05 million, plus interest, over 15 months to resolve its potential liability under the False Claims Act.

Anyclo admitted that from Oct. 5, 2012, to Aug. 5, 2019, it evaded customs duties on clothing and apparel that it manufactured abroad and imported into the United States. Anyclo perpetrated the scheme by preparing two invoices for the same shipments: an accurate invoice provided to U.S. purchasers, and a false invoice undervaluing the goods that Anyclo furnished to U.S. Customs. By falsely undervaluing its merchandise, Anyclo drastically underpaid customs duties that it owed based on the true value of those goods.

The civil settlement with Anyclo resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Yang Sup Cha, will receive 18 percent of the civil settlement amount recovered by the United States pursuant to the False Claims Act.

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, and members of the Office of Trade, Regulatory Audit & Agency Advisory Services, under the supervision of Acting Field Director of the New York Office Teresa Halpin, with the investigation leading the guilty plea and civil settlement.

The government is represented in the criminal case by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark, and in the civil case by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.

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

Christopher Gualtieri, 50, of Franklinville, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to one count of an indictment charging him with conspiracy to commit health care and mail fraud and one count charging him with obtaining oxycodone through fraud. 

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

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

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

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

The charge of conspiracy to commit health care and mail fraud is punishable by a maximum potential penalty of 20 years in prison; the charge of obtaining drugs by fraud is punishable by a maximum potential penalty of four years in prison. Both counts are also punishable by a fine of up to $250,000, or twice the gross gain or gross loss from the offense, whichever is greatest. Sentencing is scheduled for Oct. 18, 2023.

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

NEWARK, N.J. – A New York woman man today admitted her role in a scheme to bribe mail carriers to steal postal arrow keys in order to unlock mail receptacles and to use stolen items from the mail to obtain funds fraudulently from banks, U.S. Attorney Philip R. Sellinger announced.

Halimatou Ndiaye, 27, of the Bronx, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with one count of bribery of U.S. Postal Service mail carriers and one count of conspiracy to commit bank fraud.  

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

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

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

The bribery charge to which Ndiaye pleaded guilty carries a maximum potential penalty of 15 years in prison and a $250,000 fine; the bank fraud conspiracy charge carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is currently scheduled for Oct. 25, 2023.

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

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

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 130 months in prison for his role as the leader of a Trenton drug-trafficking organization responsible for the distribution of heroin in the Trenton area, U.S. Attorney Philip R. Sellinger announced.

Robert M. Gbanapolor, 36, of Trenton, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to a superseding indictment charging him with one count of conspiracy to distribute 100 grams or more of heroin; one count of possession with intent to distribute 100 grams or more of heroin; and one count of distribution and possession with intent to distribute a detectable amount of heroin. 

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

From June 2018 through May 2019, Gbanapolor and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman, and Highland avenues in Trenton, as well as in the area of Barbary Road in Philadelphia, Pennsylvania. Gbanapolor obtained regular bulk supplies of heroin from Duane Paulino-Escalera, whom Gbanapolor referred to as “Papi.”  Gbanapolor, in turn, distributed this heroin for profit to other members of the drug-trafficking organization, who distributed the heroin in and around Trenton. Paulino-Escalera pleaded guilty in January 2020 and was sentenced on May 7, 2021, to five years in prison.

In addition to the prison term, Judge Shipp sentenced Gbanapolor to four years of supervised release.

U.S. Attorney Sellinger credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Cheryl Ortiz; and task force officers of the Trenton Police Department, under the direction of Police Director Steve Wilson, with the investigation leading to today’s sentencing. He also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine A. Hoffman; detectives and officers of the Gloucester Township Police Department, under the direction of Chief David Harkins; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller.

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

The government is represented by Assistant U.S. Attorneys Eric A. Boden, Attorney in Charge of the Trenton Office, and Michelle Gasparian, Chief of the Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – Four Colombian nationals were charged today for their roles in a scheme to burglarize a home in New Jersey and transport the stolen goods to New York, U.S. Attorney Philip R. Sellinger announced.

William Londono Rojas, 28, of Plainfield, New Jersey; Andrew Cifuentes Cadavid, 32, and Nicolas Ochoa Zambrano, 19, both of Elizabeth, New Jersey, and Jose Alejandro Calvo Orozco, 27, of Madison, New Jersey, are each charged by complaint with conspiracy to transport stolen property. Rojas, Cadavid and Zambrano made their initial appearances before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained. Orozco was recently deported.

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

On Nov. 30, 2022 through Dec. 2, 2022, the four defendants burglarized a home and then transported the stolen goods across state lines from Union County, New Jersey, to New York. 

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 gross gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited the FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; Immigration and Customs Enforcement - Enforcement Removal Operations, under the direction of Field Office Director John Tsoukaris; the Union County Prosecutor’s Office under direction of Prosecutor William Daniel and Chief Harvey Barnwell; and the Cranford Police Department, under the direction of Chief Ryan Greco, with the investigation leading to the charges. He also thanked New Jersey State Police, Port Authority of New York and New Jersey, U.S. Customs and Border Protection, and U.S. Postal Inspection Service for their assistance as well as the police departments of Berkeley Heights Township, Branchburg, Cranford, Edison, Elizabeth, Kearny, Livingston, Metuchen, Monroe, Montgomery, Mountainside, Raritan Borough, and Warren.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Organized Crime and Drug Enforcement Task Force/Narcotics Unit and Rebecca Sussman of the General Crimes Unit in Newark.

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

CAMDEN, N.J. – A retail director for a local candy company was sentenced today to 18 months in prison for defrauding New Jersey state health benefits programs out of over $2 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

Nicholas Tedesco, 49, of Linwood, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.

Nicholas Tedesco’s brother and a leader in the conspiracy, Matthew Tedesco, pleaded guilty to his role in the scheme on Aug. 17, 2017 and is scheduled to be sentenced on Oct. 26, 2023. Nicholas Tedesco’s co-defendant, Christopher Broccoli, pleaded guilty to his role in the scheme on July 28, 2022, and is scheduled to be sentenced on July 26, 2023. Two doctors involved in the scheme, John Gaffney and Brian Sokalsky, also pleaded guilty for their roles in the conspiracy and are scheduled to be sentenced on Oct. 16, 2023, and Aug. 22, 2023, respectively.

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

From January 2015 through April 2016, Nicholas Tedesco and others, working under conspiracy leader Matthew Tedesco, recruited individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from an out-of-state pharmacy, Central Rexall Drugs Inc. in Louisiana. The conspirators knew that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for thousands of dollars for a one-month supply. The conspirators also knew that some New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had insurance coverage for these particular medications.

Nicholas Tedesco recruited and paid several individuals to receive the medically unnecessary medications and to recruit others to receive them, including co-defendant Christopher Broccoli. The medically unnecessary prescriptions for individuals recruited by Nicholas Tedesco were authorized by Gaffney and Sokalsky. 

In addition to the prison term, Judge Kugler sentenced Nicholas Tedesco to three years of supervised release. As part of the plea agreement, Nicholas Tedesco must forfeit $782,767 in criminal proceeds and pay restitution of $2.04 million.

Attorney for the United States Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Tammy Tomlins in Newark; and 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, with the investigation leading to the sentencing.

The government is represented by Senior Trial Counsel Christina O. Hud of the Health Care Fraud Unit and Deputy Criminal Chief R. David Walk Jr. of the Criminal Division.

NEWARK, N.J. – A Union County, New Jersey, man was convicted of tax evasion and failing to file personal income tax returns, U.S. Attorney Philip R. Sellinger and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today.

Jonathan D. Michael of Springfield, New Jersey was convicted of one count of tax evasion, from 2014 through 2018, and five counts of failing to file tax returns during the same period. According to documents filed in this case and statements made in court:

Michael worked as a mechanic by a port-operating company in New Jersey. From 2014 through 2018, Michael earned over $1.4 million from the port-operating company. In February 2014, he submitted a Form W-4, “Employee’s Withholding Allowance Certificate” to his employer in which he falsely claimed to be completely exempt from federal income tax withholding, which caused the employer to stop withholding federal income taxes from his wages. In November 2016, after the IRS sent Michael a notification that he was not entitled to claim exempt status, Michael wrote the company and claimed that his false W-4 was correct.  Despite earning income each year over the threshold that would require him to file individual income tax returns, Michael failed to file such tax returns with the IRS for the years 2014 through 2018.

The maximum penalty for tax evasion is five years of in prison; the maximum penalty for failure to file as charged in Counts Two through Six is one year per count.

U.S. Attorney Sellinger and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS-Criminal Investigation Division, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark and by Trial Attorney Michael C. Vasiliadis of the Tax Division in Washington, D.C.

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 180 months in prison and five years of supervised release for receiving images of child sexual abuse and inducing a minor to send him sexually explicit images and engage in sexually explicit conduct over an online messaging service. David M. Frew, 42, of Little Egg Harbor, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp on July 18, 2022, to an information charging him with one count of receipt of child pornography and one count of online enticement of a minor to engage in criminal sexual conduct.

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted distributing child pornography, U.S. Attorney Philip R. Sellinger announced.

Alec Donovan, 26, of Brick, New Jersey, a youth wrestling coach and referee, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to an information charging him with one count of distribution of child pornography.

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

From January 2021 through March 2021, Donovan used an internet-based application to exchange multiple images and videos of child sexual abuse, including depictions involving pre-pubescent children. Donovan also used the web-based messaging application to solicit and engage in conversations with minors, including requesting nude photographs from the minors and sending nude photographs to them.

The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Oct. 10, 2023.

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.

The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the General Crimes Unit in Newark.

A federal jury convicted a New Jersey man today of tax evasion and failing to file personal income tax returns.

According to court documents and evidence presented at trial, Jonathan D. Michael of Springfield, New Jersey, worked as a mechanic in the crane shop at the Port Newark Container Terminal. For the years 2014 through 2018, Michael provided his employer with an Employee’s Withholding Certificate (Form W-4) that falsely claimed he was exempt from any federal income tax withholding. During the same five-year period, Michael did not file personal income tax returns even though he earned approximately $1.5 million in wages, resulting in a tax loss to the IRS of over $375,000.

Michael is scheduled to be sentenced on Oct. 23, 2023, and faces a statutory maximum penalty of five years in prison for tax evasion and one year in prison for each count of willful failure to file a tax 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 is investigating the case.

Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division and Assistant U.S. Attorney Matthew Feldman Nikic of the District of New Jersey are prosecuting the case.

TRENTON, N.J. – A Florida resident and dual citizen of the United States and Turkey pleaded guilty to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment, Attorney for the United States Vikas Khanna, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. announced today.

Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 39, of Miami, Florida, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on June 5, 2023, to two counts of an indictment charging him with conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud (Count 1); and mail fraud (Count 4).

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

Aksoy ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used a fake delivery address in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier. 

Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

The charge of conspiracy to which Aksoy pleaded guilty carries a maximum penalty of five years in prison. The charge of mail fraud to which Aksoy pleaded guilty carries a maximum penalty of 20 years in prison. Both offenses carry a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater. Pursuant to the plea agreement that the court conditionally accepted pending sentencing, Askoy faces a sentence of four to six years and six months in prison and must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. Sentencing is scheduled for Nov. 6, 2023.

Attorney for the United States Khanna and Assistant Attorney General Polite credited special agents and members of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) Los Angeles, under the direction of Acting Special Agent in Charge Eddy Wang; the U.S. Department of Defense, Defense Criminal Investigative Service, Western Field Office, under the direction of Special Agent in Charge Bryan Denny; the General Services Administration, Office of Inspector General, Southeast and Caribbean Division, under the direction of Special Agent in Charge Floyd Martinez; the U.S. Navy, Naval Criminal Investigative Service, Economic Crimes Field Office, under the direction of Special Agent in Charge Greg Gross; HSI Miami, under the direction of Special Agent in Charge Anthony Salisbury; and HSI Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s guilty plea.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office, provided valuable assistance.

Anyone who believes they may be a victim of Aksoy or the Pro Network Entities, please visit http://www.justice.gov/largecases or https://www.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.

The Pro Network Entities include at least the following:

Pro Network Companies

Approximate Month and Year of Formation

State of Formation

Pro Network LLC

August 2013

New Jersey

Netech Solutions LLC

November 2016

Florida

Target Network Solutions LLC

January 2017

Florida

Easy Network LLC

April 2017

New Jersey

ACE NETUS LLC (a/k/a Ace Network)

April 2017

New Jersey

My Network Dealer LLC

April 2017

New Jersey

1701 Doral LLC

May 2017

New Jersey

Maytech Trading LLC

August 2017

Florida

NFD Trading LLC

September 2017

Florida

Kenet Solutions LLC

September 2017

Florida

Team Tech Global LLC

January 2018

New Jersey

Tenek Trading LLC

January 2018

Florida

The Network Gears LLC

February 2018

Florida

All Networking Solutions LLC (a/k/a All Network)

April 2018

Florida

San Network LLC

October 2018

Florida

Pro Network US Inc.

January 2019

Florida

Jms Tek LLC

August 2019

Florida

Renewed Equipment LLC

August 2021

Florida

Pro Ship US LLC

August 2021

Florida

Pro Network Amazon Storefronts

Approximate Date of Earliest

Known Activity

Albus Trade Hub

January 2014

EasyNetworkUS

March 2014

Get Better Trade

July 2015

Mercadeal

February 2017

Netech Solutions

February 2018

Netkco LLC

September 2014

NFD Trading LLC

January 2018

Palm Network Solutions

June 2017

Renewed Equip

August 2017

Servtaur

August 2019

Smart Network

July 2017

SOS Tech Trade

August 2017

Target-Solutions

September 2020

TeamTech Global

March 2016

TradeOrigin US

August 2015

Pro Network eBay Storefronts

Approximate Date of Earliest

Known Activity

connectwus

March 2014

futuretechneeds

July 2017

getbettertrade

July 2017

getontrade

April 2016

maytechtradingllc

October 2017

netechsolutions

April 2017

netkco

September 2014

nfdtrading

February 2018

smartnetworkusa

January 2014

tenektradingllc

May 2018

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark, Senior Counsel Matthew A. Lamberti of the Department of Justice Computer Crime and Intellectual Property Section in Washington, D.C., and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.