District of New Jersey

TRENTON, N.J. – A Connecticut man was convicted by a federal jury of heroin trafficking, U.S. Attorney Philip R. Sellinger announced today.

Following an eight-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court, Luis Payano-Perez, 38, of Connecticut, was convicted on Oct. 20, 2022 of one count of possessing with intent to distribute 100 or more grams of heroin.

According to documents in this case and evidence at trial:

In November 2018, a U.S. Department of Homeland Security, Homeland Security Investigations (HSI) confidential informant provided information to HSI that Payano-Perez was prepared to sell the source a large volume of heroin on Nov. 8, 2018, in the parking lot of a Wawa convenience store in Tuckerton, New Jersey. Payano-Perez and the confidential informant arranged for the quantity of the heroin to be sold, as well as the date, time and location of the planned transaction.

On Nov. 8, 2018, Payano-Perez met with two confidential government informants at the Wawa parking lot to sell them approximately one kilogram of heroin. Shortly after the parties interacted by Payano-Perez’s vehicle, law enforcement officers converged on the Wawa parking lot and arrested Payano-Perez. A subsequent search of Payano-Perez’s vehicle uncovered a bag containing nearly one kilogram of heroin.

The narcotics trafficking charge carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and up to a $5 million fine.

U.S. Attorney Sellinger credited special agents of HSI, Atlantic City office, under the direction of Special Agent in Charge Ricky J. Patel; the Little Egg Harbor Police Department, under the direction of Chief James Hawkins, and the New Jersey State Police, Atlantic City Metro Task Force, under the direction of Col. Patrick Callahan, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorneys Eric A. Boden and Eric Suggs of the U.S. Attorney’s Office’s Criminal Division in Trenton.

在紐約東區和新澤西州聯邦檢察官辦公室的三起獨立案件中，司法部對 13 名個人提出指控，其中包括中華人民共和國（中國）安全和情報機構的成員及其特工，罪名是涉嫌為中國政府的利益，在美國非法施加影響力。

紐約東區於10月20日公佈一份包含 8 項罪名的起訴書，指控 7 名中國公民（其中兩人於10月20日在紐約被捕）參與一項迫使一名居住在美國的中國公民被遣返的陰謀。被告被指控對一名美國居民進行監視，並參與騷擾和強迫其返回中國的活動，這是被稱為“獵狐行動”的國際法外遣返行動的一部分。

今天，布魯克林聯邦法院公佈了一份刑事起訴書，指控兩名中華人民共和國情報官員阻礙紐約東區的刑事起訴未遂。被告仍然逍遙法外。

新澤西州地區今天公佈了一份起訴書，指控四名中國公民，其中包括三名國家安全部（MSS）情報官員，充當中華人民共和國特工，針對美國境內人士，長期從事情報活動。

“正如這些案例所表明，中國政府試圖干涉美國人士的權利和自由，並破壞我們保護此類權利的司法制度。他們沒有成功，”美國司法部長梅裏克·加蘭(Merrick B. Garland)說。 “司法部不會容忍任何外國勢力破壞作為我們民主基石的法治的企圖。我們將繼續大力保護我國每個人享有的權利。我們將捍衛我們機構的廉正。”

“今天宣佈的行動是在中華人民共和國政府開展惡意活動的背景下進行的，此類活動包括間諜活動、試圖擾亂我們的司法系統、騷擾個人以及持續竊取美國敏感技術，”副司法部長麗莎·摩納哥(Lisa O. Monaco)表示。 “司法部的全體同仁將繼續保衛美國、我們的機構和我們的人民免受違反法律的外國威脅—無論其採取何種形式。”

聯邦調查局局長克里斯多夫·雷(Christopher Wray)表示：“對中國情報官員和政府官員的這些指控—試圖阻礙美國對一家中國公司的審判、冒充大學教授竊取敏感資訊以及試圖強迫受害者返回中國—再次暴露了中國在我們境內的令人髮指的行為。” “聯邦調查局將與我們的合作夥伴和盟友合作，繼續充分利用我們的反情報和執法部門的力量，制止中國政府對我們的企業、大學和華裔社區實施的犯罪行為。”

“此類案件突顯了中華人民共和國政府對我們的機構和美國人民的權利構成的威脅，”司法部國家安全司助理司法部長馬修·奧爾森(Matthew G. Olsen)說。 “我們不會容忍這些厚顏無恥的行動：對居住在美國的人士進行騷擾和試圖強制遣返他們；試圖敗壞我們的司法系統；並試圖在幌子学术组织的掩護下，為中國招募特工。應對此類威脅是國家安全司使命的基石。”

美國訴全忠安等人，紐約東區

一份包含 8 項罪名的起訴書在布魯克林公佈，共指控 7 名中國公民：安全忠 (Quanzhong An)，55 歲，紐約州羅斯林人；安光陽 (Guangyang An)，34 歲，紐約州羅斯林人；田鵬(Tian Peng)，38歲，中國人；陳成華(Chenghua Chen)，中國人；明春德(Chunde Ming)，中國人；侯學欣(Xuexin Hou)，52 歲，中國人；袁偉東(Weidong Yuan)，55 歲，中國人—參與一項迫使居住在美國的中國國民遣返的陰謀。主要被告安全忠據稱在中國政府省紀委（省委）多名官員（包括彭、陳、明和侯）的指示和控制下行事，對一名美國居民進行監視並參與騷擾和強迫其返回中國的活動，這是一項被稱為“獵狐行動”的國際法外遣返行動的一部分。

安全忠和安光陽於週四被捕，並於當天下午在美國治安法官小拉蒙·雷耶斯 (Ramon E. Reyes Jr.) 面前提審。其餘被告仍然在逃。

紐約東區美國檢察官布倫·皮斯表示：“正如所指控，被告代表中華人民共和國政府在美國領土上採取了單方面且未經協調的執法行動，試圖將一名美國居民強制遣返中國。” “美國將堅決反擊這種粗暴侵犯國家主權的行為，並起訴充當外國非法代理人的個人。”

正如起訴書所稱，被告參與了一項威脅和恐嚇美國居民無名氏1號及其家人的國際活動，以迫使無名氏1號 返回中國。這些努力是“獵狐行動”的一部分，該行動由中國公安部發起，旨在尋找並遣返逃往包括美國在內的外國的涉嫌逃犯。中國政府已將這些被指控的逃犯及其家人作為目標，迫使他們與中國政府合作並自行遣返中國。中國政府未經美國政府批准或協調的情況下，在美國領土上單方面採取此類執法行動。

安全忠是一名在紐約皇后區經營的商人，也是法拉盛一家酒店的大股東，他是省委會在美國和中國針對無名氏1號 及其家人（包括他的兒子無名氏2號）的主要駐美聯絡人。作為該陰謀的一部分，多位中華人民共和國的同謀者強迫其在中國的親屬（無名氏3號）於 2018 年 9 月從中國赴美，與無名氏2號 會面，並傳達威脅，旨在迫使無名氏1號 返回

中國。袁是無名氏3號在中國國家稅務總局的上級，其以旅遊團的名義，護送無名氏3號從中國赴美。

中國的被告和同謀也針對無名氏1號 的家人進行了騷擾行為模式。 2017年11月，侯寫信給無名氏2號，警告他“回來自首是唯一的出路”。侯進一步威脅說，“逃避和一廂情願只會招致嚴厲的法律懲罰”。中國政府還通過向紐約州法院提起訴訟，騷擾無名氏1號 和無名氏2號，指控無名氏1號 從其前中國雇主竊取資金，且無名氏2號 瞭解其父親的陰謀並從中受益。

在 2020 年、2021 年和 2022 年的一系列經錄音的會議中，全忠安多次會見無名氏2號，並試圖說服無名氏2號 促使無名氏1號 返回中華人民共和國。在這些會議上，安全忠承認自己是中國人民政治協商會議常委，該委員會負責在海外執行中國共產黨的規章制度。他多次說明，自己的指示來自于陳、明和彭，並承認獵狐行動的動機是中國政府需要“保住他們的面子”並遣返盡可能多的逃犯。

全忠安承認他是作為省委會的代理人，以提高他在中國的地位。在與無名氏2號會面時，全忠安多次代表中國政府發出威脅。如果無名氏1號不回國，中國政府除了“針對和監視”無名氏1號在中國的親屬之外，還會“繼續糾纏你，讓你的日常生活變得不舒服。”在另一個場合，他表示“他們肯定會找到新的方式來打擾你，”“你所有的親戚肯定都會參與其中。”

根據拘留備忘錄所述，全忠安於2022年9月29 日再次會見無名氏2號。在這次會面中，全忠安敦促無名氏1號在 2022年10月16日開始的中共二十大之前簽署返回中國的協議。作為該協議的一部分，全忠安要求無名氏1號 提供書面供述，該供述將直接提交給中華人民共和國政府。

起訴書中的指控均為控罪，除非被證明有罪，否則被告被推定無罪。如果被定罪為中國代理人，全忠安將面臨最高 10 年監禁。安全忠和安光陽涉嫌串謀洗錢罪，最高可判處20年

監禁。對其餘指控，包括密謀充當中華人民共和國特工以及串謀實施州際和國際跟蹤行為，最高可判處五年監禁。

政府代理律師包括美國助理檢察官亞歷山大·所羅門 (Alexander A. Solomon)、薩拉·威尼克 (Sara K. Winik)、安托瓦內特·蘭格爾 (Antoinette N. Rangel)及國家安全司反情報和出口管制科的審判律師斯科特·克拉菲 (Scott A. Claffee)。該辦公室資產追索科的助理美國檢察官布萊恩·莫里斯（Brian Morris）正在處理沒收事宜。

美國訴何東等人，紐約東區

一份刑事起訴書今日在布魯克林聯邦法院公佈，指控兩名中華人民共和國情報官員試圖阻礙紐約東區的刑事起訴。被告仍然逍遙法外。

根據法庭檔，何東（又名何國春、又名何傑基）和王曾（又名王澤）涉嫌策劃一項陰謀，從紐約東區美國檢察官辦公室竊取與正在進行的聯邦刑事調查和起訴一家位於中國的全球電信公司（公司1）相關的檔和其他資訊，其中包括向一名美國政府員工支付 41,000 美元的比特幣賄賂，被告認為該員工是被招募來為中國工作，但實際上該員工是一名為聯邦調查局工作的雙重間諜。

“今天的投訴突顯了中華人民共和國政府對破壞法治的不懈努力，”紐約東區美國檢察官布倫·皮斯(Breon Peace)說。 “正如所指控，該案涉及中國情報官員通過行賄，從本辦公室獲取檔，並與正在進行的起訴中被指控的被告的一家全球電信公司分享這些檔，以阻礙正在進行的起訴。我們將始終採取果斷行動，打擊針對我們司法系統的犯罪行為。”

何東和王正被指控試圖阻礙紐約東區聯邦地方法院對公司1 進行刑事起訴。被告何還被指控洗錢，因其為推進該陰謀，而支付 41,000 美元的比特幣賄賂。

根據訴狀，被告是中國情報官員，代表中國政府並為了公司1 的利益，開展針對美國的外國情報行動。從 2019 年開始，他們指使美國政府執法機構 (GE-1) 的一名員工，竊取有關

對公司1 刑事起訴的機密資訊，以干擾起訴，並認為該員工是他們作為資產招募的。事實上，GE-1 是代表聯邦調查局的雙重間諜。

2021 年 9 月，被告責成 GE-1 報告據稱 GE-1 在紐約東區美國檢察官辦公室與布魯克林檢察官舉行的會議。在書面通訊中，被告表示，他們特別想知道哪些公司1 員工接受過政府約談，並獲得對檢察官證據、證人名單和審判策略的描述。

2021 年 10 月，GE-1 使用加密消息傳遞程式，向被告發送一份據稱是紐約東區美國檢察官辦公室關於公司1 案件的內部戰略備忘錄的一頁。該文件似乎被列為“秘密”文件，並討論了一項指控和逮捕兩名居住在中國的公司1 現有員工的計畫。何東回應稱，這份文件“正是我正在等待的，”他正在“等待一些人的回饋，”確定對這份文件是否有任何問題。何東隨後向 GE-1 支付了大約 41,000 美元的比特幣，作為其竊取該檔的酬勞。

GE-1 還要求被告提供有關“秘密”文件的任何回饋。 2021年11月，何東表示，“[公司1]現在還沒有給我具體回饋，但他們顯然對此感興趣，我的老闆和他們需要進一步的資訊。”何東進一步告訴 GE-1，“[公司1]顯然會對 GE-1 竊取戰略備忘錄的另一部分感興趣，”並且“可能會提供更多” 以換取資訊。 2021 年 12 月，在回應 GE-1 進一步要求公司1 就“他們希望我得到什麼”提供回饋或指導時，何東解釋說，“他們還沒有給我任何積極的回饋，並要求直接與你溝通。”何東表示，他拒絕了公司1直接與 GE-1 通話的要求，因為“這太危險了”。

起訴書中的指控均為控罪，除非被證明有罪，否則被告被推定無罪。如果罪名成立，何東將面臨最高40年的監禁，王將面臨最高20年的監禁。

政府由美國助理檢察官亞歷山大·所羅門 (Alexander A. Solomon) 和馬里帝茲·阿爾法 (Meredith A. Arfa) 以及國家安全部反情報和出口管制科的審判律師斯科特·克拉菲 (Scott A. Claffee)代理。

美國訴王林等人，新澤西州地區

一份聯邦起訴書公佈對四名中國公民的指控，其中包括三名國家安全部（MSS）情報官員，他們充當中華人民共和國特工，針對美國境內人士，長期從事情報活動。

起訴書稱，至少從 2008 年到 2018 年，王林，59 歲；畢宏偉，年齡不詳；董婷，又名切爾西¬董，40 歲； 55 歲的王強和其他人進行了廣泛而系統的努力，旨在在招募美國代表中國行事的個人，要求其向中國政府提供資訊、材料、設備和援助，以推進中國的情報目標。此類招募活動包括針對大學教授、一名前聯邦執法和國土安全官員，及其它代表中國政府行事的人。

作為該陰謀的一部分，國家安全局情報人員王林、董婷等人利用中國海洋大學—即國際問題研究所（IIS）—的一個所謂的學術機構作為其秘密情報活動的掩護。王林以所謂的 IIS 主任身份為掩護，與其他以 IIS 學者為幌子的國家安全局特工合作，針對美國大學的教授和美國其他有權訪問敏感資訊和設備的人。

根據今天啟封的起訴書，國家安全部情報官員王林、畢、董等人代表國家安全部和中國政府，有系統地針對美國人，包括但不限於一名作為新澤西州居民的同謀，以及另一名前任聯邦執法官員和州國土安全官員，及一名美國大學教授。

除此之外，該陰謀還針對第二個人，邀請此人在 2008 年和 2018 年參加由 IIS 全額贊助的中國旅行。在此類行程中，王林、董和其他人試圖招募此人作為人脈，要求此人提供敏感的指紋技術、資訊並協助阻止計畫中的 2008 年奧運會火炬傳遞路線在美國舉行的抗議活動，共謀者表示這會讓中國“難堪。”此人還被要求與一家以中國“國家利益和國家安全”為“核心價值”的中國公司簽署所謂的諮詢服務合同，目的是“保護國家利益和中國企業的海外利益”並“建立收集安全資訊的來源和管道。”此人認識到，王林、董等人是中國情報人

員，因此拒絕了這些請求，並向執法部門舉報。

該陰謀還針對新澤西州的同謀者，要求該同謀者在美國採取具體行動，以推進國家安全局的情報目標。 2016年，王強協調同謀者王林和畢宏偉在巴哈馬舉行會面，當時國安部情報官員王林和畢宏偉指示同謀者獲取美元，並將其提供給新澤西州的指定人士。同謀者返回新澤西州，按照王林和畢的指示行事。王強隨後在新澤西州拜訪了同謀者，王強與同謀者詳細討論了他們和其他人在美國代表中國政府進行的活動。

林、畢、董、王強均為中華人民共和國公民和居民。起訴書指控，他們每個人都被指控串謀在美國作為外國政府即中華人民共和國代理人行事，而未按照法律規定，事先通知美國司法部長，並指揮其他人在美國從事此類非法行動。共謀罪的法定最高刑期為 5 年監禁，最高罰款為 250,000 美元。

美國檢察官塞林格（Sellinger）將此次指控歸功於聯邦調查局特工在紐華克特工詹姆斯·丹內利 (James E. Dennehy) 的指導下進行的調查。

政府代表包括特倫頓分處負責人美國助理檢察官布蘭登¬戴( J. Brendan Day)、及該處國家安全部門負責人 喬伊絲¬瑪麗埃特(Joyce M. Malliet)。

起訴書中的指控均為控罪，除非被證明有罪，否則被告被推定無罪。

在纽约东区和新泽西州联邦检察官办公室的三起独立案件中，司法部对 13 名个人提出指控，其中包括中华人民共和国（中国）安全和情报机构的成员及其特工，罪名是涉嫌为中国政府的利益，在美国非法施加影响力。

纽约东区于10月20日公布一份包含 8 项罪名的起诉书，指控 7 名中国公民（其中两人于10月20日在纽约被捕）参与一项迫使一名居住在美国的中国公民被遣返的阴谋。被告被指控对一名美国居民进行监视，并参与骚扰和强迫其返回中国的活动，这是被称为“猎狐行动”的国际法外遣返行动的一部分。

今天，布鲁克林联邦法院公布了一份刑事起诉书，指控两名中华人民共和国情报官员阻碍纽约东区的刑事起诉未遂。被告仍然逍遥法外。

新泽西州地区今天公布了一份起诉书，指控四名中国公民，其中包括三名国家安全部（MSS）情报官员，充当中华人民共和国特工，针对美国境内人士，长期从事情报活动。

“正如这些案例所表明，中国政府试图干涉美国人士的权利和自由，并破坏我们保护此类权利的司法制度。他们没有成功，”美国司法部长梅里克·加兰(Merrick B. Garland)说。 “司法部不会容忍任何外国势力破坏作为我们民主基石的法治的企图。我们将继续大力保护我国每个人享有的权利。我们将捍卫我们机构的廉正。”

“今天宣布的行动是在中华人民共和国政府开展恶意活动的背景下进行的，此类活动包括间谍活动、试图扰乱我们的司法系统、骚扰个人以及持续窃取美国敏感技术，”副司法部长丽莎·摩纳哥(Lisa O. Monaco)表示。 “司法部的全体同仁将继续保卫美国、我们的机构和我们的人民免受违反法律的外国威胁—无论其采取何种形式。”

联邦调查局局长克里斯托弗·雷(Christopher Wray)表示：“对中国情报官员和政府官员的这些指控—试图阻碍美国对一家中国公司的审判、冒充大学教授窃取敏感信息以及试图强迫受害者返回中国—再次暴露了中国在我们境内的令人发指的行为。” “联邦调查局将与我们的合作伙伴和盟友合作，继续充分利用我们的反情报和执法部门的力量，制止中国政府对我们的企业、大学和华裔社区实施的犯罪行为。”

“此类案件突显了中华人民共和国政府对我们的机构和美国人民的权利构成的威胁，”司法部国家安全司助理司法部长马修·奥尔森(Matthew G. Olsen)说。 “我们不会容忍这些厚颜无耻的行动：对居住在美国的人士进行骚扰和试图强制遣返他们；试图败坏我们的司法系统；并试图在幌子学术组织的掩护下，为中国招募特工。应对此类威胁是国家安全司使命的基石。”

美国诉全忠安等人，纽约东区

一份包含 8 项罪名的起诉书在布鲁克林公布，共指控 7 名中国公民：安全忠 (Quanzhong An)，55 岁，纽约州罗斯林人；安光阳 (Guangyang An)，34 岁，纽约州罗斯林人；田鹏(Tian Peng)，38岁，中国人；陈成华(Chenghua Chen)，中国人；明春德(Chunde Ming)，中国人；侯学欣(Xuexin Hou)，52 岁，中国人；袁伟东(Weidong Yuan)，55 岁，中国人—参与一项迫使居住在美国的中国国民遣返的阴谋。主要被告安全忠据称在中国政府省纪委（省委）多名官员（包括彭、陈、明和侯）的指示和控制下行事，对一名美国居民进行监视并参与骚扰和强迫其返回中国的活动，这是一项被称为“猎狐行动”的国际法外遣返行动的一部分。

安全忠和安光阳于周四被捕，并于当天下午在美国治安法官小拉蒙·雷耶斯 (Ramon E. Reyes Jr.) 面前提审。其余被告仍然在逃。

纽约东区美国检察官布伦·皮斯表示：“正如所指控，被告代表中华人民共和国政府在美国领土上采取了单方面且未经协调的执法行动，试图将一名美国居民强制遣返中国。” “美国将坚决反击这种粗暴侵犯国家主权的行为，并起诉充当外国非法代理人的个人。”

正如起诉书所称，被告参与了一项威胁和恐吓美国居民无名氏1号及其家人的国际活动，以迫使无名氏1号 返回中国。这些努力是“猎狐行动”的一部分，该行动由中国公安部发起，旨在寻找并遣返逃往包括美国在内的外国的涉嫌逃犯。中国政府已将这些被指控的逃犯及其家人作为目标，迫使他们与中国政府合作并自行遣返中国。中国政府未经美国政府批准或协调的情况下，在美国领土上单方面采取此类执法行动。

安全忠是一名在纽约皇后区经营的商人，也是法拉盛一家酒店的大股东，他是省委会在美国和中国针对无名氏1号 及其家人（包括他的儿子无名氏2号）的主要驻美联络人。作为该阴谋的一部分，多位中华人民共和国的同谋者强迫其在中国的亲属（无名氏3号）于 2018 年 9 月从中国赴美，与无名氏2号 会面，并传达威胁，旨在迫使无名氏1号 返回

中国。袁是无名氏3号在中国国家税务总局的上级，其以旅游团的名义，护送无名氏3号从中国赴美。

中国的被告和同谋也针对无名氏1号 的家人进行了骚扰行为模式。 2017年11月，侯写信给无名氏2号，警告他“回来自首是唯一的出路”。侯进一步威胁说，“逃避和一厢情愿只会招致严厉的法律惩罚”。中国政府还通过向纽约州法院提起诉讼，骚扰无名氏1号 和无名氏2号，指控无名氏1号 从其前中国雇主窃取资金，且无名氏2号 了解其父亲的阴谋并从中受益。

在 2020 年、2021 年和 2022 年的一系列经录音的会议中，全忠安多次会见无名氏2号，并试图说服无名氏2号 促使无名氏1号 返回中华人民共和国。在这些会议上，安全忠承认自己是中国人民政治协商会议常委，该委员会负责在海外执行中国共产党的规章制度。他多次说明，自己的指示来自于陈、明和彭，并承认猎狐行动的动机是中国政府需要“保住他们的面子”并遣返尽可能多的逃犯。

全忠安承认他是作为省委会的代理人，以提高他在中国的地位。在与无名氏2号会面时，全忠安多次代表中国政府发出威胁。如果无名氏1号不回国，中国政府除了“针对和监视”无名氏1号在中国的亲属之外，还会“继续纠缠你，让你的日常生活变得不舒服。”在另一个场合，他表示“他们肯定会找到新的方式来打扰你，”“你所有的亲戚肯定都会参与其中。”

根据拘留备忘录所述，全忠安于2022年9月29 日再次会见无名氏2号。在这次会面中，全忠安敦促无名氏1号在 2022年10月16日开始的中共二十大之前签署返回中国的协议。作为该协议的一部分，全忠安要求无名氏1号 提供书面供述，该供述将直接提交给中华人民共和国政府。

起诉书中的指控均为控罪，除非被证明有罪，否则被告被推定无罪。如果被定罪为中国代理人，全忠安将面临最高 10 年监禁。安全忠和安光阳涉嫌串谋洗钱罪，最高可判处20年

监禁。对其余指控，包括密谋充当中华人民共和国特工以及串谋实施州际和国际跟踪行为，最高可判处五年监禁。

政府代理律师包括美国助理检察官亚历山大·所罗门 (Alexander A. Solomon)、萨拉·威尼克 (Sara K. Winik)、安托瓦内特·兰格尔 (Antoinette N. Rangel)及国家安全司反情报和出口管制科的审判律师斯科特·克拉菲 (Scott A. Claffee)。该办公室资产追索科的助理美国检察官布莱恩·莫里斯（Brian Morris）正在处理没收事宜。

美国诉何东等人，纽约东区

一份刑事起诉书今日在布鲁克林联邦法院公布，指控两名中华人民共和国情报官员试图阻碍纽约东区的刑事起诉。被告仍然逍遥法外。

根据法庭文件，何东（又名何国春、又名何杰基）和王曾（又名王泽）涉嫌策划一项阴谋，从纽约东区美国检察官办公室窃取与正在进行的联邦刑事调查和起诉一家位于中国的全球电信公司（公司1）相关的文件和其他信息，其中包括向一名美国政府员工支付 41,000 美元的比特币贿赂，被告认为该员工是被招募来为中国工作，但实际上该员工是一名为联邦调查局工作的双重间谍。

“今天的投诉突显了中华人民共和国政府对破坏法治的不懈努力，”纽约东区美国检察官布伦·皮斯(Breon Peace)说。 “正如所指控，该案涉及中国情报官员通过行贿，从本办公室获取文件，并与正在进行的起诉中被指控的被告的一家全球电信公司分享这些文件，以阻碍正在进行的起诉。我们将始终采取果断行动，打击针对我们司法系统的犯罪行为。”

何东和王正被指控试图阻碍纽约东区联邦地方法院对公司1 进行刑事起诉。被告何还被指控洗钱，因其为推进该阴谋，而支付 41,000 美元的比特币贿赂。

根据诉状，被告是中国情报官员，代表中国政府并为了公司1 的利益，开展针对美国的外国情报行动。从 2019 年开始，他们指使美国政府执法机构 (GE-1) 的一名员工，窃取有关

对公司1 刑事起诉的机密信息，以干扰起诉，并认为该员工是他们作为资产招募的。事实上，GE-1 是代表联邦调查局的双重间谍。

2021 年 9 月，被告责成 GE-1 报告据称 GE-1 在纽约东区美国检察官办公室与布鲁克林检察官举行的会议。在书面通讯中，被告表示，他们特别想知道哪些公司1 员工接受过政府约谈，并获得对检察官证据、证人名单和审判策略的描述。

2021 年 10 月，GE-1 使用加密消息传递程序，向被告发送一份据称是纽约东区美国检察官办公室关于公司1 案件的内部战略备忘录的一页。该文件似乎被列为“秘密”文件，并讨论了一项指控和逮捕两名居住在中国的公司1 现有员工的计划。何东回应称，这份文件“正是我正在等待的，”他正在“等待一些人的反馈，”确定对这份文件是否有任何问题。何东随后向 GE-1 支付了大约 41,000 美元的比特币，作为其窃取该文件的酬劳。

GE-1 还要求被告提供有关“秘密”文件的任何反馈。 2021年11月，何东表示，“[公司1]现在还没有给我具体反馈，但他们显然对此感兴趣，我的老板和他们需要进一步的信息。”何东进一步告诉 GE-1，“[公司1]显然会对 GE-1 窃取战略备忘录的另一部分感兴趣，”并且“可能会提供更多” 以换取信息。 2021 年 12 月，在回应 GE-1 进一步要求公司1 就“他们希望我得到什么”提供反馈或指导时，何东解释说，“他们还没有给我任何积极的反馈，并要求直接与你沟通。”何东表示，他拒绝了公司1直接与 GE-1 通话的要求，因为“这太危险了”。

起诉书中的指控均为控罪，除非被证明有罪，否则被告被推定无罪。如果罪名成立，何东将面临最高40年的监禁，王将面临最高20年的监禁。

政府由美国助理检察官亚历山大·所罗门 (Alexander A. Solomon) 和梅雷迪思·阿尔法 (Meredith A. Arfa) 以及国家安全部反情报和出口管制科的审判律师斯科特·克拉菲 (Scott A. Claffee)代理。

美国诉王林等人，新泽西州地区

一份联邦起诉书公布对四名中国公民的指控，其中包括三名国家安全部（MSS）情报官员，他们充当中华人民共和国特工，针对美国境内人士，长期从事情报活动。

起诉书称，至少从 2008 年到 2018 年，王林，59 岁；毕宏伟，年龄不详；董婷，又名切尔西¬董，40 岁； 55 岁的王强和其他人进行了广泛而系统的努力，旨在在招募美国代表中国行事的个人，要求其向中国政府提供信息、材料、设备和援助，以推进中国的情报目标。此类招募活动包括针对大学教授、一名前联邦执法和国土安全官员，及其他代表中国政府行事的人。

作为该阴谋的一部分，国家安全局情报人员王林、董婷等人利用中国海洋大学—即国际问题研究所（IIS）—的一个所谓的学术机构作为其秘密情报活动的掩护。王林以所谓的 IIS 主任身份为掩护，与其他以 IIS 学者为幌子的国家安全局特工合作，针对美国大学的教授和美国其他有权访问敏感信息和设备的人。

根据今天启封的起诉书，国家安全部情报官员王林、毕、董等人代表国家安全部和中国政府，有系统地针对美国人，包括但不限于一名作为新泽西州居民的同谋，以及另一名前任联邦执法官员和州国土安全官员，及一名美国大学教授。

除此之外，该阴谋还针对第二个人，邀请此人在 2008 年和 2018 年参加由 IIS 全额赞助的中国旅行。在此类行程中，王林、董和其他人试图招募此人作为人脉，要求此人提供敏感的指纹技术、信息并协助阻止计划中的 2008 年奥运会火炬传递路线在美国举行的抗议活动，共谋者表示这会让中国“难堪。”此人还被要求与一家以中国“国家利益和国家安全”为“核心价值”的中国公司签署所谓的咨询服务合同，目的是“保护国家利益和中国企业的海外利益”并“建立收集安全信息的来源和渠道。”此人认识到，王林、董等人是中国情报人

员，因此拒绝了这些请求，并向执法部门举报。

该阴谋还针对新泽西州的同谋者，要求该同谋者在美国采取具体行动，以推进国家安全局的情报目标。 2016年，王强协调同谋者王林和毕宏伟在巴哈马举行会面，当时国安部情报官员王林和毕宏伟指示同谋者获取美元，并将其提供给新泽西州的指定人士。同谋者返回新泽西州，按照王林和毕的指示行事。王强随后在新泽西州拜访了同谋者，王强与同谋者详细讨论了他们和其他人在美国代表中国政府进行的活动。

林、毕、董、王强均为中华人民共和国公民和居民。起诉书指控，他们每个人都被指控串谋在美国作为外国政府即中华人民共和国代理人行事，而未按照法律规定，事先通知美国司法部长，并指挥其他人在美国从事此类非法行动。共谋罪的法定最高刑期为 5 年监禁，最高罚款为 250,000 美元。

美国检察官塞林格（Sellinger）将此次指控归功于联邦调查局特工在纽瓦克特工詹姆斯·丹内利 (James E. Dennehy) 的指导下进行的调查。

政府代表包括特伦顿分处负责人美国助理检察官布兰登¬戴( J. Brendan Day)、及该处国家安全部门负责人 乔伊斯¬玛丽埃特(Joyce M. Malliet)。

起诉书中的指控均为控罪，除非被证明有罪，否则被告被推定无罪。

In three separate cases in the U.S. Attorneys’ Offices for the Eastern District of New York and the District of New Jersey, the Justice Department has charged 13 individuals, including members of the People’s Republic of China (PRC) security and intelligence apparatus and their agents, for alleged efforts to unlawfully exert influence in the United States for the benefit of the government of the PRC.

In the Eastern District of New York, an eight-count indictment was unsealed on Oct. 20 charging seven PRC nationals – two of whom were arrested on Oct. 20 in New York – with participating in a scheme to cause the forced repatriation of a PRC national residing in the United States. The defendants are accused of conducting surveillance of and engaging in a campaign to harass and coerce a U.S. resident to return to the PRC as part of an international extralegal repatriation effort known as “Operation Fox Hunt.”

A criminal complaint was unsealed today in federal court in Brooklyn charging two People’s PRC intelligence officers with attempting to obstruct a criminal prosecution in the Eastern District of New York. The defendants remain at large.

In the District of New Jersey, an indictment was unsealed today charging four Chinese nationals, including three Ministry of State Security (MSS) intelligence officers, in connection with a long-running intelligence campaign targeting individuals in the United States to act as agents of the PRC.

“As these cases demonstrate, the government of China sought to interfere with the rights and freedoms of individuals in the United States and to undermine our judicial system that protects those rights. They did not succeed,” said U.S. Attorney General Merrick B. Garland. “The Justice Department will not tolerate attempts by any foreign power to undermine the Rule of Law upon which our democracy is based. We will continue to fiercely protect the rights guaranteed to everyone in our country. And we will defend the integrity of our institutions.”

“The actions announced today take place against a backdrop of malign activity from the government of the People’s Republic of China that includes espionage, attempts to disrupt our justice system, harassment of individuals, and ongoing efforts to steal sensitive U.S. technology,” said Deputy Attorney General Lisa O. Monaco. “The men and women of the Department of Justice will continue to defend the United States, our institutions, and our people from foreign threats that violate the law — no matter what form they take.”

“These indictments of PRC intelligence officers and government officials – for trying to obstruct a U.S. trial of a Chinese company, masquerading as university professors to steal sensitive information, and trying to strong-arm a victim into returning to China – again expose the PRC’s outrageous behavior within our own borders,” said FBI Director Christopher Wray. “The FBI, working with our partners and allies, will continue to throw the full weight of our counterintelligence and law enforcement authorities into stopping the Chinese government’s crimes against our businesses, universities, and Chinese-American communities.”

“These cases highlight the threat the PRC government poses to our institutions and the rights of people in the United States,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate these brazen operations: the harassment and attempted repatriation by force of individuals living in the U.S.; the effort to corrupt our judicial system; and the attempt to recruit agents for the PRC under the cover of a front academic organization. Countering such threats is a cornerstone of the mission of the National Security Division.”

United States v. Quanzhong An, et al., Eastern District of New York

An eight-count indictment was unsealed on Oct. 20 in Brooklyn charging a total of seven nationals of the PRC – Quanzhong An, 55, of Roslyn, New York; Guangyang An, 34, of Roslyn, New York; Tian Peng, 38, of the PRC; Chenghua Chen of the PRC; Chunde Ming of the PRC; Xuexin Hou, 52, of the PRC; and Weidong Yuan, 55, of the PRC – with participating in a scheme to cause the forced repatriation of a PRC national residing in the United States. The lead defendant, Quanzhong An, allegedly acted at the direction and under the control of various officials with the PRC’s government’s Provincial Commission for Discipline Inspection (Provincial Commission) – including Peng, Chen, Ming, and Hou – to conduct surveillance of and engage in a campaign to harass and coerce a U.S. resident to return to the PRC as part of an international extralegal repatriation effort known as “Operation Fox Hunt.”

Quanzhong An and Guangyang An were arrested on Thursday and were arraigned that afternoon before U.S. Magistrate Judge Ramon E. Reyes Jr. The remaining defendants remain at large.

“As alleged, the defendants engaged in a unilateral and uncoordinated law enforcement action on U.S. soil on behalf of the government of the People’s Republic of China, in an effort to cause the forced repatriation of a U.S. resident to China,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The United States will firmly counter such outrageous violations of national sovereignty and prosecute individuals who act as illegal agents of foreign states.”

As alleged in the indictment, the defendants participated in an international campaign to threaten and intimidate John Doe-1, a resident of United States, and his family to force John Doe-1 to return to the PRC. These efforts were part of “Operation Fox Hunt,” an initiative by the PRC’s Ministry of Public Security to locate and repatriate alleged fugitives who flee to foreign countries, including the United States. The PRC government has targeted these alleged fugitives and their families to compel cooperation with the PRC government and self-repatriation to the PRC. The PRC government has taken such law enforcement actions on U.S. soil in a unilateral manner without approval, of or coordination with the U.S. government.

Quanzhong An, who is a businessman operating in Queens, New York, and the majority shareholder of a hotel in Flushing, acted as the primary U.S.-based liaison for the Provincial Commission’s targeting of John Doe-1 and his family members, including his son, John Doe-2, both in the United States and in the PRC. As part of the scheme, various PRC-based conspirators forced a relative in the PRC (John Doe-3) to travel from the PRC to the United States in September 2018 to meet with John Doe-2 and convey threats that were intended to coerce John Doe-1’s return to the PRC. Yuan – John Doe-3’s superior at the PRC’s State Administration of Taxation – escorted John Doe-3 from the PRC to the United States, under the guise of a visit with a tour group.

PRC-based defendants and coconspirators also engaged in a pattern of harassment targeting John Doe-1’s family members. In November 2017, Hou wrote John Doe-2 warning him that “coming back and turning yourself in is the only way out.” Hou further threatened that “avoidance and wishful thinking will only result in severe legal punishments.” The PRC government also harassed John Doe-1 and John Doe-2 through the filing of a lawsuit in New York State court, alleging that John Doe-1 had stolen funds from his former PRC based employer and that John Doe-2 had knowledge of and benefitted from his father’s scheme.

In a series of recorded meetings in 2020, 2021, and 2022, Quanzhong An repeatedly met with John Doe-2 and attempted to persuade John Doe-2 to cause the return of John Doe-1 to the PRC. In these meetings, Quanzhong An acknowledged that he is a member of the Standing Committee of the Chinese People’s Political Consultative Conference (CPPCC), which enforces the rules and regulations of the Chinese Communist Party (CCP) abroad. At various times, he attributed his instructions to Chen, Ming, and Peng and acknowledged that the Fox Hunt operation was motivated by the PRC government’s need to “save their faces” and repatriate as many fugitives as possible.

Quanzhong An admitted that he was acting as an agent of the Provincial Commission to increase his standing in the PRC. During his meetings with John Doe-2, Quanzhong An repeatedly transmitted threats on behalf of the PRC government. If John Doe-1 did not return, the PRC government would “keep pestering you, [and] make your daily life uncomfortable,” in addition to actions to “target and monitor” John Doe-1’s relatives in the PRC. On another occasion, he stated that “they will definitely find new ways to bother you” and “it is definitely true that all of your relatives will be involved.”

As set forth in the detention memorandum, Quanzhong An met with John Doe-2 again on Sept. 29, 2022. During this meeting, Quanzhong An pressed for John Doe-1 to execute an agreement to return to the PRC in advance of the CCP’s 20th National Congress, which began on Oct. 16, 2022. As part of such agreement, Quanzhong An sought a written confession from John Doe-1, which would be submitted directly to the PRC government.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted of acting as agents of the PRC, Quanzhong An faces a maximum sentence of 10 years in prison. The money laundering conspiracy charge against Quanzhong An and Guangyang An carries a maximum sentence of 20 years in prison. The remaining charges, including conspiring to act as agents of the PRC and conspiring to commit interstate and international stalking, carry a maximum sentence of five years in prison.

The government is represented by Assistant U.S. Attorneys Alexander A. Solomon, Sara K. Winik, and Antoinette N. Rangel and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section. Assistant U.S. Attorney Brian Morris of the Office’s Asset Recovery Section is handling forfeiture matters.

United States v. Dong He, et al., Eastern District of New York

A criminal complaint was unsealed today in federal court in Brooklyn charging two People’s Republic of China (PRC) intelligence officers with attempting to obstruct a criminal prosecution in the Eastern District of New York. The defendants remain at large.

According to court documents, Dong He, aka Guochun He and aka Jacky He, and Zheng Wang, aka Zen Wang, allegedly orchestrated a scheme to steal files and other information from the U.S. Attorney’s Office for the Eastern District of New York related to the ongoing federal criminal investigation and prosecution of a global telecommunications company (Company-1) based in the PRC, including by paying a $41,000 Bitcoin bribe to a U.S. government employee who the defendants believed had been recruited to work for the PRC, but who in fact was a double agent working on behalf of the FBI.

“Today’s complaint underscores the unrelenting efforts of the PRC government to undermine the rule of law,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, the case involves an effort by PRC intelligence officers to obstruct an ongoing criminal prosecution by making bribes to obtain files from this Office and sharing them with a global telecommunications company that is a charged defendant in an ongoing prosecution. We will always act decisively to counteract criminal acts that target our system of justice.”

Dong He and Zheng Wang are charged with attempting to obstruct a criminal prosecution of Company-1 in federal district court in the Eastern District of New York. Defendant He also is charged with money laundering based upon a bribe payment of $41,000 in Bitcoin made in furtherance of the scheme.

According to the complaint, the defendants are PRC intelligence officers conducting foreign intelligence operations targeting the United States, on behalf of the PRC government and for the benefit of Company-1. Starting in 2019, they directed an employee at a U.S. government law enforcement agency (GE-1), whom they believed they had recruited as an asset, to steal confidential information about the criminal prosecution of Company-1 in order to interfere with that prosecution. In actuality, GE-1 was working as a double agent on behalf of the FBI.

In September 2021, the defendants tasked GE-1 with reporting about meetings that GE-1 was purportedly having with prosecutors in Brooklyn at the U.S. Attorney’s Office for the Eastern District of New York. In written communications, the defendants said they were particularly interested in knowing which Company-1 employees had been interviewed by the government and in obtaining a description of the prosecutors’ evidence, witness list and trial strategy.

In October 2021, GE-1 used an encrypted messaging program to send the defendants a single page from a purported internal strategy memorandum from the U.S. Attorney’s Office for the Eastern District of New York regarding the Company-1 case. The document appeared to be classified as “SECRET” and to discuss a plan to charge and arrest two current Company-1 employees living in the PRC. Dong He responded that the document was “exactly what I am waiting for” and that he was “waiting for the feedback from some guys” about whether there were any questions about the document. Dong He then paid GE-1 approximately $41,000 in Bitcoin for stealing that document.

GE-1 also asked the defendants for any feedback about the “SECRET” document. In November 2021, Dong He stated that “[Company-1] didn’t give me specifically feedback now yet, but they are obviously interested in it, and my boss and they need further information.” Dong He further told GE-1 that “[Company-1] obviously will be interested” in GE-1 stealing another part of the strategy memorandum, and “maybe will offer more” for that information. In December 2021, in response to a further request by GE-1 for feedback or guidance from Company-1 about “what they want me to get,” Dong He explained that “they didn’t give me any positive feedback yet and demanded to communicate with you directly.” Dong He said that he refused Company-1’s request to speak directly to GE-1 because “it’s too dangerous.”

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Dong He faces up to 40 years of imprisonment and Wang faces up to 20 years of imprisonment.

The government is represented by Assistant U.S. Attorneys Alexander A. Solomon and Meredith A. Arfa and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

United States v. Wang Lin et al., District of New Jersey

A federal indictment was unsealed today charging four Chinese nationals, including three Ministry of State Security (MSS) intelligence officers, in connection with a long-running intelligence campaign targeting individuals in the United States to act as agents of the PRC.

As alleged in the indictment, from at least 2008 to 2018, Wang Lin, 59; Bi Hongwei, age unknown; Dong Ting, aka Chelsea Dong, 40; Wang Qiang, 55, and others engaged in a wide-ranging and systematic effort to target and recruit individuals to act on behalf of the PRC in the United States with requests to provide information, materials, equipment, and assistance to the Chinese government in ways that would further China’s intelligence objectives. These recruitment efforts included targeting professors at universities, a former federal law enforcement and state homeland security official, and others to act on behalf of, and as agents of, the Chinese government.

As part of the conspiracy, MSS intelligence officers Wang Lin, Dong Ting, and others used a purported academic institute at Ocean University of China – referred to as the Institute for International Studies (IIS) – as cover for their clandestine intelligence activities. Acting under cover as the purported director of the IIS, Wang Lin, in coordination with other MSS operatives operating under the guise of academics at the IIS, targeted professors at American universities and others in the United States with access to sensitive information and equipment.

According to the indictment unsealed today, MSS intelligence officers Wang Lin, Bi, Dong, and others, acting for and on behalf of the MSS and the Chinese government, systematically targeted United States persons, including but not limited to a coconspirator who was a resident of the state of New Jersey and a second individual who was a former federal law enforcement officer and state homeland security official and a professor at an American university.

Among other things, the conspiracy targeted the second individual by inviting the individual in 2008 and 2018 on all-expenses-paid trips to China sponsored by the IIS. During those trips, Wang Lin, Dong, and others sought to recruit this individual as a human source, requesting that the individual provide sensitive fingerprint technology, information, and assistance with stopping planned protests along the 2008 Olympic Games torch route in the United States, which the conspirators expressed would be “embarrassing” to China. The individual also was requested to sign a contract for purported consulting services with a Chinese company whose “core value” was the “national interest and national security” of China, with an objective to “protect the national interest and Chinese enterprises’ overseas interest[s]” and to “build sources and channels to collect security information.” Recognizing Wang Lin, Dong, and others as Chinese intelligence officers, the individual refused these requests and reported them to law enforcement.

The conspiracy also targeted the coconspirator in New Jersey by tasking the coconspirator to take specific action in the United States in furtherance of the MSS’ intelligence objective. Wang Qiang coordinated a meeting in 2016 between the coconspirator, Wang Lin, and Bi Hongwei in the Bahamas, at which time MSS intelligence officers Wang Lin and Bi directed the coconspirator to obtain U.S. currency and provide it to a designated individual in New Jersey. The coconspirator returned to New Jersey and did as Wang Lin and BI instructed. Wang Qiang then visited the coconspirator in New Jersey, at which time Wang Qiang and the coconspirator discussed in detail their and others’ activities taken on behalf of the Chinese government in the United States.

Lin, Bi, Dong and Qiang, all are nationals and residents of the People’s Republic of China. They each are charged in the indictment with conspiracy to act in the United States as agents of a foreign government, namely, the People’s Republic of China, without prior notification to the Attorney General of the United States, as required by law, and to direct such unlawful action by others in the United States. The conspiracy charge carries a statutory maximum term of imprisonment of five years and a maximum fine of $250,000.

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

The government is represented by Assistant U.S. Attorneys J. Brendan Day, Attorney in Charge of the Trenton Branch Office, and Joyce M. Malliet, Chief of the Office’s National Security Unit.

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

NEWARK, N.J. – Two men from New Jersey and another from Nevada were convicted by a federal jury for their roles in defrauding multiple victims out of money through a $1 million “upfront-fee” scheme, U.S. Attorney Philip R. Sellinger announced today.                                                                   

Following a five-week jury trial before U.S. District Judge John Michael Vazquez in Newark federal court, Jerrid Douglas, 49, of Freehold, New Jersey, Harold Mignott, 60, of Voorhees, New Jersey, and Roy Johannes Gillar, 50, of Las Vegas, were each convicted on Oct. 21, 2022, of wire fraud conspiracy and four counts of wire fraud. Gillar and Douglas were also each convicted of one count of transacting in criminal proceeds.

According to documents in this case and evidence at trial:

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

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

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

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

The wire fraud conspiracy charge and the wire fraud charges each carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The transacting in criminal proceeds charges each carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

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 conviction.

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

TRENTON, N.J. – A federal indictment was unsealed today charging four Chinese nationals, including three Ministry of State Security (MSS) intelligence officers, in connection with a long-running intelligence campaign targeting individuals in the United States to act as agents of the People’s Republic of China (PRC), U.S. Attorney Philip R. Sellinger and National Security Division Assistant Attorney General Matthew Olsen announced.

As alleged in the indictment, from at least 2008 to 2018, Wang Lin, Bi Hongwei, Dong Ting, aka Chelsea Dong, Wang Qiang, and others engaged in a wide-ranging and systematic effort to target and recruit individuals to act on behalf of the PRC in the United States with requests to provide information, materials, equipment, and assistance to the Chinese government in ways that would further China’s intelligence objectives. These recruitment efforts included targeting professors at universities, a former federal law enforcement and state homeland security official, and others to act on behalf of, and as agents of, the Chinese government. 

As part of the conspiracy, MSS intelligence officers Wang Lin, Dong Ting, and others used a purported academic institute at Ocean University of China – referred to as the Institute for International Studies (IIS) – as cover for their clandestine intelligence activities. Acting under cover as the purported director of the IIS, Wang Lin, in coordination with other MSS operatives operating under the guise of academics at the IIS, targeted professors at American universities and others in the United States with access to sensitive information and equipment.

“This indictment drives home the fact that the intelligence risk posed by MSS continues to be real, ever-present, and significant,” U.S. Attorney Sellinger said. “Everyone in the United States – and especially those in academic, business, military, or government positions that have access to sensitive information or equipment – should take heed of the risk that the MSS poses to our democracy and way of life.”

“These defendants cloaked themselves and their motives in order to get access to our higher learning institutions and recruit others to betray this nation. All intended to give China a leg up,” Special Agent in Charge James Dennehy said. “The FBI would never let that happen. The safety of the citizens of the United States and the security of our nation are our top priorities. When foreign adversaries threaten either of those two things – whether on our soil or from another country; whether in-person or through cyber channels – we will use every resource at our disposal to uncover their espionage, thwart their malign influence, and bring them to justice.”

According to the indictment unsealed today:

The threat posed by the PRC’s ongoing, wide-ranging, and systematic effort to collect intelligence information from United States sources is significant and ongoing. China’s civilian intelligence agency, the MSS, is responsible for conducting counterintelligence and foreign intelligence activities, as well as political security for the PRC. The MSS and its regional bureaus focus on identifying and influencing the foreign policy of other countries, including the United States, by seeking to obtain information on political, economic, and security policies that might affect the PRC, along with military, scientific, and technical information of value to the PRC. The MSS and its regional bureaus are tasked with conducting clandestine and covert human source operations, of which the United States was and remains a principal target. Chinese intelligence services, including the MSS, utilize a variety of state ministries, societies, academic institutions, and the Chinese military-industrial complex to support intelligence activities, including by providing cover jobs to operatives. The investigation revealed that the defendants used one such purported academic institution – the IIS – as cover for their intelligence activities for the MSS.

MSS intelligence officers Wang Lin, Bi, Dong, and others, acting for and on behalf of the MSS and the Chinese government, systematically targeted United States persons, including but not limited to a coconspirator who was a resident of the state of New Jersey and a second individual who was a former federal law enforcement officer and state homeland security official and a professor at an American university.

Among other things, the conspiracy targeted the second individual by inviting the individual in 2008 and 2018 on all-expenses-paid trips to China sponsored by the IIS. During those trips, Wang Lin, Dong, and others sought to recruit this individual as a human source, requesting that the individual provide sensitive fingerprint technology, information, and assistance with stopping planned protests along the 2008 Olympic Games torch route in the United States, which the conspirators expressed would be “embarrassing” to China. The individual also was requested to sign a contract for purported consulting services with a Chinese company whose “core value” was the “national interest and national security” of China, with an objective to “protect the national interest and Chinese enterprises’ overseas interest[s]” and to “build sources and channels to collect security information.” Recognizing Wang Lin, Dong, and others as Chinese intelligence officers, the individual refused these requests and reported them to law enforcement.

The conspiracy also targeted the coconspirator in New Jersey by tasking the coconspirator to take specific action in the United States in furtherance of the MSS’ intelligence objective. Wang Qiang coordinated a meeting in 2016 between the coconspirator, Wang Lin, and Bi Hongwei in the Bahamas, at which time MSS intelligence officers Wang Lin and Bi directed the coconspirator to obtain United States currency and provide it to a designated individual in New Jersey. The coconspirator returned to New Jersey and did as Wang Lin and Bi instructed. Wang Qiang then visited the coconspirator in New Jersey, at which time Wang Qiang and the coconspirator discussed in detail their and others’ activities taken on behalf of the Chinese government in the United States.

Wang Lin, 59, Bi, age unknown, Dong 40, and Wang Qiang, 55, all are nationals and residents of the People’s Republic of China. They each are charged in the indictment with conspiracy to act in the United States as agents of a foreign government, namely, the People’s Republic of China, without prior notification to the Attorney General of the United States, as required by law, and to direct such unlawful action by others in the United States. The conspiracy charge carries a statutory maximum term of imprisonment of five years and a maximum fine of $250,000.  

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

The government is represented by Assistant U.S. Attorneys J. Brendan Day, Attorney-in-Charge of the Trenton Branch Office, Joyce M. Malliet, Chief of the Office’s National Security Unit, and Trial Attorney David C. Recker of the Counterintelligence and Export Control Section of the National Security Division.

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. – An Essex County, New Jersey, man has been charged with three armed robberies of pharmacies for oxycodone and other prescription medication in Elizabeth, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Charles Johnson, 28, of Irvington, New Jersey, was charged by complaint with three counts of Hobbs Act Robbery and three counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Johnson is scheduled to make his initial appearance today before U.S. Magistrate Judge André M. Espinosa in Newark federal court.

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

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

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

U.S. Attorney Sellinger credited members of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union County Prosecutor’s Office, under the leadership of Prosecutor William A. Daniel; and the Elizabeth Police Department, under the leadership of Police Chief Giacomo Sacca, with the investigation leading to the charges.

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

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

NEWARK, N.J. – Eight people were charged for their respective roles in a heroin, fentanyl, and crack cocaine distribution organization that sold large quantities of controlled substances in the area of Columbia Avenue and South Orange Avenue in Newark, U.S. Attorney Philip R. Sellinger announced.

Zacqual Lancaster, Maurice Lee, Felix Lesperance, Rodger Busby, Marcellus Allen, Jack Jean-Baptiste, Trevon Smith, and Natequah Polk, all of Newark, are each were charged with one count of conspiracy to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and 28 grams or more of crack cocaine. Seven of the defendants are in custody and are scheduled to have their initial appearances before U.S. Magistrate Judge André M. Espinosa in Newark federal court. Lancaster remains at large.

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

Since January 2022, law enforcement conducted extensive surveillance of an open-air narcotics market in the area of Columbia Avenue and South Orange Avenue, conducted numerous controlled purchases of narcotics, and analyzed telephone records, all of which demonstrated the extensive interactions between and among the conspirators. 

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; members of the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; and members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, with the investigation leading to the charges.

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

The government is represented by Assistant U.S. Attorney Robert L. Frazer of the Organized Crime/Gangs Unit and Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.

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

CAMDEN, N.J. – A Camden man was sentenced today to 120 months in prison for possessing with intent to distribute fentanyl, U.S. Attorney Philip R. Sellinger announced.

Desmund M. Walker, 37, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with possession with intent to distribute fentanyl. Judge Hillman imposed the sentence today in Camden federal court. 

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

On May 16, 2020, patrol officers from the Camden County Police Department encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers through Robert B. Johnson Park, was apprehended, and found to be in possession of 17.67 grams of fentanyl wrapped in 93 white wax folds. 

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

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing. He also thanked the Camden County Police Department, under the direction of Chief Gabriel Rodriguez, for its assistance.

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

CAMDEN, N.J. – A former pharmaceutical sales representative admitted his role in two criminal conspiracies involving health care fraud and wrongful obtaining and disclosure of patients’ protected personal health information, Attorney for the United States Vikas Khanna announced today.

Keith Ritson, 42, of Bayville, New Jersey, pleaded guilty on Oct. 19, 2022, before U.S. District Judge Robert B. Kugler in Camden to a superseding information charging him with one count of conspiracy to commit health care fraud and one count of conspiring to wrongfully disclose and obtain patients’ individually identifiable health information in violation of the criminal provisions of the Health Insurance Portability and Accountability Act (HIPAA). 

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

From 2014 to 2016, Ritson was a pharmaceutical sales representative who promoted compound prescription medications and other medications. Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.

Ritson and his conspirators discovered that certain insurance plans with pharmacy benefit management services – including plans for state and local government employees and eligible dependents – covered compound medications from a Louisiana pharmacy, Central Rexall Drugs, Inc. (Central Rexall). The pharmacy benefits administrator paid prescription drug claims and then billed the state of New Jersey and other insurance plans for the amounts paid. The conspirators identified that certain compound medication prescriptions would reimburse by insurance for thousands of dollars on a monthly basis. Ritson received a percentage of the amount that Central Rexall received from the pharmacy benefits administrator for the prescriptions he arranged. Ritson recruited individuals with insurance plans that covered the compound medications to receive the medications, regardless of their medical need for them.  Ritson himself also received medically unnecessary compound medication prescriptions. Ritson earmarked patients who had insurance plans that covered the compound medications at the medical practices of Dr. Frank Alario.

As a pharmaceutical sales representative not associated with Alario’s medical practices, Ritson was not permitted to access and obtain patients’ individually identifiable health information and protected health information. As part of the criminal HIPAA scheme, Alario permitted Ritson to have significant access to his medical offices, medical files, and patient information. Ritson was present in the office both during and outside normal business hours and had access to areas of the office restricted to staff, including areas with patient files and office computers. Ritson looked up patients’ information in files and on office computers to determine if they had insurance that covered the compound medications. Ritson then would earmark files in advance so that Alario knew to whom to prescribe the medications. Ritson also joined Alario in patient exam rooms during appointments, which gave patients the impression that Ritson was employed by or affiliated with the medical practices. Ritson used patients’ confidential information to fill out prescription forms that Alario authorized, and then Ritson received commissions on those prescriptions. Alario pleaded guilty on Oct. 7, 2022, to conspiring to wrongfully disclose patients’ individually identifiable health information. He is scheduled to be sentenced Feb. 7, 2023.

Three former executives of Central Rexall – Christopher Kyle Johnston, 43, of Mandeville, Louisiana; Trent Brockmeier, 60, of Pigeon Forge, Tennessee; and Christopher Casseri, 54, of Baton Rouge, Louisiana – were charged on Sept.17, 2020, in a 24-count indictment with health care and wire fraud and other offenses. The charges against them remain pending. A fourth former pharmacy executive, Hayley Taff, 39, of Hammond, Louisiana, pleaded guilty to health care fraud conspiracy on Aug. 12, 2020, and is scheduled to be sentenced March 13, 2023. The charges and allegations contained in the indictment against Johnston, Brockmeier and Casseri are merely accusations, and they are presumed innocent unless and until proven guilty.

Ritson faces a maximum penalty of 10 years in prison and a $250,000 fine on the health care fraud conspiracy count, and a maximum penalty of one year in prison and a $50,000 fine on the criminal HIPAA conspiracy count.  Sentencing is scheduled for Feb. 21, 2023. 

Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; IRS Office of 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 the guilty plea.

The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division; R. David Walk, Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division; and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit.

NEWARK, N.J. – A Morris County, New Jersey, man was arrested today by federal agents on charges of tax and bankruptcy fraud, U.S. Attorney Philip R. Sellinger and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the U.S. Department of Justice’s Tax Division announced.

Zeki Donuk of Landing, New Jersey, is charged by indictment with three counts of aiding or assisting in the preparation of false income tax returns, two counts of tax evasion, five counts of failure to collect, truthfully account for, and pay over trust fund taxes, and two counts of making false statements in bankruptcy proceedings. He is scheduled to make his initial appearance today before U.S. Magistrate Judge André M. Espinosa in Newark federal court. 

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

Donuk operated a construction business first under the name Titan Builders LLC and later as Titan Steel Construction LLC (collectively, “Titan”). From at least 2016 through 2019, Donuk allegedly cashed checks payable to Titan instead of depositing them into business bank accounts. Donuk allegedly concealed the cashed checks and did not report them either as gross receipts on Titan’s corporate tax returns or as income on his or his wife’s personal returns. From the third quarter of 2016 through the third quarter of 2017 Donuk also did not collect, account for, or pay over to the IRS, employment taxes on behalf of Titan’s employees, despite a legal obligation to do so. For those quarters, Donuk allegedly did not file quarterly employment tax returns on behalf of the businesses. In 2019, Donuk allegedly made false statements on documents he filed in a personal bankruptcy case. Donuk allegedly concealed from the bankruptcy court that he owned a vacation property in Pennsylvania, had signatory authority over certain bank accounts, owed tax debts to the IRS, and operated his construction business as Titan Builders and Titan Steel.

Each count of aiding or assisting in the preparation of false income tax returns carries a maximum penalty of three years in prison and a $250,000 fine. Each count of tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. Each count of failure to collect, truthfully account for, and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine. Each count of making false statements in bankruptcy proceedings carries a maximum penalty of five years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; the U.S. Department of the Treasury, Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit in Newark and Trial Attorney Melissa Siskind of the U.S. Department of Justice’s Tax Division in Washington, D.C.

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 Middlesex County, New Jersey, man has been charged in connection with production of child pornography, U.S. Attorney Philip R. Sellinger announced today.

Sunil Vaid, 50, of North Brunswick, New Jersey, is charged by complaint with one count of production of child pornography. He appeared on Oct. 18, 2022, before U.S. Magistrate Judge André M. Espinosa and was detained.

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

Vaid used multiple fraudulent online personas on a social media platform and several email accounts to target female victims under the age of 18 and solicit them to provide Vaid with nude photos and videos of themselves. Vaid interacted with the victims on the social media platform, then used an email account to communicate with the victims. At different times, he posed as a male who was interested in a romantic relationship and could help them start their modeling careers, a female who could help their careers, and a personal trainer.

The production of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents and members of 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 the charges and arrest. He also thanked the Middlesex County Prosecutor’s Office and the North Brunswick Police for their assistance.  

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the OCDETF/Narcotics Unit in Newark.

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

NEWARK, N.J. – A Hudson County, New Jersey, man was arrested this morning for unlawfully using victims’ personal identification information to steal over $1 million, U.S. Attorney Philip R. Sellinger announced.

Marc Lazarre, 37, of Secaucus, New Jersey, is charged by complaint with one count of bank fraud and one count of aggravated identity theft. Lazarre is scheduled to appear this afternoon before U.S. Magistrate Judge André M. Espinosa in Newark federal court.

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

From September 2021 through October 2022, Lazarre executed a scheme to enrich himself by using unlawfully obtained bank account and personal identity information to open accounts in victims’ names without their knowledge. He caused the transfer of funds from the victims’ actual financial accounts to the accounts he opened and then withdrew the funds. Lazarre also unlawfully obtained checks made out to victims, used fraudulent identification documents to open accounts in names almost identical to the victims’ names, and then cashed the unlawfully obtained checks. Lazarre caused more than $1 million in actual losses.

The bank fraud count is punishable by a maximum of 30 years in prison. The aggravated identity theft count carries an additional consecutive mandatory minimum term of two years in prison. Both counts have a maximum fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greatest.

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

The government is represented by Assistant U.S. Attorneys Shawn Barnes of the Economic Crimes Unit and Matthew Belgiovine of the General Crimes Unit.

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. – An Essex County, New Jersey, man was arraigned for his alleged role in an armed carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Andy Cook, 23, of Newark, was charged by indictment on Oct. 4, 2022, with one count of carjacking, one count of conspiracy to use a firearm during a crime of violence, and one count of using and carrying a firearm during a crime of violence. He was arraigned on Oct. 18, 2022, before U.S. District Judge Julien X. Neals in Newark federal court and pleaded not guilty.

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

On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.

The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of using and carrying a firearm during a crime of violence carries a mandatory minimum penalty of seven  years and a maximum potential penalty of life imprisonment and a $250,000 fine.

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

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

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

TRENTON, N.J. – A Monmouth County, New Jersey, man was convicted of multiple narcotics trafficking offenses, U.S. Attorney Philip R. Sellinger announced today.

Damion Helmes, 42, of Cliffwood, New Jersey, was convicted on Oct. 17, 2022, of four counts of an indictment, following a two-week trial before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court. Helmes was convicted of one count of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base, one count of conspiracy to distribute and possess with intent to distribute cocaine, one count of possession with intent to distribute 28 grams or more of cocaine base, and one count of possession with intent to distribute cocaine. Helmes was found not guilty of two firearms offenses.

In August 2019, Helmes, and 19 other individuals were charged by complaint with conspiracy to distribute cocaine base and conspiracy to distribute cocaine after an extensive investigation by the FBI’s Jersey Shore Gang and Criminal Organization Task Force. On Aug. 25, 2022, a grand jury sitting in Trenton returned a six-count third superseding indictment charging Helmes with conspiracy and substantive cocaine and crack cocaine offenses as well as firearms offenses. Helmes is the last of the 20 defendants charged in the original criminal complaint to be convicted of one or more federal crimes.

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

Between April 2019 and August 2019, Helmes, his codefendants, and others engaged in a narcotics conspiracy distributing cocaine and cocaine base for profit that operated primarily in municipalities throughout Monmouth County – including Cliffwood, Keansburg, Matawan, Keyport, Red Bank, Long Branch, Neptune, and Asbury Park, as well as Brick Township in Ocean County. Helmes obtained regular supplies of cocaine from his conspirators, cooked portions of that cocaine into crack cocaine, and redistributed cocaine and crack cocaine for profit to other conspirators, distributors, sub-dealers, and end users throughout Monmouth County.

Helmes faces a statutory mandatory minimum sentence of five years in prison, a potential maximum sentence of 40 years in prison, and a fine of up to $5 million fine on the counts of conspiracy to distribute 28 grams or more of cocaine base and possessing 28 grams or more of cocaine base with the intent to distribute. He also faces a maximum sentence of up to 20 years in prison as well as a $1 million fine on the cocaine conspiracy and cocaine distribution counts of conviction.

U.S. Attorney Sellinger credited special agents and task force officers of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach, Brick, Howell, Toms River, Union Beach and Marlboro police departments, and the Monmouth County Sheriff's Office) under the direction of Special Agent in Charge James E. Dennehy in Newark; the Red Bank Police Department, under the direction of Chief Darren McConnell; the Keansburg Police Department, under the direction of Chief Andrew Gogan; the Middletown Police Department, under the direction of Chief Craig Weber; the Monmouth County Prosecutor’s Office, under the direction of Monmouth County Prosecutor Raymond S. Santiago; the Highlands Police Department, under the direction of Chief Robert Burton; the Holmdel Police Department, under the direction of Acting Chief Frank Allocco; and the Long Branch Police Department, under the direction of Public Safety Director William Broughton, with the investigation leading to the guilty verdict.

The government is represented by Assistant U.S. Attorneys Ian D. Brater and Alexander E. Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey has reached a settlement with New Jersey Transit Corporation (NJ Transit) to resolve findings that its intercity rail stations are not accessible to individuals with disabilities in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Philip R. Sellinger announced.

“This Office is committed to ending unlawful barriers to inclusion and equality in our society,” U.S. Attorney Sellinger said. “For too long, people with disabilities have been deprived of equal access to intercity rail stations operated by NJ Transit. In ways large and small, people with disabilities were denied full access to transportation services – whether it was the lack of access to restrooms, no signs, bad ramps, poor access to elevators, or that parking spaces were just too small for those who needed wheelchair access. Through this resolution, we are holding NJ Transit to its obligation to provide accessible transportation services to all. To their credit, NJ Transit has swiftly recognized these deficiencies and already begun to bring its intercity rail stations into compliance with the ADA.”

Under the agreement, New Jersey Transit has committed to make five intercity rail stations – Newark Penn, Princeton Junction, MetroPark, Trenton, and New Brunswick – 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.

This matter was prosecuted by the U.S. Attorney’s Office Civil Rights Division, which U.S. Attorney Sellinger created in 2022.  The Division’s sole focus is to enforce 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 Civil Rights Division 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.

NEWARK, N.J. – A federal grand jury today indicted two men in connection with the armed robbery of a bank in Union City, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Juan Jimenez, 23, of Union City, New Jersey, and Nicholas Seda-Corales, 24, of West New York, New Jersey, were previously each charged by complaint with one count of bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. Both individuals are in custody. They will be arraigned at a date to be determined.

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

On April 8, 2022, Jimenez and Seda-Corales entered a bank in Union City, New Jersey, dressed in dark clothing and wearing face masks. Jimenez drew a handgun, aimed it into the teller area, and jumped over the teller counter. Seda-Corales made his way toward the rear of the bank to prevent bystanders from exiting through a back door. Video footage depicts Jimenez searching several drawers in the teller area before jumping back over the counter and fleeing the bank with Seda-Corales. Law enforcement officers later executed a search warrant at Jimenez’s apartment and recovered three handguns and clothing consistent with that worn by Jimenez and Seda-Corales during the robbery.

The bank robbery charges carry a maximum potential penalty of 20 years in prison and a $250,000 fine. The brandishing a firearm during the bank robbery charge carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison, which must be served consecutive to the other counts.

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

The government is represented by Assistant U.S. Attorney John F. Mezzanotte of the General Crimes Unit 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 Nevada woman was indicted today on wire fraud, money laundering, and obstruction of justice charges related to a $7 million advance fee Ponzi scheme and obstructing the government’s investigation, U.S. Attorney Philip R. Sellinger announced.

Anna Kline, formerly Jordana Weber, 33, of Sparks, Nevada, is charged by indictment with two counts of wire fraud, 11 counts of money laundering, four counts of transacting in criminal proceeds, and two counts of obstructing justice. Kline is scheduled to appear before a U.S. District Judge on a date to be scheduled.  

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

From April 2017 to July 2019, Kline owned and operated several shell companies that falsely purported to offer lending services to customers, typically small business owners seeking high value loans, often in excess of $100 million. As part of the scheme, Kline required the victim borrowers  to pay up to 5 percent of a potential total loan amount as a “fee” prior to the loan being funded. 

After the victim’s “fee” was paid, Kline purported to conduct due diligence on the loans.  During this period, Kline frequently gave victims bogus explanations for why the funding of their loan was delayed. It was also common for the victims to be provided with falsified or fraudulent documents, including bank statements that purported to show that the shell companies had sufficient money to fund the loan.

Kline and her significant other, Jason Torres, used the “fees” paid by the victims for their daily living expenses and other purchases. The “fees” were also used to pay back previous victims of the fraud, in the manner of a traditional Ponzi scheme. Torres is charged by complaint, and those charges remain pending.

Six victims have been identified with approximately $7 million being transferred to bank accounts controlled by Kline.

Kline was arrested on charges related to the fraudulent advance fee scheme in July 2019. While released on bail on those charges, Kline, through her then-attorney, provided the government with a PDF document that purported to be a portion of a Cellebrite report showing iMessages between Kline and Torres that appeared to show Torres making threats toward Kline and insinuating that Torres was primarily responsible for the fraudulent advance fee scheme.

A forensic review of the PDF document Kline provided to the government revealed that it had been falsified. Further investigation revealed that Kline presented the fake Cellebrite report to a family court in California as part of a custody dispute between Kline and Torres. During that hearing, Kline represented that the report had been generated by a forensic examiner named “Drew Andrews.” Investigation revealed that “Andrews” did not exist, but was actually an alter-ego of Kline’s that Kline used to deceive the California Family Court, her then-attorney, and a forensic expert into believing that the fraudulent Cellebrite Report was legitimate.

In addition to the fraudulent Cellebrite report, Kline also provided the government a computer that she claimed contained an iTunes backup that included the alleged text messages from Torres. A forensic review of the computer revealed that data on the computer, including the iTunes backup, had been manipulated. Kline changed, or caused to be changed, certain time stamps on the computer to make it appear as if the iTunes backup and other files stored on the computer were created in April 2020, when the fictional “Andrews” purportedly ran the fraudulent Cellebrite Report.

The wire fraud charges carry a statutory maximum of 20 years in prison and a fine of up to $250,000. 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.  The obstruction charges carry a maximum penalty of 20 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, with the investigation leading to the charges. 

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

The charges and allegations in the indictment against Kline and the complaint against Torres are merely accusations, and they are presumed innocent unless and until proven guilty. 

NEWARK, N.J. – A Passaic County, New Jersey, man was convicted today by a federal jury for his role as the gunman in two armed bank robberies, U.S. Attorney Philip R. Sellinger announced.

Jose Soto, 52, of Passaic, New Jersey, was convicted of two bank robberies, conspiracy to commit bank robbery, and brandishing a firearm during those robberies following a six-day jury trial before U.S. District Judge William J. Martini.

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

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

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

For each bank robbery charge, Soto faces a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. For the conspiracy charge, Soto faces a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. For each count of brandishing a firearm in furtherance of a bank robbery, Soto faces a mandatory minimum of seven years in prison, a maximum potential penalty of life imprisonment, and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Soto’s sentencing is scheduled for Feb. 23, 2023.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Little Falls Police Department, under the direction of Chief Robert A. Thomas III; and the Paterson Police Department, under the direction of Director Jerry Speziale, with the investigation leading to today’s conviction.

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

CAMDEN, N.J. – Two New Jersey women today admitted trafficking methamphetamine, U.S. Attorney Philip R. Sellinger announced.

Sherri Craig, 42, of Clementon, New Jersey, and Shannon Foster, 27, of Egg Harbor City, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an indictment charging each with one count of conspiring to distribute five grams or more of methamphetamine.

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

From March 2021 through September 2021, Craig and Foster regularly purchased methamphetamine from suppliers and conspired with each other, and others, to distribute it throughout southern New Jersey. On Sept. 20, 2021, Craig and Foster went to a residence in Camden to purchase methamphetamine from a supplier and brought $3,000 with them to make the purchase.

The drug-trafficking conspiracy charge carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Feb. 14, 2023.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; 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, with the investigation leading to today’s guilty pleas. He also thanked troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, for its assistance in the investigation.

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. – The president and a top officer of a real estate investment company were charged for their roles in a scheme to defraud more than 2,000 investors in a $650 million Ponzi scheme, and with conspiring to evade $26 million in tax liabilities, U.S. Attorney Philip R. Sellinger announced today.

Thomas Nicholas Salzano, aka “Nicholas Salzano,” 64, of Secaucus, New Jersey, and Rey E. Grabato II, 43, of Hoboken, New Jersey, and the Republic of the Philippines, are charged in an 18-count indictment unsealed Oct. 12, 2022, with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud the United States. Salzano is also charged with two counts of aggravated identity theft, two counts of tax evasion, and five counts of subscribing to false tax returns.

Salzano was arrested Oct. 12, 2022, and is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre. Grabato remains at large.

Also today, Arthur S. Scuttaro, 62, of Nutley, New Jersey, the former head of sales at National Realty Investment Advisors LLC (NRIA), 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 securities fraud in the same scheme. His sentencing is scheduled for Feb. 23, 2023.

“As charged in the indictment, these defendants schemed to create a high-pressure, fraudulent marketing campaign to hoodwink investors into believing that their bogus real estate venture generated substantial profits,” U.S. Attorney Sellinger said.  “In reality, their criminal tactics were straight out of the Ponzi scheme playbook so that they could cheat their investors and line their own pockets. Our message from today’s charges is that we remain deeply committed to rooting out all types of financial fraud schemes. These schemes undermine our markets and erode the public’s trust in investing. Together with our enforcement partners, we will continue to prioritize investigating and prosecuting financial crime in all of its forms.”   

“This case should serve as a cautionary tale to the consumer,” FBI Special Agent in Charge James E. Dennehy said. “Before you entrust your hard-earned savings to someone, do your research on the trustee and the product they are selling; become familiar with the red flags that can alert you to a fraud; don’t let dollar signs cloud your judgement; and remember the old adage that if it sounds too good to be true, it probably is. Slick pamphlets, flashy commercials, and ads that feature celebrities do not add up to the most important element – credibility. The FBI works diligently to protect the American public, arrest lawbreakers, and recoup whatever stolen funds haven’t evaporated. The sad fact is the consumer is rarely made whole. Skepticism and analysis are still the best protection.”

“This was a brazen scheme of staggering proportions,” Tammy Tomlins, IRS Criminal Investigation Acting Special Agent in Charge of the Newark Field Office, said. “These defendants prioritized their own greed, stealing $650 million from investors, while conspiring to evade $26 million in tax liabilities. The indictment sends a clear message that the IRS Criminal Investigation special agents and our law enforcement partners, remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

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

Grabato was president of NRIA and Salzano was the firm’s shadow chief executive officer. From February 2018 through January 2022, Salzano and Grabato defrauded investors and potential investors of NRIA Partners Portfolio Fund I LLC, a real estate fund operated by NRIA, of $650 million through lies, deception, misleading statements, and material omissions. These included false representations about NRIA’s financial position, how the defendants and their conspirators used fund investor money, and Salzano’s managerial role at NRIA and his history of fraud.

The defendants executed their scheme through an aggressive multi-year, nationwide marketing campaign that involved thousands of emails to investors; advertisements on billboards, television, and radio; and meetings and presentations to investors. Salzano led and directed the marketing campaign, which employed deception, material misrepresentations and omissions, and falsified documents to manipulate investors. The marketing campaign was intended to mislead investors into believing that NRIA was a solvent business that generated significant profits. In reality, NRIA generated little to no profits and operated as a Ponzi scheme, which was kept afloat by new investors. Despite investing almost none of their own capital into the business, the defendants misappropriated millions of dollars of investor money.

Salzano concealed his true managerial role at NRIA while using Grabato as a stand-in CEO in an effort to avoid scrutiny by investors of Salzano’s prior guilty plea to defrauding small businesses in Louisiana through a large telecommunications company. 

Salzano and Grabato also orchestrated a separate conspiracy to defraud the IRS in its effort to collect $26 million in outstanding taxes Salzano owed to the U.S. Treasury. Salzano and Grabato are alleged to have lied to the IRS, used a web of nominees, opened bank accounts in the names of phony entities, and used false and fraudulent company documents. 

The conspiracy to commit securities fraud and conspiracy to defraud the United States counts charged in the indictment both carry a maximum penalty of five years in prison and a $250,000 fine. The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The wire fraud conspiracy and wire fraud counts are both punishable by a maximum penalty of 20 years in prison and a $250,000 fine. The tax evasion counts both carry a maximum penalty of five years in prison and a $100,000 fine. The subscribing to false tax return counts each carry a maximum penalty of three years in prison and a $100,000 fine. The aggravated identity theft counts carry a mandatory sentence of two years in prison, which must be served consecutively to any other sentence imposed.

In a separate civil action, the Securities and Exchange Commission filed a complaint today in the District of New Jersey against Salzano, Grabato, Scuttaro, and others based on the allegations underlying the Ponzi scheme alleged in the indictment and information.

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 IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation. He also thanked the Securities and Exchange Commission, New York Regional Office, for its cooperation and assistance during the investigation. 

The government is represented by Assistant U.S. Attorneys Jonathan Fayer, of the Economic Crimes Unit, and Lauren E. Repole, Chief of the General Crimes Unit.

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

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

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

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

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

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

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

Degan also submitted a fraudulent application to a lender to obtain a PPP loan.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses through the PPP program.

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

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

The charge of failing to collect, account for and pay over payroll taxes carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of failing to file income tax returns with the IRS carries a maximum penalty of one year in prison and a fine of $100,000, or twice the gross gain or loss from the offense, whichever is greatest. The bank fraud count carries a maximum penalty of 30 years in prison and a fine of $1 million. As part of his guilty plea, Degan agreed to make restitution to the IRS in the full amount of the taxes that he owes, and he agreed to make restitution to the lender in the full amount of the PPP loan. Sentencing is scheduled for Feb. 14, 2023.

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

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

CAMDEN, N.J. – A Salem County, New Jersey, man was sentenced today to 48 months in prison for possession of images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Rickie Wayne Patton, 43, of Pennsville, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of possession of child pornography. Judge Bumb imposed the sentence today in Camden federal court.

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

On Feb. 10, 2020, a task force officer with the FBI’s Child Exploitation and Human Trafficking Task Force identified an IP Address that was sharing suspected child sexual abuse materials over a peer-to-peer file sharing network. From Feb. 10, 2020, to March 15, 2020, the officer downloaded several video files containing images of child sexual abuse from a computer at the same IP Address, which was then traced to Patton’s residence. Law enforcement officer executed a search warrant on May 19, 2020, and found laptop computers and digital storage media belonging to Patton. Forensic examination later confirmed those devices contained images of child sexual abuse. Patton admitted to possessing those devices and knowing they contained child sexual abuse materials during his guilty plea.

In addition to the prison term, Judge Bumb sentenced Patton to 10 years of supervised release.

U.S. Attorney Sellinger credited special agents and task force officers of the FBI, Philadelphia Division, South Jersey Resident Agency - Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to today’s sentencing. He also thanked the Pennsville Police Department, under the direction of Chief Patrick Spillman, and the Salem County Prosecutor’s Office, under the direction of Prosecutor Kristin J. Telsey, for their assistance in the investigation.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted conspiring with his brother to extort multiple general contractors of approximately $14,000 in cash, U.S. Attorney Philip R. Sellinger announced.

Alvaro Idrovo, 46, of Bloomfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to defraud the United States and to commit an offense against the United States, specifically, an act of extortion under color of his office or employment with the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA).

Idrovo was charged by complaint in September 2020 with his brother, Paul Idrovo, with one count of conspiring to commit an offense against the United States based on the extortion of a single contractor. Paul Idrovo previously pleaded guilty to an information charging the same offense and was sentenced to three years of probation and ordered to pay $15,600 in restitution.

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

Alvaro Idrovo was a compliance safety and health officer for OSHA. He misrepresented to contractors at construction sites in New Jersey that they were facing significant OSHA fines, penalties and possibly jail if they did not get the alleged necessary OSHA safety training.  Alvaro Idrovo would provide the contractors with the phone number for the required trainer – allegedly named “Jose Diaz” or “Paul Mejia” – which phone number belonged to Paul Idrovo, posing under these names to conceal the brothers’ relationship. Paul Idrovo was an authorized trainer for certain OSHA Outreach Training Programs, but was not an employee of OSHA.

The two men charged the contractors $4,000 to $6,000 each, in cash, for the alleged safety training. At the time that Paul Idrovo collected the cash, he provided the contractors with fraudulent computer-generated safety and health certificates for their individual employees, which falsely stated that the employees had received various types of OSHA certified safety training from “Jose Diaz” and “Paul Mejia,” when no training had been provided. Paul Idrovo shared with Alvaro Idrovo approximately $5,000 of the cash collected as part of the extortion conspiracy.

When OSHA officials learned of the attempt to extort one of the contractors, they referred the matter to federal law enforcement, who arranged for that contractor to make consensual recordings with both Idrovo brothers. During an April 2020 meeting surveilled by law enforcement, the contractor paid Paul Idrovo $6,000 in cash in exchange for ladder and safety awareness training certificates and a safety and health plan, filled in from a template. Alvaro Idrovo attached copies of the training certificates and the plan to his OSHA reports regarding the contractor’s violation despite knowing that the training certificates falsely claimed that training had been provided to the noted individuals on the specified dates in March 2020, that “Jose Diaz” had provided training, and that the alleged training was OSHA certified.  

The conspiracy charge against Alvaro Idrovo carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 16, 2023.

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

The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the Special Prosecutions Division.

NEWARK, N.J. – A Puerto Rican man was sentenced today to 120 months in prison for conspiring to distribute over 250 kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced.

Mariano Enrique Arroyo Perez, aka “Humilde,” 29, previously pleaded guilty before U.S. District Judge Esther Salas to a superseding indictment charging him with conspiracy to distribute five kilograms or more of cocaine.

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

From 2017 through July 2019, Arroyo Perez and his conspirators conspired to distribute approximately 250 kilograms of cocaine. The conspirators sought to bring cocaine into the United States using private planes. Specifically, Arroyo Perez coordinated the use of a private plane to transport approximately 150 kilograms of cocaine from Puerto Rico to New Jersey on Nov. 18, 2018. Law enforcement officers intercepted that shipment after the pilots became suspicious about four passengers who were not on the flight manifest and had particularly heavy luggage. The luggage contained cocaine, and the passengers were arrested. 

In addition to the prison term, Judge Salas sentenced Arroyo Perez to five years of supervised release.

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.

U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration in New Jersey, under the direction of Special Agent in Charge Susan A. Gibson in Newark, as well as special agents and task force officers with the Drug Enforcement Administration in Colombia, the Dominican Republic, and Puerto Rico. He also thanked the U.S. Office of International Affairs and the U.S. Marshals Service for their assistance with the case.

The government is represented by Assistant U.S. Attorney Lauren Repole, Chief of the General Crimes Unit in Newark and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF Unit in Newark.

NEWARK, N.J. – A Middlesex County, New Jersey, man has been charged with laundering money obtained from a variety of internet-based scams, U.S. Attorney Philip R. Sellinger announced.

Kenny Osas Okuonghae, 35, of Edison, New Jersey, is charged by complaint with one count of money laundering conspiracy. He is scheduled to have his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.

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

From 2019 through the present, Okuonghae laundered money that was obtained from a variety of internet-related scams, including property rental scams, romance scams, and a “pig butchering” scam involving a purported cryptocurrency investment platform called “Alphacoin.”  “Pig butchering” refers to an internet scheme where a romance scam victim develops what the victim perceives to be a romantic relationship online with the perpetrator. The perpetrator emotionally “fattens” the victim up before enticing the victim to invest in a fake cryptocurrency scheme and then, metaphorically, “slaughters” the victim by taking the victim’s real money that he or she placed in the fake cryptocurrency investment scheme.

Okuonghae opened several bank accounts across at least seven banks and permitted fraudulent proceeds to be deposited into these accounts. One of the scams from which Okuonghae received illegal proceeds was the Alphacoin scam. Another scam involved a deposit for rental property that was not actually available to rent. Okuonghae told at least one bank that the money was coming from a legitimate customer who wished to buy car parts from Okuonghae.  Okuonghae also circulated at least one false invoice made out to a victim for the purported purchase of a Mack truck. Okuonghae laundered at least $2.1 million through his accounts. 

The money laundering conspiracy charged in the complaint carries a maximum punishment 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, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s charge. He also thanked the U.S. Postal Inspection Service and Customs and Border Protection for their assistance. 

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

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

NEWARK, N.J. – A Monmouth County, New Jersey, man has been indicted for laundering money on behalf of the Cape Town Zone of Black Axe, U.S. Attorney Philip R. Sellinger announced today.

Andrew Suarez, 29, of Middletown, New Jersey, is charged by indictment with money laundering conspiracy, substantive money laundering counts, and aggravated identity theft. He is scheduled to appear today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.

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

From August 2017 through December 2017, Suarez worked with conspirators to launder money to entities in the Cape Town, South Africa, area, including to an account in the name of Abravoo Trading Company, an entity controlled by a founding member of the Cape Town Zone of Black Axe. Black Axe members were responsible for widespread internet-based fraud schemes.

Suarez opened up bank accounts in the United States, which were then used to conceal money obtained through business email compromises and other fraud schemes. Suarez transferred the proceeds of the fraud schemes to other U.S. bank accounts and wired proceeds to bank accounts in Cape Town, South Africa.  To avoid detection, Suarez changed the information on some of his bank accounts, so the accounts listed the name and address of a victim.

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. The aggravated identity theft count carries a mandatory two-year prison term, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000.  

U.S. Attorney Sellinger credited special agents of the FBI, Red Bank Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Secret Service’s Newark Division, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s charges. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Raymond Santiago, for its assistance in the case. 

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

NEWARK, N.J. – A former New Jersey resident was charged with engaging in a fraudulent scheme to misappropriate more than approximately $430,000 belonging to his former New Jersey employer, U.S. Attorney Philip R. Sellinger announced today.

Abdelrahman Ahmed-Elkilani, 27, of Miami, Florida, is charged by complaint with two counts of wire fraud. He surrendered to the FBI in Newark yesterday and is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Edward S. Kiel. 

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

From January 2017 through July 2019, Ahmed-Elkilani misappropriated more than $430,000 in funds belonging to his former employer by taking advantage of his role as a marketing manager for the company and his access to other employees’ operator codes, as well as the company’s membership accounts to create and execute multiple false transactions. These transactions enabled Ahmed-Elkilani to misappropriate funds for his own personal use and benefit. 

Ahmed-Elkilani misappropriated $417,075in special order merchandise deposits held in the company’s deposit account and caused approximately $275,000 of those funds to be transferred to his personal credit or debit cards. He also misappropriated $13,674 in additional company funds through other fraudulent methods. 

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

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

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

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

CAMDEN, N.J. – A former physician with medical practices in New Jersey, New York, and Florida admitted wrongfully disclosing patients’ protected personal health information, Attorney for the United States Vikas Khanna announced today.

Frank Alario, 65, of Delray Beach, Florida, pleaded guilty before Judge Robert B. Kugler to conspiring to wrongfully disclose patients’ individually identifiable health information to pharmaceutical sales representative Keith Ritson in violation of the criminal provisions of the Health Insurance Portability and Accountability Act (HIPAA). 

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

From 2014-16, Ritson was a pharmaceutical sales representative who promoted compound prescription medications and other medications. Compound medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.

As an outside pharmaceutical sales representative not associated with Alario’s medical practices, Ritson was not permitted to access and obtain the individually identifiable health information and protected health information of Alario’s patients. As part of the scheme, Alario permitted Ritson to have significant access to his office, medical files, and patient information.  Alario allowed Ritson to be present in the office both during and outside normal business hours and to have access to areas of the office restricted to staff, including areas with patient files and office computers. Alario permitted Ritson to look up patients’ information in files and on office computers to determine if patients had insurance that covered the compound medications. Ritson then would earmark files in advance so that Alario knew to whom to prescribe the medications.  Alario also brought Ritson into patient exam rooms during appointments and gave patients the impression that Ritson was employed by or affiliated with the medical practice, which facilitated and caused the disclosure of confidential health information to Ritson. Ritson would use patients’ confidential information to fill out prescription forms that Alario would authorize, and then Ritson received commissions on those prescriptions.

Alario was previously charged in an indictment alongside Ritson with conspiring to violate HIPAA and other offenses. The charges remain pending against Ritson, who is scheduled to go on trial before Judge Kugler in Camden federal court on Nov. 7, 2022. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.

Alario faces a maximum penalty of one year in prison and a $50,000 fine. Sentencing is scheduled for Feb. 7, 2023. 

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

The government is represented by Assistant U.S. Attorney Christina O. Hud of the Criminal Division and R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit.

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

Michael Kimmerle, 34, of New Milford, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He appeared Oct. 6, 2022, before U.S. Magistrate Judge Jessica S. Allen and was released on $100,000 unsecured bond.

According to documents filed in this case:

From August 2021 through August 2022, Kimmerle distributed videos of child sexual abuse via a publicly available online peer-to-peer (P2P) file-sharing program. During the course of the investigation, an undercover law enforcement officer conducted online sessions using the P2P program, during which a user shared multiple videos of child sexual abuse from an IP address traced to Kimmerle’s address.  

Subsequent to a lawful search of his residence, law enforcement officers recovered thumbnail images containing child pornography on Kimmerle’s laptop, including several images derived from one of the video files Kimmerle previously distributed on the P2P program. They also found the P2P program on Kimmerle’s laptop.

The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 10 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, with the investigation leading to today’s charges.

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

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

NOTE: The quote from the U.S. Attorney in the press release below has been updated to clarify that the settlement is based on allegations.

NEWARK, N.J. – Pediatric Dentist Barry L. Jacobson and his company, HQRC Management Services LLC (HQRC), along with 13 affiliated pediatric dentistry practices, agreed to pay $753,457 to resolve allegations that they violated the False Claims Act by allegedly performing and billing for medically unnecessary therapeutic pulpotomies on pediatric patients, U.S. Attorney Philip R. Sellinger announced today.

The settlement, which is the result of a joint investigation between the U.S. Attorney’s Office for the District of New Jersey and the New York Attorney General’s Medicaid Fraud Control Unit (MFCU), also resolves allegations that defendants provided inaccurate servicing provider information on claims submitted to Medicaid managed care organizations. .

“It is unconscionable that medical professionals were allegedly willing to perform unnecessary dental procedures on children simply to make money,” U.S. Attorney Sellinger said.  “Recovering their alleged ill-gotten gains only begins to undo this damage. Working with Attorney General James and our partners in the New York Attorney General’s Office, we want to make it clear that this behavior is intolerable.”

“Dr. Jacobson and HQRC allegedly performed unnecessary and invasive dental procedures on children to line their own pockets,” Attorney General Letitia James said. “My office will not tolerate any instance of medically unnecessary procedures performed on vulnerable Medicaid beneficiaries. I am grateful to U.S. Attorney Philip Sellinger and team for their partnership as we investigated this fraudulent scheme.”

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

Jacobson is the chief executive officer of HQRC, now doing business as PDS Management Solutions. He is also the founder and owner of the following New York and New Jersey based Pediatric Dentistry Practices party to the agreement: Pediatric Dentistry of Paterson, Pediatric Dentistry of Teaneck, Pediatric Dentistry of Wykoff, Pediatric Dentistry of Flushing, Pediatric Dentistry of the Bronx, Pediatric Dentistry of Valley Stream, Pediatric Dentistry of Brooklyn (Avenue U), Pediatric Dentistry of Brooklyn (Boro Park), Pediatric Dentistry of Monsey, Pediatric Dentistry of Kingston, Pediatric Dentistry of Albany, Pediatric Dentistry of Malone, and North Country Pediatric Dentistry.

The settlement resolves allegations that HQRC dentists performed medically unnecessary therapeutic pulpotomies on pediatric patients. According to the United States, certain dentists performed therapeutic pulpotomies on primary teeth even though there was no dental decay in the inner third of the dentin. The defendants also provided inaccurate servicing provider information on claims for services submitted to New York and New Jersey Medicaid Managed Care Organizations.

Jacobson and the affiliated corporate defendants admit that, in some instances between 2011 and 2018, some dentists affiliated with HQRC performed and billed Medicaid for pulpotomies not supported by the medical records maintained at the respective HQRC affiliated dental practices. The defendants also admit that in some instances, between 2011 and 2014, HQRC made billing errors to New York and New Jersey Medicaid contractors that resulted in inaccurate servicing provider information on claims for services performed at three of its locations.

The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Lauren Simpson. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Simpson will receive a total of $135,622 from the federal and state shares of the settlement.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz and civil investigator Jeffrey DeFuria of the District of New Jersey’s U.S. Attorney’s Office, with the investigation leading to the settlement.

The government is represented by Assistant U.S. Attorney Susan Pappy of the District of New Jersey’s Health Care Fraud Unit.

The lawsuit is captioned United States of America, State of New York, and State of New Jersey, ex rel. Simpson v. HQRC Management Services, LLC, et al. The claims resolved by the settlement are allegations only and there has been no determination of liability.

CAMDEN, N.J. – A Philadelphia man today admitted conspiring to distribute five kilograms or more of cocaine as part of a drug-trafficking organization operating in Philadelphia and southern New Jersey, U.S. Attorney Philip R. Sellinger announced.

Iran Soler, 43, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.

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

Soler and his conspirators traveled to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport on numerous occasions between March 2019 and August 2020. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Soler and the 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, where a conspirator, Jose Gonzalez, resold the cocaine to other drug dealers in the Philadelphia area for a profit. Soler and the other conspirators purchased and shipped over 100 kilograms of cocaine to Philadelphia and southern New Jersey between March 2019 and August 2020.  

The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million.  Soler is scheduled to be sentenced on Feb. 6, 2023.

Gonzalez previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced Jan. 30, 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; 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 the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; 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 Monmouth County, New Jersey, man today admitted his corrupt interference with the administration of the Internal Revenue laws, U.S. Attorney Philip R. Sellinger announced.

Thomas Bertoli, 65, of Matawan, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of an indictment charging him with corrupt interference with the administration of the Internal Revenue laws. 

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

Bertoli operated the following businesses: The Doormen Inc.; City Street Associates LLC aka CSA LLC; and Urban Logistics LLC (Urban Logistics). Bertoli, individually and through the Bertoli companies, obtained payments from clients for services provided, including payments from developers and construction firms for expediting services on real estate development and construction projects, primarily in Jersey City, New Jersey, and payments from political campaigns for political consulting services in New Jersey. Expediting in the construction industry typically refers to facilitating the acquisition of building permits and other government agency approvals required for the completion of real estate development and construction projects. 

On June 5, 2014, Bertoli was interviewed by an IRS collections officer at Bertoli’s residence. Bertoli had not filed tax returns for calendar years 2009 to 2013, despite earning income during that period and owing a total of $195,889 in taxes for those calendar years. At that time, Bertoli was earning income principally from his operation of Urban Logistics, a company which he owned and for which he was the sole employee. Bertoli falsely claimed, however, that he was employed as a construction worker at a construction company to conceal the existence of Urban Logistics and the income that he earned from his operation of Urban Logistics.

After the June 2014 interview until November 2015, Bertoli was aware of certain actions taken by the IRS to collect taxes that he owed, including applying levies and requiring that he make an estimated tax payment for calendar 2014. In communications with the IRS during this period, Bertoli continued to purposefully conceal the existence of Urban Logistics and that he was earning substantial income from his operation of Urban Logistics. Bertoli admitted that, by his concealment of the existence of Urban Logistics from the IRS, he acted knowingly and corruptly, that is, with the purpose to obtain an unlawful benefit for himself by obstructing and impeding the collections activity of the IRS.

The charge of corrupt interference with the administration of the Internal Revenue laws carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. If accepted by the court at the time of sentencing, the parties’ plea agreement provides that Bertoli will be sentenced to up to 18 months in prison and make full restitution of $1.17 million to the IRS for unpaid taxes for calendar years 2009 to 2016. Sentencing is scheduled for Feb. 7, 2023.

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

The government is represented by Assistant U.S. Attorney Jihee G. Suh, Deputy Chief of the Special Prosecutions Division, and Assistant U.S. Attorney J Fortier Imbert of the Special Prosecutions Division.

CAMDEN, N.J. – A former medical assistant was sentenced today to 24 months in prison for defrauding New Jersey state and local health benefits programs and other insurers of more than $1 million by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

Aaron Jones, 28, of Willingboro, New Jersey, pleaded guilty before Judge Robert B. Kugler on March 10, 2022, to one count of conspiracy to commit health care fraud. Judge Kugler imposed the sentence today in Camden federal court.

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

Jones was previously employed by a medical practice in Stratford, New Jersey, that was owned by Dr. Michael Goldis. Jones was paid by a pharmaceutical sales representative, Richard Zappala, to identify patients at the medical practice who had insurance plans that would cover the compound prescription medications. Jones forged the signature of Goldis on numerous compound medication prescriptions, including on prescriptions for individuals who were not Goldis’ patients. Jones also arranged for Goldis to sign prescriptions for the compound medications, regardless of whether or not the individuals receiving the prescriptions had a medical necessity for them.  Jones received approximately $10,000 in cash for his role in the scheme.

Goldis pleaded guilty in June 2020 to four counts of making false statements relating to health care matters; Zappala pleaded guilty in September 2017 to conspiracy to commit health care fraud. Both await sentencing.

In addition to the prison term, Judge Kugler sentenced Jones to three years of supervised release and ordered him to pay $1.04 million in restitution.

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. Attorney Christina O. Hud of the Criminal Division and R. David Walk, Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit.

NEWARK, N.J. – The chief engineer of a towing vessel today admitted his role in negligently discharging marine diesel fuel oil into the Kill Van Kull, U.S. Attorney Philip R. Sellinger announced.

Michael Brown, 67, of Kingston, Tennessee, pleaded guilty before U.S. Magistrate Judge Leda D. Wettre to an information charging him with violating the Clean Water Act by negligently discharging marine diesel fuel oil while refueling his towing vessel at the International Matex Tank Terminal’s Mobil Pier in Bayonne, New Jersey.

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

On Sept. 12, 2016, Brown failed to exercise due care in conducting the transfer of fuel oil to the towing vessel, resulting in the discharge of hundreds of gallons of fuel oil into the Kill Van Kull. Brown also admitted that, in response to questions by the U.S. Coast Guard, he failed to disclose that the origin of the spill was the towing vessel.

The Clean Water Act, as amended by the Oil Pollution Act of 1990, makes it a crime for a person to negligently discharge oil into or upon the navigable waters of the United States in such quantities as may be harmful. The Kill Van Kull, a tidal straight that connects Newark Bay with Upper New York Bay, is a navigable water of the United States.

Brown has agreed, as part of his plea agreement, to pay a fine of $4,000 to the Oil Spill Liability Trust Fund.

The charge to which Brown pleaded guilty carries a maximum penalty of one year imprisonment and a maximum fine equal to the greatest of $100,000 or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for Feb. 7, 2023.

U.S. Attorney Sellinger credited special agents of the U.S. Coast Guard Investigative Service under the direction of Assistant Special Agent in Charge Damon Youmans with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Kathleen P. O'Leary of the U.S. Attorney’s Office Economic Crimes Unit.

CAMDEN, N.J. – Atlantic County man today admitted his role in a heroin distribution scheme, U.S. Attorney Philip R. Sellinger announced.

Christopher Gonzalez, 38, of Egg Harbor Township, pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute over one kilogram of heroin and possession with intent to distribute over one kilogram of heroin.

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

On July 12, 2021, a search warrant was executed at codefendant Ricardo Clavijo’s residence, where law enforcement authorities encountered Clavijo and Christopher Gonzalez, Clavijo’s brother. Authorities found 4.3 kilograms of heroin, 5.5 kilograms of fentanyl, 10.8 kilograms of cocaine, drug packaging materials and equipment, and a money counting machine. Some of the heroin was already packaged in tens of thousands of individual doses, ready for street-level distribution.

The counts to which Gonzalez pleaded guilty both carry a mandatory minimum term of 10 years in prison, a maximum term of life in prison, and a maximum fine of $10 million, or twice the gross gain or loss caused by the offense. Sentencing is scheduled for Feb. 9, 2023. 

Ricardo Clavijo has already pleaded guilty for his role in the conspiracy.

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration, Newark Division, DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office and the Egg Harbor Township Police Department for their assistance.

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

NEWARK, N.J. – A former associate director of a global maritime service group was sentenced today to 27 months in prison for embezzling hundreds of thousands of dollars from the company and failing to pay over hundreds of thousands in federal payroll taxes, U.S. Attorney Philip R. Sellinger announced.

David Buckingham, 38, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of wire fraud and one count of failure to collect, account for, and pay over federal payroll taxes. Judge Hayden imposed the sentence today in Newark federal court. 

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

Buckingham held the title of associate director and head of the New York office of a global maritime service group headquartered in London, England. From 2016 through 2018, Buckingham used his position and access to the company’s bank accounts to embezzle hundreds of thousands of dollars by writing checks to himself or to “cash.” Buckingham falsified the company’s books and records in an effort to make the payments appear to be legitimate business expenses and to cover up his fraud. From February 2016 to October 2018, Buckingham also willfully failed to account for and pay over to the IRS payroll taxes for the employees of the company in the amount of $277,051.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, and 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 sentencing.

In addition to the prison term, Judge Hayden sentenced Buckingham to three years of supervised release and ordered him to pay restitution in the amount of $356,725 and forfeiture in the amount of $356,725.

The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.

Defense counsel: Emily Sherman Esq., Assistant Federal Public Defender, Newark

NEWARK, N.J. – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.

“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” Attorney General Merrick B. Garland said. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”

“Preying on our older citizens, who are often vulnerable to these types of fraud scams, is something our office takes especially seriously,” U.S. Attorney Sellinger said. “As scammers continue to concoct new ways to try and trick our parents and grandparents out of their money, we will be there with our law enforcement partners to stop them, and to always try to return stolen funds to the victims.” 

From September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.

This past year, the District of New Jersey brought charges against multiple defendants for devising and carrying out fraudulent schemes that specifically targeted elderly victims. This included seven leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” and an eighth man who conspired with a Black Axe leader, all of whom were charged with multiple federal crimes relating to internet-based romance scams and advance fee schemes they perpetrated from South Africa. The District also obtained guilty pleas from multiple defendants whose lottery sweepstakes scams and romance scams had targeted elderly victims in New Jersey.

As part of the District of New Jersey’s elder fraud efforts, the Office engages in outreach to raise awareness about scams and exploitation and preventing victimization. This year, these outreach efforts included a presentation to seniors at the Springfield, New Jersey community center on April 28, 2022, entitled “Identity Theft & Fraud Prevention,” in cooperation with representatives from the Union County Prosecutor’s Office and the Springfield, New Jersey, Police Department.

The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims, and efforts to combat grandparent scams. 

The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.

In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.

Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.

Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

CAMDEN, N.J. – A Philadelphia man was sentenced today to 36 months of probation for his role in a GoFundMe scam that gained nationwide attention, U.S. Attorney Philip R. Sellinger announced.

Johnny Bobbitt, 39, previously pleaded guilty to an information charging him with one count of conspiracy to commit money laundering. U.S. District Judge Noel L. Hillman imposed the sentence today in Camden federal court.

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

In November 2017, Katelyn McClure, 32, and Mark D’Amico, 43, both of Bordentown, New Jersey, allegedly created a crowd-source funding page on GoFundMe’s website titled “Paying It Forward.” The campaign solicited donations from the public purportedly for the benefit of Bobbitt, a homeless veteran. McClure and D’Amico posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a “good Samaritan” and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited to get Bobbitt off the streets and provide him with living expenses, setting a goal of $10,000. 

In reality, McClure never ran out of gas and Bobbitt never spent his last $20 for her.  D’Amico and McClure allegedly conspired to create the false story to obtain money from donors. The story was quickly picked up by local and national media outlets, went viral and raised approximately $400,000 from more than 14,000 donors in less than three weeks. 

The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money allegedly was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts on D’Amico’s gambling, vacations, a BMW automobile, clothing, expensive handbags and other personal items and expenses.

In mid-November of 2017, when the donations had reached approximately $1,500, D’Amico and McClure told Bobbitt about the campaign and the false gas story. In December of 2017, after setting up a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.

In addition the probationary term, Judge Hillman ordered Bobbitt to pay $25,000 in restitution. McClure and D’Amico previously pleaded guilty to their roles in the scheme. D’Amico was sentenced in April 2022 to 27 months in prison; McClure was sentenced in July 2022 to one year and one day in prison.

U.S. Attorney Sellinger credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and officers of the Florence Township Police Department with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A medical sales representative was sentenced today to 168 months in prison for defrauding federal, state, and private health insurance plans out of more than $4.6 million, Attorney for the United States Vikas Khanna announced.

Steven Monaco, 40, of Sewell, New Jersey, was convicted in April 2022 of one count of conspiracy to commit health care fraud and wire fraud, eight counts of health care fraud, eight counts of wire fraud, and one count of conspiracy to violate the Anti-Kickback Statute and the Travel Act, following a nine-day trial before U.S. District Judge Robert B. Kugler, who imposed the sentence today in Camden federal court. 

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

Monaco was a leader of two related fraud schemes that resulted in millions of dollars of loss to public health insurance plans. In the first scheme, Monaco, as a sales representative for a medical diagnostic laboratory, orchestrated a kickback scheme with a doctor, Daniel Oswari.  Monaco arranged for Oswari’s medical assistant to be placed on the payroll of the laboratory while continuing to work as a medical assistant for Oswari’s practice. In exchange, Oswari referred all his lab work to the laboratory for testing between late 2013 and 2016, and Monaco received $36,000 in commissions from the laboratory.

In the second fraud scheme, Monaco and his conspirator, pharmaceutical sales representative Richard Zappala, discovered that certain insurance plans – including New Jersey state and local government plans – paid for very expensive compounded prescription medications between 2014 and 2016. Monaco and Zappala organized a scheme in which they received a percentage of the insurance reimbursement for compounded medication prescriptions that they arranged. Monaco and Zappala approached medical professionals and paid them to sign medically unnecessary prescriptions for the compounded medications. Monaco paid Oswari and his staff to identify and prescribe the compound medications to patients of Oswari’s practice with the requisite insurance plans, as well as other people that Oswari did not medically evaluate.  Monaco also arranged for other medical professionals – including Dr. Michael Goldis and his cousin, physician’s assistant Jason Chacker – to sign medically unnecessary prescriptions for members of Monaco’s family and others whom these medical professionals did not examine.  Monaco directly compensated Chacker with money and tickets to sporting events, and Zappala paid Goldis cash to sign the medically unnecessary prescriptions for members of Monaco’s family and others. Monaco also directly paid individuals who had coverage under the public insurance plans and agreed to receive prescriptions for the compounded medications. As a result of this scheme, Monaco received approximately $350,000 and caused a loss of over $4.6 million to the insurance plans.

Oswari, Zappala, Goldis and Chacker all have previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.

In addition to the prison term, Judge Kugler sentenced Monaco to three years of supervised release and ordered him to pay $4.69 million in restitution.

Attorney for the United States Vikas 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 L. 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. Attorney Christina O. Hud of the Criminal Division and R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit.

NEWARK, N.J. – The Justice Department announced an agreement today with a former Bergen County, New Jersey, man to resolve a federal lawsuit for his alleged violations of the Freedom of Access to Clinic Entrances (FACE) Act. The FACE Act protects the right to access and provide reproductive health services, including abortion.

The FACE Act prohibits anyone from using force, threats of force or physical obstruction against any person seeking or providing reproductive health services. The complaint filed against Daniel Courney, 38, formerly of Bergenfield, New Jersey, alleges that he violated the FACE Act on two occasions in October 2021. In both instances, according to the complaint, Courney used physical force against a patient escort at a health clinic in Englewood, New Jersey, to attempt to prevent the volunteer from assisting individuals seeking the clinic’s services. 

The proposed consent decree, which still must be approved by the U.S. District Court for the District of New Jersey, orders Courney to stay away from the clinic permanently, prohibits future FACE Act violations and requires Courney to pay a monetary penalty. 

“Access to reproductive healthcare is a fundamental right,” U.S. Attorney Philip R. Sellinger for the District of New Jersey said. “Individuals must be able to access facilities like the Englewood clinic to make decisions about their own bodies, health and futures, in consultation with health care providers. Those providers are entitled to offer services free from the threat of violence against them. Our office remains committed to the enforcement of the FACE Act throughout the District of New Jersey to protect these important rights. We encourage anyone with information about potential FACE Act violations to contact our office.” 

“Reproductive health care providers must be free to carry out their work free from interference or intimidation,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “The Justice Department is committed to enforcing federal law to protect providers and all people seeking access to reproductive health care across our nation.” 

The Justice Department is committed to the protection of reproductive rights and recently announced the formation of its Reproductive Rights Task Force to protect those rights nationwide.

Anyone in imminent danger should call 911 or local police. Contact your local FBI field office by calling 1-800-CALL-FBI (or 1-800-225-5324) or via tips.fbi.gov.

Anyone in the District of New Jersey may report potential FACE Act violations or other threats to reproductive freedom by calling the Civil Rights Hotline, 855-281-3339, or by submitting an online complaint here.

Senior Civil Rights Counsel R. Joseph Gribko and Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division are prosecuting the case.

NEWARK, N.J. – A Passaic County, New Jersey, man made his initial court appearance today on charges of possessing a machinegun and being a felon in possession of a weapon, U.S. Attorney Philip R. Sellinger announced.

Edward Austeri, 37, of Bloomingdale, New Jersey, was arrested by local authorities on April 26, 2022, and charged with state offenses. He is now charged by federal criminal complaint with one count of being a convicted felon in possession of ammunition and one count of possession of a machinegun. Austeri appeared today by videoconference before U.S. Magistrate Judge Leda Dunn Wettre, and was detained without bail.

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

On April 22, 2022, law enforcement officers responded to a 911 call reporting a domestic violence incident at a residence in Bloomingdale. The reporting male party advised that he was threatened with an AK-47 by a female family member, later identified as Austeri’s girlfriend, who was staying in his home with Austeri. Upon their arrival, law enforcement officers were directed by the homeowner to a long black firearm, later determined to be a fully automatic, AK-47 style, privately manufactured firearm with no serial number and an attached large capacity magazine containing 37 rounds of 7.62 x 39mm ammunition. Officers also recovered an additional privately manufactured firearm as well as several firearm magazines and assorted ammunition belonging to Austeri. Austeri shipped the firearms to himself from a previous address in Oregon to the residence in Bloomingdale. 

The felon in possession of ammunition and possession of a machinegun charges each carry a maximum penalty of 10 years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Bloomingdale Police Department, under the direction of Chief Joseph Borell; and detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to the charges.

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

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

CAMDEN, N.J. – A manager for a drug trafficking organization that purchased over 100 kilograms of cocaine in Puerto Rico and shipped the kilograms to residences in Philadelphia, Pennsylvania, and southern New Jersey today admitted his role in the conspiracy, U.S. Attorney Philip R. Sellinger announced.

Jose Gonzalez, 50, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.

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

From March 2019 to August 2020, Gonzalez and other conspirators traveled on commercial flights from Philadelphia International Airport to San Juan, Puerto Rico, on numerous occasions. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Gonzalez and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to addresses in Philadelphia and southern New Jersey. Gonzalez resold the kilograms to other drug dealers in the Philadelphia area for a profit. Gonzalez admitted that he had a management role in the conspiracy, and that he and the other conspirators purchased and shipped over 100 kilograms of cocaine.

When Gonzalez was arrested in August 2020, agents seized over $120,000 in cash during a search of his residence in Philadelphia and a 9mm handgun from an auto garage that Gonzalez operated in Philadelphia. As part of his plea agreement, Gonzalez agreed to the forfeiture of the U.S. currency and the 9mm handgun, as well as the forfeiture of a Dodge Ram pickup truck that was used in connection with the drug trafficking conspiracy.

The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for Jan. 30, 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; 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 the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; 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.

To view press conference, click here.

 

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and Justice Department announced today an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s Combatting Redlining Initiative and represents the third-largest redlining settlement in department history.

“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” Attorney General Merrick B. Garland said.  “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”

“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” U.S. Attorney Philip R. Sellinger said. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combatting redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”

“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said.  “This settlement demonstrates our firm commitment to combatting modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”

“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. The complaint filed in federal court today alleges that, from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark metropolitan area, that all its branches were located in majority-white neighborhoods, and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.

Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:

• Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
• Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
• Maintain an expanded Community Reinvestment Act Assessment Area that includes  Essex, Somerset and Union counties.

Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.

In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its  partners in state attorneys general offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company—the second largest settlement in Justice Department history.

Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online. Individuals may also report civil rights violations through the https://www.justice.gov/usao-nj/civil-rights-enforcement or may call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Civil Rights Division, Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division, and Trial Attorney Jennifer Slagle Peck, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.

NEWARK, N.J. – Newark Housing Authority (NHA)’s former director of information technology was sentenced today to 24 months in prison for using his position to embezzle NHA funds to purchase cellular telephones and other electronic devices, U.S. Attorney Philip R. Sellinger announced.

Venancio Diaz, 57, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with committing theft from an agency receiving federal funds. Judge Martinotti imposed sentence today by videoconference.

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

From December 2013 to Aug. 10, 2021, Diaz bought, on behalf of NHA and using NHA funds, 1,509 electronic devices, primarily cellular telephones and tablets, from a telecommunications company. Diaz then caused those devices to be activated on NHA’s account on the company’s network for a short period of time – often only days or weeks. After the brief period of activation ended, Diaz posed as the owner of the devices and sold them to two different online electronics resale marketplaces. Diaz directed all the proceeds of the sales – a total of $594,425 – to his own bank accounts and kept the money for his own personal use.

In addition to the prison term, Judge Martinotti sentenced Diaz to three years of supervised release and ordered him to pay $594,425 in restitution to the NHA. Diaz also previously consented to a $594,425 money judgment, forfeiting the monies he obtained as a result of his illegal scheme, and also agreed to forfeit electronic devices belonging to NHA that were seized by law enforcement or otherwise in his possession, including 27 cellular telephones. 

U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the IRS-Criminal Investigations for its assistance.

The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.

CAMDEN, N.J. – A Philadelphia man today admitted serving as the get-away driver to two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018, while brandishing a firearm, U.S. Attorney Philip R. Sellinger announced.

Kenneth S. Thompson, 43, of Philadelphia, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with bank robbery. 

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

Thompson admitted that on July 30, 2018, he and co-defendants Antwaine Thomas and Kareem Moore drove from Philadelphia to Salem County. They agreed that Thomas and Moore would rob the Fulton Bank in Carneys Point and that Thompson would assist them in escaping with the stolen proceeds by serving as the get-away driver. Thomas and Moore walked into the bank and demanded cash from numerous bank employees while pointing a loaded handgun at them. Thomas and Moore took the cash from the bank and fled. In the meantime, Thompson drove past the bank multiple times in an effort to abscond with his confederates, but was thwarted when responding officers arrived at the bank within minutes of the robbery. Thompson fled in the get-away car.

The count of bank robbery to which Thompson pleaded guilty is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 1, 2023.

Thomas and Moore previously pleaded guilty to armed bank robbery and brandishing a firearm during a bank robbery, and on May 11, 2021, Judge Rodriguez sentenced them to 272 months’ imprisonment and 168 months’ imprisonment, respectively.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Salem County Prosecutor’s Office, under the direction of Salem County Prosecutor Kristin J. Telsey; officers of the Carneys Point Police Department, under the direction of Chief Dale VanNamee; and officers of the Penns Grove Police Department, under the direction of Police Director Richard Rivera, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A Boston, Massachusetts, company entered into a settlement agreement with the United States to resolve allegations that it caused improper claims for payment to be made to the U.S. Department of Health & Human Services, Centers for Medicare and Medicaid Services (CMS), U.S. Attorney Philip R. Sellinger announced today.

The investigation of Public Consulting Group LLC (PCG) was initiated through the filing of a complaint under the whistleblower provision of the False Claims Act. That complaint, which was unsealed on Sept. 26, 2022, alleged that PCG was hired by the state of New Jersey in 2005 to administer New Jersey’s “Special Education Medicaid Initiative,” or SEMI program. Under the SEMI program, the state of New Jersey and local school districts could obtain federal funding for providing eligible medical services to Medicaid-eligible students. The complaint alleged that PCG caused local school districts to submit claims to CMS for evaluation services that PCG knew or should have known were not covered by Medicaid. 

The settlement agreement resolves common law claims by the United States against PCG for payment by mistake, arising from evaluation service claims submitted by or for New Jersey school districts under the SEMI program from April 23, 2006, through the date of settlement. PCG will pay $2.5 million to the United States. Once PCG makes the payment, the case will be dismissed. The relator, or whistleblower, who originally filed suit on behalf of the United States, will receive 21 percent of the settlement amount recovered by the United States. 

U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG) Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Scott J. Lampert, and auditors working with HHS-OIG Office of Audit Services, under the direction of Regional Inspector General for Audit Services Brenda M. Tierney, with the investigation leading to the settlement.

The civil settlement agreement, by its terms, is neither an admission of liability by PCG nor a concession by the United States that its claims are not well founded.

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

The qui tam case is captioned United States ex rel. Shane Shackford v. Public Consulting Group, Inc., et al., Civil Action No. 12-2437.

NEWARK, N.J. – An indictment unsealed today charges three men with orchestrating a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced.

James Patten, 63, of Winston-Salem, North Carolina; Peter Coker Sr., 80, of Chapel Hill, North Carolina; and Peter Coker Jr., 53, of Hong Kong, China, are each charged in a 12-count indictment with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. Patten is also charged with four counts of manipulation of securities, four counts of wire fraud, and one count of money laundering.

Patten and Coker Sr. were arrested today and are scheduled to appear before U.S. Magistrate Judge L. Patrick Auld in federal court in the Middle District of North Carolina. They will appear in court in the District of New Jersey at a date to be determined. Coker Jr. remains at large.

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

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

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

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

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

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

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

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

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

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

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

U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation. He also thanked special agents from FBI Charlotte, FBI Los Angeles, FBI San Francisco, FBI Denver, and FBI Knoxville, for their assistance.

The government is represented by Assistant U.S. Attorneys Lauren E. Repole, Chief of the General Crimes Unit, and Shawn P. Barnes, of the Economic Crimes Unit.

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

NEWARK, N.J. – A Somerset County, New Jersey, woman today admitted fraudulently obtaining over $1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.

Nivah Garcis, 51, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging her with one count of conspiracy to commit bank fraud, three counts of wire fraud, and one count of money laundering.

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

Garcis conspired with at least one individual to submit two fraudulent PPP loan applications to a lender on behalf of two purported businesses that she controlled, and further submitted three fraudulent EIDL loan applications to the U.S. Small Business Administration (SBA) on behalf of these businesses and another business that she owned. She then engaged in financial transactions with the loan proceeds, including for the purchase of property.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The applications Garcis submitted each contained fraudulent representations to the lender, a Federal Home Loan Bank member, and the SBA, including bogus federal tax documents purportedly from the IRS. Garcis also fabricated the existence of employees and wages paid through the purported businesses. According to IRS records, however, none of the purported tax documents that Garcis submitted in support of her loan applications were ever in fact filed with the IRS. Based on Garcis’ misrepresentations, her loan applications for her purported businesses were approved for approximately $1.05 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Garcis then used the proceeds to purchase property and for various personal expenses.

The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The counts of wire fraud each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000. The count of money laundering carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for Jan. 31, 2023.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L Tomlins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard. W. Reinhold, in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Katherine M. Romano and David E. Dauenheimer of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.

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

CAMDEN, N.J. – A Camden County, New Jersey, man with four prior felony convictions was sentenced to 130 months in prison for possessing with intent to distribute fentanyl and to illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.

Tyquan Burrell, 30, of Camden, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with possession with intent to distribute more than 400 grams of fentanyl and illegal possession of a firearm by a convicted felon. Judge Kugler imposed the sentence on Sept. 22, 2022, in Camden federal court.

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

On Oct. 1, 2020, law enforcement officers executing a search warrant at Burrell’s residence found 2,521 wax folds and three sandwich-sized clear plastic bags containing more than 300 grams of fentanyl, approximately $34,000 in U.S. currency, and a loaded handgun in a bedroom used by Burrell. That same day, Burrell was arrested in Camden County, New Jersey. A search incident to arrest found him to be in possession of 418 wax folds containing fentanyl.

In addition to the prison term, Judge Kugler sentenced Burrell to five years of supervised release.

This prosecution is part of the Violent Crime Initiative (VCI) in Camden. The Camden VCI was formed in January of 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Camden County Prosecutor’s Office, and the Camden County Police Department for purpose of combatting violent crime in and around the Camden area. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to investigate and prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the Camden County Prosecutor’s Office, the Camden County Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the U.S. Marshals, The U.S. Probation Office, the Camden County Sheriff’s Office, the New Jersey State Parole Board, the New Jersey State Police, the Rutgers University Police Department, and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Gloucester Township Police Department, under the direction of Chief David J. Harkins; the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and the Winslow Township Police Department under Chief George M. Smith, with the investigation leading to today’s sentencing. He also thanked the Camden County Sherriff’s Office, under the direction of Sherriff Gilbert L. “Whip” Wilson; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan, for their assistance with the case.

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

Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden