District of New Jersey

NEWARK, N.J. – The U.S. Attorney’s Office today filed a lawsuit in U.S. District Court for the District of New Jersey charging Roosevelt Care Centers for violating Title I of the Americans with Disabilities Act (ADA), U.S. Attorney Philip R. Sellinger announced.

The lawsuit alleges that Roosevelt Care Centers, a long-term care facility operated by the Middlesex County Improvement Authority, unlawfully terminated a dietary worker whose disability inhibited her ability to lift objects heavier than 20 pounds.

“No one should be denied their right to work because of a disability,” U.S. Attorney Philip R. Sellinger said. “The Americans with Disabilities Act was enacted to prohibit employers from denying employment to people with disabilities without making a reasonable accommodation. The U.S. Attorney’s Office is committed to protecting the civil rights and ensuring equal employment opportunities for all individuals with disabilities.”

Before sustaining an injury that caused the permanent lifting impairment, the employee had been successfully working at Roosevelt Care Centers for approximately 18 years and remained able to perform the essential functions of her position. Nonetheless, Roosevelt Care Centers terminated the dietary worker’s employment due to her disability without engaging in an interactive process to provide her with a reasonable accommodation.

Title I of the ADA prohibits employers from discriminating against a qualified individual on the basis of disability in regard to the hiring, advancement or discharge of employees; employee compensation; and other terms, conditions, or privileges of employment. An employer may not demote, terminate, or deny employment opportunities to an employee who is otherwise qualified if the demotion or termination is based on the need to make reasonable accommodations for the employee. 

This matter was handled by the U.S. Attorney’s Civil Rights Division based on a referral from the Newark Area Office of the Equal Employment Opportunity Commission. U.S. Attorney Sellinger created a Civil Rights Division last year with the goal of protecting and upholding the civil rights of those in our community.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).

The government is represented by Assistant U.S. Attorney Thandiwe Boylan of the Civil Rights Division in Newark.

The complaint is an allegation of unlawful conduct. The allegation must still be proven in federal court.

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

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

According to court documents and the evidence presented at trial: 

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

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

The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison. The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison and in this case, a mandatory minimum sentence of 25 years in prison because Graham was previously convicted in 2007 in connection with three gunpoint bank robberies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. Each count carries a potential $250,000 fine.

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

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

NEWARK, N.J. – Ten members of the Jersey City gang associated with the Marion Gardens Housing Complex were charged today for their roles in a drug trafficking conspiracy, U.S. Attorney Philip R. Sellinger announced today.

Myron Williams, aka “Money,” aka “Tunchi,” 29, and Andre Alomar, aka “Dre8,” 21, both of Newark; and Herbert Thomas, 48; Roger Pickett, aka “Zy Gz,” 22; Anthony Rogers, aka “MG,” 22; Naim Richardson, aka “Ninicks,” 29; Quaseame Wilson, aka “Qua Gz,” 26; Javon Williams, aka “J45,” 21; Jawaad Davis, 20; and Keith Anderson, 21, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to distribute controlled substances.

The defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

Myron Williams, Pickett, Alomar, Rogers, Richardson, Wilson, Javon Williams, Davis, and Anderson are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Since March 2021, members and associates of the Marion Gardens street gang have committed numerous acts of violence, including a murder on March 29, 2021; a murder on Nov. 20, 2021 and a murder on Nov. 1, 2022.

The murder on Nov. 1, 2022, was committed in furtherance of the gang’s drug trafficking activities, during an attempted robbery of controlled substances. Davis facilitated that murder by communicating with the victim to coordinate a narcotics transaction. When the victim and another associate arrived at the Marion Gardens Housing Complex to complete the narcotics transaction, Davis robbed the victim’s narcotics supply while Pickett and Wilson held the victim and his associate at gunpoint. Pickett shot and killed the victim while the victim’s associate fled.  Pickett and Wilson then fled the Marion Gardens Housing Complex in Pickett’s vehicle.

The gang’s drug trafficking activities included hundreds of narcotics transactions that occurred within and around the Marion Gardens Housing Complex during the investigation. Thomas was the primary supplier of narcotics to the Marion Gardens drug trafficking organization.

All defendants are facing a mandatory minimum  of five years in prison, a maximum penalty of 40 years in prison, and a fine of up to $5 million. 

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Bryan Miller; and investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez for the investigation leading to the charges. He also thanked the investigators of the Jersey City Police Department, under the direction of Director James Shea; investigators of the Newark Police Department, under the direction of Director Fritz Fragé for their assistance.

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’s (DEA) New Jersey Division, 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 Desiree Grace, Deputy Chief of the Criminal Division in Newark.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man has been charged with falsifying voter registrations, making false statements to the FBI about interactions with prospective voters, and submitting false unemployment benefits claims with the New Jersey Department of Labor and Workforce Development (NJDOL), U.S. Attorney Philip R. Sellinger announced today.

MD Hossain Morshed, 49, a councilman elected to Atlantic City’s Fourth Ward, is charged in a criminal complaint unsealed today with one count of fraudulent procurement and submission of voter registration applications, one count of making false statements, and one count of wire fraud. Morshed made his initial appearance before U.S. District Judge Ann Marie Donio in Camden federal court and was released on $100,000 unsecured bond.

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

Falsification of Voter Forms

In April 2019, in advance of the June 2019 primary election, Morshed gave a prospective voter a New Jersey voter registration application that had already been filled out and which falsely asserted that the prospective voter had a residential address in the Fourth Ward in Atlantic City. Even though the address written on the form was not where the voter actually lived, Morshed urged the prospective voter to sign the application. Subsequently, Morshed visited the prospective voter at the voter’s actual residence (which was not in the Fourth Ward) and presented the prospective voter with a vote-by-mail application to sign which included the same false Fourth Ward Atlantic City address that was on the voter registration application and listed yet another false Atlantic City address for where the mail-in ballot should be sent to the voter. 

The Atlantic County Superintendent of Elections subsequently received the falsified voter registration application that Morshed had the prospective voter sign and thereafter, the Atlantic County Board of Elections received the prospective voter’s completed mail-in ballot, and that ballot was counted towards the June 2019 primary election. The prospective voter later admitted not receiving, completing or returning the mail-in ballot. During lawfully recorded conversations between this voter and Morshed concerning possible questioning by law enforcement, Morshed directed the voter, if questioned by law enforcement, to make false representations about where the voter lived and who filled out the voter forms that Morshed had given to the voter. 

When Morshed was subsequently approached and questioned by FBI agents about his provision of voter registration and vote-by-mail applications to New Jersey residents, he made materially false statements, including that he had never provided any voter documents to any prospective voter, never assisted any prospective voter in filling out such documents, and never collected any such documents from any prospective voter. Morshed also falsely stated that he had never asked residents of municipalities outside of Atlantic City to register to vote in Atlantic City’s Fourth Ward.

Fraudulently Obtaining Unemployment Benefits

From April 2020 through September 2021, Morshed also defrauded the NJDOL of $39,208 in unemployment benefits to which he was not entitled. Morshed applied for and was approved to receive various unemployment benefits related to New Jersey’s Pandemic Unemployment Assistance program even though he was earning compensation for his employment as an Atlantic City Councilperson, and additional income as a driver. 

The false voter registration submission and false statements counts each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the 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; the FBI’s Newark, Atlantic City Resident Agency’s Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Officer-in-Charge Chief James A. Sarkos; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Cape May County Prosecutor's Office, under the direction of Prosecutor Jeffrey H. Sutherland; as well as special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; and the postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to the charges. 

The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney James H. Graham of the General Crimes Unit, under the supervision of the Special Prosecutions Division.

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 Union County, New Jersey, man 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 today.

Justin Brooks, 23, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi on March 15, 2023, 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, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.

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 July 20, 2023. 

Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks’ case is pending before Judge Cecchi, and he is presumed innocent unless and until proven guilty. Williams has pleaded guilty to conspiring to commit access device fraud and was sentenced. Hutchins has pleaded guilty to conspiring to commit access device fraud and is 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 Damon Wood, 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. – A former North Carolina resident appeared in court after he was  arrested and returned to the United States from Phuket, Thailand, for his role in a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced today.

Peter Coker Jr., 53, of Phuket, was charged in a 12-count indictment with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. Coker Jr., who was previously arrested in Phuket, Thailand, was returned to the United States today and made his initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on March 15, 2023. He was detained without bail. Peter Coker Sr. and James Patten were previously arrested on the indictment and those charges remain pending.

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

From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.

The defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.

Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.

In 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, almost immediately after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.

In October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., and Coker Jr. undertook a scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.

Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.

The defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.

These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.

The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The counts of conspiracy to commit securities fraud and conspiracy to manipulate securities prices both carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.

In a separate civil action, the Securities and Exchange Commission previously filed a complaint in the District of New Jersey charging Patten, Coker Sr., and Coker Jr. based on the allegations underlying the market manipulation scheme.

U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation.

The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Lauren Repole, Chief of the General Crimes Unit.

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

CAMDEN, N.J. – A Pennsylvania man today admitted robbing two banks in Camden County, U.S. Attorney Philip R. Sellinger announced.

Leon I. Stanford, 54, of Wilkes Barre, Pennsylvania, pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with two counts of bank robbery.

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

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

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

At the time of these bank robberies, Stanford was on federal supervised release as a result of prior bank robbery convictions, for which he served a 10-year term of imprisonment.  Sentencing is scheduled for July 18, 2023. 

Each bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. 

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

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

CAMDEN, N.J. – A former pharmaceutical sales representative today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

Vincent Tornari, 49, of Linwood, New Jersey, pled guilty today via videoconference before Judge Robert B. Kugler to one count of an indictment charging him with conspiring to commit health care fraud and wire fraud. Tornari was previously charged with Dr. Brian Sokalsky, 44, of Margate, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, in June 2020. Lyons pleaded guilty on Feb. 28, 2023, to health care fraud conspiracy. The conspiracy to which Tornari pleaded guilty also involved former pharmaceutical sales representative Mark Bruno, 48, of Northfield, New Jersey, who pleaded guilty on Dec.16, 2019, to health care fraud conspiracy and obstruction of justice. The charges against Sokalsky remain pending and he is scheduled to proceed to trial on April 24, 2023. The charges and allegations against Sokalsky are merely accusations, and he is presumed innocent unless and until proven guilty.

According to court documents and statements made in Court:

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

The conspirators learned that certain medications made by compounding pharmacies reimbursed for up to thousands of dollars for an individual’s one-month supply. They learned that certain insurance plans – including insurance plans for state and local government employees and certain other insurance plans – covered these medications.

Tornari’s company had an agreement with a compounding pharmacy in Pennsylvania to receive 50 percent of the insurance reimbursement for prescriptions that were arranged by him and those working with him, such as Bruno. Tornari then paid Bruno 20 percent of that amount.

Tornari and Bruno approached Sokalsky to secure his authorization for prescription medications made by the compounding pharmacy. Sokalsky agreed to prescribe the medications in exchange for cash and other remuneration. Sokalsky prescribed the medications to people Bruno paid cash to agree to receive the medications, even though those individuals did not need those medications and did not have a pre-existing doctor-patient relationship with Sokalsky.  Sokalsky then billed insurance plans for patient visits for the people Bruno directed to his medical practice.

Sokalsky also prescribed the medications to existing patients of his medical practice – as opposed to other medications or no medications at all – to financially benefit Tornari, Bruno, and himself.  When insurance stopped covering certain formulations of the medications, Tornari and Bruno informed Sokalsky that he needed to authorize new prescriptions. Sokalsky did so, often without seeing the individual for a follow-up visit or informing the person of the change in medication. The fraudulent prescriptions cost insurers over $541,000 and Tornari personally received more than $359,000 as part of the scheme.

Tornari faces a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 25, 2023. 

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

The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman.

NEWARK, N.J. – An Essex County, New Jersey, man was convicted on drug and weapon charges, U.S. Attorney Philip R. Sellinger announced today.

Ricky Hubbard, 45, of Newark, was convicted on March 13, 2023, following a four-day trial before U.S. District Judge Kevin McNulty on one count each of possession of a firearm by a convicted felon; possession with intent to distribute cocaine, heroin, and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime. 

According to documents in this case and evidence at trial:

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

The firearm possession charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. The drug trafficking charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. The possession of a firearm in furtherance of a drug trafficking crime charge carries a minimum sentence of five years in prison, a maximum potential penalty of life in prison, and a maximum fine of $250,000.  Sentencing will be scheduled at a later date.

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

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

NEWARK, N.J. – An Essex County corrections officer and his girlfriend were arrested today for conspiring to smuggle contraband into the prison facility at which he was employed to be resold to prisoners, U.S. Attorney Philip Sellinger announced.

Efrin Wade, 34, and Yairisa Lizardo, 29, both of Jersey City, are charged by complaint with extortion under color of official right. The defendants appeared today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were released on $100,000 each unsecured bond.

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

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

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

The extortion charge is punishable by a maximum potential penalty of 20 years in prison and a maximum $250,000 fine.

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

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

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

NEWARK, N.J. – Two California men admitted conspiring to distribute and possess with intent to distribute fentanyl and methamphetamine in New Jersey and elsewhere, U.S. Attorney Philip R. Sellinger announced today.

Erik Eduardo Velazquez Bautista, 25, of San Diego, California, pleaded guilty by videoconference today before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine. Jesus Alejandro Rodriguez Velasquez, 27, also of San Diego, California, pleaded guilty on March 2, 2023, to the same offense before Judge Martinotti by videoconference.

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

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

Velazquez Bautista and Rodriguez Velasquez each face a maximum punishment of 20 years in prison and a maximum fine of up to $1 million. Sentencing for Rodriguez Velasquez is scheduled for July 11, 2023; sentencing for Velazquez Bautista is scheduled for July 18, 2923.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, New Jersey Division, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, with the investigation.

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

NEWARK, N.J. – A Hudson County, New Jersey man, admitted producing images of child pornography, U.S. Attorney Philip R. Sellinger announced today.

Ramon Zelaya, 36, of Union City, pleaded guilty by videoconference on March 9, 2023, before U.S. District Judge Claire C. Cecchi to a second superseding indictment charging him with two counts of sexual exploitation of a child. 

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

Between Aug. 20, 2018 and Sept. 20, 2018, Zelaya used an alias Instagram account to message a minor victim and entice, threaten, and coerce the minor into creating and sending him sexually explicit images and videos. From April 2018 through May 2018, Zelaya used an alias Facebook account to conspire with an individual in the Dominican Republic to sexually abuse the individual’s minor child, create images of that abuse, and send the images to Zelaya. In May 2017, Zelaya used another messaging application to engage an additional underage victim in sexually explicit conversations during which Zelaya requested that the victim take sexually explicit photographs and videos of the victim and send them to him.  

The charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for July 20, 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, and officers of the Union City Police Department, under the direction of Chief Anthony Facchini, with the investigation leading to the guilty plea.  

The government is represented by Assistant U.S. Attorneys Jamie H. Solano and Sophie E. Reiter of the U.S. Attorney’s Office Cybercrime Unit in Newark.

NEWARK, N.J. – A Union County man was convicted today for participating in a multi-state armed robbery spree that spanned several months, U.S. Attorney Philip R. Sellinger announced.

Vincent Chan-Guillen, 32, was convicted of conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm during a Hobbs Act robbery, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, three counts of brandishing a firearm during a Hobbs Act robbery, and unlawful possession of a firearm by a convicted felon. Chan-Guillen was convicted following a one-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court.

According to court documents and evidence presented at trial:

Chan-Guillen committed nine armed robberies between August 2018 and November 2018, five of which occurred in New York, and four of which occurred in New Jersey. During each robbery, Chan-Guillen brandished a firearm, which he pointed at store employees and customers. The New Jersey robberies victimized liquor stores in Elizabeth, Woodbridge Township, Bloomfield, and Linden. 

Chan-Guillen faces a maximum potential penalty of 20 years on each count of Hobbs Act robbery and attempted Hobbs Act robbery; a maximum potential penalty of life in prison and a mandatory minimum penalty of seven years in prison on each count of brandishing a firearm during a Hobbs Act robbery, each of which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine. 

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s conviction. He also credited the Elizabeth, Rahway, Woodbridge, Bloomfield, Linden, Kenilworth, Union, and Lyndhurst police departments; the New Jersey State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division; and the New York Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney John F. Mezzanotte of the Office’s Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Jersey City later this month at the second in a series of planned town hall meetings.

The town hall will be held on March 21, 2023, from 6:00 p.m. to 7:30 p.m. at Temple Beth-El, 2419 John F. Kennedy Blvd., Jersey City, NJ, 07304. U.S. Attorney Sellinger will discuss the work of his office in a variety of areas, including hate crimes, civil rights, protecting the community from violence and the opioid crisis, and protecting the environment.

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

A manager of a Camden drug-trafficking organization was sentenced on March 1, 2023, to 158 months in prison and five years of supervised release for conspiring to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl. Juan Figueroa, 25, of Camden, pleaded guilty on June 8, 2022, before U.S. District Judge Renée Marie Bumb in Camden federal court.

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

Asmar Earp, 37, of Newark, is charged by indictment with two counts of wire fraud and two counts of aggravated identity theft. He appeared today before U.S. Magistrate Judge James B. Clark III and was detained.

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

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

Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Each count of aggravated identity theft is punishable by a sentence of two years in prison, at least one of which must be served consecutive to any other term imposed, and a maximum of $250,000.

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

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

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

CAMDEN, N.J. – A former Pennsville, New Jersey, advanced practice nurse today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Robert B. Kugler to an information charging her with one count of conspiring to commit health care fraud.

Lyons-Valenti was previously charged with Vincent Tornari, 49, of Linwood, New Jersey, and Brian Sokalsky, 44, of Margate, New Jersey, in a 33-count indictment in June 2020. The charges against Tornari and Sokalsky remain pending, and they are set to proceed to trial later this year.  The charges and allegations against Tornari and Sokalsky are merely accusations, and they are presumed innocent unless and until proven guilty.

According to court documents and statements made in court:

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

Lyons-Valenti was previously an advanced practice nurse at a medical office in Pennsville, New Jersey. At the same time, Tornari hired Lyons-Valenti’s live-in boyfriend to be a sales representative for his company which promoted compound medications, even though Lyons-Valenti’s boyfriend had no background or experience in medicine and pharmaceutical sales. Tornari and Lyons-Valenti’s boyfriend had an agreement that the boyfriend would receive a commission on all prescriptions authorized by Lyons-Valenti. Lyons-Valenti then authorized numerous medically unnecessary prescription medications associated with Tornari and her boyfriend – including for her patients, staff members and co-workers at the medical office where she worked, and her children – for the sole purpose of financially benefitting herself, her boyfriend, and Tornari. In exchange for authorizing the prescriptions, Lyons-Valenti’s boyfriend paid her half of his commissions that he received from Tornari. As a result of the scheme, health insurance paid over $1.2 million for medically unnecessary medications and Lyons-Valenti received over $90,000 in kickbacks for signing the prescriptions.

As part of her plea agreement, Lyons-Valenti also admitted to attempting to obstruct or impede the administration of justice with respect to the investigation of the health care fraud conspiracy by trying to influence the testimony of a grand jury witness.

Lyons-Valenti faces a maximum penalty of 10 years in prison and a $250,000 fine.  Sentencing is scheduled for July 11, 2023. 

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

The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk, Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.

CAMDEN, N.J. – A Camden County man was arrested for possessing multiple images and videos of child sex abuse, U.S. Attorney Philip R. Sellinger announced today.

Matthew Knapp, 38, of Lindenwold, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance on Feb. 23, 2023, before U.S. Magistrate Judge Sharon A. King in Camden federal court and was released on $100,000 unsecured bond.

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

In February 2022, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. A user shared multiple files featuring images or videos of child sexual abuse from an internet address traced to Knapp’s residence. On May 10, 2022, law enforcement officers executed a search warrant at Knapp’s residence and seized, among other things, a computer, three hard drives, and a flash drive that contained depictions of child sex abuse, including images of prepubescent children.

Knapp was convicted of aggravated indecent assault of a person less than 16 years of age in Bucks County, Pennsylvania, in 2007. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine.

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 with the investigation leading to the arrest. U.S. Attorney Sellinger also thanked the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; and the Lindenwold Police Department, under the direction of Chief of Police Michael McCarty Jr., for their assistance with the investigation leading to the arrest.

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

The charge and allegations against the defendant are merely accusations, and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Bergen County, New Jersey, man was charged following his attempt to bring firearms, ammunition, a bulletproof vest, fraudulent law enforcement credentials, and other items on a domestic flight to Fort Lauderdale, Florida, U.S. Attorney Philip Sellinger announced today. 

Seretse Clouden, 42, of Wallington, New Jersey, is charged by complaint with unlawful possession of firearms and ammunition by a convicted felon and fraudulent possession of an identification document and authentication feature of the United States. He made his initial court appearance today before the U.S. Magistrate Judge James B. Clarke III in Newark federal court and was detained.

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

On Dec. 30, 2022, Clouden entered Newark Liberty International Airport for a scheduled flight to Fort Lauderdale. During routine screening of checked luggage that was destined for Fort Lauderdale, Transportation Security Administration agents discovered two .40 caliber Glock magazines, each containing 15 rounds of .40 caliber ammunition and a ballistic vest carrier that displayed the words “Deputy Marshal.”

Further investigation revealed that the checked luggage belonged to Clouden, which resulted in additional screening of Clouden’s other luggage, which contained an ASP expandable baton, a spring loaded knife, a taser, a .40 caliber Glock 22 handgun, a .308 caliber DPMS Panther Arms rifle, and one 5.56 caliber AR-15 rifle, which meets the definition of a machine gun. 

That luggage also contained “United States Marshal” credentials, bearing Clouden’s name and photograph, and a “United States Marshal” badge. An inquiry with the United States Marshals Service confirmed that Clouden is not, and was not, employed with the United States Marshal Service.

The count of unlawful possession of firearms and ammunition by a convicted felon carries a maximum potential penalty of 15 years in prison. The count of fraudulent possession of an identification document and authentication feature of the United States carries a maximum penalty of five years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special deputies of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the Transportation Security Administration.

The government is represented by U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Jenny Chung, Assistant U.S. Attorney of the Office’s OCDETF/Narcotics Unit, in Newark.

A former New Jersey resident was sentenced on Feb. 23, 2023, to two years in prison for conspiring to distribute a fentanyl analogue. Darryl Hinkson, 47, formerly of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi on July 20, 2021, to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a fentanyl analogue.

NEWARK, N.J. – A Philadelphia man was sentenced today to 240 months in prison for conspiring with Sean Caddle and a longtime accomplice to murder one of Caddle’s associates, U.S. Attorney Philip R. Sellinger announced.    

Bomani Africa, 62, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez imposed the sentence today in Newark federal court.

Caddle pleaded guilty on Jan. 25, 2022, before Judge Vazquez, to his role in the murder scheme and is scheduled to be sentenced on March 22, 2023.    

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

In April of 2014, Caddle solicited another conspirator, George Bratsenis, 74, of Monroe, Connecticut, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis then recruited Africa, a longtime accomplice, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns. 

On May 22, 2014, Africa and Bratsenis traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Africa and Bratsenis stabbed the victim to death and then Bratsenis set fire to the victim’s apartment. 

After Caddle learned that the victim had been murdered, the following day, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa. 

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

Bratsenis pleaded guilty to his role in the conspiracy on March 24, 2022, and is scheduled to be sentenced on March 29, 2023.

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

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

NEWARK, N.J. – A New Jersey doctor today admitted using his medical license – and allowing other to use his medical license – to purchase prescription oncology medications under false pretenses for the purpose of selling them for profit, U.S. Attorney Philip R. Sellinger announced.

Joel Lerner, 62, of Warren, New Jersey, a board-certified podiatrist and operator of a medical supply group purchasing organization, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with unlawfully selling prescription cancer medication, which had been previously purchased using his medical license and under the representation that such medication was to be used to treat his patients.

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

While working in his medical practice’s offices in various locations in New Jersey, Lerner 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, and in return for commissions and discounts on other medical supplies purchased by Lerner for his group purchasing organization, Lerner used his 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 Lerner and his 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, Lerner and the two individuals made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Lerner purchased the drugs to use to treat his patients, and that the drugs would not be resold or redistributed. In actuality, none of the drugs were administered to Lerner’s patients, but were ultimately sold to customers of the two businesses for a profit. In an effort to obscure the fact that he was illegally buying and selling prescription drugs purchased under his medical license, Lerner sold and transferred the prescription drugs in the name of his group purchasing organization. The scheme ran from December 2014 through November 2018, during which more than $1.2 million in prescription drugs were purchased in Lerner’s name and using his medical license.

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 his plea agreement, Lerner also agreed to make restitution for the full amount of any loss resulting from his offense. Sentencing is scheduled for July 18, 2023.

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. – U.S. Attorney Philip R. Sellinger announced that the U.S. Attorney’s Office for the District of New Jersey has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.

The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.

“The intent of this new policy is to incentivize corporate responsibility and a culture of compliance,” U.S. Attorney Sellinger said. “We hope that companies will come forward when misconduct occurs, and cooperate with the government so that individual wrongdoers can be held accountable. When they do, they will have a far better and more predictable outcome.” 

 The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s Sept. 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.

Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.

The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.

 In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.

The Attorney General’s Advisory Committee (AGAC), under the leadership of U.S. Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of U.S. Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney Sellinger, and U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, and U.S. Attorney for the Western District of Virginia Christopher Kavanaugh. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted coercing a minor into producing images of child sexual abuse, U.S Attorney Philip R. Sellinger announced. 

Samuel Schwinger, 37, Lakewood, New Jersey, pleaded guilty before U.S. District Court Judge Georgette Castner in Trenton federal court to an information charging him with one count of sexual exploitation of a minor.

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

In March 2019 used an internet-based application to communicate with the victim, who was under the age of 12. Schwinger asked the victim to make sexually explicit videos of the victim and send them to him. Schwinger admitted that from October 2018 through April 5, 2019, he communicated with more than 25 minor victims for the purpose of producing and distributing sexually explicit material.

The charge of sexual exploitation of a minor carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.

U.S. Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood New Jersey Police Department under the direction of Chief Gregory Meyer. 

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

NEWARK, N.J. – An Essex County, New Jersey, man was charged for his role in a scheme to steal and alter checks from the mail and fraudulently obtain funds from banks by depositing the stolen and altered checks, U.S. Attorney Philip R. Sellinger announced today.

Baba Diakite, 21, of East Orange, New Jersey, is charged by indictment with bank fraud conspiracy, conspiracy to commit mail theft and possess stolen mail, the theft and possession of a U.S. Postal Service (USPS) key, and aggravated identity theft. Diakite was previously charged by criminal complaint in February 2022.

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

From January 2020 to March 2022, Diakite and others conspired to steal checks from the mail in Essex, Hudson, Middlesex, Passaic, Somerset, and Union counties, which they then sold to third parties or deposited, sometimes in altered or duplicate form, into the bank accounts of complicit accountholders who had provided access to their bank accounts for the scheme. They obtained stolen official USPS arrow keys, which Diakite and others used to access mail and steal checks directly from USPS receptacles. Diakite targeted the accounts associated with the checks he stole and created false identifications in the names of the accountholders, which his conspirators used to make fraudulent withdrawals from those accounts.

The count of bank fraud conspiracy is punishable by a maximum penalty of 30 years in prison. The count of conspiracy to commit mail theft and possess stolen mail is punishable by a maximum penalty of five years in prison. The count of theft and possession of stolen USPS keys is punishable by a maximum penalty of 10 years in prison. The count of aggravated identity theft is punishable by a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment. The bank fraud conspiracy count is also punishable by a fine of up to $1 million; all other charges are punishable by a maximum potential fine of up to $250,000 or twice the pecuniary gain or loss, whichever is greatest. 

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents with the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to the charges. He also thanked the Clifton Police Department, Hillside Police Department, Livingston Police Department, Millburn Police Department, Port Authority NY-NJ Police Department, Roselle Park Police Department, South Plainfield Police Department, Warren Township Police Department, and Watchung Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the Asset Recovery and Money Laundering Unit in Newark.

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

NEWARK, N.J. – Three Hudson County, New Jersey, men were charged by complaint with narcotics and firearms related violations, U.S. Attorney Philip Sellinger announced today. 

Shiquwan Johnson, aka “Big Shy,” 37, is charged with unlawful possession of firearms and ammunition by a convicted felon, possession with intent to distribute heroin and cocaine, and possession of firearms in furtherance of a drug trafficking crime. Johnson is associated with a neighborhood street gang that operates around the Bergen Avenue/Lexington Avenue area in Jersey City. 

Douglas Sherman, aka “Dougie,” 40, is charged with maintaining a drug-involved premises.

Perry Capers, aka “Diddy,” 36, is charged with possession with intent to distribute heroin and cocaine. Capers is also associated with the neighborhood street gang that operates in and around Bergen Avenue and Lexington Avenue in Jersey City.

All three defendants appeared on Feb. 16, 2023, before U.S. Magistrate Judge Jessica S. Allen. Johnson and Sherman consented to detention and Capers was released and placed on home incarceration.

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

Law enforcement officers began investigating an apartment building in January 2023 and observed numerous hand-to-hand drug transactions on a near-daily basis. The investigation revealed multiple stash locations for narcotics and firearms in the building, including inside an apartment unit rented by Sherman, a pipe, and a mailbox associated with the apartment unit rented by Sherman. While executing search warrants on Feb. 15, 2023, law enforcement officers recovered hundreds of grams of suspected cocaine and tens of grams of suspected heroin, three firearms, and additional ammunition.

Johnson faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison. Sherman and Capers face a maximum penalty of 20 years in prison.

U.S. Attorney Sellinger credited investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked special agents of the Department of Homeland Security, Homeland Security Investigations (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; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Bryan Miller; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, for their assistance.

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’s (DEA) New Jersey Division, 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 Clara Kim of the Office’s OCDETF/Narcotics Unit.

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

NEWARK, N.J. – A Monmouth County, New Jersey, doctor pleaded guilty today to harboring two undocumented women from India and failing to pay taxes on their wages, U.S. Attorney Philip R. Sellinger announced.

Harsha Sahni, 66, of Tinton Falls, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an information charging her with one count of conspiracy to conceal and harbor aliens and one count of filing a false tax return.

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

From 2013 through August 2021, Sahni conspired with others to conceal and harbor two foreign nationals from India, who Sahni recruited to work for Sahni and her family in their homes in New Jersey. Sahni harbored the victims for her and her conspirators’ financial gain and paid the victims’ families in India in exchange for their labor. 

Sahni caused the victims to believe that they would be arrested and deported if they interacted with law enforcement. Sahni instructed the victims to tell other people that they were related to Sahni, and Sahni used fake names and addresses in furtherance of the conspiracy. From 2013 to 2019, Sahni also failed to pay certain taxes notwithstanding that the victims were Sahni’s household employees. 

As a part of the plea agreement, Sahni has agreed to pay the victims a combined $642,212 and has agreed to pay up to $200,000 towards the treatment of one of the victim’s brain aneurysm. Sahni has also agreed to pay restitution to the IRS.      

The count of conspiracy to conceal and harbor aliens carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross profits or other proceeds to Sahni, whichever is greatest. The count of conspiracy to conceal and harbor aliens carries a maximum penalty of three years in prison and a fine of up to $100,000. Sentencing is scheduled for June 20, 2023.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel; special agents of IRS - Criminal Investigation, New York Field Office, under the direction of Special Agent in Charge Thomas Fattorusso; and special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Keith J. Byrne, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jamie H. Solano of the U.S. Attorney’s Office Cybercrime Unit in Newark.

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted that he conspired to possess fentanyl with the intent to distribute, U.S. Attorney Philip R. Sellinger announced.

Miguel Polanco, 31, of Union City, New Jersey, pleaded guilty before U.S. District Court Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a substance containing a detectable amount of fentanyl.

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

In May 2021, U.S. Customs and Border Protection agents intercepted a package being shipped from Mexico City, Mexico, to Polanco at his apartment. Inspection of the package revealed that it contained a substance that tested positive for the presence of fentanyl.

Prior to receiving the package, Polanco received a video from a conspirator explaining how to properly remove the bags of fentanyl concealed inside the package to minimize the damage to its contents. Polanco also engaged in multiple conversations with conspirators where he learned of the quantity of fentanyl that would be sent to him as well as instruction on where to deliver the package after he received it. In exchange for receiving and transporting the package containing fentanyl, Polanco was to be paid.   

The conspiracy charge carries a statutory minimum of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million, or twice the gross amount of any pecuniary gain, whichever is greater.  Sentencing is scheduled for June 28, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Deputy Special Agent in Charge Alejandro Amaro in Laredo, Texas; U.S. Custom and Border Protection – (Laredo) under the direction of Port Director Albert Flores in Laredo and Port Director Tenavel Thomas in Newark; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and the Elizabeth Police Department, under the direction of Chief Giacommo Sacca, with the investigation leading to today’s guilty plea.

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

Defense counsel: Adam Axel Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – A former office manager of a New Jersey medical practice admitted conspiring with the doctor who owned the practice to distribute prescription amphetamine to patients without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced. 

Noel DeLeon, 55, of North Arlington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of knowingly and intentionally conspiring to distribute dextroamphetamine-amphetamine (brand name Adderall), a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.

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

From January 2018 to March 2021, DeLeon worked as an office manager for a New Jersey medical practice owned by a doctor. The doctor performed no meaningful evaluation of patients and the interactions between the doctor and patients generally took less than five minutes. The medical practice kept inadequate patient medical records. For some patients, the patient files only contained contact and prescription information, but did not detail any meaningful evaluation or assessment. For other patients, no patient files were kept. 

After prescribing medications to a patient, including high dosage amphetamines, DeLeon or the doctor would typically collect a cash payment from the patient before providing the prescription. For prescription refills, patients would also contact DeLeon directly by sending text messages to his personal cellular phone. DeLeon would order the prescription refill at the patient’s pharmacy and collect payment from the patient, typically through an electronic payment application on DeLeon’s personal cellular phone. At times, certain patients provided cash bribes to DeLeon in order to receive their prescription refills faster.

The charge of conspiracy to distribute amphetamines carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2023.

U.S. Attorney Sellinger credited diversion investigators and special agents of the Drug Enforcement Administration, under the direction of Acting SAC Daniel J. Kafafian, with the investigation leading to today’s guilty plea.

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

Defense counsel: Tess Cohen Esq., New York

CAMDEN, N.J. – A doctor who owns a medical clinic in Newark today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

Saurabh Patel, 51, of Woodbridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud. Saurabh Patel was previously charged by indictment with conspiring in the health care fraud scheme with a family member, Kaival Patel, 52, of West New York, New Jersey. Kaival Patel was also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The charges against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty. He is scheduled to proceed to trial later this year.

According to court documents and statements made in Court:

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

Patel is a medical doctor who owns and operates a clinic in Newark. Despite having no background in pharmaceuticals or medicine, Kaival Patel and his wife created and operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. A pharmaceutical sales representative, Paul Camarda, also created a company and worked with Kaival Patel to promote compound medications. Camarda pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice.  He awaits sentencing.

The conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications. Kaival Patel and Camarda approached Saurabh Patel and convinced him to authorize prescriptions for the compound medications for which they received commissions, regardless of whether or not those prescriptions were medically necessary. The conspirators steered individuals who were paid to receive the compound medications to Saurabh Patel’s medical practice for the purpose of receiving his authorization on the fraudulent prescriptions.  This enabled Saurabh Patel to receive insurance payments for those patient visits and procedures.  In addition to the people steered to Saurabh Patel’s medical practice as part of the scheme, Kaival Patel also instructed Saurabh Patel on which insurance companies covered the compound medications and requested that he prescribe those medications to existing patients of his practice with those insurance plans in order to further benefit Kaival Patel and his wife.

Saurabh Patel faces a maximum penalty of 10 years in prison and a $250,000 fine.  Sentencing is scheduled for June 27, 2023. 

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

The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.

The charges and allegations against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty.

Defense counsel: 

Mary E. Toscano Esq. and Joseph B. Shumofsky Esq., Newark

A co-owner of multiple businesses was sentenced today to 12 months and a day in prison and two years of supervised release for failing to pay over $1 million in payroll taxes for his companies. Omar Mostafa, 57, of New Jersey, pleaded guilty on Aug. 8, 2022, before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.

NEWARK, N.J. – The U.S. Attorney’s Office has reached settlement with an Ocean County, New Jersey, nail salon to resolve allegations that the salon discriminates against individuals with mobility impairments in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced today.

Under the settlement, USA Nails Inc. of Point Pleasant, New Jersey, agrees to adopt and post in a conspicuous place a non-discrimination policy, to train current and future employees on the requirements of Title III of the ADA, and to pay $1,000 in damages to the individual complainant in this matter. Title III prohibits disability discrimination in places of public accommodation, like nail salons. The settlement resolves allegations that USA Nails discriminated against persons with mobility impairments by refusing nail services those using a wheelchair.

“Disability discrimination violates the ADA and cannot be tolerated,” U.S. Attorney Philip R. Sellinger said. “This agreement ensures that customers will not be turned away from receiving nail services simply because they happen to have a disability.” 

The Department of Justice’s enforcement efforts under the ADA seek equal opportunity and dignity in all aspects of life, including access to public accommodations such as nail salons.  This settlement agreement is the third agreement that the Department of Justice has reached with a nail salon through its U.S. Attorney Program for ADA Enforcement, and the first in the District of New Jersey. In June 2021, the U.S. Attorney’s Office for the Middle District of North Carolina entered a settlement agreement resolving an allegation that a nail salon in Durham, North Carolina, refused to provide services to an individual with HIV. And in June 2022, the U.S. Attorney’s Office for the Eastern District of Louisiana reached a settlement agreement with a nail salon in Harahan, Louisiana, to resolve an allegation that an individual was refused services because of the inability to transfer out of their wheelchair. 

In 2022, U.S. Attorney Sellinger created a Civil Rights Division with the sole focus on enforcing federal civil rights laws, including the ADA, with the goal of protecting and upholding the civil rights of those in our community. Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD).

The government is represented by Senior Civil Rights Counsel Kelly Horan Florio of the U.S. Attorney’s Office Civil Rights Division in Newark.

NEWARK, N.J. – A Russian national was charged in an indictment unsealed today in connection with a series of computer system intrusions that occurred in 2009 and 2010, U.S. Attorney Philip R. Sellinger announced.

Vitaly Kovalev, aka “Bentley,” “Bergen,” and “Alex Konor,” is charged with conspiracy to commit bank fraud and eight counts of bank fraud.

According to the indictment:

From as early as September 2010, Kovalev participated in a conspiracy to obtain unauthorized access to bank accounts held at United States-based financial institutions and transfer funds from those accounts to accounts controlled by Kovalev and his conspirators. Kovalev and his conspirators gained unauthorized access to accounts and made unauthorized transfers of funds into other bank accounts established by, and at the direction of, Kovalev, solely for the purpose of receiving the stolen funds. At the direction of Kovalev, the funds would then be withdrawn or transferred out of these accounts. Kovalev and his conspirators were able to transfer without authorization nearly $1 million from the victim bank accounts, at least $720,000 of which was transferred overseas.

The substantive and conspiracy charges of bank fraud are punishable by a maximum sentence of 30 years in prison and a maximum fine of $1 million.

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief 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.

NEWARK, N.J. – A Passaic County, New Jersey, attorney was arrested today for fraudulent acts he committed in connection with COVID-19 relief funds, U.S. Attorney Philip R. Sellinger announced.

Morton Chirnomas, 60, of Clifton, New Jersey, is charged by complaint with one count of wire fraud. He is scheduled to appear before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.

According to the complaint:

From May 2020 to September 2020 Chirnomas fraudulently obtained a $150,000 loan through the COVID-19 Economic Injury Disaster Loans program. He also falsely obtained $200,000 in unemployment insurance benefits using the names of other people.

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

U.S. Attorney Sellinger credited postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s arrest.

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

The charges 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 today admitted soliciting victims online to send images and videos of sexually explicit conduct, and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.

Erick Solis, 25, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of solicitation of child pornography and one count of possession of child pornography. 

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

From July 2020 to February 2021, Solis used a social media application to engage two underage victims in sexually explicit conversations. Solis requested that both victims take sexually explicit photographs and videos of themselves and send them to him.   

The count of solicitation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison and a $250,000 fine. The count of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 21, 2023.

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

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

NEWARK, N.J. – A former investment advisor who stole over $600,000 from his clients to fund his gambling and personal expenses has pleaded guilty, U.S. Attorney Philip R. Sellinger announced today.

Mario E. Rivero Jr., 39, of Elizabeth, New Jersey, pleaded guilty on Feb. 2, 2023, before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count each of wire fraud and securities fraud.

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

From April 2018 through November 2020, Rivero, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated $626,478 from five clients. Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients. He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.

The wire fraud and security fraud counts each carry a maximum potential penalty of 20 years in prison and maximum fines of $1 million, and $5 million, respectively. Sentencing is scheduled for June 27, 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 postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.

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

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

John Michael Musbach, 31, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed.

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

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

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

The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense. Sentencing is scheduled for June 13, 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 and Special Agent in Charge Tracy Cormier in St. Paul, Minnesota, with the investigation leading to today’s guilty plea. He also thanks the Atlantic County Prosecutor’s Office for its assistance.

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

NEWARK, N.J. – A Passaic County, New Jersey, man was arrested today for attempting to firebomb an Essex County, New Jersey, synagogue, U.S. Attorney Philip R. Sellinger announced.

Nicholas Malindretos, 26, of Clifton, New Jersey, is charged by complaint with one count of attempted use of fire to damage and destroy a building used in interstate commerce. He is scheduled to have his initial appearance in Newark federal court before U.S. Magistrate Judge Edward S. Kiel on Feb. 2, 2023.

“No one should find that their lives are at risk by exercising their faith,” U.S. Attorney Sellinger said. “The defendant is alleged to have gone to a synagogue in the middle of the night and maliciously attempted to damage and destroy it using a firebomb. Protecting communities of faith and houses of worship is core to this office’s mission. In response to this attempted attack, my office – together with our federal, state, and local partners – worked around the clock to investigate this matter swiftly. We will continue to devote whatever resources are necessary to keep our Jewish community and all New Jersey residents safe.”

“I commend and thank the entire New Jersey law enforcement community for their seamless collaboration and tireless efforts to identify and apprehend the suspect in Sunday’s attack on Temple Ner Tamid,”  New Jersey Attorney General Matthew J. Platkin said. “In New Jersey, we stand united against hate and bias, and we speak with one voice to show that our state will remain a place where all can live and worship freely and safely.”

“Newark FBI and our law enforcement partners have been working around the clock since Sunday morning, after being notified someone targeted the Temple Ner Tamid in Bloomfield,” FBI Special Agent in Charge James E. Dennehy said. “We allege Mr. Malindretos threw a Molotov cocktail at the doors of the synagogue. The speed and intensity of this investigation demonstrates our determination and dedication to protecting houses of worship and protecting their congregations. We take seriously all threats of hate and bias aimed at all religions and faiths, and we intend to hold accountable all those who target them.”

“An alleged attempted firebombing on a house of worship is an attack against the entire community,” acting Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms, and Explosives said. “We are honored to work side by side with our local, state, and federal partners to bring today’s charge.”

“The Essex County Prosecutor's Office has long understood that our interfaith community is one of the prime targets for hate,” Acting Prosecutor Theodore N. Stephens II said. “Although we are always troubled by events such as this, we are pleased by the extraordinary efforts undertaken by all involved in Essex County law enforcement to bring this charge.”

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

On Jan. 29, 2023, at 03:19 a.m., a surveillance camera at the Temple Ner Tamid Jewish Congregation in Bloomfield, New Jersey, recorded a person later identified as Malindretos as he approached the temple. He was wearing a black ski mask, a black or dark gray hooded sweatshirt with a white emblem of what appeared to be a skull and cross bones, black pants, dark shoes, and white gloves. The video showed Malindretos walking up to the front entrance area of the temple, pausing, and then igniting a wick on the top of a bottle. He then threw the bottle at the front glass doors of the temple and fled on foot.

A license plate reading device located nearby recorded a vehicle passing by shortly before and shortly after the incident. Law enforcement officers located the vehicle in Clifton and saw several items consistent with the video of the incident plainly visible inside. They obtained a search warrant for the vehicle. Video cameras in the area where the vehicle was parked captured the vehicle parking and a male individual with the same physical characteristics as Malindretos exiting the vehicle and entering a nearby building.

The count of attempted use of fire to damage and destroy a building used in interstate commerce is punishable by a minimum of five years in prison, a maximum of 20 years in prison and a fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting of Special Agent in Charge Miller in Newark; the New Jersey Department of Law and Public Safety, under the direction of Attorney General Platkin; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Stephens, and the Bloomfield Police Department, under the direction of Director of Public Safety Samuel A. DeMaio, with the investigation leading to today’s charge.

The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office’s Civil Rights Division. 

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 New York man today admitted distribution and possession with the intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.

Jose Migel Cleto, 64, of Manhattan, New York, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of distribution and possession with the intent to distribute a mixture and substance containing a detectable amount of fentanyl.

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

In April 2022, Cleto distributed, and possessed with the intent to distribute, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl to a man in a commercial parking lot in Fort Lee, New Jersey.  

Cleto faces a maximum punishment of 20 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for June 21, 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, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Vincent D. Romano of the U.S. Attorney’s Office General Crimes Unit in Newark.

NEWARK, N.J. – Four members of a gun manufacturing and trafficking network in Passaic and Hudson counties have been charged with weapons offenses related to the fabrication and sale of personally made firearms (PMFs), commonly known as “ghost guns,”  U.S. Attorney Philip R. Sellinger announced today.

Savion Clyburn, 20, and Corey Jenkins Jr., 30, both of Paterson, New Jersey; Richard Mullane, 26, of Bayonne, New Jersey; and Julian Santiago, 26, of Jersey City, New Jersey, are charged by complaint with conspiracy to engage in unlicensed firearms dealing and manufacturing and engaging in unlicensed firearms dealing and manufacturing, including by manufacturing and subsequently selling PMFs. Santiago is also charged with transferring a firearm to a felon. The defendants are scheduled to appear today before U.S. Magistrate Edward S. Kiel in Newark federal court.

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

Beginning in December 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), along with state and local law enforcement agencies, began investigating a firearms trafficking network, operating largely in Paterson and Bayonne, that included Clyburn, Jenkins, Mullane, and Santiago. During December 2022 and January 2023, law enforcement conducted at least nine controlled purchases which resulted in the recovery of 12 firearms, including 11 PMFs and one serialized Kel-Tec SUB-2000 Rifle, as set forth below:

Date

Defendant(s)

Firearm(s) Purchased

Week of Dec. 18, 2022

Clyburn

Jenkins

Two PMFs

Dec. 28, 2022

Santiago

One PMF

Jan. 3, 2023

Santiago

Jenkins

One PMF

Jan. 5, 2023

Clyburn

Jenkins

One PMF

Jan. 7, 2023

Santiago

Jenkins

Mullane

One PMF

Jan. 9, 2023

Clyburn

Jenkins

Mullane

Two PMFs

Jan. 17, 2023

Clyburn

Jenkins

Two PMFs

Jan. 17, 2023

Clyburn

One Kel-Tec SUB-2000 Rifle, bearing Serial No. EGN69

Jan. 25, 2023

Jenkins

Mullane

One PMF

Law enforcement officials have recovered PMFs that were customized with different colors and designs, and two of which were threaded for silencers.

All four defendants face a maximum prison sentence of five years and a maximum fine of up to $250,000 on each of Counts One and Two. Defendant Santiago faces a maximum prison sentence of 10 years and a fine of up to $250,000 on Count Three. 

U.S. Attorney Sellinger credited special agents of ATF, under the direction of Acting Special Agent in Charge Bryan Miller in Newark; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; the Passaic County Prosecutor’s Office; under the direction of Prosecutor Camelia M. Valdes; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Paterson Police Department, under the direction of Acting Chief Bert Ribeiro; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to the charges. He also thanked the Elizabeth, Plainfield, Hillside, Bayonne and East Orange police departments, Immigration and Customs Enforcement, the New Jersey State Police, the Hudson County Prosecutor’s Office and the U.S. Marshals Service.

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

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

NEWARK, N.J. – A Saudi Arabian man was charged for transporting a stolen school bus across state lines, U.S. Attorney Philip R. Sellinger announced today.

Bader Alzahrani, 22, of Saudi Arabia, is charged by complaint with one count of receipt of a stolen vehicle and one count of transportation of a stolen vehicle. He is scheduled to make his initial appearance this afternoon U.S. Magistrate Judge Edward S. Kiel in Newark federal court. 

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

On Jan. 15, 2023, a break-in was reported in an unoccupied residential home in Livingston, New Jersey. During a search of a backpack in that home, law enforcement saw a Saudi Arabian passport with the name Bader Alzahrani, along with other items that appeared to belong to Alzahrani. On Jan. 17, 2023, the Livingston Board of Education reported that a school bus was stolen from a parking lot across the street from the unoccupied residential home where the break-in was reported. Law enforcement officers located Alzahrani in Stroudsburg, Pennsylvania, and was later found to be in possession of the keys to the stolen school bus.

Each count charged in the complaint is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked agents of the FBI Field Office in Washington, D.C., under the direction of Assistant Director in Charge Steven D’Antuono; members of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel; members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Monroe County, Pennsylvania, Office of the District Attorney, under the direction of District Attorney E. David Christine, Jr.; members of the Livingston Police Department, under the direction of Police Chief Gary Marshuetz; and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan.

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

NEWARK, N.J. – Philip R. Sellinger, United States Attorney for the District of New Jersey, issued the following statement today:

Like so many around the country, we are deeply disturbed by the circumstances surrounding the tragic death of Tyre Nichols.  Shortly after his death, the U.S. Attorney’s Office in the Western District of Tennessee and the Justice Department’s Civil Rights Division opened a criminal civil rights investigation. We express support for our colleagues who are working hand in hand with the FBI and other law enforcement partners.  We have no doubt that their investigation will be thorough and methodical, and they will make decisions based on the facts and the law. In addition to the federal investigation, several officers are now facing prosecution for state charges.

We appreciate the significant public interest in this matter.  We want to make clear that the U.S. Attorney’s Office respects the right of all people to assemble and protest peacefully.  As Tyre Nichols’ family has urged, we urge that any protests remain peaceful and nonviolent.

We will also continue to protect civil rights and work to ensure justice for all in New Jersey.  Where law enforcement officers abuse their authority by violating the constitutional rights of our citizens, it undermines all other law enforcement officers who lawfully perform their duties with dignity and respect.  The U.S. Attorney’s Office has prioritized civil rights investigations and prosecutions of any public employee who violates this public trust.

Last year, I created a Civil Rights Division at the U.S. Attorney’s Office with the sole focus of enforcing and protecting federal civil rights.  Individuals who believe they may have been victims of civil rights violations may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. 

NEWARK, N.J. – An Indiana man and an Arizona man yesterday admitted their roles in a health care fraud conspiracy in which they received payment for doctors’ orders for durable medical equipment (DME), namely orthotic braces, and genetic test referrals, U.S. Attorney Philip R. Sellinger announced.

Scott Wohrman, 50, of Florence, Arizona, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to violate the Federal Anti-Kickback statute and one count of conspiracy to commit health care fraud. On Jan. 24, 2023, David Heneghan, 53, of Indianapolis, Indiana, pleaded guilty to 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:

Heneghan and Wohrman operated American Health Screening (AHS), a company that purportedly provided marketing services to laboratories. From July 2020 through January 2021, Heneghan, Wohrman, and others agreed to engage in a scheme to provide DME orders and genetic testing referrals for Medicare beneficiaries in exchange for kickbacks of approximately $1,500 per patient or for each test that resulted in a reimbursement from Medicare. Heneghan and Wohrman entered into a sham contract and utilized fraudulent invoices to make it appear that AHS was being paid for legitimate services and to conceal their fraudulent kickback scheme. Heneghan and Wohrman received kickbacks of at least $547,310 for durable medical equipment and at least $18,319 for genetic testing. Heneghan and Wohrman’s scheme resulted in an actual loss to Medicare of at least $565,629.

Heneghan and Wohrman previously pleaded guilty in the Northern District of Texas to an information charging them with conspiracy to defraud the Federal Anti-Kickback statute.

The count of conspiracy to commit health care fraud carries a maximum potential punishment of 10 years in prison. The count of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison. Both offenses are also punishable by a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing for Heneghan and Wohrman is scheduled for September 6, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office under the direction of Special Agent in Charge Christopher Algieri with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.

Defense counsel: Heneghan: Aaron M. Cohen Esq., Delray Beach, Florida
Wohrman: Michael Hursey Esq., and Paul Molle Esq., Ft. Lauderdale, Florida

Trenton, N.J. – A Somerset County, New Jersey man yesterday admitted to paying kickbacks in return for fraudulent overtime payments that he received in connection with his former role as the Director of Buildings and Grounds for the Hillsborough Township School District, U.S. Attorney Philip R. Sellinger announced today.

Anthony DeLuca, 61, of Raritan, New Jersey, pleaded guilty before Senior U.S. District Judge Peter G. Sheridan to one count of embezzling, stealing, and obtaining by fraud more than $137,000 of funds belonging to and under the care, custody and control of the Hillsborough Township School District, in violation of Title 18, United States Code, Section 666(a)(1)(A). 

According to the documents filed in this case:

DeLuca, a long-term employee of the Hillsborough Township School District, was promoted to the position of Director of Buildings and Grounds in approximately July 2019, a salaried position that did not entitle him to overtime pay.  Nevertheless, shortly after assuming this position, the School District employee to whom DeLuca reported (referred to as “Individual 1” in the Information) began directing DeLuca to claim that DeLuca was entitled receive overtime payments, including for hours which substantially exceeded those that DeLuca actually worked.  DeLuca submitted these claims to Individual 1 who then authorized overtime payments for DeLuca in return for cash kickbacks.

DeLuca admitted in court yesterday that upon receiving the overtime payments approved by Individual 1, DeLuca would typically withdraw cash from his bank account to provide kickbacks to Individual 1.  DeLuca stated that Individual 1 would designate the location to which DeLuca should deliver envelopes containing the cash kickbacks, including the console of Individual 1’s vehicle and a drawer in Individual 1’s office desk.  DeLuca admitted that through this scheme he received in excess of $137,000 in overtime payments to which he was not entitled and that he provided Individual 1 with at least $39,800 in kickbacks between July 2019 and January 2022. 

DeLuca faces a maximum penalty of ten years in prison and maximum fine of 250,000.  Sentencing is scheduled for June 1, 2023. 

U.S. Attorney Sellinger credited agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge James E. Dennehy in Newark; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; and the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to the charges.

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

The charges and allegations contained in the Information pertain to Anthony DeLuca and any other individuals referenced are presumed innocent unless and until those individuals are proven guilty.

Defense counsel:  S. Emile Lisboa IV, Esq., Hackensack, NJ

NEWARK, N.J. – A Sussex County, New Jersey, woman was sentenced today to 34 months in prison for concealing her attempts to provide material support to Syrian foreign terrorist organizations, U.S. Attorney Philip R. Sellinger, Assistant Attorney General Matthew G. Olsen of the U.S. Department of Justice’s National Security Division, FBI-Newark Special Agent in Charge James E. Dennehy, and FBI Assistant Director for Counterterrorism Timothy Langan announced.

Maria Bell, aka “Maria Sue Bell,” 55, of Hopatcong, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with one count of concealing attempts to provide material support to designated foreign terrorist organizations. Judge Vazquez imposed the sentence today in Newark federal court.

According to documents previously filed in this case:

Bell admitted that from February 2018 to November 2018 she knowingly concealed and disguised the nature, location, source, ownership and control of the attempted provision of material support and resources to fighters based in Syria who were members of Jabhat Fath al-sham, also known as Jabhat Fateh al-Sham (JFS) and Hay’at Tahrir al-Sham (HTS). Bell admitted that she knew JFS and HTS were designated foreign terrorist organizations, that JFS and HTS has engaged or engages in terrorist activities. She admitted the offense to which she pleaded guilty involved the concealment of the attempted provision of funds or other material support or resources with the intent, knowledge, or reason to believe they were to be used to commit or assist in the commission of a violent act.

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

U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge Dennehy, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s sentencing.

The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit and Trial Attorneys Brenda Sue Thornton and Kathleen Campbell of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division.

A Cumberland County, New Jersey, man was sentenced today to 114 months in prison and six years of supervised release for conspiring with others to obtain and distribute several kilograms of cocaine and violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine. Lavinston Lamar, 40, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court on May 5, 2022.    

NEWARK, N.J. – A federal grand jury indicted a Brooklyn, New York, man for transporting stolen jewelry across state lines, U.S. Attorney Philip R. Sellinger announced today.

Tony Newton, 63, of Brooklyn, New York, is charged by indictment with two counts of interstate transportation of stolen goods. Newton was charged by criminal complaint in July 2022 for transporting stolen jewelry from a store located in a shopping center in Edison, New Jersey, to Brooklyn, and is detained.

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

On June 1, 2022, and July 16, 2022, Newton transported stolen jewelry across state lines from Middlesex County, New Jersey, and Union County, New Jersey, respectively, to New York. 

Each count of interstate transportation of stolen goods is punishable by a maximum penalty of 10 years in prison and $250,000 fine.

U.S. Attorney Sellinger credited FBI Newark’s Transnational Organized Crime Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union County Prosecutor's Office, under the direction of Prosecutor William Daniel, officers of the Edison Police Department, under the direction of Chief of Police Tom Bryan; and officers of the Elizabeth Police Department, under the direction of Director Earl Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked officers of the Suffolk County, New York, Police Department and the Milford, Connecticut, Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Farhana C. Melo of the General Crimes Unit in Newark.

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

NEWARK, N.J. – Three members of a Jersey City street gang were charged today for their roles in a cocaine distribution organization, as well as for firearms violations, U.S. Attorney Philip Sellinger announced.

Rodney Broadway, aka “Banks,” 31; Parish George, aka “P Money,” 31; and Dejahn Ingram, aka “Fresh,” 32, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to distribute 500 grams or more of cocaine. George and Ingram are charged with unlawful possession of firearms as convicted felons, and Broadway is charged with unlawful possession of ammunition as a convicted felon. Broadway and George are also charged with possession with intent to distribute cocaine. All three defendants appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were detained.

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

The three defendants are associated with a neighborhood street gang that operates in and around the Salem Lafayette Apartments in Jersey City. At the time of their arrests on Jan.19, 2023, George and Ingram each possessed a loaded firearm. Search warrants executed at multiple residences associated with Broadway, George, and Ingram revealed a significant quantity of cocaine, hundreds of rounds of ammunition, and other paraphernalia.

The defendants each face a mandatory minimum term of five years in prison and a maximum term of 40 years in prison.

U.S. Attorney Sellinger credited special agents of HSI Newark, under the leadership of Special Agent in Charge Ricky J. Patel, and investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Acting Special Agent in Charge Bryan Miller, special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, for their assistance.

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’s (DEA) New Jersey Division, 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 Dong Joo Lee of the Office’s OCDETF/Narcotics Unit.

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

TRENTON, N.J. – Two Michigan men and an Ohio man were sentenced for their roles in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Ohio, Virginia, and Michigan, U.S. Attorney Philip R. Sellinger announced today.

Syed Abbas, 33, of Westerville, Ohio, was sentenced by videoconference on Jan. 19, 2023, to 16 months in prison. Rana Sharif, 39, of Dearborn Heights, Michigan, and Awaise Dar, 35, of Woodbridge, Virginia, were sentenced by videoconference on Jan. 16, 2023 and Jan. 17, 2023, respectively, to 20 months each in prison. All three individuals previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to informations that charged them with conspiracy to commit bank fraud. Judge Wolfson imposed the sentences.

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

From 2018 through April 2020, Abbas, Sharif, Dar, and others conspired to defraud several major banks and electronic merchant processors. The defendants established bank accounts associated with sham entities that had no legitimate purpose and then issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators also conducted numerous fraudulent credit card and debit card transactions between shell companies to credit payee accounts and fraudulently overdraw payor accounts. Members of the conspiracy also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred. 

The conspirators withdrew the “existing” funds (through ATMs or bank tellers) that banks and or merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.

Law enforcement officials identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. The conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact cause a loss of approximately $3.5 million.

In addition to the prison term, Chief Judge Wolfson sentenced each defendant to three years of supervised release. Chief Judge Wolfson also ordered each defendant to pay restitution. Abbas was ordered to pay restitution in the amount of $530,523. Sharif was ordered to pay restitution in the amount of $2.38 million. Dar was ordered to pay restitution in the amount of $2.42 million.

Abbas, Sharif, and Dar are among the nine individuals that have been sentenced in the District of New Jersey as part of the criminal scheme

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the sentencings.

The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.

NEWARK, N.J. – A New Jersey tax preparer and an Arizona man were charged for their roles in conspiracies to commit wire fraud and defraud the IRS, and for aggravated identity theft, U.S. Attorney Philip R. Sellinger announced today.

Omar Khater, 32, of Fairfield, New Jersey, and Walid Khater, 37, of Mesa, Arizona, are each charged by complaint with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS, and one count of aggravated identity theft. Omar Khater is scheduled to make his initial appearance before U.S. Magistrate Judge Andre M. Espinosa in Newark federal court. Walid Khater is expected to appear on Jan. 19, 2023, before a U.S. Magistrate Judge in federal court in Arizona.

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

Omar and Walid Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS. The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of victims without the victims’ knowledge or permission. The fraudulent filings caused the IRS to pay $4.49 million in tax refunds, the Khaters and others directed to various bank accounts that they controlled. 

The wire fraud conspiracy count is punishable by a maximum of 20 years in prison; the count of conspiracy to defraud the IRS is punishable by a maximum of five years in prison; and each count aggravated identity theft carries a mandatory sentence of two years in prison, to run consecutively to any term of imprisonment on the underlying felony.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, and special agents of FBI-Newark, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Fatime M. Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.

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