District of New Jersey

TRENTON, N.J. – A Trenton man was sentenced today to 228 months in prison for his role as the leader of a significant drug trafficking conspiracy that distributed more than one kilogram of heroin in Trenton and the surrounding area, U.S. Attorney Philip R. Sellinger announced.

Jakir Taylor, aka “Jak,” 32, previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to Counts One and Seven of the first superseding indictment charging him with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and possessing a firearm in furtherance of a drug trafficking crime. Chief Judge Wolfson imposed the sentence today in Trenton federal court.

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

From October 2017 to October 2018, Taylor and others engaged in a large narcotics conspiracy that operated in the areas of Martin Luther King Boulevard, Sanford Street, Middle Rose Street, Southard Street, Hoffman Avenue, and Coolidge Avenue in Trenton, and which sought to profit from the distribution of heroin and numerous other controlled substances. Taylor and conspirator Jerome Roberts obtained regular supplies of hundreds of “bricks” of heroin from conspirator David Antonio, whom they referred to as “Papi.” Taylor and Roberts agreed to obtain from Antonio a “motherlode” supply of as many as 1,500 bricks – approximately 1.5 kilograms of heroin – in a single delivery. Taylor said that he intended to “flood the streets” of Trenton with this large supply. Taylor also admitted that he and his conspirators possessed at least one firearm to assist his drug trafficking operations, and on multiple occasions during the conspiracy Taylor actively sought to obtain additional firearms from other sources. During coordinated arrests on Oct. 25, 2018, law enforcement arrested Taylor, Roberts, Antonio, and other defendants, and recovered more than 1.4 kilograms of heroin from Antonio’s residence.

In addition to the prison term, Chief Judge Wolfson sentenced Taylor to five years of supervised release.

In October 2018, Taylor, and 25 other individuals were charged by criminal complaint with conspiracy to distribute heroin. On Apr. 11, 2019, a grand jury returned a nine-count superseding indictment charging Taylor and eight other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearm offenses. Twenty-three of the 26 defendants charged in the complaint have pleaded guilty. The remaining three were convicted after trial in October 2021.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Bryan Miller; officers of the Trenton Police Department, under the direction of Acting Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief of Police Nicholas Sutter; officers of the Ewing Police Department, under the direction of Chief of Police John P. Stemler III; officers of the Burlington Township Police Department, under the direction of Police Director Bruce Painter; and detectives of the Burlington County Prosecutor’s Office, under the  direction of Prosecutor LaChia L. Bradshaw, with the investigation leading to today’s sentencing.

He also thanked officers of the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the N.J. State Board of Parole for their assistance in the case.

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

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

The charges and allegations against the remaining defendants are merely accusations and those defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A manager for a conspiracy that used stolen credit card information to make fraudulent retail purchases around the United States pleaded guilty today, U.S. Attorney Philip R. Sellinger announced.

Trevor Osagie, 31, of the Bronx, New York, pleaded guilty before U.S. District Judge William Martini in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud.

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

From at least 2015 through November 2018, Osagie conspired with a network of individuals based in the New Jersey/New York area who made trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cards, and other goods and services. Other participants in the conspiracy obtained stolen credit card information through the “dark web” and other sources. In addition to recruiting at least one individual to create the fraudulent credit cards, Osagie managed the individuals who traveled around the United States conducting the fraudulent transactions. The conspirators made over $1.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.

The conspiracy to commit bank fraud charge carries a maximum sentence of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for May 25, 2023.

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 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.

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

Anselmo Girimonte, 52, of Wharton, New Jersey, is charged by indictment with one count of possession of child pornography and one count of distribution of child pornography. He will be arraigned at a date to be determined. Girimonte was arrested on a criminal complaint on this conduct on March 4, 2022, and consented to detention.

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

From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Law enforcement officers conducted undercover online sessions to access the P2P program and during these sessions a user shared multiple video files of pre-pubescent children being sexually abused by adults from an internet address traced to Girimonte’s residence. 

On March 2, 2022, law enforcement officers lawfully obtained a cell phone from Girimonte’s residence that contained hundreds of images and videos of child pornography, including images of prepubescent children being sexually abused.

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

U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s indictment.  He also thanked the Morris County Prosecutor’s Office, the Rockaway Township Police Department, and the United States Postal Inspection Service for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Chelsea D. Coleman 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. – An Egg Harbor Township man today admitted his role in a conspiracy to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.

Lester Santana, 52, of Egg Harbor Township, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiracy to distribute five kilograms or more of cocaine.

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

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

The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for May 18, 2023.

Two conspirators in this case, Jose Gonzalez and Iran Soler, both previously pleaded guilty before Judge O’Hearn to conspiring to distribute five kilograms or more of cocaine. Gonzalez is scheduled to be sentenced on Jan. 30, 2023, and Soler is scheduled to be sentenced on Feb. 6, 2023.

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

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

NEWARK, N.J. – A shipping company has agreed to pay $1.89 million to resolve allegations that it violated the False Claims Act by overbilling the United States for freight services that were never performed and improper markups, U.S. Attorney Philip R. Sellinger announced today.

Blue Water Shipping U.S. Inc. (Blue Water Shipping) had a contract in which it billed for freight forwarding services for foreign military sales, which were reimbursed by the United States. In the settlement announced today, Blue Water Shipping admits that an employee of the company, who has since been terminated, created a fake company to bill for freight services that were never actually performed, and which were ultimately reimbursed by the United States. The settlement also resolves allegations that Blue Water Shipping charged unallowable markups to the United States for inland transportation, and imports and exports of ocean and air freight. Blue Water Shipping has agreed to pay $1.89 million to resolve the investigations for the improper billings.

In conjunction with the investigation, Blue Water Shipping voluntarily disclosed facts to the investigators and cooperated with the investigation and prosecution of the former employee.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; and special agents of the United States Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the settlement. 

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.

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

NEWARK, N.J. – A Jersey City attorney was charged with defrauding his clients of more than two million dollars, U.S. Attorney Philip R. Sellinger announced today.

James R. Lisa, 67, is charged by indictment with three counts of wire fraud and four counts of aggravated identity theft. He was arraigned today by videoconference before U.S. Magistrate Judge José R. Almonte, pleaded not guilty and was release on $100,000 unsecured bond. 

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

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

Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so.

Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine not to exceed $250,000. Each count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000. 

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

U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges. 

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

CAMDEN, N.J. – A Camden man was sentenced today to 140 months in prison for his role as a shift supervisor of a drug trafficking organization and conspiring to distribute heroin, cocaine, and crack in the city of Camden, U.S. Attorney Philip R. Sellinger announced.

Christopher Vasquez, 32, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with conspiracy to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl.

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

Vazquez admitted that he was a “shift manager” in a drug-trafficking organization operating in the 400-500 block of Pine Street in Camden, supervising and directing the street-level sellers who were involved in distributing controlled substances to customers. From January 2018 to Nov. 28, 2018, he met with conspirators who were involved in the scheme and discussed the operations and management of the drug trafficking organization. He also provided drugs to street-level sellers.

All 19 of the charged defendants have previously entered guilty pleas on drug conspiracy charges before Judge Bumb.

In addition to the prison term, Judge Bumb sentenced Vazquez to seven years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of  Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced to 51 months in prison for conspiring to distribute and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.

Jerome Powell, 43, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine. Judge Wigenton imposed the sentence by videoconference on Jan. 10, 2023.

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

From August 2019 through Feb. 2, 2020, Powell and others agreed to possess and distribute narcotics in Jersey City. Upon his arrest, Powell had 400 vials of cocaine in his pocket.

In addition to the prison term, Judge Wigenton sentenced Powell to three years of supervised release.

U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Daniel J. Kafafian, New Jersey Division; and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – A Morris County, New Jersey, man today admitted defrauding the Department of Veterans Affairs (VA) of more than $118,000 in disability benefits and sending an interstate text message threatening a federal agent with bodily injury, U.S. Attorney Philip R. Sellinger announced.

Kamil Wakulik, 38, of Long Valley, New Jersey, pleaded guilty by videoconference before U.S. Magistrate Judge José R. Almonte to an information charging him with theft of government funds and interstate transmission of a threat of injury.

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

Wakulik was an active service member in the U.S. Marine Corps from 2003 to 2007. In 2018, during an assessment by the VA for disability benefits, Wakulik made false representations that he suffered from post-traumatic stress disorder based on his active-duty service. Wakulik claimed that he was assigned to and participated in active-duty missions that required him to recover human remains following natural disasters that occurred in the Philippines and Thailand – in fact, he was not involved in recovering human remains. Based on these false statements, the VA increased Wakulik’s disability rating and provided additional monthly disability benefit payments to him totaling over $118,000.

On Aug. 23, 2022, Wakulik sent an interstate text message to an agent of the VA, Office of Inspector General, threatening physical violence against the agent and any other agent involved in investigating Wakulik.

The charge of theft of government funds carries a maximum sentence of up to 10 years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. The charge of interstate transmission of a threat of injury carries a maximum sentence of up to five years in prison and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 6, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to 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.

NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced today to 27 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, U.S. Attorney Philip R. Sellinger announced.

Kadeem A. Dockery, 31, of Trenton, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence today in Newark federal court.

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

On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.

A city of Trenton street camera and other video footage taken by an individual present on the street recorded Dockery lighting an explosive device and throwing it through the open front driver’s side window of a Trenton Police Department vehicle, attempting to set the police vehicle on fire. The footage captured the sound of an explosion, and smoke emanating from the police vehicle. Law enforcement later identified Dockery through analysis of street camera and other video footage. Dockery was arrested on Aug. 5, 2020.

In addition to the prison term, Judge Martinotti sentenced Dockery to three years of supervised release.

Dockery is the last of four individuals sentenced in connection with the protest in Trenton. Earlja J. Dudley was sentenced in March of 2022 to 30 months in prison; Killian F Melecio was sentenced in June of 2021 to 28 months in prison; and Justin D. Spry was sentenced in September 2021 to 24 months in prison. 

U.S. Attorney Philip R. Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the sentence. He also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Victoria L. Kuhn, for their assistance.

The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division. 

NEWARK, N.J. – Five men were sentenced today for their roles in a conspiracy to transport over $1.3 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.

Carlos Duvergel, 58, of Miami Gardens, Florida, was sentenced to 33 months in prison. Four defendants residing in Hialeah, Florida, were also sentenced: Juan Crespo, 46, was sentenced to 37 months in prison; Felix Castillo, 49, was sentenced to 33 months in prison; Asnay Fernandez, 32, was sentenced to 33 months in prison; and Ismael Manzano-Suarez, 25, was sentenced to 33 months in prison. The defendants were previously convicted at trial before Judge Peter G. Sheridan with conspiring to transport stolen property in interstate commerce and transportation of stolen property in interstate commerce. Judge Sheridan imposed the sentences today in Trenton federal court.

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

In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products was over $1.3 million. The defendants were arrested in May 2018 while attempting to break into another perfume warehouse in East Brunswick, New Jersey.

In addition to the prison term, Judge Sheridan sentenced each defendant to three years of supervised release and were ordered to pay total restitution of $1.36 million.

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 sentencings. He also thanked the Edison Police Department, the East Brunswick Police Department, and the Middlesex County Prosecutor’s Office, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.

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

John Schulenburg, 67, of Basking Ridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding information charging him with possession of child pornography.  

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

In July 2019, 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. During this session, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence. On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child sexual abuse, including images of prepubescent children.

Schulenburg was previously convicted of endangering the welfare of a child/possession of child pornography in Somerset County in 2013. 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. Sentencing is scheduled for May 22, 2023.

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man admitted producing one or more images of child sexual abuse and enticing a minor to engage in sexually explicit conduct, U.S. Attorney Philip R. Sellinger announced today.

Jose Minaya, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Julien X. Neals on Jan. 5, 2023, to an information charging him with one count of production of child pornography and one count of online enticement.

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

In July 2019, Minaya used a web-based application to engage a child in a sexually explicit conversation online. Minaya persuaded the child to take sexually explicit photographs of the child and send them to him. Minaya was arrested at his home in May 2020, at which time agents seized multiple electronic devices. Further investigation revealed that Minaya had used another application to entice an additional minor to engage in sexually explicit conduct.  

The charge of production of child pornography, carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison. The charge of online enticement carries a mandatory minimum of 10 years in prison and a maximum of life in prison. Each of the charges carry a fine of up to $250,000. Sentencing is scheduled for May 9, 2023.  

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

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

NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced to 63 months in prison for committing securities fraud to obtain over $2.8 million from victim investors, U.S. Attorney Philip R. Sellinger announced today.

Mark Marchi, 55, of Red Bank, New Jersey, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud. Judge Cecchi imposed the sentence on Jan. 4, 2023, in Newark federal court.

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

Marchi, who was previously barred from the securities industry, purported to provide investment adviser services to clients. Beginning in December 2015, he managed and controlled Precipio Capital LLC, after previously managing and controlling a different investment company called Global Alliance Capital, LLC. Through Global Alliance, Marchi solicited investments from multiple investors, and when he ceased operating Global Alliance, Marchi represented to those investors that he rolled over their accounts into Precipio. Marchi also solicited investors to invest directly into Precipio. 

Instead of using the funds on legitimate investments, Marchi diverted approximately $2.8 million of those funds from victim investors for other purposes, including paying back previous Global Alliance investors and his own use. Marchi made repeated misrepresentations to the victim investors, which included false claims about the status and performance of investments and false assurances to victims that their investments were profitable. Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s. 

In addition to the prison term, Judge Cecchi sentenced Marchi to three years of supervised release and ordered him to pay restitution of $2.87 million. 

U.S. Attorney Sellinger credited the special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s sentencing. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Division of Consumer Affairs, under the direction of Attorney General Matthew J. Platkin and Acting Bureau Chief Amy Kopleton, as well as the U.S. Securities and Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for their assistance.

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 72 months in prison for possessing quantities of heroin and cocaine he intended to distribute, and possessing several firearms, including an AM-15 rifle, U.S. Attorney Philip R. Sellinger announced today.

Cedric Lewis, 32, of Bloomfield, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of possession of a firearm and ammunition by a convicted felon and two counts of possession with intent to distribute controlled substances.

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

On Sept. 20, 2020 investigators learned that Lewis was in a car in the Newark/Elizabeth area while he possessed a quantity of heroin and cocaine he intended to sell, as well as an AM-15 rifle with a high-capacity magazine that contained 30 rounds of .300 caliber ammunition. Law enforcement officers subsequently lawfully searched Lewis’s apartment recovered a 9 millimeter pistol with an extended magazine; a .40 caliber pistol with an extended magazine; drug paraphernalia and a scale; $800 in cash, and heroin and cocaine that Lewis intended to sell. 

In addition to the prison term, Judge Martinotti sentenced Lewis to three years of supervised release.

U.S. Attorney Sellinger credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Bryan Miller; deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; and deputy marshals with the U.S. Marshals Service in the Northern District of Georgia, under the supervision of U.S. Marshal Michael S. Yeager, with the investigation leading to today’s sentencing. He also thanked the Bloomfield Police Department for its assistance.

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

NEWARK, N.J. – Nine members of a drug and gun trafficking network led by Latin King gang members in Union and Middlesex counties have been charged with drug and weapons offenses, U.S. Attorney Philip R. Sellinger announced today.

The defendants are charged by complaint with conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl and cocaine, possession with intent to distribute narcotics, conspiracy to traffic firearms, including several privately made firearms (PMFs or “ghost guns”), and the unlawful possession of firearms.

“The charges we’re announcing today describe an illegal network that was actively distributing guns and drugs, including fentanyl and cocaine, around New Jersey,” U.S. Attorney Sellinger said. “In addition to bringing illegal weapons into New Jersey from other states, these defendants are charged with manufacturing untraceable gun parts that could be used to convert weapons for automatic firing. Thanks to the excellent work of our federal, state and local law enforcement partners, we’ve dealt a substantial blow to this criminal operation.”

“ATF has a zero-tolerance policy for those engaged in firearms-related violence, violent drug gangs, and those who facilitate the illegal manufacturing and trafficking of firearms,” Acting Special Agent in Charge of ATF Bryan Miller said. “We are committed to doing the necessary work to protect our neighborhoods from criminals who jeopardize the public’s safety and lessen the quality of life in our communities. This investigation demonstrates ATF’s dedication to working with our local, state, and federal partners in identifying and incarcerating violent offenders who threaten the peace that our neighborhoods so deserve.”

“The arrest of these defendants, and the seizure of drugs and guns has made our community safer,” Acting Special Agent in Charge of the DEA’s New Jersey Division Daniel J. Kafafian said. “This network was pushing deadly fentanyl and cocaine, and there is no doubt the weapons being produced and seized would have led to violence and misery. This is another example of law enforcement partners at all levels working towards the common goal of protecting the citizens of New Jersey.”

According to the allegations in the complaint, the defendants below are members and associates of the Latin Kings street gang:

• Justin Aponte, 28, of Elizabeth, New Jersey;
• Victor Barrios, 28, of Bayonne, New Jersey;
• Jose Fontanez, 28, of Carteret, New Jersey;
• Jonathan Lakomy, 32, of Ringwood, New Jersey;
• Christian Rodriguez, 32, of Chesterfield, Virginia;
• Jeziel Romero, 27, of Old Bridge, New Jersey;
• Christopher Soto, 30, of Matawan, New Jersey;
• Angel Valentin, 34, of Carteret, and
• Ian Wooten, 30, of Carteret.

 

All  New Jersey resident defendants appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Rodriguez appeared before U.S. Magistrate Judge Mark R. Colombell, in Richmond, Virginia, federal court. Soto remains at large.

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

Beginning in May 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, along with state and local law enforcement agencies, began investigating a drug and firearms trafficking network that included Aponte, Barrios, Fontanez, Lakomy, Rodriguez, Romero, Valentin and Wooten. Many members of the trafficking network were members or associates of the Almighty Latin Kings & Queens Nation, commonly known as the “Latin Kings.” The trafficking network operated largely in neighborhoods in Elizabeth and Carteret, New Jersey.

Law enforcement officers identified members of the trafficking network who were responsible for the distribution of controlled substances, including substantial quantities of fentanyl and cocaine, from residences in Elizabeth and Carteret and elsewhere. Investigators were able to collect evidence that Lakomy supplied fentanyl to Aponte, who in turn provided the drugs to other members of the trafficking network for redistribution. Fontanez, Romero, Valentin, and Wooten were identified as responsible for street-level distribution of the fentanyl and cocaine.   

Aponte, Barrios, Rodriguez and Wooten conspired to illegally traffic firearms, including traditional firearms and PMFs.  In November 2022, investigators determined that Aponte and Barrios were working to produce PMFs at Barrios’ residence. A search warrant executed at that time resulted in the seizure of:

• One Glock-26-style PMF 9x19mm semi-auto handgun;
• one .40 caliber S&W handgun with a Polymer-80 frame with a slide from a Glock model 22 handgun;
• 21 rounds of 5.56 caliber ammunition;
• 45 rounds of .40 caliber ammunition;
• 13 partially manufactured firearms;
• two 3D printers; and
• 3D printing materials.

 

When law enforcement agents entered Barrios’ residence, they observed that the two 3D printers were in the process of manufacturing PMFs.

Investigators also determined that Aponte was conspiring with Rodriguez to traffic firearms from Virginia to New Jersey. In one meeting between Aponte, Rodriguez, and an undercover law enforcement agent at a location in Virginia, Rodriguez agreed to sell several firearms to Aponte. Subsequently, Aponte told the undercover agent that the firearms were ready to be transported from Rodriguez to Aponte and then sold to the agent. 

From May 2022 to December 2022, law enforcement officers seized more than 15,000 individual doses of fentanyl, approximately 14 grams of cocaine base, 26 firearms including 24 PMFs, and three machine gun conversion devices, which are parts designed to convert a semiautomatic firearm into a fully automatic machinegun.

In addition, during the course of lawful searches conducted by law enforcement on January 4, 2023, law enforcement recovered:

• four firearms, including one FIE Titan .25 caliber semiautomatic handgun and three PMFs consistent with those seized by law enforcement during the investigation from Soto’s residence;
• 3,500 individual doses of suspected fentanyl, a separate 125 grams of suspected powdered fentanyl, and narcotics packaging materials from Lakomy’s residence; and
• 5,000 individual doses of suspected fentanyl, two firearms, including a Springfield model XD 9mm semiautomatic handgun, and a Smith & Wesson model SD40 VE .40 caliber semiautomatic handgun, and six Glock-brand firearm slides consistent with those used by members of the conspiracy to manufacture PMFs, and 100 bricks of suspected fentanyl from Wooten’s residence.

 

The maximum penalties per count in the filed complaint are:

 

Count

Charge

Defendant(s)

Maximum Penalty

One

Conspiracy to Distribute Controlled Substances

Aponte, Fontanez, Lakomy, Romero, Valentin, Wooten

 

Life in prison

Two

Firearms Trafficking Conspiracy

Aponte, Barrios, Rodriguez, Wooten

15 Years

Three

Firearms Trafficking

 

Aponte, Barrios

15 Years

Four

Possession of Machine Guns

Aponte

10 Years

Five

Possession of a Firearm by a Convicted Felon

Aponte

15 Years

Six

Possession of a Firearm by a Convicted Felon

Soto

15 Years

Seven

Possession with Intent to Distribute Fentanyl

Lakomy

40 Years

Eight

Possession with Intent to Distribute Fentanyl

Wooten

40 Years

Nine

Possession with Intent to Distribute Cocaine Base

Fontanez

20 Years

 

U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Miller in Newark and Acting Special Agent in Charge Christopher Amon in Richmond, Virginia; special agents of the DEA, under the direction of Acting Special Agent in Charge Kafafian in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Plainfield Police Department, under the direction of Director James Abney; the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacommo Sacca; the Perth Amboy Police Department, under the direction of Chief Lawrence Cattano; the Woodbridge Police Department, under the direction of Police Director Robert Hubner; the Union County Sheriff’s Department, under the direction of Sheriff Peter Corvelli; and the Scotch Plains Police Department, under the direction of Chief Theodore D. Conley, with the investigation. He also thanked the Hudson County Prosecutor’s Office and the New Jersey Department of Corrections for their assistance.

The government is represented by Assistant U.S. Attorneys John Mezzanotte and Robert Frazer of the Organized Crime and Gangs Unit in Newark, and by Assistant U.S. Attorney Angela Mastandrea-Miller of the U.S. Attorney’s Office, Eastern District of Virginia.

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 City, New Jersey, man was sentenced to 135 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.

Cory Newman, 44, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with one count of possession of child pornography. Judge O’Hearn imposed the sentence in Camden federal court.

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

On May 20, 2021, agents with Department of Homeland Security, Homeland Security Investigations, (HSI) served a search warrant at Newman’s residence in Atlantic City and discovered electronic devices containing numerous videos and images of children being sexually abused.  

In addition to the prison term, Judge O’Hearn sentenced Newman to 15 years of supervised release.

U.S. Attorney Sellinger credited special agents of HSI, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Acting Atlantic County Prosecutor William E. Reynolds, and the Atlantic City Police Department, under the direction of Interim Officer in Charge Deputy Chief James A. Sarkos, for their assistance in the investigation.

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

New Jersey Woman Also Pleads Guilty to Conspiring to Defraud the New Jersey Traumatic Brain Injury Fund of Millions of Dollars

TRENTON, N.J. – The former manager of the New Jersey Traumatic Brain Injury Fund (TBI Fund) and one of his conspirators today admitted their roles in a long-running scheme to defraud the fund, a publicly funded health care benefit program, of more than $4.5 million, U.S. Attorney Philip R. Sellinger announced.

Harry Pizutelli, 64, of Edison, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of conspiracy to commit healthcare fraud. Maritza Flores, 45, of Toms River, New Jersey, also pleaded guilty before Judge Quraishi in Trenton to an information charging her with conspiracy to commit healthcare fraud and tax evasion.

In January 2021, Pizutelli, Flores, and co-defendant C.R. Kraus were charged in a criminal complaint with conspiracy to commit healthcare fraud in connection with a scheme to defraud the TBI Fund of millions of dollars of public funds for their own personal benefit. The charges against Kraus remain pending.

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

The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.

After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.

Pizutelli was the manager of the TBI Fund and was responsible for its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund patients. From 2009 through June 2019, Pizutelli, Kraus, Flores, and others conspired to defraud the TBI Fund by misappropriating more than $4.5 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Flores, Kraus, and others by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Flores, Kraus, and other conspirators had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers.

Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores and other conspirators. Pizutelli orchestrated the fraudulent payment of more than $4.5 million from the TBI Fund to members of the conspiracy, including more than $940,000 in fraudulent distributions to Flores and more than $3.245 million in fraudulent distributions to Kraus, which they used for their own personal benefit and enrichment. Flores and Kraus also evaded the payment of substantial amount of income taxes by making material misstatements and omissions on their federal income tax returns and significantly underreporting the income they had derived from the fraudulent scheme.

The healthcare fraud conspiracy charge to which Pizutelli and Flores each pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross receipts to the defendants or gross loss sustained by any victims, whichever is greater. The tax evasion charge to which Flores pleaded guilty carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing for Pizutelli is scheduled for May 8, 2023, and for Flores, May 9, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge James E. Dennehy; and special agents of the IRS, Criminal Investigation, under the direction of Special Agent in Charge Tammy L. Tomlins, with the investigation leading to the charges. He also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for their assistance.

The government is represented by J. Brendan Day, Deputy Chief of the Criminal Division in Newark, and Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office Trenton Branch Office.

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

Defense counsel:

Pizutelli: Benjamin J. West Esq., Assistant Federal Public Defender

Flores: Aidan P. O’Connor Esq. Hackensack, New Jersey

TRENTON, N.J. – A New York man was sentenced today to 84 months in prison for transporting multiple items of child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.

Jesus Modesto Sanchez, 31, of New York, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography. Judge Quraishi imposed the sentence today in Trenton federal court.

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

In October 2020, Modesto Sanchez began communicating with an undercover officer who he believed was a minor on a web-based application. On Oct. 17, 2020, Modesto Sanchez was arrested after traveling from New York to New Jersey to meet the undercover officer. Law enforcement officers subsequently discovered a significant collection of child pornography on Modesto Sanchez’s cellular telephone, including 72 videos and one image depicting the sexual abuse of minors.

In addition to the prison sentence, Judge Quraishi sentenced Modesto Sanchez to five years of supervised release.  

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James Dennehy in Newark, and members of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to today’s sentence.

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

NEWARK, N.J. – In a civil complaint filed today, the Department of Justice alleges that AmerisourceBergen Corp. and two of its subsidiaries, AmerisourceBergen Drug Corp. and Integrated Commercialization Solutions LLC (AmerisourceBergen), collectively one of the country’s largest wholesale pharmaceutical distributors and one of the largest companies in America by revenue, violated the law in connection with the distribution of controlled substances to pharmacies and other customers across the country, contributing to the prescription opioid epidemic.

The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.

“For years, AmerisourceBergen put its profits from opioid sales over the safety of Americans,” U.S. Attorney for the District of New Jersey Philip R. Sellinger said. “According to the complaint, this was part of a brazen, blatant, and systemic failure by one of the largest companies in America to comply with its obligations to report suspicious opioid orders, contributing to the epidemic of opioid abuse throughout this country.”

“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” Associate Attorney General Vanita Gupta said. “Companies distributing opioids are required to report suspicious orders to federal law enforcement.  Our complaint alleges that AmerisourceBergen—which sold billions of units of prescription opioids over the past decade—repeatedly failed to comply with that requirement.”

“The mission of the DEA is to enforce the Controlled Substances Act, and as this complaint alleges, AmerisourceBergen violated the CSA hundreds of thousands of times,” Susan A. Gibson, Special Agent in Charge of the DEA’s New Jersey Division, said. “AmerisourceBergen was required by law to report suspicious orders to the DEA, and they failed in their obligation to do so. This failure contributed to the opioid epidemic that has plagued this country for years. This multi-year investigation and resulting lawsuit will hold AmerisourceBergen accountable for their actions.”

“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration, and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” DEA Administrator Anne Milgram said. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”

Pharmaceutical distributors that sell controlled substances, including AmerisourceBergen, have a longstanding legal obligation to monitor the orders that they receive from pharmacies and other customers and must inform the Drug Enforcement Administration (DEA) each and every time they receive a suspicious order.

The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids.  Today’s filing is the result of a multi-year investigation by the DEA, the District of New Jersey, the Civil Division’s Consumer Protection Branch, several other U.S. Attorneys’ Offices.

The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. These pharmacies include: a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; and, a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone in that state and specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate.

“As alleged in the complaint,” U.S. Attorney Sellinger said, “after learning of drug deals in a pharmacy parking lot – the ‘reddest of red flags’ as one AmerisourceBergen employee described – an AmerisourceBergen subsidiary went on shipping thousands of opioids order to that pharmacy and did not report a single one of them to the DEA. Another example: despite telling the DEA that it had ceased selling controlled substances to a New Jersey pharmacy, an AmerisourceBergen subsidiary used a proxy distributor – a straw – to continue funneling hundreds of opioids orders to that same pharmacy. None of those suspicious orders were reported to DEA either. These were not isolated incidents, but are indicative of AmerisourceBergen’s widespread misconduct.”

The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA.  In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems to reduce the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.

The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.

If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue. Specifically: up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018 , and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.

The claims made in the complaint are allegations that the United States must prove by a preponderance of the evidence if the case proceeds to trial.

The government is represented by Assistant U.S. Attorneys Hayden M. Brockett and Jordann R. Conaboy for the District of New Jersey, Trial Attorneys Michael Wadden, Amy DeLine, and Deborah Sohn of the Department of Justice Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania, Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado, and Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York. The DEA, under the direction of Special Agent in Charge Gibson in New Jersey, collaborated with the Department to investigate the case.

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a conspiracy that targeted Asian and Asian-American homeowners for residential burglaries, U.S. Attorney Philip R. Sellinger announced today.

Randi Barr, 41, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of conspiracy to commit interstate transportation of stolen property. 

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

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

The charge of conspiracy to commit interstate transportation of stolen property carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater. Sentencing is scheduled for April 25, 2023.

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

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

NEWARK, N.J. – The U.S. Attorney’s Office has reached a comprehensive settlement with New Jersey Transit Corporation (NJ Transit) to resolve allegations that it violated the civil rights of people with disabilities by failing to operate a paratransit service that complied with Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced today. 

The ADA requires public entities like NJ Transit to provide accessible public transportation to people with disabilities, including providing a paratransit system that is comparable to the transportation services provided to individuals without disabilities. Under the agreement, NJ Transit must ensure that its paratransit system – Access Link – eliminates capacity constraints that significantly limits the availability of transit services to ADA paratransit eligible persons. NJ Transit’s Access Link subjected a significant number of ADA paratransit eligible riders to excessively long trips, late pickups, late drop-offs, and excessive telephone hold times.

“Without equal access to public transportation, people with disabilities are deprived the opportunity to engage in society on an equal basis,” U.S. Attorney Philip R. Sellinger said.  “This agreement removes discriminatory barriers by ensuring that thousands of Americans with disabilities have equal access to public transportation throughout New Jersey.”

New Jersey Transit has committed to make five intercity rail stations – Newark Penn Station, Princeton Junction Train Station, MetroPark Train Station, Trenton Train Station, and New Brunswick Train Station – accessible to individuals with disabilities. New Jersey Transit must modify multiple portions of the rail stations and their access points, including physical modifications to multiple platforms, waiting areas, parking lots, and restrooms.

Earlier this year, 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. This matter was prosecuted by the U.S. Attorney’s newly formed Civil Rights Division.

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 Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Division.

TRENTON, N.J. – A pharmacy employee today admitted conspiring to offer and pay bribes and kickbacks in exchange for having prescriptions steered to the Morris County, New Jersey, pharmacy where he worked, U.S. Attorney Philip R. Sellinger announced.

Srinivasa Raju, 51, of Haskell, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to violate the federal anti-kickback statute.

Magdalena Jimenez, 58, of Newark, previously pleaded guilty to a parallel bribery and kickback scheme involving the same pharmacy.

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

Raju had various responsibilities at the Morris County pharmacy, including coordinating prescription deliveries and soliciting business. From January 2019 through February 2021, Raju worked with other pharmacy personnel to pay kickbacks and bribes to medical employees in two different doctors’ offices in Jersey City, New Jersey. In exchange, those employees steered numerous, high-value prescriptions to the pharmacy where Raju worked. Raju and his conspirators paid as much as $150 for each prescription and used various tactics to conceal many of those bribe payments. Overall, the pharmacy received over $2.4 million in Medicare reimbursement payments based on prescriptions derived from the kickback scheme.

The conspiracy charge is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater. Sentencing for Raju is scheduled for May 16, 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 special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty pleas.

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

Defense counsel:

Raju: Miles Feinstein Esq., Clifton, New Jersey

Jimenez: Peter Guadagnino Esq., New York

NEWARK, N.J. – Two New Jersey men have been charged with possessing with intent to distribute approximately one kilogram of cocaine and approximately 100 grams of fentanyl, U.S. Attorney Philip R. Sellinger announced today.

Carlos Ovidio Gonzalez, 35, of Newark, and Hector Martinez, 31, of North Bergen, New Jersey, are charged by complaint with one count of conspiring to distribute and possess with intent to distribute cocaine and fentanyl. Gonzalez is also charged with one count of being a previously convicted felon in possession of three firearms and ammunition. They had their initial appearances by videoconference on Dec. 20, 2022, before U.S. Magistrate Judge Jessica S. Allen and were both detained.

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

On Dec. 19, 2022, Gonzalez and Martinez conspired to distribute approximately one kilogram of cocaine and 100 grams of fentanyl and were arrested shortly after they arrived at an agreed-upon location in Kearny to complete the sale. After their arrests, a search of Gonzalez’s home and an apartment also uncovered two loaded firearms, an unloaded firearm, ammunition, drug packaging materials, and suspected heroin, cocaine, oxycodone, and Xanax pills. Gonzalez had previously been convicted, in New Jersey Superior Court, Morris County, of first-degree drug distribution, second degree weapons possession during a controlled substance offense, and second degree possession of a firearm for an unlawful purpose, and was sentenced in 2009 to 30 years in prison. 

The count of possession with intent to distribute cocaine and fentanyl carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and fine of up to $5 million. The felon in possession of a firearm charge carries a potential maximum penalty of 15 years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and officers with the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to the charges. He also thanked Newark Police Department for its assistance.

The government is represented by Assistant U.S. Attorney Camila A. Garces of the OCDETF/Narcotics Unit in Newark.

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

NEWARK, N.J. – A New York man admitted participating in a conspiracy to distribute fentanyl, methamphetamine and cocaine in New Jersey from locations in Manhattan, U.S. Attorney Philip R. Sellinger announced today.

Juan Carlos Merced Moreno, aka “Samuel,” 45, of Manhattan, New York, pleaded guilty  by videoconference on Dec. 20, 2022, before U.S. District Judge Claire C. Cecchi to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a mixture and substance containing fentanyl, 50 grams or more of a mixture and substance containing methamphetamine, and 100 grams or more of a mixture and substance containing a detectable amount of heroin.

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

Moreno admitted that from November 2020 through January 2021 he conspired with others to distribute and possess with intent to distribute fentanyl, methamphetamine, and heroin. He admitted participating in the conspiracy from locations in Manhattan and that some of the controlled substances were transported to New Jersey.

The conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum $5 million fine. Sentencing is scheduled for May 8, 2023.

U.S. Attorney Sellinger credited members of the Department of Homeland Security, Homeland Security Investigations, New York City Airport Border Enforcement Security Taskforce under the direction of Ivan J. Arvelo; special agents from Homeland Security Investigation, Newark, under the direction of Special Agent in Charge Ricky J. Patel; members of the New York Police Department, under the direction of Commissioner Keechant Sewell; and investigators and assistant prosecutors from the Hudson County Prosecutor’s Office, under the direction of Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with a New Jersey non-profit organization to resolve allegations of discrimination in violate of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announce today.

The settlement resolves allegations that Educational Testing Service (ETS), a New Jersey non-profit organization that administers standardized tests, engaged in discrimination in violation of the ADA by creating unlawful hurdles to individuals with disabilities who sought testing accommodations. Among other things, the United States alleged that ETS unlawfully denied requests for testing accommodations or failed to timely consider requests for testing accommodations, effectively denying those requests.

Under the settlement, ETS agrees to comprehensive reforms that will require timely determinations on any requests for testing accommodations and narrow the organization’s inquiries related to requests for accommodations. ETS also agrees to pay damages to several complainants – up to $10,000 – who sought testing accommodations that were denied or delayed.

“This office will not tolerate discrimination in any form and will work tirelessly to ensure equal access to educational opportunities,” U.S. Attorney Philip R. Sellinger said. “This agreement compels ETS to make systemic reforms and ends an unfair process for considering requests for testing accommodations. Through this settlement, thousands of Americans with disabilities will be given a fair shot in seeking admission to higher education.”   

Earlier this year, 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 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 John Stinson of the U.S. Attorney’s Civil Division and Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Civil Rights Division.

NEWARK, N.J. – A company based in the People’s Republic of China, along with three businesses located in New Jersey and New York, entered into settlement agreements with the United States, admitting they took steps to avoid paying customs duties, U.S. Attorney Philip R. Sellinger announced today.

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

United Silica Products Inc. (USP) is a company based in Franklin, New Jersey. From July 22, 2015, and Oct. 6, 2020, USP purchased certain merchandise that was manufactured by Noble Brand Holdings Ltd. (Noble) in China. In connection with the sale of its products, Noble generated two sets of invoices – one that showed the amount actually paid by USP and another, false invoice, that undervalued the products sold to USP. Noble provided USP with the invoices showing the amount actually paid and sent the false invoices to Argos Express Ltd., a New York-based freight forwarding company. Argos then provided the false invoices to USP’s New York-based customs broker, United Way International Inc. for purposes of making customs declarations on USP’s behalf.

In entering goods into the United States, customs brokers and importers of record are required to provide true and accurate disclosures concerning the value of the goods being imported. In the settlement agreements, the companies admitted that the false statements on the customs forms reduced the customs duties paid to the United States.

In the settlement agreements announced today, Noble agreed to pay $500,000; USP and its owner, Lynnmarie Boccuzzo, agreed to pay $20,000 and $5,000, respectively; Argos and United Way agreed to pay $15,000 each. The payments resolve the parties’ potential liability under, among other statutes, the False Claims Act.

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

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

NEWARK, N.J. – Five men were charged in an indictment and a New Jersey woman pleaded guilty in connection with a transnational technical support scam that targeted more than 20,000 victims, many of whom were elderly, in the United States and Canada, U.S. Attorney Philip R. Sellinger announced today. 

Gagan Lamba, 41, and Harshad Madaan, 34, both of New Delhi, India; Jayant Bhatia, 33, of Ontario, Canada, and Vikash Gupta, 33, of Faridabad, India, are all charged by indictment with conspiracy to commit wire fraud, conspiracy to commit computer fraud, and substantive violations of wire fraud and computer fraud. Lamba, Madaan, Bhatia, and a fifth defendant, Kulwinder Singh, 34, of Richmond Hill, New York, are also charged with conspiracy to commit money laundering, money laundering, and engaging in monetary transactions in property derived from specified unlawful activity. Bhatia has been charged with offenses related to his participation in a high-tech fraud scheme.

Authorities in India arrested Madaan on Dec. 14, 2022, and Gupta on Dec. 15, 2022, on local charges for their involvement in the tech support scheme. Lamba remains at large. Bhatia was arrested by Canadian authorities pursuant to a provisional arrest request from the United States. Singh was arrested at his home in New York. Singh made his initial appearance on Dec. 14, 2022, before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and was released on $100,000 unsecured bond.

A sixth defendant, Meghna Kumar, 50, of Edison, New Jersey, pleaded guilty on Dec. 14, 2022, by videoconference before Judge Hammer to an information charging her with engaging in monetary transactions in property derived from specified unlawful activity, based on her role in the scheme.

“As alleged in the indictment, the defendants are charged with using access to personal computers to run a high-tech extortion scheme on a global scale,” U.S. Attorney Philip R. Sellinger said. “They frequently preyed upon senior citizens and scared them into paying for unnecessary and useless computer repair services. Working with our partners here and abroad, we will remain vigilant in protecting our citizens from these kinds of schemes.”

“Tech-support scams, and other consumer fraud schemes that frequently target elderly or vulnerable citizens are particularly egregious crimes,” Acting Inspector in Charge Raimundo Marrero, Newark Field Office, Philadelphia Division, said. “Fraudsters, who often operate from outside the United States, may think they can anonymously infiltrate their victims’ homes and lives through the mail, telephone, or computer – without any consequences. However, let today’s enforcement actions put scammers on notice. Through the investigative efforts of U.S. federal law enforcement, and our international partners, we will work together to pursue those individuals who scam, harass, and steal from our older and respected members of society.”

“Scammers are changing tactics and finding new methods to steal hard-earned money from unsuspecting victims, but it boils down to the same well-worn crime,” FBI Special Agent in Charge James E. Dennehy said. “This investigation highlights the FBI's and our international partners' work in searching out and bringing these fraudsters to justice. It also shows victims that regardless of where the criminals are sitting, here or in a foreign country, we will hold them accountable using every tool we have.”

According to documents filed in this case and statements made in court:From 2012 through November 2022, the defendants and others were members of a criminal fraud ring that operated a technical support fraud scheme in the United States, India, and Canada. The scheme targeted victims across the United States and Canada, including New Jersey, many of whom were elderly. 

The primary objective was to trick victims into believing that their personal computers were infected with a virus or malware and then convince the victims to pay hundreds or thousands of dollars to the fraud ring for phony computer repair services. Over the course of the conspiracy, the fraud ring generated more than $10 million in proceeds from at least 20,000 victims.

The fraud ring caused fraudulent pop-up windows to appear on victims’ personal computers. The pop-ups were designed, at times, to “freeze” the victims’ computers, which prevented the victims from using or accessing files on their computers. The pop-ups also claimed, falsely, that the victims’ computers were infected with a virus, or otherwise compromised, and directed the victims to call a telephone number to receive technical support.  Sometimes the pop-ups warned victims to not shut down their computers. The pop-ups also included, without authorization, the names of well-known, legitimate technology and antivirus companies. In reality, the pop-ups were a hoax, designed to trick the victims into believing that their computers were infected with viruses that did not actually exist.

Victims who called the technical support phone numbers appearing on the pop-ups were connected to one or more call centers in India associated with the fraud ring. Fraud ring members at the call centers falsely repeated that the victims’ computers were infected with viruses and offered to fix the purported issue for a fee. The fraud ring members would then request permission to remotely access the victims’ computers. Once granted access, fraud ring members would, at times, download and run a freely available adblocker tool, advise the victim that the “issue” had been resolved, and then leave a text file on the desktop of the computer with payment instructions.

Victims were instructed to pay the fraud ring in amounts ranging from hundreds to thousands of dollars by: (a) electronically scanning checks made payable to one of several shell companies set up by the fraud ring and (b) sending, via FedEx, physical checks to addresses maintained by Singh and Kumar in New Jersey. The fraud ring often contacted certain victims again to offer additional services or lengthier service agreements that required victims to pay even more money to the fraud ring.

The wire fraud and computer fraud charges carry a maximum penalty of 20 years and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greatest The money laundering charges carry a statutory maximum of 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater. The transacting in criminal proceeds charges carry a maximum of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater. 

U.S. Attorney Sellinger postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, and special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation. He also thanked the Department of Justice Office of International Affairs, the Indian Central Bureau of Investigation, and the Delhi Police for their assistance.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.

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

NEWARK, N.J. – The Department of Justice and the Environmental Protection Agency (EPA) announced today a proposed consent decree with 85 potentially responsible parties, requiring them to pay a total of $150 million to support the cleanup work and resolve their liability for discharging hazardous substances into the Lower Passaic River, which is part of the Diamond Alkali Superfund Site.

The Justice Department and EPA alleged that these 85 parties are responsible for releases of hazardous substances into the Lower Passaic River, contaminating the 17-mile tidal stretch, including the lower 8.3 miles. The proposed consent decree seeks to hold the parties accountable for their share of the total cost of cleaning up this stretch of the river.

“Newark, Harrison, and many other vibrant communities have borne the brunt of pollution along the Lower Passaic River for too long,” First Assistant U.S. Attorney Vikas Khanna for the District of New Jersey said. “This agreement is an important step forward. It will support significant cleanup efforts that restore this historic waterway, advance a new chapter of responsible land use, and return the river to the people of New Jersey.

“This agreement holds responsible parties financially accountable for the legacy of pollution in the Lower Passaic River,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division said. “The settlement will advance the cleanup of the river for the benefit of those communities living alongside it who have been historically overburdened by pollution.”

“Today's agreement requires those responsible, no matter the extent, to pay their fair share for releasing hazardous substances into the Lower Passaic,” Regional Administrator Lisa F. Garcia for the EPA Region 2 said. “This agreement adds to the work we are already doing and will continue to do to get responsible parties to pay for or conduct this cleanup, and it brings us closer to a cleaner healthier river that can be enjoyed by those who live near its banks, no matter what their economic status.”

On behalf of EPA, the Justice Department lodged the consent decree with the U.S. District Court for the District of New Jersey. If and when the settlement becomes final, EPA expects to use the settlement funds to support ongoing efforts to clean up the site, specifically the lower 8.3 miles and the upper 9 miles which make up the entire 17-mile Lower Passaic River Study Area. In addition to the proposed consent decree, EPA has reached several related agreements, including one whereby many parties investigated the 17-mile Lower Passaic River, another whereby Occidental Chemical Corporation, a potentially responsible party, is designing the cleanup chosen for the lower 8.3 miles, and several cost recovery agreements that resulted in payments to EPA of millions of dollars.

This consent decree is subject to a 30-day public comment period and is available for public review here.

After the close of the comment period, Justice Department and EPA will evaluate any comments received and prepare a response to the comments. If the government still considers the settlement appropriate, it will seek approval of the consent decree by the court.

For additional information and site background, visit Diamond Alkali Superfund Profile Page.

Follow EPA Region 2 on Twitter and Facebook page. For more information about EPA Region 2, visit the website.

NEWARK, N.J. – A Texas doctor and his office manager, who was also his wife, have agreed to pay more than $422,789 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.

Vijesh Patel and his wife, Laju Patel, both of Port Neches, Texas, have agreed to pay $422,789 to resolve allegations that they received kickbacks in return for referring patients for laboratory testing. Both have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.

“Patients deserve to know that the decisions their health care providers are making are based solely on their medical needs, not on some profit-making scheme,” U.S Attorney Philip R. Sellinger for the District of New Jersey said. “Our office will continue to pursue anyone responsible for actions that have the potential to corrupt the medical decision-making process.”

“Kickbacks can undermine a physician’s medical judgment, result in unnecessary testing, and increase healthcare costs borne by taxpayers,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to pursue physicians, laboratories, and others responsible for schemes that violate rules intended to safeguard the integrity of federal healthcare programs.”

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

The settlement announced today resolves allegations that the Patels received kickbacks in violation of the Anti-Kickback Statute in return for Vijesh Patel’s referrals to three laboratories:

• Texas Laboratory – From December 2016 to July 2018, Vijesh Patel allegedly received thousands of dollars in payments from a purported management service organization (MSO), Indus MG LLC (Indus), in return for ordering laboratory tests from True Health Diagnostics LLC (True Health), a clinical laboratory in Frisco, Texas. The Indus MSO’s payments to Vijesh Patel allegedly were disguised as investment returns, but in fact were based on, and offered in exchange for, his referrals to True Health. 
• New Jersey Laboratory – From August 2018 to August 2021, Vijesh Patel allegedly received thousands of dollars in kickbacks disguised as investment returns from a purported MSO, Avior Group LLC, in return for ordering laboratory tests from RDx Bioscience Inc. (RDx), a clinical laboratory in Kenilworth, New Jersey. RDx allegedly paid remuneration to Vijesh Patel in the form of volume-based commissions paid to an independent contractor recruiter, Corum Group LLC, which used an associated company, Avior, to pay kickbacks to Vijesh Patel and other physicians in return for their referrals. From from December 2018 to August 2022, Laju Patel allegedly received kickbacks from RDx in the form of commercially unreasonable fees to purportedly collect urine specimens for testing that Vijesh Patel referred to RDx.
• South Carolina Laboratory – From August 2019 to December 2021, Vijesh Patel allegedly received hundreds of dollars per month in inflated space rental payments in return for ordering laboratory tests from Labtech Diagnostics LLC (Labtech), a clinical laboratory in Anderson, South Carolina. Labtech’s rental payments allegedly were for a commercially unreasonable amount of space and excessive days and time.

 

"This settlement demonstrates the Eastern District of Texas’s firm and continued commitment to pursuing all persons responsible for engaging in kickback schemes that inevitably harm the taxpayers, increase costs to care, and decrease access to health care,” said United States Attorney Brit Featherston for the Eastern District of Texas. “We remain vigilant in our pursuit to put a stop to those who partake in kickback schemes of this kind and to hold them accountable for the collective harm they caused.”

“Patients should be able to trust that their doctor’s medical recommendation is in their best interest and not influenced by the doctor’s financial gain,” said United States Attorney Adair F. Boroughs for the District of South Carolina. “Our office has and will continue to hold accountable those that give and receive illegal kickbacks, both to maintain the public’s trust in the healthcare system and to ensure taxpayer money is properly spent.”

“Health care providers engaging in kickback schemes corrupt the provider-patient relationship and impose hidden costs on the health care system,” said Assistant Special Agent in Charge Susan A. Frisco with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Alongside our law enforcement partners, our agency is committed to safeguarding the integrity of federal health care programs by holding individuals who unlawfully bill the programs accountable for their actions.”

“Today’s outcome demonstrates the steadfast determination of the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) and our investigative partners to root out fraud perpetrated against TRICARE,” Acting Special Agent in Charge Gregory P. Shilling, DCIS Southwest Field Office said. “DCIS remains focused on protecting and preserving valuable taxpayer dollars by holding those accountable who attempt to defraud the DoD.”

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Eastern District of Texas, District of New Jersey, and District of South Carolina, with assistance from HHS-OIG and DCIS. To date, the United States has recovered over $32 million relating to conduct involving True Health or MSO kickbacks to physicians in Texas, including False Claims Act settlements with 34 physicians, two health care executives, one office manager, and one laboratory. In addition, the United States has filed a lawsuit under the False Claims Act against former True Health CEO Christopher Grottenthaler and others, which is captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  A defendant who violates the act is liable for three times the amount of the government’s losses plus applicable penalties.

The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit, Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas, and Assistant U.S. Attorney Beth C. Warren in the U.S. Attorney’s Office for the District of South Carolina.

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

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

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

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

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

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

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

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

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted producing multiple videos depicting the sexual assault of children, U.S. Attorney Philip R. Sellinger announced.

Antonio Del Prado, 61, of Millburn, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of production of child pornography and production of child pornography abroad with intent to transport into the United States.

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

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

The charges in the information each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. Sentencing is scheduled for April 25, 2022.

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

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

CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 96 months in prison for distributing and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Edwin Torres, aka “Macho Torres,” 39, of Bridgeton, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to one possession of child pornography. Judge Williams imposed the sentence today in Camden federal court.

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

In May 2020, a user of a social media application uploaded to a public chat group multiple videos of child sexual abuse from an internet provider address linked to Torres’ residence. In September 2021, law enforcement agents executed search warrants at Torres’ residence and on a Google account associated with the social media account used to distribute the videos in May 2020. The Google account, which also had been accessed from Torres’ residence, contained over 100 videos of child sexual abuse, including videos whose content matched the videos distributed in May 2020. During the search of Torres’ residence, agents seized Torres’ cellular telephone, which had been used to access the same Google account. 

In addition to the prison term, Judge Williams sentenced Torres to five years of supervised release and ordered him to pay $15,000 in restitution.

U.S. Attorney Sellinger credited special agents of the FBI Newark Child Exploitation and Human Trafficking Task force, and the Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, for its assistance in the investigation. 

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

CAMDEN, N.J. – A former employee of a Mount Holly, New Jersey, medical practice was sentenced today to 30 months in prison for selling fraudulent prescriptions for controlled substances, U.S. Attorney Philip R. Sellinger announced.

Jose Colon, 37, of Sicklerville, New Jersey, previously pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with distribution of controlled substances. Judge O’Hearn imposed the sentence today in Camden federal court.

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

Colon, who is not a medical provider, used the identities of doctors with whom he worked to make and sell fraudulent prescriptions for controlled substances, including Oxycodone, Adderall, Percocet, and Xanax. Colon sometimes met his customers in person with a prescription pad to sell the fraudulent prescriptions for cash. He also submitted fraudulent prescriptions electronically to pharmacies in exchange for electronic payments from his customers. Colon advised his customers on how to fill the fraudulent prescriptions, including instructing them to wait until the medical practice was closed so that Colon would be able to answer any phone calls from the pharmacies questioning the validity of the fraudulent prescriptions.

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

U.S. Attorney Sellinger credited special agents of the FBI Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the FBI Newark Health Care Fraud Task Force, whose members include the Galloway Township and Middle Township Police Departments, and the Cape May County Prosecutor’s Office, for their assistance.

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

CAMDEN, N.J. – An Atlantic County man was sentenced today to 37 months for his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United State Vikas Khanna announced.

Brian Pugh, 45, of Absecon, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to defraud a health care benefits program. Judge Kugler imposed the sentence today in Camden federal court.

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

Pugh was part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Pugh and his conspirators defrauded New Jersey health benefits programs and other insurers of more than $50 million. Pugh directly caused the pharmacy benefits administrator to pay more than $1.4 million for medically unnecessary compound prescription medications for individuals he recruited into the scheme, and he received more than $430,000 in the conspiracy.

In addition to the prison term, Judge Kugler sentenced Pugh to three years of supervised release and ordered restitution of more than $1.4 million and forfeiture of $437,604.

Attorney for the United States Khanna credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of 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 sentencing.

The government is represented by Assistant U.S. Attorneys Christina O. Hud, Acting Chief of the Health Care Fraud Unit; R. David Walk Jr., Chief of the Opioid Abuse Prevention & Enforcement Unit; and Desiree L. Grace, Deputy Chief of the Criminal Division.

NEWARK, N.J. – A Nigerian man has been indicted for his role in computer hacking, wire fraud, and money laundering acts that defrauded companies of nearly $8 million after compromising companies’ business e-mail accounts, U.S. Attorney Philip R. Sellinger announced today.

Oladeji Nathaniel Adelekan, aka “Djzle,” 28, of Lagos, Nigeria, was indicted by a federal grand jury on one count each of wire fraud conspiracy, wire fraud, conspiracy to access a protected computer in furtherance of fraud, unauthorized access of a computer with intent to defraud, and money laundering conspiracy. 

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

Between February 2019 and April 2020, Adelekan and his conspirators enriched themselves by tricking corporate employees into transferring company funds to bank accounts that the conspirators controlled. Using phishing emails, Adelekan and his conspirators compromised the email accounts of corporate victims, including a pharmaceutical company headquartered in New Jersey and a technology firm headquartered in Oregon.

In April 2019, the conspirators sent a phishing email to an email account controlled by the pharmaceutical company. Once an employee clicked on a link in the email, the company’s email system was compromised, and the hackers diverted emails sent to the company’s compromised email account to an email account they controlled. Pulling information from the emails that they had diverted, Adelekan and his conspirators spoofed other email accounts at the pharmaceutical company and its supplier. In May 2019, using the supplier’s spoofed email account, the conspirators directed the pharmaceutical company to send a $7.5 million wire transfer to a bank in Mexico for the purported benefit of the supplier to satisfy an outstanding invoice, but which wire transfer actually went to a bank account controlled by the conspirators.

In January 2020, the coconspirators used similar tactics to obtain access to an email account of the Oregon technology firm. The hackers then diverted business emails from that email account to an email account they controlled. In April 2020, the conspirators caused an employee of the Oregon technology firm to execute a $130,000 wire transfer to a bank account in Hong Kong, another bank account controlled by Adelekan and his conspirators.

The counts of conspiracy to commit wire fraud and wire fraud each carry a maximum potential punishment of 20 years in prison. The counts of conspiracy to commit unauthorized access of a computer and unauthorized access of a computer each carry a maximum punishment of five years in prison. The count of money laundering conspiracy carries a maximum of 20 years in prison. All of the charges carry a fine of up to $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest.

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

The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Special Prosecutions Division and Jamie H. Solano 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 Florida man was charged for his role in conspiracies to pay illegal kickbacks and to commit health care fraud that caused at least $64 million in losses to federal health care benefit programs, Attorney for the United States Vikas Khanna announced today.

James D. Feeley, 45, of Navarre, Florida, is charged by complaint with one count of conspiracy to violate the federal Anti-Kickback Statute and one count of conspiracy to commit health care fraud. Feeley made his initial appearance before U.S. Magistrate Judge Wettre in Newark federal court and was ordered released on $400,000 unsecured bond.

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

Feeley and his business partner owned and operated medical marketing companies in Ohio that paid for prescriptions from telemedicine companies, which were then sent to pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. From January 2016 to September 2020, Feeley and others worked with pharmacies, telemedicine companies, and doctors to unlawfully profit by paying kickbacks and bribes to telemedicine companies to generate prescriptions for their pharmacy clients to fill. The telemedicine companies, in turn, paid kickbacks and bribes to doctors so that they would sign high volumes of expensive prescriptions. The pharmacies then paid kickbacks and bribes to Feeley and his businesses for each referral. The kickback payments paid to Feeley’s businesses were a percentage of the reimbursements the pharmacies received from health care programs for filling the prescriptions generated by Feeley’s businesses.

Feeley arranged to purchase federal health care beneficiary information (also referred to as “leads”), which usually included beneficiaries’ personal and health insurance information, from various sources, including overseas call centers and data brokers. Feeley and others used this information to identify their targets for cold calling. Feeley and others targeted beneficiaries because they had insurance that would reimburse for expensive medications regardless of whether the beneficiaries had medical need for those products.

Feeley and others employed “sales representatives,” frequently high school students with no medical licenses or training, to call the beneficiaries. Feeley’s company often deceived beneficiaries into accepting medications by providing false and misleading information to the beneficiaries about the nature, cost, and efficacy of the medications they would receive.

Feeley and others knew that the prescriptions were not generated by genuine doctor-patient relationships because they knew the doctors were paid to generate prescriptions and often did not have any contact with beneficiaries. Feeley and his conspirators knew the prescriptions they arranged were false and fraudulent. Among other things, they complained to telemedicine companies when doctors did not approve prescription requests based on lack of medical necessity.

The health care fraud conspiracy count is punishable by a maximum of 10 years in prison and the kickback conspiracy count is punishable by a maximum of five years in prison

Attorney for the United States Khanna credited special agents of the Department of Defense, Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG)  under the direction of Acting Special Agent in Charge Susan Frisco; and the FBI’s Newark Field Office under the direction of Special Agent in Charge James E. Dennehy, with the investigation.

The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Hayden M. Brockett of the Health Care Fraud Unit in Newark.

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

CAMDEN, N.J. – A Burlington County, New Jersey, man who sold more than $2.7 million worth of pesticides he falsely claimed were registered with the Environmental Protection Agency as being effective against coronavirus, was sentenced today to 60 months in prison, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division announced.

Paul Andrecola, 63, of Maple Shade, New Jersey, previously pleaded guilty before U.S. District Court Judge Robert B. Kugler in Camden federal court to an information charging him with one count each of knowingly distributing or selling an unregistered pesticide in violation of the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), wire fraud, and presenting false claims to the United States. Judge Kugler imposed the sentence today in Camden federal court.

“Paul Andrecola’s scheme profited on the fears of the American people during the height of concerns about transmission of COVID-19,” U.S. Attorney Sellinger said. “Our office is dedicated to protecting public health and prosecuting to the full extent of the law fraudsters who commit such egregious criminal acts.”

“The defendant committed a brazen fraud in the midst of a global pandemic and sought to profit from people’s fears of contracting the coronavirus,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) said. “This sentence shows that these crimes are serious and will be vigorously prosecuted by the Department of Justice.”

“Today’s sentence holds the defendant accountable for perpetrating the largest pandemic fraud case related to the sale of unregistered pesticides charged nationwide,” Special Agent in Charge Tyler Amon of EPA’s Criminal Investigation Division in New Jersey said. “This case underscores EPA’s commitment to hold violators accountable for placing the public at risk by failing to ensure the integrity and safety of their products.” 

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

FIFRA regulates the distribution, sale, and use of pesticides to ensure that pesticides sold in the United States are safe, effective, and bear labeling containing true and accurate information. The EPA is responsible for regulating the manufacture, labeling, and distribution of all pesticides shipped or received in interstate commerce.

Under FIFRA, all pesticides must be registered with the EPA before the pesticide can be sold or distributed, and no person may distribute or sell a pesticide that has not been registered with the EPA. Before pesticide products can legally make claims that they can kill a particular pathogen, such as SARS-CoV-2 (coronavirus), the claim must be authorized by EPA based on a review of data. In March 2020, at the beginning of the global pandemic, the EPA created a list of EPA-registered products that it deemed to be effective against coronavirus, titled “List N: Disinfectants for Use Against SARS-CoV-2.” The EPA has continued to update this list since its creation.

Andrecola, who controls two companies and is employed by a third company, all based in in Mount Laurel, New Jersey, manufactured various disinfectant products, including liquids and wipes, under the brand name “GCLEAN.” GCLEAN products were unregistered pesticides under FIFRA and none of the products were on EPA’s List N. Andrecola placed another company’s EPA registration numbers on his company’s products and falsely marketed that his products were EPA-approved to kill coronavirus by creating numerous false documents to support his claims. Andrecola, or others at his behest, would provide this falsified documentation to potential customers representing that various sanitizer and wipe products in the names GCLEAN or GC200 were EPA-registered products List N to persuade them to purchase the unregistered pesticide products.

From March 2020 through May 2021, Andrecola used these fraudulent representations to make more than 150 sales of unregistered pesticides for a profit of more than $2.7 million. The purchasers of these unregistered pesticides included a police department in Delaware, a fire department in Virginia, a medical clinic in Georgia, a janitorial supply company in New York, a school district in Wisconsin, and numerous U.S. Government agencies, including the U.S. Marshal’s Service, Moody Air Force Base, the U.S. Department of Veterans Affairs, and the National Forest Service.

In addition to the prison term, Judge Kugler sentenced Andrecola to three years of supervised release and forfeiture of $2.74 million – the proceeds from the sale of the illegal product. The defendant is also responsible to make full restitution for all losses resulting from his commission of the charged crimes.

U.S. Attorney Sellinger credited special agents of the U.S. EPA Criminal Investigation Division, under the direction of Special Agent in Charge Tyler Amon with the investigation leading to today’s sentencing. He also thanks the U.S. EPA Office of the Inspector General Eastern Region under the direction of Special Agent in Charge Nicolas Evans; Homeland Security Investigations Newark Field Office under the direction of Special Agent in Charge Ricky J. Patel; Defense Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Patrick Hegarty; Naval Criminal Investigative Service Northeast Field Office under the direction of Special Agent in Charge Michael Wiest; and the Mount Laurel Police Department under the direction of Chief Stephen Riedener, for their assistance in this investigation.

The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Economic Crimes Unit in Newark and Trial Attorneys Adam C. Cullman and Matthew D. Evans of the Environmental Crimes Section of the U.S. Department of Justice.

NEWARK, N.J. – A New York man was arrested in East Rutherford, New Jersey for possessing with intent to distribute approximately 70 kilograms of cocaine and 25 kilograms of fentanyl, U.S. Attorney Philip R. Sellinger announced today.

Alejandro Nouel Lajud, 39, of Yonkers, New York, is charged by complaint with one count of possession with intent to distribute cocaine and fentanyl. He was arrested and had his initial court appearance on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and was detained.

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

On Dec. 5, 2022, Lajud was stopped on the New Jersey Turnpike in East Rutherford while driving a tractor-trailer erratically. During a lawful search of the tractor-trailer, law enforcement officers discovered approximately 95 brick-shaped packages, each of which weighed approximately one kilogram. Approximately 70 of the packages contained suspected cocaine and approximately 25 contained suspected fentanyl.

The count of possession with intent to distribute cocaine and fentanyl carries a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 10 years in prison and a maximum fine of $10 million.

U.S. Attorney Sellinger credited special agents of the New York Strike Force, under the direction of Drug Enforcement Administration Special Agent in Charge Frank A. Tarentino III, with the investigation leading to the charge. 

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

The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; New York State Department of Corrections and Community Supervision; and the Suffolk County District Attorney’s Office.

The government is represented by Assistant U.S. Attorney Jenny Chung of the OCDETF/Narcotics Unit in Newark.

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

NEWARK, N.J. – Four people have been charged for their roles in a kickback conspiracy involving COVID-19 testing that defrauded federal health insurance programs, U.S. Attorney Philip R. Sellinger announced today.

Abid Syed, 45, of East Hanover, New Jersey; Tariq Din, 55, of Saddle River, New Jersey; David Weathers, 59, of the Bronx, New York; and Muhammed Aurangzeb, 45, of Robbinsville, New Jersey, are each charged by indictment with one count of conspiracy to violate the federal Anti-Kickback Statute for their roles in a scheme to defraud Medicare and the Health Resources and Services Administration COVID-19 Uninsured Program. Weathers and Aurangzeb had their initial appearances via videoconference today before U.S. Magistrate Judge José R. Almonte. Aurangzeb was released on $100,000 unsecured bond and Weathers consented to detention. Syed and Din were charged by criminal complaint on April 11, 2022.

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

From April 2021 to April 2022, Syed and Din operated and controlled Metpath Laboratories, a clinical laboratory located in Parsippany, New Jersey, that conducted testing to detect the presence of COVID-19 in samples obtained from patients. Through Metpath, Syed and Din paid kickbacks to “marketers” – including Weathers and Aurangzeb – for referrals of COVID-19 test samples to Metpath. Weathers and Aurangzeb were each paid $5 to $30 per referral.

The conspirators tried to make the payments appear to be for legitimate business expenses. For example, Syed altered the amount of the kickback payment to make it appear as if the marketer was a “consultant” for Metpath with legitimate business expenses. In another instance, Weathers’ company – MedtechCares Inc. – issued invoices to Metpath to make it appear as though the kickback payments from Metpath were legitimate business expenses, when in fact the payments were entirely for the referrals.

Metpath received more than $3.5 million in insurance reimbursements from federal health insurance programs for COVID-19 test samples referred by Weathers and Aurangzeb.

The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. The maximum fine for each count is $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.

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

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

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

CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 66 months in prison for escaping from federal custody and engaging in a scheme to defraud women over telephone dating services, U.S. Attorney Philip R. Sellinger announced.

Patrick Giblin, 58, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of escape from the custody of the Attorney General and one count of wire fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

On July 23, 2020, Giblin escaped from the custody of the Attorney General while traveling from a federal prison in Lewisburg, Pennsylvania, to a residential living facility in Newark, where he had been directed to serve the remainder of a federal prison sentence. At the time, Giblin was serving a sentence imposed in 2017 for traveling interstate and using an interstate facility to promote unlawful activity in connection with a scheme to defraud multiple women. Giblin’s 2017 sentence followed an earlier sentence of 115 months in prison for a 2007 wire fraud conviction for a similar fraud scheme. Members of the U.S. Marshals Service located and arrested Giblin in Atlantic City on March 10, 2021.

From April 2019 through March 2021 – including during the time period when he was a fugitive – Giblin posted advertisements and messages on telephone dating services. Giblin cultivated a rapport with the women he spoke to on these services, falsely claimed that he would be relocating to the woman’s geographic area, and falsely represented that he wished to pursue a committed, romantic relationship with each woman. Giblin received money from the women he spoke to on the dating services via interstate wire services such as Western Union and MoneyGram.

In addition to the prison term, Judge Kugler sentenced Giblin to three years of supervised release and ordered him to pay restitution of $23,428.

U.S. Attorney Sellinger credited members of the U.S. Marshals Service, District of New Jersey, under the direction of U.S. Marshal Juan Matos Jr., and special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Two Passaic County, New Jersey, men arrested in connection with three armed robberies committed in August 2022 made their initial appearances in Newark federal court, U.S. Attorney Philip R. Sellinger announced today.

Carlos Diaz, 30, and Edward Porter, 30, both of Paterson, are each charged by criminal complaint with one count of conspiracy to obstruct commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Diaz and Porter appeared on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and were detained.

Diaz and Porter were arrested on Sept. 9, 2022, and have been in custody in Passaic County since that time; they were taken into federal custody today to face these charges. 

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

On the evening of Aug. 22, 2022, Diaz, Porter, and a third individual robbed a Passaic bodega of several thousand dollars while menacing customers with handguns and ordering them to lie on the ground. On the evening of Aug. 23, 2022, Diaz and Porter robbed a Passaic liquor store of several thousand dollars at gunpoint. While inside the store, Porter pistol-whipped a victim. Later that evening, Diaz and Porter committed a gunpoint robbery of a business in Paterson. While inside the store, Porter pushed one victim and wrestled with a different victim, dragging the victim to the floor while attempting to take the victim’s handbag. 

The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. Conspiracy to obstruct commerce by robbery carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

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

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

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

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted producing multiple videos depicting him sexually assaulting a minor, U.S. Attorney Philip R. Sellinger announced.

Christian Importuna, 27, of Englishtown, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to one count of an indictment charging him with production of child pornography.

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

In March 2020, Importuna produced at least two videos that showed him sexually assaulting a pre-pubescent female child. The videos came to the attention of law enforcement on March 24, 2020, when Importuna attempted to trade images of child pornography with an undercover law enforcement official on an internet-based application. Law enforcement officials initially linked the videos to Importuna through business records indicating that they were sent from his Englishtown residence. The investigation further linked Importuna to the production of the images through physical identifiers that were visible in the subject videos.

The charge of production of child pornography, 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 April 17, 2023.

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

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

Defense counsel: Carol Dominguez Esq., Assistant Federal Public Defender, Newark

CAMDEN, N.J. – A Camden man is scheduled to appear in court today on multiple charges of sex trafficking minors, U.S. Attorney Philip R. Sellinger announced.

Semaj A. Gilmore, 32, is charged by superseding indictment with three count of sex trafficking of a minor and three counts of committing a sex offense as a registered sex offender. He is scheduled to appear today in Camden federal court before U.S. Magistrate Judge Matthew J. Skahill. Gilmore has been detained since initially being charged by a criminal complaint in April 2021.

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

In April 2021, investigators learned that a missing juvenile from Pennsylvania was being advertised for sexually illicit activities on a website that is often used to advertise acts of prostitution. On April 13, 2021, an undercover agent contacted a phone number associated with the advertisement. The undercover agent and the user of the phone number, later revealed to be Gilmore, exchanged a series of messages that ultimately led to the undercover agent meeting the victim in a motel room in or around Mount Laurel, New Jersey, purportedly to engage in sexual activities in exchange for cash. Gilmore instructed the undercover agent to “get condoms” and to confirm that he was not “a cop.” When uniformed officers entered the motel room, Gilmore, who had been waiting in a car in the adjacent parking lot, fled. Officers stopped Gilmore’s car and recovered the phone used to arrange the meeting between the victim and the undercover agent.

From September 2020 to April 2021, Gilmore trafficked two other victims to engage in commercial sex acts in addition to the victim he advertised on April 13, 2021. During that time period, Gilmore had been required to register as a sex offender as a result of a prior conviction.

Each count of sex trafficking of a minor is punishable by a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of up to $250,000. Each count of committing a sex offense as a registered sex offender is punishable by a mandatory penalty of 10 years in prison, which must run consecutively to any other term of imprisonment, and a fine of up to $250,000.

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

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

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

Defense counsel: Troy Archie Esq., Cinnaminson, New Jersey

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 26 months in prison for evading more than $1 million in federal taxes, U.S. Attorney Philip Sellinger announced.

John Ryan, 63, of Cherry Hill, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of tax evasion. 
Judge Rodriguez imposed the sentence today in Camden federal court. 

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

Ryan was working as an independent financial planner, helping to broker sales between clients and various financial businesses. One of these businesses engaged Ryan as a financial contractor to receive client funds on behalf of the business, and to operate and control one of its financial accounts. Ryan attempted to evade payment of his federal income taxes by converting the business and client funds in that account to his own personal income. By using the business account funds to satisfy expenses without the involvement of his personal bank accounts, Ryan was able to conceal the fact that he was withdrawing client funds and drawing checks on the business account in order to convert those funds to personal income. Ryan then purposely failed to report as income the cash he skimmed from the account, on which he was required to pay federal income taxes.

In addition to the prison term, Judge Rodriguez sentenced Ryan to two years of supervised release and ordered him to pay $1,058,859 in restitution to the government. 

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

The government is represented by Assistant U.S. Attorney Lindsey R. Harteis of the U.S. Attorney’s Office in Camden, New Jersey.

Defense counsel: Joseph Marrone Esq. Cherry Hill, New Jersey

NEWARK, N.J. – A California man has been indicted for laundering money obtained from business email compromises, U.S. Attorney Philip R. Sellinger announced today.

Charles Singleton, 63, of Los Angeles, California, is charged by indictment with one count of money laundering conspiracy and three substantive money laundering counts.  Singleton was arrested yesterday and was scheduled to appear on Dec. 5, 2022, before U.S. Magistrate Judge Karen L. Stevenson in Los Angeles federal court.

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

From September 2018 to August 2020, Singleton worked with conspirators to launder money obtained through business email compromises. A business email compromise is a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions. The fraud is carried out by compromising, hacking, or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.  

Singleton opened several business bank accounts in the names of companies he controlled and received proceeds of wire fraud in those accounts. Singleton and his conspirators then withdrew and transferred money from various bank accounts and shared among themselves the account information of bank accounts. Singleton also executed at least one fraudulent contract with a conspirator for a wire of $70,000. Law enforcement officials estimate that Singleton received at least $1.1 million in fraudulent proceeds. 

Each of the money laundering charges carries a maximum term of 20 years in prison and a fine of up to $500,000, or twice the value of the funds involved in the transfer, whichever is greater.

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

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

CAMDEN, N.J. – An opioid abuse treatment facility in Camden will pay a total of $3.15 million to resolve criminal and civil claims that it caused kickbacks, obstructed a federal audit, and fraudulently billed Medicaid, Attorney for the United States Vikas Khanna announced today. 

Camden Treatment Associates LLC (CTA) agreed to pay $1.5 million in criminal penalties to resolve allegations that it violated the federal Anti-Kickback Statute and obstructed a Medicaid audit. As part of the resolution, a criminal information was filed on December 2, 2022 in Camden federal court charging CTA with this conduct. CTA entered into a three-year deferred prosecution agreement (DPA) that requires it to abide by certain measures to avoid conviction.  CTA also entered into a civil settlement agreement to pay $1.65 million to the United States to resolve claims that it violated the federal False Claims Act by submitting fraudulent claims to Medicaid. 

Criminal Resolution

According to CTA’s admissions in the DPA:

Between 2009 and 2015, CTA and a second company were owned and managed by related parties. CTA had a kickback relationship with the second company in which CTA ordered all of its methadone mixing services from the second company and paid it more than $125,300 for those services. This arrangement resulted in kickbacks being paid because the second company paid the profits it made on CTA’s orders of methadone mixing to the related parties who owned and managed both companies. As a result, CTA was induced to order services from the second company and to have CTA patients receive treatment using methadone mixed only by that company. CTA received more than $2.78 million from Medicaid for methadone administration services. 

In a separate criminal scheme, CTA obstructed a Medicaid contractor’s 2016 audit of CTA’s claims for payment. CTA submitted falsified materials to the auditor purporting to justify its claims to Medicaid. Specifically, CTA added patient and counselor signatures to patient files, altered names of counselors listed as providing services, added credentials for staff listed as performing services, added sign-off dates for services and, in some instances, submitted entire patient notes to files to justify services rendered. Metadata from CTA’s electronic patient software program revealed that CTA employed these fraudulent means. 

Civil Resolution

The settlement resolves the civil allegations that CTA submitted false claims to Medicaid stemming from the kickback relationship with the methadone mixing company described above. The settlement further resolves allegations that between 2013 and 2016, CTA failed to comply with certain federal and state regulations governing substance abuse treatment facilities.  Specifically, CTA allegedly failed to maintain proper supervision and staffing at its facility. Instead, CTA typically used non-credentialed “counselor interns” to perform services at the facility and did not have sufficient licensed staff to properly supervise the interns. Consequently, CTA’s claims submitted to Medicaid for payment, which were contingent on CTA’s certified compliance with these regulations, were false.

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

Compliance Obligations

As part of the DPA, CTA is required to adopt several compliance measures, including:

• have an effective compliance program, including enhanced compliance policies and annual compliance training regarding federal health care laws;

 

• retain an independent health care compliance consulting firm specializing in substance abuse disorder facilities to conduct a comprehensive review of its compliance program and to make improvement recommendations;

 

• create an independent board of advisors to oversee company compliance relating to federal health care laws;

 

• have a chief compliance officer to oversee compliance-related functions at the company;

 

• annually certify that its compliance program is effective; and

 

• provide written reports to the United States every six months over a three-year period detailing its progress in developing and enhancing its compliance program.

 

Attorney for the United States Khanna credited agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Acting Special Agent in Charge Susan Frisco, with the investigation and prosecution of the case. He also thanked the FBI Health Care Fraud Unit Data Analysis Response Team at FBI Headquarters in Washington, D.C., under the direction of Special Agent Greg Heeb; IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, for their assistance with the case. 

The criminal case was prosecuted by Acting Chief of the Health Care Fraud Unit Christina O. Hud, Chief of the Opioid Abuse Prevention and Enforcement Unit R. David Walk, Jr., and Assistant U.S. Attorney Diana V. Carrig of the Criminal Division in Camden. The civil case was prosecuted by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Assistant U.S. Attorney Andrew A. Caffrey III of the District of Massachusetts and formerly of the District of New Jersey.

NEWARK, N.J. – A Hudson County, New Jersey, real estate investor has admitted conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.

Anthony Garvin, 52, of Jersey City, New Jersey, pleaded guilty by videoconference on Dec. 2, 2022, before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of conspiracy to commit bank fraud and four counts of bank fraud.

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

Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.

The count of bank fraud conspiracy and each count of bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest. Sentencing is scheduled for April 11, 2023.

Two conspirators previously pleaded guilty and are awaiting sentencing.

U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.

NEWARK, N.J. – A Union County, New Jersey, man admitted participating in a conspiracy to commit multiple armed robberies from August 2018 to February 2019, U.S. Attorney Philip R. Sellinger announced today.

Jaime Fontanez, 45, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Stanley R. Chesler on Nov. 30, 2022, to eight counts of an indictment charging him with one count of conspiracy to commit Hobbs Act robbery, five substantive counts of Hobbs Act robbery, and two counts of brandishing a firearm during the commission of a crime of violence.

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

From August 2018 through February 2019, Fontanez conspired with a number of other individuals to commit 13 armed robberies in Bronx and New York counties in New York and Union, Middlesex, and Essex counties in New Jersey. The conspirators targeted convenience and liquor stores. After entering the business, one of the conspirators pointed a firearm at the store clerk while another conspirator went behind the counter to steal money from the cash register. On one occasion, one of the conspirators discharged a firearm into the liquor store.

The Hobbs Act charges each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine. Sentencing is scheduled for April 26, 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. He also thanked the Elizabeth Police Department, the Rahway Police Department, the Woodbridge Police Department, the Bloomfield Police Department, the Linden Police Department, the Kenilworth Police Department, the Union Police Department, and the New Jersey States Police for their assistance.

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

NEWARK, N.J. – A Pennsylvania man was arrested for sexually exploiting and attempting to entice a minor victim, U.S. Attorney Philip R. Sellinger announced today.

Diego Ramos, 19, of Blakeslee, Pennsylvania, is charged by complaint with one count of sexual exploitation of a child and one count of attempted enticement of a minor. He appeared on Nov. 30, 2022, before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.

According to documents filed in this case:

From May 29, 2021 through Nov. 29, 2022, Ramos used multiple Instagram accounts and other social media and messaging platforms to successfully coerce a minor to send sexually explicit images and videos to Ramos. He threatened the victim with public exposure if the victim did not send additional sexually explicit images and videos requested by Ramos, and caused the victim to pay Ramos $12,982 to stop him from publicly releasing the images.

The count of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison; the count of attempted enticement of a minor carries a mandatory minimum penalty of 10 years in prison. Both counts are punishable by a maximum of life in prison.

U.S. Attorney Sellinger credited special agents of the FBI the Newark Child Exploitation and Human Trafficking Task force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s charges. He also thanked the FBI-Philadelphia, the Regional Computer Forensics Laboratory, the Mount Pocono, Pennsylvania, Police Department, and the Perth Amboy, New Jersey, Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Jenny Chung of the OCDETF/Narcotics Unit in Newark.

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