District of New Jersey

A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.

According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (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 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 fake delivery addresses 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.

Aksoy pleaded guilty to (1) conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud and (2) mail fraud. He is scheduled to be sentenced on Nov. 6, and under the plea agreement that the court conditionally accepted yesterday pending sentencing, faces a sentence of four to six and a half years in prison. Also pursuant to the plea agreement, Aksoy must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. The court will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna for the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Ricky J. Patel of the HSI Newark Field Office made the announcement today. 

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.

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.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or 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 (aka 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 (aka 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

NEWARK, N.J. –  A Brooklyn, New York, man was arraigned on charges he allegedly entered a laboratory business on false pretenses and destroyed and stole that business’ equipment, U.S. Attorney Philip R. Sellinger announced today.

Eric Leykin, 32, of Brooklyn, New York, was indicted on May 24, 2023, for committing wire fraud. He was arraigned June 1, 2023, before U.S. District Judge Esther Salas in Newark federal court.

According to documents filed in this case:

Leykin was the chief executive officer of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey. On June 30, 2022, Leykin bought and activated a prepaid mobile phone and called an employee of the business, claiming to be a technician with a vendor that the business used to service its laboratory equipment. On that false pretense, Leykin arranged with the victim business’ employee to come to the business on the following day, supposedly to service the business’ laboratory equipment. On July 1, 2022, Leykin went to the business, entered the premises fraudulently posing as a vendor technician, and proceeded to destroy a significant amount of the business’ laboratory and computer equipment. Leykin also stole multiple computer hard drives.

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

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Millburn Police Department, under the direction of Chief Brian Gilfedder; and the FBI in New York, under the direction of Assistant Director Michael Driscoll, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man admitted laundering the proceeds of fraudulently obtained Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced today.

Jeremy Earley, 41, of Egg Harbor Township, New Jersey, and Lilburn, Georgia, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with one count of engaging in a monetary transaction in criminally derived property.

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

In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided  forgivable loans to small businesses for job retention and certain other expenses. The loans were approved based on fraudulent applications submitted by conspirator Rhonda Thomas stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively. The applications also contained forged tax forms. In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages. After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to Thomas to compensate her for her role in submitting the fraudulent loan applications.

The charge of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.  Sentencing is scheduled for Oct. 13, 2023.

Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.

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 Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.

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

TRENTON, N.J. – A New York man admitted transporting minors across state lines to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced today.

Berry Norman, 35, of Bronx, New York, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court on May 30, 2023, to an information charging him with interstate travel to engage in illicit sexual conduct.

“Sexual crimes involving children are among the most serious crimes we prosecute,” U.S. Attorney Sellinger said. “The conduct admitted by this defendant is reprehensible, and he will now face the appropriate punishment for his crime.”

“Berry Norman’s actions were despicable by luring innocent minors down a dark path of horrific abuse and emotional trauma,”  Special Agent in Charge of the Department of Homeland Security, Homeland Security Investigations (HSI), Newark, Ricky J. Patel said. “The deceptive ways Norman and other human traffickers conspire to appear trustworthy to their victims has far-reaching consequences. Rescuing these victims is of utmost importance to HSI Newark and we remain committed to protecting and assisting victims while bringing traffickers to justice.”

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

On Feb. 24, 2021, Norman invited two female victims, both minors, to travel with him from Ohio to New Jersey. Norman traveled from Ohio to New Jersey and from New Jersey to New York with victims with the intent to engage in a sexual act with them or for the purpose of producing child pornography. On Feb. 27, 2021, Norman engaged in sexual acts with one victim. On Feb. 28, 2021, Norman and the victims traveled to New York City.

The charge of interstate travel to engage in illicit sexual conduct carries a maximum penalty of 30 years in prison and a fine of $250,000. Sentencing is scheduled for Oct. 3, 2023.

U.S. Attorney Sellinger credited special agents of HSI, under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the New York Police Department, under direction of Police Commissioner Keechant L. Sewell, with the investigation leading to the guilty plea.

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

CAMDEN, N.J. – A New Jersey man was sentenced to 120 months in prison for conspiring with others to obtain and distribute several kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced today.

Carl Lee Holloway, 43, of Penns Grove, New Jersey, previously pleaded guilty before Chief U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to distribute cocaine. Judge Bumb imposed the sentence in Camden federal court.

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

Holloway admitted that from June 2020 through July 13, 2021, he conspired with Lavinston Lamar, Marvin Murphy, and others, to distribute and to possess with intent to distribute cocaine. On July 13, 2021, Holloway drove to a hotel in Mount Laurel, New Jersey, with a bag containing $97,600 in cash. Holloway then met undercover agents in a hotel room at the hotel. Lamar and Murphy separately entered the hotel room with bags containing approximately $243,000. They briefly inspected one of the kilograms of cocaine previously brought into the room by undercover agents, after which agents entered the room and arrested Holloway, Lamar, and Murphy. 

Chief Judge Bumb previously sentenced Lamar to 114 months in prison after Lamar pleaded guilty to his involvement in the same conspiracy and to violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine.

Murphy is charged by indictment with the same conspiracy. The charges and allegations contained in the indictment are merely accusations, and he is presumed innocent unless and until proven guilty.

In addition to the prison term, Judge Bumb sentenced Holloway to five years of supervised release and ordered him to pay a $50,000 fine.

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 Special Agent in Charge Chad Plantz in San Diego; and the Mount Laurel Police, under the direction of Chief Judy Lynn Schiavone, with the investigation leading to the sentencing.

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 Jersey doctor today admitted using her medical license – and allowing others to use it – to purchase prescription oncology medications under false pretenses to sell them for profit, U.S. Attorney Philip R. Sellinger announced.

Anise Kachadourian, 55, of Towaco, New Jersey, a board-certified oncologist, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging her with unlawfully selling prescription cancer medication, which had been previously purchased using her medical license and under the representation that such medication was to be used to treat her patients.

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

While working in her medical practice’s offices in various locations in New Jersey, Kachadourian was recruited by an individual who owned a pharmacy and also owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of this individual and others working with him, in return for payment of approximately $5,000 per month, Kachadourian used her medical license – and allowed others to use it – to purchase expensive prescription drugs, primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases. By recruiting and using Kachadourian and her medical license to purchase the drugs, these individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses.

In purchasing the drugs, Kachadourian and the individuals made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Kachadourian purchased the drugs to use to treat her patients, and that the drugs would not be resold or redistributed. In actuality, none of the drugs were administered to any of Kachadourian’s patients, but were ultimately sold to customers of the two businesses. Kachadourian was paid more than $170,000 for purchasing and allowing others to purchase in her name millions of dollars in prescription drugs during the scheme, which ran from October 2016 through January 2019.

Kachadourian is the third doctor who has pleaded guilty in connection with this fraudulent scheme.

The sale of prescription drugs purchased by a healthcare entity is punishable by a maximum of three years in prison and a $10,000 fine. In her plea agreement, Kachadourian also agreed to make restitution for the full amount of any loss resulting from her offense. Sentencing is scheduled for Feb. 6, 2024.

U.S. Attorney Sellinger credited special agents of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, under the direction of Special Agent in Charge Fernando P. McMillan; and special agents of U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Sara A. Aliabadi of the U.S Attorney’s Office in Camden.

NEWARK, N.J. – Five members and associates of a neighborhood street gang in Hudson County, New Jersey, have been sentenced to prison for their respective roles in a gang-related stabbing, U.S. Attorney Philip R. Sellinger announced today.

Yahsier Brown, 21, was sentenced today to 51 months in prison. Jaylen Boone, 22, was sentenced on May 2, 2023, to 56 months in prison. Jamil Bowens, 22, was sentenced on April 5, 2023, to 53 months in prison. Divine Abraham, 22, was sentenced on March 3, 2023, to 51 months in prison. Jermaine Jennings, 22, was sentenced on Jan. 4, 2023, to 57 months in prison. All of the defendants were also sentenced to three years of supervised release. All of the defendants are Jersey City residents, and all were sentenced by U.S. District Judge Kevin McNulty in Newark federal court

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

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

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

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

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

TRENTON, N.J. – A Virginia man who previously pleaded guilty to insider trading admitted engaging in another insider trading scheme that netted millions of dollars in illegal profits, U.S. Attorney Philip R. Sellinger announced today.

Sean Wygovsky, 42, of Centreville, Virginia, pleaded guilty before U.S. District Judge Georgette Castner on May 25, 2023, to an information charging him one count of securities fraud/insider trading. Wygovsky previously pleaded guilty to an insider trading scheme in the Southern District of New York.

“This defendant admitted using nonpublic information from his job at an asset management firm to further a multimillion-dollar insider trading scheme,” U.S. Attorney Sellinger said. “Combatting securities fraud and market manipulation schemes is a top priority for this Office. This prosecution demonstrates our commitment to holding accountable those who seek to undermine our markets through insider trading.”

“Federal insider trading laws protect the integrity of the markets and preserve the public's confidence in them,” FBI Newark Special Agent in Charge James E. Dennehy said. “No one wants to play a game when the rules are unfair. Wygovsky upset this balance of fairness when he misused his position of authority to serve his own greed. The FBI is committed to weeding out the bad actors like Wygovsky to ensure the financial markets maintain equal opportunity for all.”

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

From May 2020 through February 2021, Wygovsky worked as a portfolio manager, securities analyst, and trader at a Canada-based asset management firm that received material, nonpublic information regarding confidential merger negotiations involving special purpose acquisition companies (SPACs). Wygovsky received this information every time a SPAC was placed on his firm’s confidential restricted list, meaning that the firm’s employees were prohibited from buying or selling the SPACs’ securities, either personally or via another person or third party. Despite knowing about these trading restrictions, Wygovsky shared the nonpublic information with his friend, Christopher Matthaei, who was a partner at a New Jersey broker-dealer firm. Matthaei purchased securities in the SPACs using his personal brokerage accounts. In June 2020, Matthaei paid for a private plane and extended trip with Wygovsky and their families to a luxury resort on the island of St. Barth, where they continued to engage in the insider trading scheme. Matthaei made approximately $3.4 million in illegal trading profits from the insider trading scheme.    

Matthaei was previously arrested on March 30, 2023, and charged by complaint with one count of securities fraud and one count of conspiracy to commit securities fraud. The charges and allegations against Matthaei contained in the complaint, which are still pending, are merely accusations, and Matthaei is presumed innocent unless and until proven guilty.

The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 27, 2023.

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 guilty plea. 

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 120 months in prison for drug trafficking and firearms possession in furtherance of drug trafficking, U.S. Attorney Philip R. Sellinger announced today.

Tyree Thomas, aka “Hellboy,” 29, of Irvington, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to nine counts of an indictment charging him with  drug distribution, possessing drugs with the intent to distribute, and possessing two firearms in furtherance of drug trafficking. Judge Wigenton imposed the sentence on May 24, 2023, in Newark federal court.

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

From May 1, 2019, to Aug. 21, 2019, Thomas sold Phencyclidine (PCP) to an undercover law enforcement agent on multiple occasions. He also maintained an apartment in Orange, New Jersey, as a location where he stored the PCP that he was distributing. Thomas kept two loaded firearms as this location to protect the drugs and drug proceeds he had at the apartment.

In addition to the prison term, Judge Wigenton sentenced Thomas to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller; members of the New Jersey State Police, under the direction of Superintendent Col. Patrick Callahan; and the New Jersey Department of Corrections, under the direction of Commissioner Victoria L. Kuhn, with the investigation leading to the sentence.

The government is represented by Assistant U.S. Attorneys Olta Bejleri and Megan Linares of the Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – A businessman and former resident of Utah has been charged with illegally operating an unlicensed money transmitting business, U.S. Attorney Philip R. Sellinger announced today.

Christopher James Scanlon, 43, originally from Utah and now residing in the United Kingdom, is charged by complaint with one count of conspiring to control and own an unlicensed money transmitting business. Scanlon was arrested at Miami International Airport today and is expected to have his initial appearance in U.S. District Court for the Southern District of Florida on Friday.   

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

Scanlon was the president, chief executive officer, and founder of the brands Aurae Lifestyle and Club Swann. From as early as 2015 through 2019, Scanlon controlled a series of legal entities – PMA Media Group Inc.; AU Card LLC; AU Card Ltd., and Nvayo Ltd., (collectively, the “AU Entities”) – that he operated as a money transmitting business to provide fiat and cryptocurrency financial services to customers of Aurae Lifestyle. Scanlon served as a customer service representative for several high-net-worth Aurae Lifestyle customers. He often communicated with customers about financial transactions using encrypted messaging applications and directed the AU Entities to conduct financial transactions for customers through U.S.-based banks and cryptocurrency companies. Scanlon operated Aurae Lifestyle during this time without appropriately registering as a money transmitting business with the Financial Crimes Enforcement Network (FinCen), a bureau of the U.S. Treasury Department.

The conspiracy count carries a maximum term of imprisonment of five years, a fine of up to $250,000 or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest. 

U.S. Attorney Sellinger credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, and special agents of the U.S. Attorney’s office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jamie Hoxie Solano and Sophie E. Reiter of the Cybercrime Unit in Newark.

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

NEWARK, N.J. – An Essex County, New Jersey, man admitted that he attempted to kill a former federal informant by shooting him, U.S. Attorney Philip R. Sellinger announced today.

Kalil Bryant, 40, of East Orange, New Jersey pleaded guilty on May 23, 2023, before U.S. District Judge John Michael Vazquez in Newark federal court to two counts of an indictment charging him with possession of ammunition by a convicted felon and retaliating against a witness, victim or an informant. Bryant was convicted on Feb. 17, 2023, on the other two counts of the indictment – transmitting threats in interstate commerce and retaliating against a witness, victim, or informant following – following an eight-day trial.

According to documents filed in this case, statements made in court, and the evidence at trial:

The victim in this case previously cooperated with the FBI and provided information about federal crimes committed by one of Bryant’s longtime associates. On Aug. 24, 2019, in retaliation for that cooperation, Bryant pointed a loaded firearm at the victim, called him a “rat,” then shot the victim in the abdomen. The victim received medical treatment and survived.

On Sept. 18, 2019, Bryant sent text messages to an individual associated with the victim stating: “Tell [the victim] he gonna Die soon for being a rat.” This message was accompanied by a photograph of a rat and a gun. Bryant sent additional text messages in reference to the victim stating: “Prepare to bury Him soon” and “Get your black dress ready.”

The possession of ammunition by a convicted felon count to which Bryant pleaded guilty carries a maximum potential penalty of 10 years in prison; the retaliating against a witness, victim or an informant count carries a maximum potential penalty of 30 years in prison; the transmitting threats in interstate commerce count carries a maximum potential penalty of five years in prison; the retaliating against a witness, victim or an informant count carries a maximum potential penalty of 20 years in prison. Each count also carries a maximum fine of $250,000. 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 the guilty verdict and today’s guilty plea. He also thanked the East Orange Police Department, under the direction of Police Chief Phyllis Bindi, Jersey City Police Department, under the direction of Director James Shea, Metuchen Police Department, under the direction of Police Chief Arthur Flaherty and the U.S. Marshals for their assistance.

The government is represented by Assistant U.S. Attorneys Jamel Semper and Shontae D. Gray.

CAMDEN, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, was sentenced today to 30 months in prison for agreeing with others to physically assault inmates for actual, perceived and fabricated violations of the prison’s rules and customs in a manner that resulted in injury to the inmates.

John Makos, 42, of Millville, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to conspiring with others to deprive inmates of their right not to be subjected to cruel and unusual punishment. Judge Williams imposed the sentence today in Camden federal court.

“Corrections officers are responsible for protecting the civil rights of the people in their custody,” U.S. Attorney Philip R. Sellinger of the District of New Jersey said. “Incarcerated persons may have broken the law, but equal treatment is one of our country’s founding principles, and civil rights do not cease to exist at a prison’s gates. This defendant allowed incarcerated persons under his care to be brutalized and abused his authority as a law enforcement officer. Today’s sentence is another reminder that civil rights violations by law enforcement officials will not be tolerated.”

“This jail official was complicit in a series of violent assaults on inmates, turning a blind eye as the assaults were carried out as punishment for alleged violations of prison rules,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.   “This sentencing demonstrates that correctional officers who abuse their authority and violate the civil rights of inmates under their custody and control will be held accountable for their actions. The Justice Department is committed to protecting the civil rights of all people, including those held inside our jails and prisons.”

“Law enforcement officers may enforce the law, but no one is above the law,” FBI Special Agent in Charge James E. Dennehy said. “Makos failed to respect and protect the basic human dignity of the inmates in his care. Let today’s sentencing be a warning to others like Makos: the FBI protects the rights of all citizens, and your badge will not shield you from justice.” 

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

From at least April 2019 through December 2019, while working as a corrections officer, Makos and others at Bayside State Prison agreed to physically assault certain victim-inmates for actual and perceived violations of the prison’s rules and customs. The assaults caused physical injury and pain to the victim-inmates. These assaults took place while the victim-inmates were under Makos’ supervision and in areas of the prison’s kitchen that were out of sight of institutional surveillance cameras. For example, on Dec. 7, 2019, Makos watched and did not attempt to intervene when multiple inmates pinned a victim-inmate to the floor and, while the inmates restrained the victim-inmate, punched the victim-inmate approximately 25 times. Makos did not report this assault to his supervisors or medical personnel, despite knowing he was required to do so.

In addition to the prison term, Judge Williams sentenced Makos to three years of supervised release and fined him $10,000.

U.S. Attorney Sellinger credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the New Jersey Department of Corrections, under the direction of Commissioner Victoria Kuhn, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio and Sara Merin of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel formerly of the U.S. Department of Justice’s Civil Rights Division.

NEWARK, N.J. – A Passaic County, New Jersey, man was arrested for transporting and possessing videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Edward M. O’Hagan, 49, of Hawthorne, New Jersey, is charged by complaint with one count of transportation of child pornography and one count of possession of child pornography.  He appeared this May 22, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.

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

On Jan. 19, 2023, O’Hagan used one of his email accounts to send video files containing images of child sexual abuse to himself. He also used two email addresses to create accounts on an encrypted file storage platform that was used to upload or create files containing images of child sexual abuse. The email accounts he used to access the platform were associated with an IP address that traced to O’Hagan’s address.

The count of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 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 arrest. He also thanked the Hawthorne Police Department, under the direction of Chief James Knepper, and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the 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.

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 21 months in prison for conspiring to steal more than $500,000 worth of cryptocurrency from users’ accounts with a cryptocurrency exchange platform, U.S. Attorney Philip R. Sellinger announced. 

Ebrahem Adeeb, 20, of Bayonne, New Jersey previously pleaded guilty by  videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with conspiring to commit wire fraud.

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

From October 2020 through May 2021 Adeeb and his conspirators “swapped” the subscriber identity module (SIM) associated with a victim’s  phone number for another SIM loaded into a mobile device they controlled in order to access and control the victim’s accounts. Adeeb and his conspirators then sent a password reset request to a digital currency exchange platform, which caused the company to send a password reset link to the victim’s email account. Adeeb and his conspirators then accessed the victim’s email account and account at the currency exchange company and transferred cryptocurrency from the victim’s account to a cryptocurrency wallet they controlled. Adeeb and his conspirators stole cryptocurrency valued at more than $500,000 at the time of the thefts.

In additional to the prison term, Judge Cecchi sentenced Adeeb to three years of supervised release and ordered him to pay restitution of $504,418.

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

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

NEWARK, N.J. – A former Hudson County Sheriff’s Officer admitted conspiring to make false statements to a bank in connection with an application to discharge a mortgage through a fraudulent short sale, U.S. Attorney Philip R. Sellinger announced today.

Osbado Hernandez, 54, of Avenel, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court on May 22, 2023, to an information charging him with one count of conspiracy to make false statements in connection with the release of a loan.

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

From September 2015 to Dec. 30, 2015, in order to induce a bank to discharge the mortgage he owed on his house in Keansburg, New Jersey, Hernandez agreed with others to make false statements in connection with a fraudulent short sale of the property, including that he did not have any money to apply toward his mortgage delinquency and that he did not intend to stay in the house for more than 90 days following the short sale. As a result of the fraudulent short sale, the bank discharged over $98,000 of debt against Hernandez.

The false statements conspiracy charge is punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. Sentencing is scheduled for Oct. 4, 2023.

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

The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit.

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

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

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

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

The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 18, 2023.

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

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

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

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

Jarid Brooks, 29, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud.

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

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

The conspiracy and possession of mail theft charges are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for Oct. 12, 2023. 

Brooks originally was charged with Justin Brooks, 23, Kyle Williams, 38, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Williams has pleaded guilty for his role in the conspiracy and was sentenced. Justin Brooks and Hutchins have pleaded guilty for their roles in the conspiracy and are awaiting sentencing.

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

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

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

The town hall will be held on Monday, May 22, 2023, doors opening at 6:00 p.m. with the program beginning promptly at 6:30 p.m. to 8:30 p.m. at Tabernacle of Faith Church of God in Christ, 115 N. 5th Street, Camden, New Jersey, 08102.  U.S. Attorney Sellinger will discuss the work of his office in a variety of areas, encompassing federal civil rights enforcement, including bias and hate crimes, environmental justice, violent crime, opioid-related crime, and post-incarceration programs.

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

CAMDEN, N.J. – A Cape May County, New Jersey, man was arrested for misappropriation of postal funds, U.S. Attorney Philip R. Sellinger announced today.

Austin T. Mahan, 42, of Cape May Court House, New Jersey, is charged by complaint with misappropriating approximately $65,000 in postal funds. Mahan appeared before U.S. Magistrate Judge Ann Marie Danio in Camden federal court on May 16, 2023, and was released on $50,000 unsecured bond.

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

For approximately six months in 2022 and 2023, Mahan, who worked as a U.S. Postal Service (USPS) supervisor at the Sea Isle and Somers Point Post Offices at various times, misused USPS credit cards to make personal purchases at various retail stores in and around New Jersey. These purchases included tens of thousands of dollars’ worth of gift cards as well as various home décor items, home renovation materials, power and handheld tools, tool storage equipment, and personal items such as a Dyson cordless vacuum, LED fog light bulbs for Mahan’s personal vehicle, batteries, shampoo, shaving cream, food products and other items.

The charge of misappropriating postal funds is punishable by a maximum of 10 years in prison and a maximum potential fine of the greater of $250,000 or a sum equal to the amount of value of the money or property misappropriated from the offense.

U.S. Attorney Sellinger credited agents of the USPS, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the complaint.

The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the Special Prosecutions Division in Camden.

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 Justice Department today filed a complaint and proposed consent decree with Cumberland County, New Jersey, and the Cumberland County Department of Corrections to resolve allegations that conditions at the Cumberland County Jail violate the Constitution.

The proposed consent decree, which must still be approved by the court, resolves the United States’ claims that the jail fails to provide adequate mental health care to incarcerated individuals at risk of self-harm and suicide, and fails to provide medication-assisted treatment, where clinically indicated, to incarcerated individuals experiencing unmedicated opiate withdrawal.  The proposed consent decree requires the jail to provide adequate mental health care and medication-assisted treatment in those circumstances.

“The Justice Department is committed to protecting the civil rights of everyone in our country, and under our Constitution, jails and prisons must provide adequate medical care to incarcerated individuals,” Attorney General Merrick B. Garland said. “Today’s proposed consent decree is a significant step toward improving the care of individuals incarcerated in Cumberland County who are struggling with serious mental health disorders, and toward protecting the civil rights that are guaranteed by our Constitution.” 

“The opioid epidemic is a public health emergency that plagues too many communities across the country,” U.S. Attorney Philip R. Sellinger said. “Medications are a critically important tool in combatting the opioid crisis, and they save lives. By providing medication-assisted treatment to incarcerated individuals experiencing opiate withdrawal, officials at jails and prisons can take significant steps to both combat the opioid epidemic and protect the constitutional rights of their populations.”

“This consent decree marks a significant milestone in the Justice Department’s efforts to combat discrimination against those with opioid use disorder and to protect the civil rights of people in our jails and prisons,” said Assistant Attorney General for Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this agreement, Cumberland County must provide adequate medical and mental health care, including access to life-saving medications, treatment for opiate withdrawal, and protection for those with a heightened risk of self-harm and suicide. We commend Cumberland County for working collaboratively with us to implement the reforms in this decree to protect the safety and constitutional rights of incarcerated people at Cumberland County Jail.”

The Civil Rights Division and the U.S. Attorney’s Office for District of New Jersey initiated the investigation in June 2018 under the Civil Rights of Institutionalized Persons Act, which authorizes the department to take action to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. In January 2021, the Department of Justice provided the county written notice of the alleged unlawful conditions and remedial measures necessary to address them.

Additional information about the Civil Rights Division of the Justice Department is available on its website at https://www.justice.gov/crt/special-litigation-section. Individuals who believe their civil rights may have been violated may file a complaint with the U.S Attorney’s Office at www.civilrights.justice.gov.

The government is represented by Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Division; Assistant U.S. Attorney Junis Baldon of the U.S. Attorney’s Civil Rights Division; Laura Cowall, Deputy Chief of the Special Litigation Section in the Justice Department’s Civil Rights Division; Marlysha Myrthil, Senior Trial Attorney, Special Litigation Section; and Curtis Harris, Trial Attorney, Special Litigation Section.

NEWARK, N.J. – The former chief financial officer for a biopharmaceutical company today admitted his role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced.

Usama Malik, 48, of Washington, D.C., pleaded guilty today before U.S. District Judge John Michael Vazquez in Newark federal court to Count One of an indictment charging him with securities fraud/insider trading.

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

From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, the company publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, another biopharmaceutical company acquired the company for which Malik worked for approximately $21 billion. 

Malik was among the first, and one of the few, employees who received material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Lauren S. Wood, 34, also of Washington, D.C. Wood lived with Malik at the time and was formerly employed by the same company as him. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood realized a significant profit.

The count to which Malik pleaded guilty is punishable by a statutory maximum penalty of 20 years in prison and a maximum fine of $5 million. Sentencing is scheduled for Sept. 18, 2023.

Wood pleaded guilty on June 22, 2022, to an information charging her with securities fraud/insider trading. She is scheduled to be sentenced on Dec. 18, 2023.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on Dec. 1, 2021, based on the same conduct.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI in the District of Columbia and the Eastern District of Virginia, for their assistance.

The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit, and First Assistant U.S. Attorney Vikas Khanna.

NEWARK, N.J. – The Justice Department today unsealed two indictments charging a Russian national and resident with using three different ransomware variants to attack numerous victims throughout the United States, including law enforcement agencies in New Jersey and Washington, D.C., as well as victims in healthcare and other sectors nationwide.

“From Russia and hiding behind multiple aliases, Matveev is alleged to have used these ransomware strains to encrypt and hold hostage for ransom the data of numerous victims, including hospitals, schools, nonprofits, and law enforcement agencies, like the Metropolitan Police Department in Washington, D.C.,” Philip R. Sellinger, U.S. Attorney for the District of New Jersey, said. “Thanks to the extraordinary investigative work of prosecutors from my office and our FBI partners, Matveev no longer hides in the shadows ­– we have publicly identified his criminal acts and charged him with multiple federal crimes. Let today’s charges be a reminder to cybercriminals everywhere ­– my office is devoted to combatting cybercrime and will spare no resources in bringing to justice those who use ransomware attacks to target victims.”  

“From his home base in Russia, Matveev allegedly used multiple ransomware variants to attack critical infrastructure around the world, including hospitals, government agencies, and victims in other sectors,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said. “These international crimes demand a coordinated response. We will not relent in imposing consequences on the most egregious actors in the cybercrime ecosystem.”

“We want the indictment, sanctions and reward for Mikhail Matveev to sound an alarm in the ranks of cyber criminals all over the world,” James E. Dennehy, FBI-Newark special agent in charge, said. “The FBI and our law enforcement partners, as well as our international partners, are coming after you. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. That may be the case now, but the safe harbor may not exist forever. When we have an opportunity, we will do everything in our power to bring Matveev and his ilk to justice.”

According to the indictment obtained in the District of New Jersey:

From at least 2020, Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, allegedly participated in conspiracies to deploy three ransomware variants. These variants are known as LockBit, Babuk, and Hive, and Matveev transmitted ransom demands in connection with each. The perpetrators behind each of these variants, including Matveev, have allegedly used these types of ransomware to attack thousands of victims in the United States and around the world. These victims include law enforcement and other government agencies, hospitals, and schools. Total ransom demands allegedly made by the members of these three global ransomware campaigns to their victims amount to as much as $400 million, while total victim ransom payments amount to as much as $200 million.

On June 25, 2020, Matveev and his LockBit conspirators allegedly deployed LockBit ransomware against a law enforcement agency in Passaic County, New Jersey. On May 27, 2022, Matveev and his Hive coconspirators allegedly deployed Hive against a nonprofit behavioral healthcare organization headquartered in Mercer County, New Jersey. On April 26, 2021, Matveev and his Babuk conspirators allegedly deployed Babuk against the Metropolitan Police Department in Washington, D.C.

“Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” U.S. Attorney Matthew M. Graves for the District of Columbia said. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.”

“The FBI is steadfast in our commitment to disrupting cybercriminals like Matveev,” Assistant Director Bryan Vorndran of the FBI's Cyber Division said. “The FBI will continue to impose costs on cyber adversaries through our joint collaboration with our private sector and international partners, and we will not tolerate these criminal acts against American citizens.”

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 over $75 million in ransom payments.

The Babuk ransomware variant first appeared around December 2020. Babuk actors executed over 65 attacks against victims in the United States and around the world, issuing over $49 million in ransom demands and receiving as much as $13 million in ransom payments.

Since June 2021, the Hive ransomware group has targeted more than 1,400 victims around the world and received as much as $120 million in ransom payments.

The LockBit, Babuk, and Hive ransomware variants operated in the same general manner: first, the ransomware actors would identify and unlawfully access vulnerable computer systems, sometimes through their own hacking, or by purchasing stolen access credentials from others. Second, the actors would deploy the ransomware variant within the victim computer system, allowing the actors to encrypt and steal data thereon. Next, the actors would send a ransom note to the victim demanding a payment in exchange for decrypting the victim’s data or refraining from sharing it publicly. Finally, the ransomware actors would negotiate a ransom amount with each victim willing to pay. If a victim did not pay, ransomware actors would often post that victim’s data on a public website, often called a data leak site. 

Matveev is charged with conspiring to transmit ransom demands, conspiring to damage protected computers, and intentionally damaging protected computers. If convicted, he faces over 20 years in prison. 

The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case with valuable assistance from the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and international partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway, and Swedish Police Authority of Sweden.

The government is represented by Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold for the District of New Jersey’s Cybercrime Unit in Newark; Assistant U.S. Attorney Elizabeth Aloi for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section; and Trial Attorneys Jessica C. Peck, Benjamin Proctor, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).

The FBI Tampa Field Office and Orlando Resident Agency, along with Assistant U.S. Attorney Chauncey Bratt for the Middle District of Florida and CCIPS Trial Attorneys Christen Gallagher and Alison Zitron, made critical contributions to the case. The FBI Washington Field Office and Metropolitan Police Department also provided valuable assistance.

The Justice Department’s Office of International Affairs and National Security Division also provided significant assistance.

Victims of LockBit, Babuk, Conti, or Hive ransomware should contact their local FBI field office for further information. For additional information on ransomware, including the LockBit, Babuk, and Hive variants, please visit www.StopRansomware.gov .

 The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced that it is designating the defendant for his role in launching cyberattacks against U.S. law enforcement, businesses, and critical infrastructure.

The Department of State has also announced an award of up to $10 million for information that leads to the apprehension of this defendant. Information that may be eligible for this award can be submitted at tips.fbi.gov or RewardsForJustice.net. Congress established the Transnational Organized Crime Rewards Program in 2013 to support law enforcement efforts to dismantle transnational criminal organizations and bring their leaders and members to justice. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs manages the program in coordination with other U.S. federal agencies.

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

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CAMDEN, N.J. – A Philadelphia man was sentenced today to 77 months in prison and three years of supervised release for serving as the get-away driver to two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018, while brandishing a firearm. Kenneth S. Thompson, 44, of Philadelphia, pleaded guilty on Sept. 27, 2022, before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with bank robbery. 

NEWARK, N.J. –  A Chicago man was arrested today and charged in an investment fraud scheme that defrauded victims of over $2 million, a U.S. Attorney Philip R. Sellinger announced.

Phillip Galles, 57, of Chicago, is charged by complaint with one count of wire fraud. Galles made his initial appearance this afternoon before U.S. Magistrate Judge Gabriel A. Fuentes in Chicago, Illinois, federal court and was detained. 

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

Galles, a former commodities trader, defrauded his victims by falsely claiming that he would invest their money in commodity futures through his purported investment company called Tyche Asset Management, based in Chicago. Galles and those working for him falsely told prospective investors that Tyche had a history of success using proprietary trading strategies, with extraordinary annual rates of return exceeding 100 percent.

Tyche made virtually no legitimate investments in commodity futures or otherwise.  Galles instead ran Tyche like a Ponzi scheme and used investor money to pay back other investors and for his own personal expenses.

Galles met in New Jersey with an undercover agent purporting to be an investment manager looking to make a large investment. Galles falsely claimed that Tyche had annual returns of 336 percent, raised over $2 billion within 60 days of starting the fund, and had prominent investors, including a Kuwaiti sovereign fund and a well-known owner of a professional sports team. Galles also falsely claimed that he graduated from a prominent university in the Midwest.  

Galles defrauded more than a dozen victims out of more than $2 million.

The count of wire fraud with which Galles is charged is punishable by a maximum penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss involved in the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark; and the 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 charges. He also thanked the Commodity Futures Trading Commission and the National Futures Association for their assistance.

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

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

NEWARK, N.J. – A Union County, New Jersey, man was arrested and charged with distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Sean Lynch, 21, of Summit, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $100,000 unsecured bond, with home detention and electronic monitoring.

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

From Nov. 9, 2022, through Nov. 14, 2022, Lynch allegedly used an instant messaging mobile application to distribute to other individuals 72 videos depicting the sexual abuse of children.

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose J. Riera, with the investigation leading to the charges.  He also thanked the Montclair State University Police Department, under the direction of Interim Chief Kieran Barrett, and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, for their assistance.

The government is represented by Assistant U.S. Attorney Christopher Fell 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. – A New York man today admitted spending hundreds of thousands of dollars using credit cards he fraudulently opened using the identities of others, U.S. Attorney Philip R. Sellinger announced.

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

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

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

The charge of access device fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of up to the greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss sustained by any victims of the offense, whichever is greatest. Sentencing is scheduled for Sept. 14, 2023.

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

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

NEWARK, N.J. – An Essex County, New Jersey man was convicted today for his role in a conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, U.S. Attorney Philip R. Selling announced.

Furad Loyal, 41, of Newark, was convicted at trial before U.S. District Judge Susan D. Wigenton in Newark federal court on three counts of the indictment against him: conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. He was acquitted on one count of possession of a firearm in furtherance of a drug trafficking crime.

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

Loyal was a heroin supplier and a member of a drug trafficking organization (DTO) that operated in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) in Newark. In addition to selling narcotics in and around NCC, the members shared narcotics supply, narcotics proceeds, and customers. On Nov. 21, 2017, Loyal was found inside the apartment of an NCC resident where he was stashing his heroin, his firearm, and over $11,000 in cash.

From March to August 2018, Loyal and 27 other members of the DTO were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; Loyal also was charged with firearms offenses. The other 27 defendants have all since pleaded guilty to crimes in connection with their roles in the DTO.

The heroin trafficking conspiracy count on which Loyal was convicted carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The drug distribution and possession with intent to distribute count carries a maximum potential penalty of 20 years in prison, and a $1 million fine. The firearm count carries a maximum penalty of 10 years in prison, and a $250,000 fine. Loyal’s sentencing is scheduled for Sept. 26, 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 members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to today’s guilty verdict. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.

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

The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office’s Criminal Division in Newark.

The Justice Department announced today that it has entered into a proposed consent decree with Union County, New Jersey, and county elections officials to settle a voting rights lawsuit. 

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 Section 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency. Section 203 requires that certain jurisdictions provide election materials and assistance in other languages, in addition to English. These jurisdictions have been determined by the Census Bureau to have a substantial population of citizens who speak a language other than English and who have limited English proficiency. Under Section 203 of the Voting Rights Act, Union County is required to provide assistance and make materials available in Spanish.  Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness or disability – to receive assistance from the person of their choice, so long as that person is not an agent of the voter’s employer or union. The consent decree would resolve the United States’ claims.

“Language barriers should never prevent an eligible voter from being able to freely participate in the democratic process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Equal access to the ballot in a modern democracy means ensuring the availability of bilingual materials for those who are limited English proficient and guaranteeing the right to receive assistance by a person of your choice. We will continue using our voting rights laws to confront the barriers that stand between voters and the ballot box.” 

“The right to vote is a cornerstone of our democracy,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “We will work tirelessly to ensure that every eligible American is able to vote free of unlawful barriers. Through the agreement entered today, we ensure that no one is denied this sacred right simply because they are a Spanish speaker.”

The proposed consent decree, which must be approved by the court, requires the implementation of a comprehensive Spanish-language elections program under Section 203. The Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information in the 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.

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.

NEWARK, N.J. – The Justice Department announced today that it has entered into a proposed consent decree with Union County, New Jersey, and county elections officials to settle a voting rights lawsuit.

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 Section 203 and 208 of the Voting Rights Act regarding the availability of election assistance and materials in Spanish for Spanish-speaking voters with limited English proficiency. Section 203 requires that certain jurisdictions provide election materials and assistance in other languages, in addition to English. These jurisdictions have been determined by the Census Bureau to have a substantial population of citizens who speak a language other than English and who have limited English proficiency. Under Section 203 of the Voting Rights Act, Union County is required to provide assistance and make materials available in Spanish. Section 208 provides a right for voters who need assistance with voting – due to inability to read or write, blindness, or disability – to receive assistance from the person of their choice, so long as that person is not an agent of the voter’s employer or union. The consent decree would resolve the United States’ claims.

“The right to vote is a cornerstone of our democracy,” U.S. Attorney Philip R. Sellinger said. “We will work tirelessly to ensure that every eligible American is able to vote free of unlawful barriers. Through the agreement entered today, we ensure that no one is denied this sacred right simply because they are a Spanish speaker.”

“Language barriers should never prevent an eligible voter from being able to freely participate in the democratic process,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “Equal access to the ballot in a modern democracy means ensuring the availability of bilingual materials for those who are limited English proficient and guaranteeing the right to receive assistance by a person of your choice. We will continue using our voting rights laws to confront the barriers that stand between voters and the ballot box.” 

The proposed consent decree, which must be approved by the court, requires the implementation of a comprehensive Spanish-language elections program under Section 203. The Union County Clerk and Board of Elections will provide all election-related information in both English and Spanish, including information in the 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.

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/about/vot.

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 today admitted filing false claims against the IRS, U.S. Attorney Philip R. Sellinger announced.

Christian L. Whittaker, 42, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to one count of an indictment charging him with making false claims against the IRS.

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

Whittaker knowingly and willfully prepared, electronically signed, and filed with the IRS false U.S. Individual Income Tax Returns (Forms 1040) for the tax years 2016 to 2019.  Whittaker claimed that a business paid him significant wages and incurred substantial losses, when in fact the business was fictitious. Based on the false claims, the IRS paid more than $300,000 in refunds to Whittaker. More than $80,000 was paid by the IRS and garnished to pay debts that Whittaker had previously incurred.

The charge that Whittaker pleaded guilty to is punishable by up to five years in prison and a fine $250,000, or twice the gross profits or gross loss, whichever is greatest. Sentencing is scheduled for Seopt. 13, 2023.

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

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

El Departamento de Justicia anunció hoy que ha llegado a un decreto por consentimiento propuesto con Union County, New Jersey, y los oficiales electorales del condado para resolver una demanda de derechos electorales.

El decreto por consentimiento propuesto fue radicado junto con la demanda del departamento en el Tribunal Federal de Distrito. La demanda alega violaciones bajo las secciones 203 y 208 de la Ley de Derechos Electorales sobre la disponibilidad de asistencia electoral y materiales en español para votantes hispanos con conocimientos limitados del idioma inglés. La sección 203 requiere que ciertas jurisdicciones provean materiales electorales y asistencia en otros idiomas, así como en inglés. Estas  jurisdicciones son aquellas que el Buró de Censos ha determinado que tienen una población sustancial de ciudadanos quienes hablan un idioma que no es inglés y tienen conocimentos limitados del idioma inglés. Bajo la sección 203, Union County tiene la obligación de proveer asistencia y materiales en español. La sección 208 le brinda el derecho a los votantes que necesiten asistencia al votar – debido a inhabilidad de leer o escribir, ceguera o discapacidad – a conseguir la ayuda de una persona que ellos mismos elijan, siempre y cuando esa persona no sea un agente del empleador del votante ni tampoco un funcionario de su sindicato laboral. El decreto por consentimiento resolvería las alegaciones del departamento.

“Las barreras idiomáticas jamás deben privar a un votante elegible de participar plenamente en el proceso democrático,” dijo Kristen Clarke, Secretaria de Justicia Auxiliar a cargo de la División de Derechos Civiles del Departamento de Justicia. “La igualdad de acceso a las urnas en la democracia moderna significa asegurar la disponibilidad de materiales bilingües para aquellos con conocimientos limitados del idioma inglés y garantizar el derecho de recibir ayuda de una persona que el votante mismo elija.  Nosotros seguiremos utilizando las leyes de derechos electorales para enfrentar las barreras que se interponen entre los votantes y las urnas.”

“El derecho al voto es un pilar de nuestra democracia,” dijo el Fiscal Federal Philip S. Sellinger.  “Trabajaremos sin cesar para asegurar que cada americano elegible pueda votar libre de barreras ilegales.  Mediante el acuerdo al que llegamos hoy, nos aseguramos de que a nadie se le deniegue este sagrado derecho simplemente por hablar español.”

El decreto por consentimiento, que aún requiere la aprobación del Tribunal de Distrito, exige el establecimiento de un programa de asistencia idiomática integral en español bajo la sección 203. El Secretario del Condado y la Junta de Elecciones proveerá toda la información electoral tanto en inglés como en español, incluyendo en los lugares de votación y en línea. La Junta de Elecciones de Union County también asegurará la presencia de oficiales electorales bilingües en los lugares de votación temprana y en los lugares de votación con al menos 100 votantes registrados con apellidos de origen hispano. La asistencia en español seguirá disponible por teléfono para todos los votantes durante las elecciones. Además, el decreto por consentimiento provee que cualquier votante cubierto bajo la sección 208 quien necesite asistencia para votar podrá recibir ayuda de una persona que el votante mismo elija, siempre y cuando no sea un agente de su empleador ni tampoco un funcionario de su sindicato laboral, durante cualquier etapa del proceso electoral. El decreto por consentimiento también dispone que observadores federales pueden monitorear las actividades el Día de Elecciones en los lugares de votación en Union County.

Para denunciar una possible vulneración de las leyes federales de derecho al voto a la División de Derechos Civiles puede hacerlo en línea o llamar al (800) 253-3931. Puede también llamar a la Oficina del Fiscal Federal del Distrito de New Jersey en línea o llamar al (855) 281-3339.

Para obtener más información sobre la Ley de Derechos Electorales y otras leyes federales electorales, visite el portal del Departamento de Justicia en www.justice.gov/crt/voting/.

NEWARK, N.J. – An Essex County, New Jersey, man was arrested this morning for his involvement in a scheme that obtained more than $4 million in government funds, U.S. Attorney Philip R. Sellinger announced.

Gbenga Akinbode, 33, of Newark, New Jersey, is scheduled to appear today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $300,000 bail.

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

Akinbode opened a bank account in December 2020. Within a year, approximately 120 debit cards were used to purchase approximately $500,000 in money orders that were deposited into the account. The investigation revealed that the debit cards had been funded with $4 million in fraudulently obtained unemployment insurance benefits, Paycheck Protection Program loans and payments from the IRS.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, Northeast Region, Postal Inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, and Special Agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the charge.

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

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

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 240 months in prison for possessing a loaded firearm, and possessing with intent to distribute controlled substances on three different occasions. Clarence Gaffney, 36, of Jersey City, was convicted on Oct. 26, 2022, following a three-day trial before U.S. District Judge Susan D. Wigenton in Newark federal court on three counts of possession with intent to distribute controlled substances, and one count of possession of firearm and ammunition by a convicted felon.

NEWARK, N.J. – A Union County, New Jersey, man today admitted receiving videos and images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Joshua Cremosnik, 49, of Rahway, New Jersey, pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging him with one count of receipt of child pornography.

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

From April to August 2021, Cremosnik received videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. Subsequent to a lawful search of his residence, law enforcement officers recovered numerous videos and images of child sexual abuse on Cremosnik’s laptop and electronic storage media. Cremosnik acknowledged using the P2P network to request and receive child pornography materials and stored those materials on his laptop and electronic storage media.

The count of receipt of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. Sentencing is scheduled for Oct. 5, 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 Farhana C. Melo of the Criminal Division in Newark.

NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 97 months in prison and four years of supervised release for leading a drug trafficking organization that operated out of a drug mill located in the Bronx, New York. Luis Cabrera, 38, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court on Aug. 24, 2022, to an information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and methamphetamine.

NEWARK, N.J. – Four people have been charged with conspiring to use and using victims’ personal identifiable information to defraud individuals and financial institutions, U.S. Attorney Philip R. Sellinger announced today.

Marc Lazarre, 37, of Secaucus, New Jersey: Fritzgerald Steide, 28, of Valley Stream, New York; Mohammed Khan, 32, of Elmont, New York; and Andrea Lewis, 29, of Inwood, New York, are each charged by indictment with one count of conspiracy to engage bank fraud. Lazarre is also charged with one count of bank fraud and three counts of aggravated identity theft.

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

From September 2021 through October 2022, Lazarre, Steide, Khan, and Lewis conspired to enrich themselves by fraudulently obtaining victims’ funds. Lazarre utilized unlawfully obtained bank account and personal identifiable information to open accounts in victims’ names without their knowledge, caused the transfer of funds from the victims’ actual financial accounts to the accounts he opened, and then withdrew the funds. Lazarre also unlawfully obtained or fabricated checks made out to victims, used fraudulent identification documents to open accounts in names almost identical to the victims’ names, and then cashed the unlawfully obtained or fabricated checks.

Lazarre also worked with Steide and Khan, both of whom were employees of an Oceanside, New York, branch of a victim financial institution. Lazarre sent victims’ personal identifiable information to Steide and Khan, who in turn used this information to determine whether those individuals had bank accounts with Steide and Khan’s employer. In Khan’s role as a customer service representative, he received documents that he knew reflected stolen personal identifiable information from Lazarre and subsequently opened bank accounts using that information. Steide advised Lazarre regarding how to avoid detection, including by telling him when a conspirator should arrive at the bank to meet with Khan. Lewis impersonated numerous victims using false forms of identification provided by Lazarre. On at least one occasion, Lewis communicated with Lazarre in real time for assistance with responding to a bank representative’s questions regarding her purported identity.

The conspiracy to commit bank fraud and bank fraud counts are punishable by a maximum of 30 years in prison and a maximum fine of up to $1 million or twice the gross gain or loss from the offense. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Matthew Belgiovine of the U.S. Attorney’s Office in Trenton.

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

NEWARK N.J. – A federal grand jury indicted a Morris County, New Jersey, man for possessing and distributing child abuse and exploitation material, U.S. Attorney Philip R. Sellinger announced today.

William Mickel, 69, of Lake Hopatcong, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He had his initial appearance today before U.S. district Judge Cathy L. Waldor in Newark federal court and was detained.

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

Mickel was employed by Boy Scout camps in New Jersey, and from February 2022 through April 2022, he distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries 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, and substantial assistance from the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, 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.

If you think you or your child may have been a victim, please contact the FBI at  www.fbi.gov.

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

NEWARK, N.J. – The leader of an international money laundering organization in the Dominican Republic was sentenced today to 78 months in prison and ordered to pay $80 million in forfeiture for his role in a conspiracy to commit money laundering. Luis Velazquez-Cordero, aka El Pequeño, 38, a citizen of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti on May 4, 2022, to Count One of an indictment charging him with conspiring to commit money laundering. Velazquez-Cordero was extradited to the United States after his arrest the Dominican Republic on July 28, 2020.

CAMDEN, N.J. – A Camden man admitted trafficking three minors to engage in commercial sex acts, U.S. Attorney Philip R. Sellinger announced today.

Semaj A. Gilmore, 33, pleaded guilty before U.S. Chief District Judge Renée Marie Bumb on May 3, 2023, to three counts of a superseding indictment charging him with sex trafficking minors.

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

From September 2020 to April 2021 Gilmore transported, at various times, three minor victims from Philadelphia to New Jersey knowing they would engage in a commercial sex act at Gilmore’s direction. Each of the victims was under age 18 at the time. 

Each count of sex trafficking of a minor is punishable by a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 5, 2023.

U.S. Attorney Sellinger credited special agents of FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to the guilty plea. He also thanked members of the Mount Laurel Police Department and the Burlington County Prosecutor’s Office for their assistance.

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

NEWARK, N.J. – A Middlesex County man was sentenced to 97 months in prison for plotting to pay a purported hitman to kill his ex-wife and her daughter, U.S. Attorney Philip R. Sellinger announced today.

Michael Stewart, 69, of Monroe Township, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an information charging him with one count of the use of interstate commerce facilities in the commission of a murder for hire. Judge Neals imposed the sentence on May 2, 2023, in Newark federal court.

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

In the summer of 2021, Stewart and a confidential source discussed the murder of Stewart’s ex-wife and her daughter. Stewart indicated he would pay for the murders and asked the confidential source to find a hitman. In October 2021, Stewart met with an undercover agent – whom he believed to be a hitman – and told him he wanted the ex-wife’s daughter killed first, followed by the ex-wife. He told the undercover agent he would pay for the killings and provided him with names, addresses, layout of the victims’ property and types of cars used by the victims. Stewart also showed the undercover agent a photo of his ex-wife. He provided the undercover agent $500 as a partial payment.

In addition to the prison term, Judge Neals sentenced Stewart to three years of supervised release.

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

The government is represented by Assistant U.S. Attorney Olta Bejleri of the Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – Caroline Sadlowski, Counsel to the U.S. Attorney for the District of New Jersey, was recognized by Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th annual Director’s Awards Ceremony today in Washington, D.C.

At the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building, Ms. Sadlowski was honored with the Executive Achievement Award, which recognizes someone who has made significant contributions toward improving the efficiency, effectiveness, and productivity of the office through personal initiative, innovation, leadership, and creativity.

“Caroline Sadlowski is a remarkable leader, advisor, and advocate, who works tirelessly to support the office’s mission and employees,” U.S. Attorney Philip R. Sellinger said. “I am proud to congratulate Caroline on receiving a Director’s Award that recognizes her significant contributions to the office and the people of New Jersey. Every organization has a few cornerstone people who are depended upon by everyone. For the U.S. Attorney’s Office for the District of New Jersey, Caroline Sadlowski is one of those people.”

Ms. Sadlowski has been with the U.S. Attorney’s Office for the District of New Jersey for 19 years, has served in leadership positions in both the Appeals and Civil Divisions, and served in the front office as Counsel since 2018. Ms. Sadlowski advises the U.S. Attorney and other office supervisors on case-related decisions, bringing her tremendous insight and sound judgment to the office’s criminal, civil, and appellate matters based on her near two-decades of experience. She serves as one of the office’s ethics officers, providing ethics training to all supervisors and ethics advice to the U.S. Attorney on a wide array of issues. Ms. Sadlowski also oversees the office’s administrative division, particularly focusing on human resource and budget issues, and leads the office’s participation in the District’s Reentry Court and Pretrial Opportunity Program, two nationally recognized programs that focus on helping those enmeshed in the criminal justice system.

NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced.

Mark Belter, 49, of North Ridgeville, Ohio, pleaded guilty via videoconference before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.

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

From June 2017 through September 2020, Belter participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Belter controlled several marketing companies through which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies called beneficiaries to pressure them to agree to try expensive medications, regardless of medical necessity. Belter and others would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded.

Belter and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Belter transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements.  Belter, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient.

Belter and his conspirators then directed the prescriptions to pharmacies with which Belter had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Belter and his companies as payment for the prescriptions generated through the conspiracy. In total, Belter and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $24 million of prescription drugs. Belter and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to a pharmacy located in New Jersey.

The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense.  Sentencing is scheduled for Sept. 27, 2023.

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

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

NEWARK, N.J. – An Ocean County, New Jersey, man today admitted that he illegally laundered the proceeds of a wire fraud scheme, U.S. Attorney Philip R. Sellinger announced. 

Eli Schamovic, 41, of Lakewood, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with money laundering.

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

Schamovic made or caused others to make numerous fraudulent financial transactions through at least two entities that Schamovic formed and established as merchants that used multiple credit card processing companies. These transactions resulted in more than $1 million in losses to a multinational financial services corporation that specialized in payment cards. Schamovic laundered portions of the proceeds of this scheme, including through an approximately $500,000 wire transfer from a bank account under his control.

The charge of money laundering is punishable by a maximum potential penalty of 10 years in prison and a fine $250,000, or twice the gross profits or gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 8, 2023.

U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to the guilty plea.

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

CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 120 months in prison, 10 years of supervised release and ordered to pay $73,000 in restitution for possessing images and videos of child sexual abuse. Joseph Cooper, 76, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb on Sept. 13, 2022, to an information charging him with one count of possession of child pornography.

CAMDEN, N.J. – A Delaware man today admitted he distributed and possessed with intent to distribute heroin, U.S. Attorney Philip R. Sellinger announced.

Carl L. Jones, 49, of Newport, Delaware, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of distribution and possession with intent to distribute a mixture and substance containing a detectable amount of heroin.

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

On March 29, 2019, Jones distributed, and possessed with intent to distribute, at least 700 grams, but less than one kilogram, of a mixture and substance containing a detectable amount of heroin to a confidential source who was working with law enforcement in a commercial parking lot in Mt. Laurel, New Jersey. 

Jones faces a maximum potential penalty of 20 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for Sept. 6, 2023.

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, with the investigation leading to today’s guilty plea.

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

CAMDEN, N.J. – A Camden County, New Jersey, woman was sentenced on May 1, 2023, to 60 months in prison, five years of supervised release and ordered to pay $3.18 million in restitution and forfeit $1.03 million for conspiring to fraudulently obtain 30 Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) totaling more than $3 million, and to laundering the proceeds. Rhonda Thomas, 38, of Sicklerville, New Jersey, pleaded guilty by videoconference on June 28, 2022, before U.S. District Judge Karen M. Williams to an information charging her with one count of bank fraud conspiracy and one count of money laundering.

NEWARK, N.J. – A former Bergen County, New Jersey, man has been charged with running a large, multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.

Warren Guerrier, 46, formerly of Hackensack, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of aggravated identity theft. He was arraigned today before U.S. District Judge William J. Martini in Newark federal court and pleaded not guilty.

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

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

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

The conspiracy to commit wire fraud count and each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. The aggravated identity theft count is punishable by a sentence of two years in prison, which must be served consecutively to any other term imposed, and a maximum $250,000 fine.  

U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Douglas Williams in New Orleans, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Jessica R. Ecker of the General Crimes Unit and Kendall Randolph of the Organized Crime/Gangs Unit in Newark.

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

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 120  months in prison and 10 years of supervised release for distributing videos and images of child sexual abuse. Ryan Osinski, 33, of Cherry Hill, New Jersey, pleaded guilty on Nov. 17, 2022, before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of distribution of child pornography.

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced to 276 months in prison for his role as the gunman in two armed bank robberies, U.S. Attorney Philip R. Sellinger announced today.

Jose Soto, 53, of Passaic, New Jersey, was previously convicted of two bank robberies, conspiracy to commit bank robbery, and brandishing a firearm during those robberies following a six-day jury trial before U.S. District Judge William J. Martini, who imposed the sentence on April 27, 2023, in Newark federal court.

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

On Feb. 6, 2020, Soto and his conspirator, while wearing face coverings and holding umbrellas, entered the PNC Bank in Passaic. Soto pointed a silver and black handgun at customers and employees and began ordering everyone down on the floor. His conspirator entered the bank and jumped over the teller counter, demanding that the teller turn over all cash in the drawers. Soto and his conspirator took approximately $35,000 from the PNC Bank.

On Feb. 27, 2020, Soto and the same conspirator entered the Valley Bank in Little Falls, New Jersey. Soto again pointed a silver and black gun at customers and employees and his conspirator jumped over the teller counter and began rifling through various drawers. Soto and his conspirator, at gunpoint, forced the bank employees to open the vault, and began retrieving cash from the bank vault. They then forced all employees and customers into the bank vault and fled through the rear door of the Valley Bank. Soto and his conspirator took approximately $45,000 from the Valley Bank.

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

U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Little Falls Police Department, under the direction of Chief Robert A. Thomas III; and the Paterson Police Department, under the direction of Interim Officer in Charge, Maj. Frederick P. Fife, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorneys Emma Spiro and Mark J. Pesce of the Criminal Division in Newark.

NEWARK, N.J. – Two doctors and their medical practice have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by allegedly performing and billing for medically unnecessary procedures on Medicare and Medicaid patients, U.S. Attorney Philip Sellinger announced today. 

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

From Jan. 1, 2013, to Aug. 31, 2022, Drs. Fadi El-Atat and Sarah Abdul-Sater and their medical practice, FA CV Consultants P.C., violated the False Claims Act by knowingly seeking reimbursement for medically unnecessary balance tests, pulmonary function tests, allergy tests, autonomic nervous tests, and cardiology ultrasound tests that were performed on Medicare and Medicaid beneficiaries.

The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act brought by Jennifer Jean. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Jean will receive approximately $180,000 from the proceeds of the settlement. 

The government’s pursuit of this lawsuit illustrates its efforts to combat healthcare fraud. One of the strongest 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 800‑HHS‑TIPS (800-447-8477).  

U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the Opioid Abuse Prevention and Enforcement Unit.

The claims settled by this agreement are allegations only, and there has been no admission of liability.

The case is captioned United States and the State of New Jersey ex rel. Jean v. FA CV, et al. Civ. No. 19-10555 (D.N.J.).