District of New Jersey

NEWARK, N.J. – A Nevada woman will make her initial court appearance today for allegedly falsifying records in connection with criminal charges she is currently facing in the District of New Jersey, U.S. Attorney Philip R. Sellinger announced.

Anna Kline, aka “Jordana Weber,” is charged by complaint with one count of falsifying records in a federal investigation. She was arrested Aug. 10, 2022, and is scheduled to appear today before U.S. Magistrate Judge Craig Denney in the District of Nevada.

According to the complaint:

On July 31, 2019, Kline and a conspirator, Jason Torres, were charged by criminal complaint in the District of New Jersey for their roles in a $7 million fraudulent advance fee scheme orchestrated by Kline between April 2017 and July 2019.

While out on bail on this charge, 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 showing 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 revealed that it had been falsified. Kline also 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.” The investigation revealed that “Andrews” did not exist, but was actually an alter-ego of Kline’s that she used to deceive the California family court, her attorney, and a forensic expert.

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 obstruction charge carries 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 charge. 

The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s 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 Middlesex County, New Jersey, company has entered into a settlement agreement with the United States to resolve allegations that it made false statements to avoid paying customs duties, U.S. Attorney Philip R. Sellinger announced today.

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

Eos Energy Storage LLC (Eos) is a publicly traded company headquartered in Edison, New Jersey, that designs and sells industrial batteries to power companies and other commercial enterprises. From July 8, 2018, to June 7, 2019, Eos purchased components for its batteries from third parties in the United States and elsewhere, and then provided those components to a foreign manufacturer to be included in the assembly of batteries that Eos imported into the United States. Once the batteries were assembled, Eos imported them into the United States.

When Eos imported the assembled batteries into the United States, the company should have declared to U.S. Customs the value of the components that it provided to the foreign manufacturer. Eos failed to declare the value of those components to U.S. Customs. Eos also failed to declare transportation and packing costs that should have been declared. In the settlement agreement, Eos admitted that as the importer of record, it was obligated to declare the value of the components, as well as the transportation and packing costs, but failed to do so on more than 60 occasions. Under the settlement agreement, Eos will pay $1.02 million to the United States pursuant to the False Claims Act.

The settlement with Eos resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Vincent Icolari, will receive 20 percent of the settlement amount recovered by the United States pursuant to the False Claims Act. 

U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and U.S. Customs and Border Protection, Office of Field Operations under the direction of Director Francis Russo in New York, with the investigation leading to the settlement.

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

The qui tam case is captioned United States ex rel. Icolari v. Eos Energy Storage, LLC, Civil Case No. 19-22129 (MCA) (LDW).

NEWARK, N.J. – Four New Jersey men were charged for their alleged roles in drug trafficking and money laundering conspiracies, U.S. Attorney Philip R. Sellinger announced today.

William Panzera, 49, of North Haledon, New Jersey; Thomas Padovano, 48, and Bartholomew Padovano, 71, both of Newark; and Sean Tighe, 46, of Kearny, New Jersey, are each charged in a second superseding indictment with one count of drug trafficking conspiracy and one count of international promotional money laundering conspiracy. Thomas and Bartholomew Padovano are also charged with domestic concealment money laundering conspiracy.

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

Since at least 2014, the defendants and others imported and distributed various controlled substances and controlled substance analogues, including ketamine, ethylone, multiple fentanyl analogues, and synthetic cathinones, also known as “bath salts.” The drug trafficking organization members ordered the drugs from sources in China. They stored and distributed the controlled substances from a trailer on Delancey Street in Newark. They also procured one or more pill presses and pressed the fentanyl analogues into small blue pills that were designed to resemble a commercial opioid pill and were marketed as such. These pills contained various amounts of fentanyl analogues and resulted in at least three overdoses between 2016 and 2020.

The defendants allegedly paid for the drugs they imported by sending, or recruiting others to send, international wire payments to the Chinese sources of supply.

To conceal and disguise the nature and source of the illicit narcotics proceeds, Thomas and Bartholomew Padovano made numerous cash deposits into various personal and business accounts. Both the international wire payments, as well as the cash deposits, were structured in a manner to avoid suspicion.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security – Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Jason J. Molina; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to the charges. He also thanked the HSI in Philadelphia, the FBI – Newark Division, IRS-Criminal Investigation, the Newark Police Department, and the Essex County Prosecutor’s Office for their assistance.

The government is represented by Assistant U.S. Attorney Sammi Malek of the Criminal Division in Newark and Trial Attorneys Stephen Sola and Michael Khoo of the Justice Department’s Money Laundering and Asset Recovery Section.

This case was investigated under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced to 60 months in prison for setting off a homemade bomb at a fitness center, U.S. Attorney Philip Sellinger announced today.

Dwayne Vandergrift, 40, of Gloucester City, New Jersey, previously pleaded guilty before U.S. District Judge Karen Williams in Camden federal court to an information charging him with one count of malicious use of explosive materials. Judge Williams imposed the sentence on Aug. 10, 2022, in Camden federal court.

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

In the early morning hours of Aug. 28, 2020, Vandergrift deployed a homemade explosive device at a Gloucester City fitness center. The bomb damaged the gym’s door and entryway. The gym had not yet opened for the day, and no one was inside. Law enforcement officers later searched Vandergrift’s home and located additional materials for building explosive devices and firearms. 

In addition to the prison term, Judge Williams sentenced Vandergrift to three years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, South Jersey Resident Agency, Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, with the investigation leading to the sentencing. He also thanked the New Jersey Office of Homeland Security and Preparedness, the Gloucester City Police Department, the New Jersey State Police, the Camden County Sheriff’s Office, Camden County Prosecutor’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Homeland Security, Homeland Security Investigations, for their assistance.

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

NEWARK, N.J. – A Brooklyn, New York, man was arrested today for allegedly entering a laboratory business on false pretenses and destroying and stealing that business’ equipment, U.S. Attorney Philip R. Sellinger announced.

Eric Leykin, 31, of Brooklyn, New York, is charged by complaint with one count of wire fraud and one count of accessing a protected computer without authorization and recklessly causing damage.  He appeared by videoconference today before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was released on $1 million unsecured bond.

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

Leykin was the CEO of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey.  On June 30, 2022, Leykin bought a prepaid mobile phone and called an employee of the victim business, claiming to be a technician with a vendor that the victim business used to service its laboratory equipment. On that false pretense, Leykin scheduled an appointment with the victim business’ employee to supposedly service some of the victim business’ laboratory equipment. On July 1, 2022, the date of the supposed service appointment, Leykin went to the victim business and proceeded to destroy a significant amount of the victim business’ laboratory and computer equipment, in at least one instance doing so with a USB kill stick device. Leykin also stole multiple hard drives housed within the victim business’ equipment.

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

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

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man was charged with conspiring to possess with intent to distribute heroin, U.S. Attorney Philip R. Sellinger announced today.

Esmelby Estevez-Castillo, 35, of Ridgefield Park, New Jersey, was arraigned on Aug. 10, 2022, before U.S. Magistrate Judge Michael A. Hammer and pleaded not guilty. Estevez-Castillo was indicted on Aug. 2, 2022, on one count of conspiracy to distribute heroin and one count of possessing with intent to distribute at least 100 grams of heroin.

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

From March 2019 through Dec. 3, 2020, Estevez-Castillo conspired with others to distribute, and did distribute, at least 100 grams of heroin.

The count of conspiracy to distribute 100 grams or more of heroin carries a minimum sentence of five years in prison, a maximum of 40 years in prison, and a maximum fine of $5 million. The charge of distributing and possessing with intent to distribute at least 100 grams of heroin carries a statutory mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon E. Wood, Philadelphia Division, with the investigation leading to the charges.

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

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

NEWARK, N.J. – A New York company was sentenced today to one year of probation  and fined $314,165 for its role in price gouging a chain of New Jersey grocery stores in connection with the sale of KN95 masks during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.

Milk & Honey Ventures LLC (MHV), based in Brooklyn, New York, previously pleaded guilty by videoconference before U.S. Magistrate Judge Jessica S. Allen to an information charging it with price gouging in violation of the Defense Production Act.

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

In March 2020, MHV and two partners purchased 250,000 KN95 filtering facepiece respirators from a foreign manufacturer. MHV and one of those partners then sold 100,000 masks to a chain of New Jersey grocery stores at prices in excess of prevailing market prices. MHV sold the masks at a price of $5.25 per mask, which amounted to a markup of more than 400 percent from its acquisition cost. Prior to the spread of COVID-19, MHV had no history of selling personal protective equipment. 

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 Ricky J. Patel in New York, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney David V. Simunovich of the Government Fraud Unit in Newark and Nicholas P. Grippo, Chief of the Criminal Division in Newark.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit: https://www.justice.gov/coronavirus.

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 (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

NEWARK, N.J. – Two Florida men were charged with conspiring to launder money taken from victims across the United States, many of whom were elderly, as a part of a series of  romance scams and other internet fraud, U.S. Attorney Philip R. Sellinger announced today.

Marlin Perra, 63, of Lake Panasoffkee, Florida, and Leslie Lallande, 65, of Pompano Beach, Florida, were both arrested in Florida and are charged by complaint with one count of money laundering conspiracy. Both defendants are expected to have their initial appearances in the District of New Jersey at a date to be determined.

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

Perra and Lallande laundered the proceeds of romance scams and other fraud scams through trade-based money laundering. Perra and Lallande tried to conceal the fraudulent proceeds stolen from romance scam victims by claiming that entities they controlled were in the business of buying and shipping used cars. Lallande and his conspirators prepared and executed fraudulent agreements that purported to be signed by victims agreeing to invest in Lallande’s alleged automobile business. In fact, these agreements were phony cover stories designed to paper over their receipt and movement of the romance scam proceeds.

The money laundering conspiracy charge has a maximum penalty of 20 years in prison and a fine of $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, Special Agent in Charge Gregory D. Nelsen in Cleveland, Ohio, and Special Agent in Charge Joseph E. Carrico in Knoxville, Tennessee, with the investigation leading to the arrests. He also thanked special agents of the FBI in Miami, Florida, for their assistance.

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

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

NEWARK, N.J. – A co-owner of multiple businesses today admitted to his role failing to pay over $1 million in payroll taxes for his companies, U.S. Attorney Philip R. Sellinger announced.

Omar Mostafa, 57, of New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.

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

From 2016 through 2018, Mostafa co-owned three companies that operated in New Jersey and New York and was responsible for signing and causing to be filed the companies’ tax returns with the IRS. During those tax years, Mostafa substantially underreported each company’s payroll, causing a total tax loss to the IRS of approximately $1.4 million. 

The count of failing to collect, account for, and pay employment taxes is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. Sentencing is scheduled for Dec. 12, 2022.

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

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

NEWARK, N.J. – An Indian national today admitted his role in an international conspiracy that preyed on elderly victims in New Jersey and throughout the United States, U.S. Attorney Philip R. Sellinger announced.

Ashish Bajaj, 29, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit wire fraud.

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

From April 2020 to August 2021, Bajaj and his conspirators preyed on elderly victims across the United States by impersonating fraud prevention specialists from various banks, online retailers, and online payment companies. They contacted victims and falsely claimed that they were fraud prevention specialists employed by reputable companies and that the victims’ accounts with banks, online retailers, or online payments companies were being targeted for fraud. Bajaj and his conspirators then falsely told the victims that their fraud prevention efforts required the victims’ assistance in a sting operation to catch the perpetrators.

Bajaj and the conspirators asked the elderly victims to send money from their bank accounts to accounts controlled by Bajaj and the conspirators and falsely promised to return their money within a few days of the purported sting operation. The victims were also falsely promised that once they sent the money, the sting operation would result in the arrest of the purported perpetrators. The victims sent international wire transfers to various banks located in India, China, Singapore, and the United Arab Emirates. The victims also sent money through an online application to bank accounts held by Bajaj in the United States. The victims further sent cash and cashier checks to Bajaj at an address in California. The scheme resulted in losses of over $250,000.

The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 8, 2022.

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

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

NEWARK, N.J. – A Bergen County pharmacy today admitted its role in a conspiracy to illegally distribute prescription opioids and to give kickbacks to healthcare providers, U.S. Attorney Philip R. Sellinger announced.

Dunn Meadow LLC (doing business as Dunn Meadow Pharmacy) of Fort Lee, New Jersey, pleaded guilty before U.S. District Judge Julien Neals to an information charging it with conspiring to illegally distribute prescription fentanyl and giving kickbacks to healthcare providers. Dunn Meadow also signed a civil settlement with the United States for violations of the False Claims Act and the Controlled Substances Act. 

According to documents filed in this case, statements made in court, and the terms of the civil settlement:

Dunn Meadow was a licensed retail pharmacy that sent controlled substances and other prescription medications to patients via mail throughout the United States, including highly addictive and dangerous transmucosal immediate release fentanyl (TIRF) medications. Dunn Meadow had contracts with and received payments from pharmaceutical companies that marketed and sold TIRF medications, including INSYS Pharma Inc. 

From 2015 through 2019, Dunn Meadow dispensed prescription TIRF medications and other controlled substances knowing that the prescriptions were not written for a legitimate medical purpose. Dunn Meadow knowingly filled prescriptions for controlled substances, including TIRF medications, for patients exhibiting suspicious and drug-seeking behavior, including patients that repeatedly requested early refills, paid thousands of dollars in cash for their prescriptions, or requested that prescriptions be sent to suspicious or inappropriate locations including hotels, casinos, and elementary schools. 

Despite warnings from third parties, including some of its suppliers, Dunn Meadow continued to fill prescriptions for TIRF medications and other opioids written by doctors with suspicious and problematic prescribing habits, sometimes without receiving an original prescription. After two different pharmaceutical suppliers terminated supply agreements with Dunn Meadow, Dunn Meadow submitted applications to other suppliers stating that no supplier had ever suspended, ceased, or restricted controlled substance sales to Dunn Meadow. 

Dunn Meadow also admitted that it conspired to offer kickbacks to health care providers and pharmaceutical company sales representatives in violation of the federal Anti-Kickback Statute, in the form of lunches, dinners, and happy hours to induce them to send TIRF prescriptions to Dunn Meadow. Dunn Meadow admitted that its violations of the statute caused a loss to federally funded healthcare programs of over $4.5 million. 

In addition, Dunn Meadow and its parent company, Allegheny Pharma LLC entered a civil settlement with the United States to resolve Dunn Meadow’s civil liability for violations of the False Claims Act and the Controlled Substances Act. Dunn Meadow’s criminal restitution payment will be applied to the civil resolution. Dunn Meadow has also agreed to pay up to $50 million dollars over the next five years to resolve its civil liability if it generates future revenue. 

U.S. Attorney Sellinger credited diversion investigators of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Scott J. Lampert; special agents the U.S. Department of Defense, Defense Criminal Investigative Service, New Jersey Resident Agency, under the direction of Patrick J. Hegarty; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark. 

The government is represented by Assistant U.S. Attorneys Jonathan Peck and Emma Spiro of the Criminal Division, Susan Pappy of the Civil Division, and Trial Attorney Douglas Rosenthal of the Department of Justice’s Civil Division.

CAMDEN, N.J. – A Camden man was sentenced today to 36 months in prison for conspiring to distribute and selling oxycodone pills, including high 60 and 80 mg. dose pills, U.S. Attorney Philip R. Sellinger announced.

Erick Bell, 49, of Camden, previously pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone. Judge Bumb imposed the sentence today in Camden federal court.

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

Bell admitted that on multiple occasions from January 2020 to March 2020, he worked as a middleman, connecting sellers who were diverting their own prescriptions and others with pill dealers, including Rocco DePoder of Gloucester City, New Jersey and others, to put oxycodone on the streets in and around Camden and Gloucester City. Bell admitted that on Feb. 3, 2020, he obtained 160 80 mg. oxycodone pills from a conspirator and sold DePoder 60 of the pills for $25 each and 100 of the pills to another conspirator for $24 each. Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

DePoder was sentenced by Judge Bumb on Oct. 8, 2021, to 70 months in prison for his role in the scheme.

In addition to the prison term, Judge Bumb sentenced Bell to three years of supervised release.

U.S. Attorney Sellinger credited special agents of FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; the New Jersey Office of Homeland Security and Preparedness, under the direction of Director Laurie R. Doran; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to today’s sentencing.

He also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.

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

NEWARK, N.J. – A Bronx, New York, man was sentenced today to 47 months in prison for participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, U.S. Attorney Philip R. Sellinger announced.

Reimon Genao Rosario, 25, previously pleaded guilty before U.S. District Judge Esther Salas to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentence today in Newark federal court.

Dilson Vazquez Genao, 25, Eddie Urena Rodriguez, 37, Francisco Mercedes Gil, 33, Daury Contreras Ulerio, aka “Majimbou,” 37, and Jose Antonio Vazquez Pena, aka “Tono,” 49, all of the Bronx, all have previously pleaded guilty before Judge Salas to the same charges.

One other individual – Jhan Carlos Capellan Maldonado, 33 – was indicted on the same charge as Rosario in August 2019. His case is pending.

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

In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Pena stayed at the apartment in order to safeguard the narcotics and narcotics supplies. Maldonado employed five workers at a time – including Rodriguez, Ulerio, Rosario, Gil, and Genao – to assist in preparing the heroin and fentanyl for distribution, which Maldonado then distributed to customers in New Jersey.

On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genao came out of the building and met with Maldonado, who got out of his vehicle and gave Genao the plastic shopping bags. Law enforcement officers later learned that the plastic shopping bags contained materials to package heroin and fentanyl.

Genao went back inside the building and was followed by law enforcement officers, who watched as Genao entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement officers searched Maldonado’s apartment and found seven individuals inside, including Rodriguez, Ulerio, Rosario, Gil, Maldonado, Pena, and Genao. All seven defendants attempted to escape out a window, and all but one –Rosario – were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement officers recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.

U.S. Attorney Sellinger credited the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jason S. Gould, Chief of the Health Care Fraud Unit in Newark.

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

NEWARK, N.J. – A Monmouth County, New Jersey, company will pay $7.6 million under a consent judgement for its role in making false statements to obtain government contracts that were set aside for businesses owned and controlled by service-disabled veterans, U.S. Attorney Philip R. Sellinger announced today.

As alleged in the government’s complaint:

VE Source LLC, based in Shrewsbury, New Jersey; the company’s owners, Sherman Barton and Christopher Neary; and a related entity, Vertical Source LLC, defrauded the federal government by falsely claiming that VE Source was eligible for government contracts that were set aside for companies owned and controlled by service-disabled veterans. VE Source obtained contracts from the U.S. Department of Agriculture (USDA) and the Defense Logistics Agency (DLA), a component of the U.S. Department of Defense, totaling more than $16.5 million. By obtaining contracts for which they were ineligible, the government alleged that VE Source, Neary, and Barton undercut the express Congressional purpose in enacting laws intended to encourage the awards of federal contracts to businesses owned and controlled by service-disabled veterans.

In the resolution announced today, VE Source agreed to a consent judgment for $7.6 million in conjunction with its role in the scheme. The United States entered a separate settlement agreement with Neary, Barton, and Vertical Source, under which Neary will pay $120,000, Barton will pay $75,000, and Vertical Source will pay $180,000 to resolve claims made in a civil lawsuit filed by the United States under the False Claims Act.

U.S. Attorney Sellinger credited special agents of the General Services Administration, Office of Inspector General, New York Field Investigations Office, under the direction of Special Agent in Charge Joseph Dattoria; the U.S. Department of Agriculture, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Bethanne M. Dinkins; and the Defense Criminal Investigative Service, Northeast Field Office, under the direction Special Agent in Charge Patrick J. Hegarty, with the investigation leading to this resolution.

The government is represented by Assistant U.S. Attorneys David V. Simunovich and Mark C. Orlowski of the Health Care Fraud Unit in Newark.

The lawsuit resolved through this agreement is captioned United States v. Neary et al., Civil Action No. 20-14167 (D.N.J.). The claims settled by this agreement are allegations only, and there has been no determination of liability.

CAMDEN, N.J. – Two New Jersey men pleaded guilty today to defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

John Sher, 40, of Margate, New Jersey, and Christopher Broccoli, 50, of West Deptford, New Jersey, both pleaded guilty before U.S. District Judge Robert B. Kugler to superseding informations charging them each with one count each of conspiracy to commit health care fraud.

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

Sher and Broccoli were part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Sher and Broccoli caused the pharmacy benefits administrator to pay out millions of dollars for medically unnecessary compound prescription medications for individuals they recruited into the scheme. Sher directly received $327,897 and Broccoli directly received $150,315 from the scheme. 

Sher and Broccoli were previously charged in March of 2019 alongside others in an indictment with conspiracy to commit health care fraud and wire fraud and other offenses.  Conspiracy leader William Hickman pleaded guilty in June of 2020 to defrauding New Jersey health benefits programs and other insurers out of more than $50 million. Conspirator Michael Sher pled guilty in March of 2018 to defrauding New Jersey health benefits programs and other insurers out of more than $7 million. Conspirators Brian Pugh and Thomas Schallus both pleaded guilty on July 14, 2022, to conspiring to commit health care fraud as part of the same scheme. Charges remain pending against co-defendant Thomas Sher, who is set to proceed to trial before Judge Kugler in Camden federal court on August 15, 2022. The charges and allegations against him are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

John Sher and Broccoli each face a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Sher is scheduled for Dec. 5, 2022, and for Broccoli, Dec. 6, 2022. 

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 in Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty pleas.

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

TRENTON, N.J. – A Pennsylvania man today admitted traveling from Pennsylvania to New Jersey in order to engage in illicit sex acts with a minor, U.S. Attorney Philip R. Sellinger announced.

Quentin Anthony Blount, 29, of Easton, Pennsylvania, pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of travel with intent to engage in illicit sexual conduct.

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

In October 2020, Blount began communicating with an undercover officer on an internet-based application. After an extensive conversation with the undercover officer, Blount agreed to pay the undercover officer in order to have sex with the minor, who he believed was 14 years old. Blount then traveled from Easton to Somerset County, New Jersey, in order to meet with the minor. Blount was arrested upon arriving at the predetermined meeting location.

The charge of traveling to engage in illicit sexual activity carries a maximum penalty of 30 years in prison, and a fine of $250,000. Sentencing is scheduled for Dec. 8, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Annmarie Taggart, with the investigation leading to today’s guilty plea.

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

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

Cedric Lewis, 31, of Bloomfield, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a superseding information charging him with two counts of possession of a firearm and ammunition by a convicted felon and two counts of possession with intent to distribute controlled substances.

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

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

The narcotics offenses each carry a maximum potential penalty of 20 years in prison, and a fine of $1 million. The counts of being a felon in possession of a firearm and ammunition each carry a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000.  Sentencing is scheduled for Dec. 6, 2022.

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

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

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 36 months in prison for his role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Philip R. Sellinger announced.

Jorge Gutierrez, 43, of Merchantville, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with conspiracy to defraud the United States. Judge Kugler imposed the sentence today in Camden federal court.

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

On March 28, 2018, Gutierrez, Alberto Sanchez, Awilda Henriquez and Roque Bisono were indicted by a federal grand jury. According to the indictment, Gutierrez, Henriquez, Bisono, Sanchez, and their conspirators obtained stolen identities of residents of Puerto Rico to file fraudulent income tax returns seeking federal tax refunds to which the conspirators were not entitled. The objective in doing so was to falsely and fraudulently generate income tax refund checks issued by the U.S. Treasury. The conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. The conspirators paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in and around Camden. The check couriers presented false and fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks. In total, the scheme caused $565,091 in losses to the U.S. Treasury.

Gutierrez admitted that between April 2014 and August 2014, he was a member of the conspiracy that took 93 U.S. Treasury Refund checks that had been placed in the mail stream to be delivered to addresses on a postal mail route in Pennsauken. He admitted that he helped a man nicknamed “Chepe” steal money from the United States government.

In addition to the prison term, Judge Kugler sentenced Gutierrez to three years of supervised release and ordered restitution of $565,091.

Henriquez was previously convicted at trial and is scheduled to be sentenced on Aug. 29, 2022. Sanchez previously pleaded guilty and was sentenced to 45 months in prison. Bisono previously pleaded guilty and was sentenced to time served.

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 and Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. He also thanked the U.S. Postal Inspection Service for its assistance. 

The government is represented by Assistant U.S. Attorney Jason M. Richardson and Assistant U.S. Attorney Christina O. Hud of the Criminal Division in Camden.

NEWARK, N.J. – A Brooklyn, New York, man admitted underreporting the proceeds of his buyout agreement on his income tax return, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced today.

David Seruya pleaded guilty on July 28, 2022, before U.S. District Judge Julien X. Neals in Newark federal court charging him with three counts of tax evasion.

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

From 2009 to 2014, Seruya was an original owner and shareholder of a New Jersey-based home warranty business. In 2014, Seruya entered into a buyout agreement whereby he agreed to sell his shares of stock back to the business and exit the company. In exchange for his stock shares, the home warranty company agreed to pay Seruya $4.1 million, which included a lump sum payment and installment payments spread out over 24 months. Seruya underreported to his return preparer the actual amount of income he received from the sale of his stock. In addition, Seruya did not inform his return preparer about income received from canceled mortgage debt. As a result, Seruya caused his return preparer to prepare and file false income tax returns for the tax years 2014 through 2016. Seruya admitted to evading taxes for calendar years 2010-2013. In total, Seruya’s tax evasion caused a loss to the IRS of more than $1.1 million.

The counts to which Seruya pleaded guilty are each punishable by a maximum of five years in prison and a fine of $100,000, or twice the gross pecuniary gain or loss, whichever is greatest. Sentencing is scheduled for Dec. 14, 2022.

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

The government is represented by Assistant U.S. Attorney Carolyn Silane for the District of New Jersey and Trial Attorney Shawn Noud of the Tax Division.

TRENTON, N.J. – A New Jersey cardiologist was sentenced today to 30 months in prison for unlawfully prescribing thousands of Oxycodone pills, U.S. Attorney Philip R. Sellinger announced.

Raymond Catania, 60, of Warren, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with dispensing Oxycodone outside of the usual course of professional practice and not for a legitimate medical purpose. Judge Shipp imposed the sentence today in Trenton federal court.

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

Catania was a New Jersey physician specializing in cardiology and practicing in Watchung, New Jersey. From January 2016 through March 2017, Catania issued prescriptions for thousands of Oxycodone pills to one of his patients, and Catania did so without a legitimate medical purpose and outside of the usual course of professional practice. Catania also issued prescriptions for thousands of Oxycodone pills to that patient’s wife even though the wife was not Catania’s patient. Oxycodone – a Schedule II controlled substance – has a high potential for abuse that can lead to severe psychological and physical dependence and can result in fatal overdoses. Catania prescribed more than 8,600 Oxycodone 30 mg pills.

In addition to the prison term, Judge Shipp fined Catania $25,000 and sentenced him to three years of supervised release. 

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

The government is represented by Assistant U.S. Attorney Leslie F. Schwartz, Senior Litigation Counsel, of the Special Prosecutions Division, in Newark.

NEWARK, N.J. – An MS-13 gang member was sentenced today to 420 months in prison for his execution-style killing of a man in 2015, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced.

Juan Garcia-Gomez, aka “Scooby,” 26, of El Salvador, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.

“Garcia-Gomez committed a brutal and violent crime to gain membership in a criminal organization known for its brutality and violence,” U.S. Attorney Sellinger said. “He wasn’t even out of his teens when he complied with MS-13’s orders and snuffed out another young man’s life, ruining the lives of his victim’s family and friends and ending any chance at a decent life for himself. This sentence will keep this violent criminal off of our streets.”

“Due to the dedicated efforts of the Department of Justice and our law enforcement partners, Garcia-Gomez and his fellow gang members will no longer be able to victimize this community,” Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division said. “The Criminal Division and our law enforcement partners will continue to pursue MS-13 gang members who take the lives of others and prey on the communities through violence and intimidation and will not stop in our pursuit of justice for the victims of this violent gang.”

“Cases like this are a reminder of the deadly brutality involved with drug activity,”Acting Special Agent in Charge Terence Reilly said. "We aggressively pursue MS-13 activity because of the high threat they pose to the citizens of our area. Long prison terms are the one sure method for getting these dangerous criminals off our streets."

According to court documents in this and other cases, and the evidence at the trial of Garcia-Gomez’s co-defendants:

Garcia-Gomez conspired to participate in the illegal activities of Mara Salvatrucha, a violent criminal gang also known as MS-13, founded in Los Angeles and active in numerous states, including New Jersey, as well as in El Salvador, Central America, and Mexico. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Two cliques active in and around Hudson County, New Jersey, were the Pinos Locos Salvatrucha clique, of which Garcia-Gomez was a member/associate, and the Hudson Locos Salvatrucha clique.

In July 2015, Jose Urias-Hernandez, then 19, was shot and killed execution-style by Garcia-Gomez with a single shot to the back of his head as he entered his apartment building. Garcia-Gomez participated in the murder because he was ordered by MS-13 leadership to commit the murder to achieve membership in the gang. The victim was not a rival gang member.

In addition to murder, MS-13 members, including Garcia-Gomez, trafficked drugs and threatened witnesses to prevent cooperation with law enforcement, and others extorted a restaurant operating in the gang’s turf.

In addition to Garcia-Gomez, nine defendants were charged in New Jersey. Christian Linares-Rodriguez, aka “Donkey,” 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador and is awaiting extradition to the United States; the allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty. All other defendants have been convicted, including Juan Pablo Escalante-Melgar, aka “Humilde,” Elmer Cruz-Diaz, aka “Locote,” and Oscar Sanchez-Aguilar, aka “Snappy,” who were convicted at trial in November 2021 and are awaiting sentencing. At sentencing, Esclante-Melgar, Cruz-Diaz, and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison.

“Garcia-Gomez chose to take a young, innocent life to gain entrance to MS-13, a gang notorious for its senseless violence,” Special Agent in Charge Jason J. Molina for Homeland Security Investigations in Newark said. “With his callous action, he ended a life full of potential. With today’s sentence, he has discovered the consequences of his actions.”

“This senseless murder that took the life of a young man with no ties to gang life is typical of the brutality that we have come to expect from MS-13,” ICE-ERO Newark Field Office Director John Tsoukaris said. “Thanks to the collaborative efforts of local, state and federal law enforcement, justice has been served here as well as the interests of community safety.”

“Mr. Garcia-Gomez deliberately executed a young man with the purpose of terrorizing the North Hudson community, hoping to earn the respect of some of the most dangerous criminals,” Hudson County Prosecutor Esther Suarez said. “Our office appreciates the commitment shared between local, state, and federal law enforcement partners to see that those responsible for violent attacks, such as this, are held accountable to the fullest extent of the law.”

In addition to the prison term, Judge Cecchi sentenced Garcia-Gomez to five years of supervised release.

U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; officers of the Immigration and Customs Enforcement - Enforcement and Removal Operations Newark Field Office, under the direction of Field Office Director John Tsoukaris; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez:, and investigators of the West New York Police Department under the direction of Deputy Chiefs Santiago Cabrera and Alejandro De Rojas, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Desiree Grace of the District of New Jersey and Trial Attorney Matthew J. Hoff of the Criminal Division’s Organized Crime and Gang Section.

Defense counsel: Anthony Iacullo Esq., Nutley, New Jersey

CAMDEN, N.J. – A naturalized U.S. citizen who had been living in India was convicted of obstructing the parental rights of his child’s mother by kidnapping the child and failing to return the child to the United States when ordered to do so, U.S. Attorney Philip R. Sellinger announced today.

Amitkumar Kanubhai Patel, 38, of Vadodara, India, formerly of Edison, New Jersey, was convicted on July 22, 2022, of one count of international parental kidnapping following a five-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court.

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

The child’s mother and Patel were in a relationship and resided together in New Jersey from August 2015 through July 2017. The two never married. In November 2016, Patel and the child’s mother had a child, who was born in Edison Township. 

According to the child’s mother, Patel wanted to take the child to India to introduce him to Patel’s parents and obtain DNA testing, which Patel claimed was necessary for the child to claim property that Patel’s family owned in India. Patel also told the child’s mother that in order to obtain an Indian visa for the child, he would need to secure sole custody, which required them to go to court. Patel instructed the mother to tell the court that they had a mutual understanding regarding the custody of their child. Patel instructed the mother to state that she did not have a work permit, and since she was unemployed, she could not care for her child. 

On May 1, 2017, Patel took the child’s mother to New Jersey Superior Court, Chancery Division Family Court, in order to obtain sole custody of the child. According to the mother, the majority of the hearing was conducted in English with no translator. At the time of the hearing, the mother spoke limited English. The mother answered the court’s questions as she had been instructed by Patel. The mother was not represented by an attorney during the hearing.

On May 2, 2017, the New Jersey Superior Court granted Patel sole legal custody of the child premised on the consent of the child’s mother to the arrangement, but specifically reserved for the mother the ability to file for joint legal custody if she so chose in future. Upon receiving the court order, Patel obtained visas to India for himself and the child, and booked air travel, telling the child’s mother that they would only be gone for two weeks to a month. Patel then took the child to India and after several days in India, called the mother and said that he was never bringing the child back to the United States. The child’s mother obtained legal counsel and returned to the New Jersey Superior Court. On Oct. 16, 2018, the New Jersey Superior Court entered an order directing Patel to return the child to the United States immediately.

On Oct. 19, 2018, the mother’s counsel emailed the October 16, 2018, family court order to Patel, who did not return the child to the United States. On Oct. 2, 2020, Patel and the child flew from India to the United Kingdom. Upon arrival, Patel was arrested based on a provisional arrest request submitted by the United States. After a custody hearing in London pursuant to the Hague Convention, the London Court ordered it was in the best interest of the child that the child be returned to his paternal grandparents in India. Patel was subsequently extradited to the United States to stand trial.

The international parental kidnapping offense of which Patel stands convicted carries a maximum penalty of three years in prison and a maximum fine of $250,000. Sentencing is scheduled for Nov. 22, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline McGuire in Philadelphia, with the investigation leading to the guilty verdict. U.S. Attorney Sellinger also thanked members of the Department’s Office of International Affairs, the U.K. Crown Prosecution Service and the Metropolitan Police for their assistance in the extradition.

The government is represented by Deputy U.S. Attorney Andrew Carey and Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.

NEWARK, N.J. – Two clinical laboratories and their owners have agreed to pay $5.7 million to resolve allegations that they caused the submission of false claims to Medicare by paying kickbacks in return for genetic testing samples, the Department of Justice announced today.

Metric Lab Services LLC and Metric Management Services LLC (Metric) and Spectrum Diagnostic Labs LLC (Spectrum) and two of their owners and operators, Sherman Kennerson and Jeffrey Madison, have agreed to the settlement.

“Rather than compete fairly for business, these labs engaged in a brazen kickback scheme to rake in millions of dollars of Medicare money,” Philip R. Sellinger, U.S. Attorney for the District of New Jersey, said. “A patient’s needs must guide medical decisions, not who is paying the biggest kickback. Today’s settlement recoups millions of dollars for the Medicare program, and demonstrates this Office’s continuing resolve to protect the integrity of federal healthcare programs.”

“Laboratories that attempt to profit from unlawful kickbacks will be held accountable,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”

“When health care providers engage in kickback schemes – particularly ones that deceive Medicare patients about the medical necessity of services – the trust of both patients and taxpayers are at risk,” Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “This case shows our commitment to investigating such allegations in order to protect the Medicare program’s ability to subsist and serve its mission.”

Metric and Spectrum were clinical laboratories in Mississippi and Texas, which Kennerson and Madison co-owned and operated along with other individuals. The United States alleged that Metric, Spectrum, Kennerson and Madison participated in a genetic testing fraud scheme with various marketers. These marketers solicited genetic testing samples from Medicare beneficiaries. The marketers arranged to have a physician fraudulently attest that the genetic testing was medically necessary, and Metric and Spectrum would process the tests, receive reimbursement from Medicare and pay a portion of that reimbursement to the marketers. 

In an attempt to conceal the nature of the kickback arrangement, Metric and Spectrum entered into sham agreements with marketers to provide various consulting, marketing and other services at an hourly rate. In reality, however, Metric and Spectrum paid the marketers a percentage of revenue, including Medicare reimbursement, in return for the samples. The marketers then generated sham invoices for hourly services that matched the agreed-upon kickback amount. 

Kennerson and Madison each previously pleaded guilty to one count of conspiracy to defraud the United States in connection with this scheme and are awaiting sentencing.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.

The government is represented by Assistant U.S. Attorney Andrew A. Caffrey III of the District of New Jersey and DOJ Trial Attorney J. Jennifer Koh.

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

The claims resolved by the settlement are allegations only and there has been no determination of liability except to the extent admitted by Kennerson and Madison in their criminal pleas.

Metric Lab Services LLC and Metric Management Services LLC (collectively, Metric) and Spectrum Diagnostic Labs LLC (Spectrum) and two of their owners and operators, Sherman Kennerson and Jeffrey Madison, have agreed to pay $5.7 million to resolve allegations that they caused the submission of false claims to Medicare by paying kickbacks in return for genetic testing samples, the Department of Justice announced today.

Metric and Spectrum were clinical laboratories in Mississippi and Texas, which Kennerson and Madison co-owned and operated along with other individuals. The United States alleged that Metric, Spectrum, Kennerson and Madison participated in a genetic testing fraud scheme with various marketers. These marketers solicited genetic testing samples from Medicare beneficiaries. The marketers arranged to have a physician fraudulently attest that the genetic testing was medically necessary, and Metric and Spectrum would process the tests, receive reimbursement from Medicare and pay a portion of that reimbursement to the marketers. 

In an attempt to conceal the nature of the kickback arrangement, Metric and Spectrum entered into sham agreements with marketers to provide various consulting, marketing and other services at an hourly rate. In reality, however, Metric and Spectrum paid the marketers a percentage of revenue, including Medicare reimbursement, in return for the samples. The marketers then generated sham invoices for hourly services that matched the agreed-upon kickback amount. 

“Laboratories that attempt to profit from unlawful kickbacks will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”

“Rather than compete fairly for business, these labs engaged in a brazen kickback scheme to rake in millions of dollars of Medicare money,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “A patient’s needs must guide medical decisions, not who is paying the biggest kickback. Today’s settlement recoups millions of dollars for the Medicare program, and demonstrates this Office’s continuing resolve to protect the integrity of federal healthcare programs.”

​​“When health care providers engage in kickback schemes, the trust of both patients and taxpayers are at risk,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This case shows our commitment to investigating such allegations in order to protect the Medicare program’s ability to subsist and serve its mission.”

Kennerson and Madison have previously each pled guilty to one count of conspiracy to defraud the United States in connection with this scheme and are awaiting sentencing.  United States v. Kennerson, No. 20-cr-00448 (BRM) and United States v. Madison, No. 20-cr-00449 (BRM) (D.N.J.). 

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.

The matter was handled by Trial Attorney J. Jennifer Koh and Assistant U.S. Attorney Andrew A. Caffrey III for the District of New Jersey.

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

The claims resolved by the settlement are allegations only and there has been no determination of liability except to the extent admitted by Kennerson and Madison in their criminal pleas.

NEWARK, N.J. – A Florida man will make his initial court appearance today on charges related to his role in a scheme to fraudulently obtain over $1.6 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) payments, U.S. Attorney Philip R. Sellinger announced.

Mohamed A. Awad, 60, of Ocala, Florida, is charged by complaint with two counts of wire fraud. He was arrested July 21, 2022, in Virginia and made his initial appearance this afternoon before U.S. Magistrate Judge William E. Fitzpatrick in the Eastern District of Virginia. He was detained pending transfer to the District of New Jersey.

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

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 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. The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.

The CARES Act also authorized the U.S. Small Business Association to provide EIDLs of up to $2 million, through the Economic Injury Disaster Loan Program, to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.

Awad engaged in a scheme to illegally obtain over $1.6 million in PPP and EIDL loans through numerous misrepresentations to lenders. He submitted fraudulent loan applications that fabricated numbers of employees and misrepresented company information, to induce PPP and EIDL lenders to approve the loan applications that they otherwise would not have approved.  Awad submitted falsified tax documents in support of PPP applications. According to IRS records, none of the purported tax documents that Awad submitted were ever in fact filed with the IRS. Awad transferred the loan proceeds among various bank accounts he controlled, withdrawing significant amounts in cash and transferring at least approximately $760,000 out of the country via wire transfers to banks based in Egypt.

The charges each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; 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 Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, under the direction of Stephen Donnelly, Eastern Region; special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and 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, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Katherine M. Romano 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.

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

NEWARK, N.J. – A Hudson County, New Jersey man today admitted conspiring to distribute and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.

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

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

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

The charges of conspiracy to distribute cocaine and possession with intent to distribute cocaine each carry a maximum penalty of 20 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Dec. 8, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.

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

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

CAMDEN, N.J. – A Burlington County, New Jersey, woman was sentenced today to one year and one day in prison for her role in a GoFundMe scam that gained nationwide attention, U.S. Attorney Philip R. Sellinger announced.

Katelyn McClure, 32, of Bordentown, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging her with one count of conspiracy to commit wire fraud. 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, McClure and Mark D’Amico, 43, 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 a homeless veteran, Johnny Bobbitt, 39, of Philadelphia. 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 and 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.

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 to the prison term, Judge Hillman sentenced McClure to three years of supervised release and ordered her to pay $400,000 in restitution. D’Amico previously pleaded guilty and was sentenced in April 2022 to 27 months in prison; Bobbitt pleaded guilty and is awaiting sentencing.

U.S. Attorney Sellinger credited assistant prosecutors and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Lachia L. Bradshaw; officers of the Florence Township Police Department; special agents of IRS-Criminal Investigation, under the direction of 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 sentencing.

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

TRENTON, N.J. – A Burlington County, New Jersey, man was sentenced to 120 months in prison for conspiring to distribute large amounts of cocaine and crack cocaine throughout Burlington County, U.S. Attorney Philip R. Sellinger announced today.

Herbert Mays, 65, of Willingboro, New Jersey, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine. Judge Quraishi imposed the sentence on July 20, 2022, in Trenton federal court.

Eighteen other members of the drug trafficking conspiracy have pleaded guilty. The charges against two other defendants remain pending; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.

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

Between July 2019 and September 2019, Mays, his codefendants and others engaged in a narcotics conspiracy that operated primarily in municipalities throughout Burlington County – including Willingboro, Burlington City, Burlington Township, Bordentown Township, and Edgewater Park – and which sought to profit from the distribution of cocaine and crack cocaine. Law enforcement officials learned that defendants obtained regular supplies of cocaine from co-conspirators in the Philadelphia area and elsewhere and then redistributed that cocaine, portions of which defendants converted into crack cocaine, for profit, to other conspirators, distributors, sub-dealers, and end users throughout Burlington County and elsewhere. Law enforcement officials intercepted numerous communications by and between the conspirators regarding such issues as cocaine and crack cocaine quality and availability, pricing, packaging, quantity, and customer satisfaction.

In addition to the prison term, Judge Quraishi sentenced Mays to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the FBI, Trenton Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; detectives of the Burlington County Prosecutor’s Office, under the direction of Burlington County Prosecutor Lachia L. Bradshaw; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Acting Director of Public Safety Ian Bucs; officers of the Burlington City Police Department, under the direction of Chief of Police John Fine; officers of the Florence Police Department, under the direction of Chief of Police Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesce; officers of the Edgewater Park Police Department, under the direction of Chief of Police Brett V. Evans; officers of the Ewing Police Department, under the direction of Chief of Police Albert Rhodes; officers of the Westampton Police Department, under the direction of Chief of Police Stephen Ent; officers of the Trenton Police Department, under the direction of Director Steve Wilson with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorneys Martha K. Nye of the U.S. Attorney’s Office’s Criminal Division in Trenton and Andrew B. Johns of the Criminal Division in Camden.

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger joined New Jersey Acting Attorney General Matthew J. Platkin today to announce their continued commitment to ensure that women in New Jersey have access to reproductive health care services in the wake of the U.S. Supreme Court’s Dobbs decision overturning Roe v. Wade.

“The U.S. Attorney’s Office for the District of New Jersey – and the entire Justice Department – will do everything within our power to protect reproductive freedom,” U.S. Attorney Sellinger said. “Despite the Court’s decision, abortion remains legal in New Jersey. We will work tirelessly to ensure women’s unobstructed access to reproductive health services throughout New Jersey, including access to abortion services, so that women may consult with their medical providers to make important and personal decisions about their bodies and their lives.”

“As other states impose draconian penalties on patients and health care professionals who seek or provide abortion care, New Jersey has chosen a very different path. We are using every available tool at our disposal to keep abortion patients and their providers safe,” Acting Attorney General Platkin said. “We’re proud to work side-by-side with Governor Murphy, the U.S. Attorney’s Office, and the federal government to protect access to reproductive health care.”

U.S. Sellinger and Acting Attorney General Platkin made the joint announcement today at a press conference in Newark.

U.S. Attorney Sellinger and Acting Attorney General Platkin emphasized their commitment to have open lines of communications and, when appropriate, to share intelligence and information in order to facilitate efficient decision-making in protecting reproductive rights. They also announced plans for their offices to work together to conduct a series of outreach sessions with stakeholders, such as reproductive service providers and advocates, to send a clear message that law enforcement at all levels will protect reproductive rights.

U.S. Attorney Sellinger reiterated U.S. Attorney General Merrick B. Garland’s strong disagreement with the Dobbs ruling and its far-reaching impact on people, particularly people of color and limited financial resources.
“While the right to control one’s own body is central to individual freedom, the Court’s decision denies millions of women that right by preventing them from being able to make critical and highly personal decisions about their bodies, their health, and their futures,” U.S. Attorney Sellinger said.

U.S. Attorney Sellinger promised continued enforcement of the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits obstructing access to reproductive health services through violence, threats of violence, or property damage. He said women who live in New Jersey – or who travel to New Jersey – will continue to have unobstructed access to reproductive health services, including abortion services.

The Office’s newly created Civil Rights Division will lead the Office’s enforcement and outreach efforts. The Division brings together civil and criminal prosecutors into one division focused on protecting vitally important civil rights, including the right to access reproductive health care.

Anyone with knowledge of FACE Act violations can contact the office through the civil rights hotline at 855-281-3339 or through the complaint portal on the U.S. Attorney’s Office, District of New Jersey, website: District of New Jersey. 

TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced to 46 months in prison for orchestrating a $2 million COVID-19 fraud scheme, U.S. Attorney Philip R. Sellinger announced today.

Guaravjit “Raj” Singh, 27, of Montgomery, New Jersey, previously pleaded guilty before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud. Judge Sheridan imposed the sentence on July 20, 2021, in Trenton federal court.

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

From May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to defraud and to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain personal protective equipment (PPE) and then stealing the money and not providing the PPE to the victims as promised. 

Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million for approximately 1.5 million medical gowns, which ultimately were to be sourced to the city of New York amid the COVID-19 pandemic. The victims wired Singh, though his company GJS Solutions LLC, $712,500, representing a 10 percent initial deposit for the medical gowns. After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses.

In addition to the prison term, Judge Sheridan sentenced Singh to three years of supervised release.

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

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

United States Attorney Philip R. Sellinger and New Jersey Acting Attorney General Matthew J. Platkin to Announce State-Federal Collaboration to Ensure Protection of Individuals Seeking Abortion and Security of Abortion Providers

****** MEDIA ADVISORY — PLANNING PURPOSES ONLY ******

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger, District of New Jersey, and New Jersey Acting Attorney General Matthew J. Platkin to announce partnership that will protect in- and out-of-state patients, health care workers and reproductive health services providers while coordinating intelligence-sharing across local, state and federal law enforcement agencies.

WHEN: Wednesday, July 20, 2022, 2:00 p.m. EDT

WHO: U.S. Attorney Philip R. Sellinger, District of New Jersey
            New Jersey Acting Attorney General Matthew J. Platkin

Laurie Doran, Director, New Jersey Office of Homeland Security and Preparedness
Pearl Minato, Director, Division of Criminal Justice
Cari Fais, Director, Division of Consumer Affairs

WHERE: Office of the Attorney General, 124 Halsey St, 7th Floor, Newark, NJ.

Livestream available at: https://youtu.be/0BGCJ_Sx7w0

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

Matthew Puccio, 40, of Randolph, New Jersey, was convicted on July 19, 2022, of conspiracy to commit health care fraud following a seven-day jury trial before U.S. District Judge John Michael Vazquez.

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

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

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

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

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

For the charge of conspiracy to commit health care fraud, Puccio faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 29, 2022.

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

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

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted conspiring to fraudulently obtain COVID-19 relief funds, fraudulently obtaining unemployment benefits, and illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.

Stephen Bennett, 46, of Berlin, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with one count of bank fraud conspiracy, one count of wire fraud, and one count of being a felon in possession of a firearm.

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

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

To obtain a PPP or EIDL loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.

The CARES Act also created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.

In 2020, Bennett conspired with Rhonda Thomas to submit one PPP application and one EIDL application for a company controlled by Bennett. The applications stated that the company had 16 employees, gross revenues of $1.73 million, and an average monthly payroll of $144,000, when in fact the company had no employees, revenue, or payroll. Bennett and Thomas also submitted forged tax forms and altered bank statements as part of the PPP loan application.  Based on the misrepresentations, the loans were approved in the amount of $510,000. Bennett paid kickbacks of over $150,000 to Thomas and used the rest of the fraudulently obtained PPP and EIDL loan proceeds to pay for personal expenses, including jewelry and vehicles.

Also in 2020, Bennett defrauded the Pennsylvania Department of Labor by submitting 74 unemployment insurance claims in the names of other individuals. Bennett falsely stated on that the applicants were self-employed and unemployed because of COVID-19. Benefits of $425,339 were paid to Bennett as a result of the fraudulent claims he submitted.

In May 2021, law enforcement officials executing a search warrant at Bennett’s home found a .9 millimeter semiautomatic pistol with no serial number (commonly referred to as a “ghost gun”) and a magazine loaded with 16 rounds of ammunition.

The charge of bank fraud conspiracy carries a maximum penalty of 30 years in prison and a fine of $1 million. The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The count of being a felon in possession of a firearm carries a maximum of 10 years in prison and a $250,000 fine.  Sentencing is scheduled for Nov. 21, 2022.

Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and is awaiting sentencing.

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

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden and Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Civil Rights Division in Camden.

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted receiving images of child sexual abuse and inducing a minor to send him sexually explicit images and engage in sexually explicit conduct over an online messaging service, U.S. Attorney Philip Sellinger announced.

David M. Frew, 41, of Little Egg Harbor, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of receipt of child pornography and one count of online enticement of a minor to engage in criminal sexual conduct.

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

In June 2017, Frew used an online messaging service to communicate with a minor victim. At Frew’s request, the victim sent Frew sexually explicit images.

In 2008, Frew was convicted of three counts of unlawful contact with a minor and one count of criminal use of a computer in Pennsylvania after sending sexually explicit photos or videos to investigators in the Pennsylvania Attorney General’s Child Predator Unit, who were posing as minors online. Also in 2008, Frew was convicted in New Jersey of endangering the welfare of children due to his possession of child pornography. As a result of his prior convictions in Pennsylvania and New Jersey, Frew was a registered sex offender at the time of his conduct charged in the information.

Because Frew is a previously convicted sex offender, the charge of receipt of child pornography carries a mandatory minimum sentence of 15 years in prison, a statutory maximum potential penalty of 40 years in prison, and a $250,000 fine. The charge of online enticement carries a mandatory minimum sentence of 10 years in prison and a statutory maximum potential penalty of life in prison, and a $250,000 fine. Sentencing is scheduled for Nov. 23, 2022.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), in Atlantic City, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Royal Canadian Mounted Police (RCMP) Technical Crime Unit; the RCMP National Child Exploitation Coordination Centre; the Ocean County Prosecutors Office, under the direction of Prosecutor Bradley D. Billhimer; and the Little Egg Harbor Police Department, under the direction of Chief James Hawkins, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A Manalapan, New Jersey, man today admitted using online chat applications to entice an adolescent to engage in prohibited sexual activity, U.S. Attorney Philip R. Sellinger announced. 

Angelo N. Curato, 30, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to a superseding information charging him with one count of online enticement of a minor.

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

From February 2017 through June 2017, Curato used online chat applications to misrepresent his identity and entice or coerce an adolescent to engage in prohibited sexual activity, knowing that the victim was under the age of 18. 

The online enticement charge carries a maximum penalty of life in prison, a mandatory minimum prison term of 10 years, and a $250,000 fine. Sentencing is scheduled for Nov. 29, 2022.    

U.S. Attorney Sellinger credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey, with the investigation leading to today’s guilty plea. 

The government is represented by Assistant U.S. Attorney Barry O’Connell of the U.S. Attorney’s Office General Crimes Unit.

NEWARK, N.J. – A federal appeals court has upheld the convictions and sentences of a member and an associate of the Lucchese organized crime family and two Texas brothers on racketeering conspiracy and related offenses, U.S. Attorney Philip R. Sellinger announced today.

Nicodemo S. Scarfo, 57, of Galloway, New Jersey, a member of the Lucchese organized crime family of La Cosa Nostra (LCN), and Salvatore Pelullo, 55, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted on July 13, 2014, of all the counts against them. Two other defendants, William Maxwell, 63, of Houston, Texas, and his brother, John Maxwell, 70, of Irving, Texas, were also convicted.

In a consolidated appeal, the defendants challenged almost every aspect of their prosecutions, including the investigation, the charges and evidence against them, the pretrial process, the government’s compliance with its disclosure obligations, the trial, the forfeiture proceedings, and their sentences.

In a precedential, 169-page opinion issued July 15, 2022, a three-judge panel of the U.S. Court of Appeals for the Third Circuit affirmed all the convictions and sentences, except for the forfeiture portion of John Maxwell’s sentence, for which it remanded the matter to the District Court to determine what share of the forfeiture he should pay.

The four defendants were convicted for their respective roles in the takeover and subsequent looting of FirstPlus Financial Group, a publicly held mortgage company based in Dallas, Texas. The defendants used extortionate threats to take control of the company, causing a loss of more than $14 million and leaving more than 1,000 shareholders with investments that had been rendered worthless. Scarfo and Pelullo were each sentenced to 30 years in prison; William Maxwell was sentenced to 20 years in prison; and John Maxwell was sentenced to 10 years in prison.

The appellate court decision, written by Circuit Judge Kent A. Jordan and joined by Circuit Judges Thomas L. Ambro and Stephanos Bibas, affirmed the jury’s guilty verdicts on all of the underlying crimes, including participating in a Racketeering Influenced Corrupt Organization conspiracy, conspiracy to commit securities fraud, conspiracy to commit wire fraud, conspiracy to commit money laundering, and firearms offenses. It also affirmed the prison sentences.

The government was represented on appeal by Assistant U.S. Attorneys Norman Gross and Sabrina Comizzoli of the Appeals Division and Bruce P. Keller, Special Counsel to the U.S. Attorney.

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

Marnell Johnson, 46, of Long Branch, New Jersey, was convicted on July 14, 2022, following a three-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court. Johnson was convicted of possession with intent to distribute heroin; possession of a firearm in furtherance of a drug trafficking crime; and being a felon in possession of a firearm.

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

On four occasions in early 2020, Johnson, a previously convicted felon, sold heroin to a confidential source. On April 8, 2020, the special agents of the Drug Enforcement Administration executed a federal search warrant of Johnson’s apartment and recovered heroin and packaging paraphernalia. The DEA also recovered a loaded .380 caliber semi-automatic firearm from the drawer of the same table on which Johnson’s heroin and packaging material were found. 

Johnson faces a potential maximum sentence of 20 years in prison on the count of possession with intent to distribute; 10 years in prison on the felon in possession count; and a statutory mandatory minimum sentence of five years in prison and a maximum of life on the count charging possession of a firearm in furtherance of a drug trafficking crime, which must run consecutive to the sentences imposed on the other counts. Johnson also faces a potential maximum fine of $1.5 million.

U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; the Long Branch Police Department, under the direction of Public Safety Director Domingos A. Saldida; the Lakewood Police Department, under the direction of Chief of Police Gregory Howard Meyer; the Neptune Township Police Department, under the direction of Chief of Police Larry B. Fisher; and the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden, with the investigation leading to the guilty verdict.

The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the Criminal Division and J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton office.

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

Brian Pugh, 45, of Absecon, New Jersey, and Thomas Schallus, 45, of Northfield, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to one count each of conspiracy to commit health care fraud.

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

Pugh and Schallus were part of a criminal conspiracy in which state and local government employees were recruited and compensated to receive medically unnecessary compound prescription medications. Pugh and Schallus caused the pharmacy benefits administrator to pay approximately $1.47 million and $477,958.00, respectively, for medically unnecessary compounded prescription medications for individuals they recruited into the scheme.

Pugh and Schallus were previously charged alongside others in an indictment with conspiracy to commit health care fraud and wire fraud and other offenses. Conspiracy leader William Hickman pleaded guilty in June of 2020 to defrauding New Jersey health benefits programs and other insurers out of more than $50 million and is awaiting sentencing. Charges remain pending against co-defendants John Sher, Thomas Sher, and Christopher Broccoli, who are set to proceed to trial before Judge Kugler in Camden federal court on Aug. 15, 2022. The charges against those three defendants are merely accusations, and they remain innocent unless and until proven guilty.

Pugh and Schallus each face a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Pugh is scheduled for Nov. 17, 2022, and for Schallus, Nov. 14, 2022.

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

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

Defense counsel: Pugh: Michael A. Baldassare Esq. and Jennifer Mara Esq., Newark
Schallus: John C. Whipple Esq., Moorestown, New Jersey

NEWARK, N.J. – A Hewlett, New York man was sentenced today to 22 months in prison for his role in a scheme through which he defrauded over 260 customers of his moving company causing losses in excess of $540,000, U.S. Attorney Philip R. Sellinger announced.

Lior Atiyas (a/k/a “David Cohen”), 44, previously pleaded guilty to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to commit health care fraud.  U.S. District Judge Claire C. Cecchi imposed the sentence today in Newark federal court.  His co-conspirator, Lola Larios, is scheduled for sentencing on August 9, 2022, before Judge Cecchi.

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

From as early as January 2016 through January 2019, Atiyas devised a scheme to enrich himself and his moving company, which used several names to conceal its true identity, including Premier Relocations LLC, Metro Van Lines Inc., Astoria Motor Van Company, Lyon Moving, and Empire Move.  Atiyas, along with Larios, regularly extorted customers by quoting them “low-ball” price estimates for moving household goods.  Once the customers’ goods were loaded onto the moving trucks, Premier’s employees, at the direction of Atiyas or Larios, or Atiyas himself, would drastically raise the price of the move (often two or three times that of the quoted estimate), and then refuse to deliver the goods until the customers paid the increased price.  The aggregate difference between the initial low-ball estimates and the revised inflated amounts charged to victims was approximately $547,525.

Atiyas was also convicted of one count of conspiracy to commit health care fraud, for his participation in a scheme whereby he generated fake paystubs and a fake employment confirmation letter in order for an uncharged co-conspirator to obtain Medicaid benefits.  As a result of his role in the health care fraud conspiracy, Atiyas caused the submission of over $40,000 in fraudulent medical claims.

In addition to the prison term, Judge Cecchi sentenced Atiyas to three years of supervised release. 

If you believe you are a victim of this crime, please contact the U.S. Attorney’s Office Victim-Witness Office at USANJ.VictimWitness@usdoj.gov.          

U.S. Attorney Sellinger credited Special Agents with the Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Christopher Scharf, Northeast Region, and the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to these charges.

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

Defense counsel for Lior Atiyas: Saul Bienenfeld, Esq.                                                                                                                               

TRENTON, N.J.– A Middlesex County, New Jersey, man today admitted his role in a scheme to embezzle $2.37 million from his employer while his was the company’s controller, U.S. Attorney Philip R. Sellinger announced.

Gerard Beauzile, 60, South Plainfield, New Jersey, pleaded guilty before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court, an indictment charging him with one count of wire fraud.

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

From 2014 through December 2020, Beauzile abused his position as controller of a New York-based company to embezzle funds by issuing fraudulent company checks to himself and then depositing those checks into his bank account for his own personal benefit. Beauzile issued approximately 140 company checks to himself with a total value of $2.37 million. Beauzile concealed the theft from the company by falsely entering the fraudulent checks into the company’s accounting system under various company vendor names as the payees, causing the accounting system to falsely reflect that the checks were made payable to company vendors instead of to Beauzile. He also falsified vendor invoices to correspond to the entries made in the accounting system, and company bank statements by removing and altering opening, running, and closing balances, check payment entries, summary check listings, and inter-account transfers.

The mail fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov.15, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to today’s guilty plea. 

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

Defense counsel: Laura Sayler Esq., Assistant Federal Public Defender

NEWARK, N.J. – A former benefit plan administrator today admitted engaging in multiple years of tax evasion and a kickback scheme related to his role as administrator of two union related employee benefit plans, U.S. Attorney Philip R. Sellinger announced.

Jose Santa Maria, aka “Joe”, 64, North Haledon, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to a six-count information charging him with five counts of tax evasion and one count of paying kickbacks related to an employee benefit plan. 

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

Santa Maria was the plan administrator for a health fund and a training fund, both related to a labor union. At the same time, he was also employed by an attorney, who was serving as counsel for the two union funds. From at least 2013 through 2019, Santa Maria misappropriated in excess of $750,000 in benefit plan funds and then failed to report any of it to the IRS or pay the associated income taxes. Santa Maria also paid at least $50,000 to the attorney to influence that attorney’s actions with the executive board for the benefit plans.  

The five counts of tax evasion each carry a maximum penalty of five years in prison and a $100,000 fine. The count of paying kickbacks related to an employee benefit plan, carries a maximum penalty of three years in prison and a $250,000 fine.  Sentencing is scheduled for Dec. 15, 2022.

U.S. Attorney Sellinger credited investigators of the Department of Labor, Employee Benefits Security Administration (EBSA), under the direction of Regional Director of the New York Regional Office Thomas Licetti; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents of  the Port Authority of New York and New Jersey, under the direction of John Gay, with the investigation leading to today’s guilty plea.

The government is represented by Senior Litigation Counsel V. Grady O’Malley and  Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

Defense counsel Steven D. Altman Esq., New Brunswick, New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in an illegal money transmitting business, U.S. Attorney Philip R. Sellinger announced.

Enmanuel Nunez-Reyes, 29, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with aiding and abetting an illegal money transmitting business. 

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

From December 2016 through September 2017, Nunez-Reyes accepted over $2.8 million in cash and purchased over 100 cashier’s checks at local bank branches in New Jersey and elsewhere, the proceeds of illegal drug distribution. The check purchases were part of an illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks. 

The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Oct. 18, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the DEA Special Operations Division, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; the Morristown, New Jersey, Police Department, under the direction of Acting Police Chief Darnell Richardson; and the Passaic, NJ Police Department under the direction of Chief Luis A. Guzman. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance in the investigation. 

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.

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

Defense counsel: Wanda M. Akin Esq., Newark

NEWARK, N.J. – Two men have made their initial appearances on charges of shooting a taxi driver during a late-night robbery, U.S. Attorney Philip R. Sellinger announced today.

Naeem Jackson, 22, of East Orange, New Jersey, and Walter Williams-Lang, 20, of Elizabeth, New Jersey, are each charged in a four-count complaint with Hobbs Act violence in furtherance of a planned robbery; discharging a firearm during a crime of violence; conspiracy to use a firearm during a crime of violence; and possessing a firearm as convicted felons. Jackson had his initial appearance by videoconference today before U.S. Magistrate Judge José R. Almonte; Williams-Lang appeared on June 30, 2022, before U.S. Magistrate Judge Cathy L. Waldor. Both were detained without bail.

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

On May 14, 2022, at 4:37 a.m., Jackson and Williams-Lang, wearing dark clothing and masks over their faces, entered a taxi. Williams-Lang pointed a firearm at the taxi driver while demanding his money. Jackson then took the firearm from Williams-Lang and pistol-whipped the taxi driver’s head several times before shooting him in the arm. After leaving the driver in critical condition from a gunshot wound, Jackson and Williams-Lang fled the scene and were arrested. 

The counts of Hobbs Act violence and conspiracy to use a firearm during a crime of violence are punishable by 20 years in prison; the count of being convicted felons in possession of a firearm is punishable by 10 years in prison; and the count for discharging a firearm during a crime of violence is punishable by a consecutive sentence of 10 years to life in prison.   

U.S. Attorney Sellinger credited the members of the Elizabeth Police Department, under the direction of Director Earl J. Graves and Police Chief Giacommo Sacca; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Barry O’Connell of the General Crimes Unit in Newark.

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

NEWARK, N.J. – A Middlesex County, New Jersey, gas station manager today admitted making approximately $78,000 in fraudulent fuel charges using account information belonging to more than 17 gas station customers, including Amtrak, U.S. Attorney Philip R. Sellinger announced.

Umer Hassan Mir, 40, of South Amboy, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with knowingly and with intent to defraud effecting transactions with one or more access devices issued to other persons having a value over $1,000, over a one-year period of time.

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

From February 2018 through August 2021, while working at a Delta gas station in Metuchen, New Jersey, Mir caused numerous fraudulent fuel charges to be entered on fuel credit cards leased by the General Services Administration (GSA) and assigned to Amtrak vehicles. Mir would manually enter account information regarding fuel credit cards that he personally collected and saved during legitimate fuel transactions electronically into the point-of-sale terminal at the Delta gas station. Following false fuel transactions, Mir withdrew cash in the amount of the fraudulent transaction from the gas station’s cash register. According to statements in court, Mir used this cash for personal expenses and to pay another gas station employee for working extra hours on Mir’s behalf. 

The access fraud charge carries a maximum potential penalty of 15 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 13, 2022.

U.S. Attorney Sellinger credited special agents of the Amtrak, Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Michael J. Waters; the GSA Office of Inspector General, Northeast Field Investigations Division, under the direction of Special Agent in Charge Joseph Dattoria; and postal inspectors with the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Postal Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. He also thanked the Metuchen Police Department, acting under the direction of Chief of Police Arthur Flaherty for its assistance.

The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division.  

TRENTON, N.J. – A Hunterdon County, New Jersey, man was sentenced today to 33 months in prison for producing and selling fraudulent massage therapy training certificates for use in various New Jersey massage parlors that engaged in prostitution, U.S. Attorney Philip R. Sellinger announced.

Naresh Rane, 68, of Tewksbury, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson to Count 1 of an indictment charging him with knowingly and intentionally using and causing the use of facilities in interstate commerce to promote, manage, establish, carry on, and facilitate the business of prostitution in violation of New Jersey law. U.S. District Judge Zahid N. Quraishi imposed the sentence today in Trenton federal court.

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

Rane owned and operated Axiom Healthcare Academy, which purported to provide classes in massage therapy training. Rane held himself out as a businessman who, for a fee that ranged from $1,000 to $2,600, could provide massage therapy training certificates to anyone who wished to obtain a massage license without the required training. Rane was also willing to provide phony transcripts listing classes and grades.

Between November 2013 and March 2014, Rane provided 10 fraudulent massage therapy training certificates and transcripts to a former Westwood, New Jersey, councilman who then gave them to prostitutes working in different massage parlors located in Union, Passaic, Hudson and Middlesex counties. Rane admitted today that he knew the documents he was producing and selling were used to disguise prostitution activities as legitimate massage services.  

In addition to the prison term, Judge Quraishi sentenced Rane to three years of supervised release.   

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 151 months for conspiracy to distribute methamphetamine, U.S. Attorney Philip R. Sellinger announced.

Joan Benitez, 41, of Millville, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count  of conspiracy to distribute and possess with intent to distribute over 50 grams of methamphetamine. Judge Kugler imposed the sentence today in Camden federal court.

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

From Jan. 22, 2020, to Sept. 9, 2020, Benitez sold crystalized methamphetamine, also called “ice,” on behalf of a conspiracy to distribute those drugs. Benitez distributed 1.57 kilograms of methamphetamine.

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

U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to today’s sentencing. He also thanked the New Jersey State Police, the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Atlantic County Prosecutor’s Office, the Atlantic County Sheriff’s Office, the Pleasantville Police Department, and the Atlantic City Police Department, for their assistance.

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

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

Patrick Giblin, 57, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of escape from the custody of the Attorney General and one count of wire fraud.

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

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

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

The charge of escape carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Nov. 16, 2022.

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

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

NEWARK, N.J. – A federal grand jury has indicted a Florida man for allegedly orchestrating a scheme over many years to traffic in counterfeit Cisco networking equipment with an estimated retail value of over $1 billion, Attorney for the United States Vikas Khanna, District of New Jersey, and Assistant Attorney General Kenneth A. Polite announced today.

Onur Aksoy, aka “Ron Aksoy” and “Dave Durden,” 38, of Miami, Florida, is charged by indictment, returned July 7, 2022, with one count of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud; three counts of mail fraud; four counts of wire fraud; and three counts of trafficking in counterfeit goods. Aksoy was originally charged by complaint on June 29, 2022, and was arrested in Miami that day. 

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

Aksoy allegedly ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported tens of thousands of fraudulent and counterfeit Cisco networking devices from China and Hong Kong and resold them to customers in the United States and overseas, falsely representing the products as new and genuine. The operation allegedly generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

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

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

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

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

The charge of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud carries a maximum potential penalty of five years in prison. The charges of mail and wire fraud each carry a maximum potential penalty of 20 years in prison. The charges of trafficking in counterfeit goods each carry a maximum potential penalty of 10 years in prison. Each charge also carries a maximum potential fine of $250,000 or twice the gross gain or loss from the offense, whichever is greatest.

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

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

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

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

The Pro Network Entities include at least the following:

Business Entities

Pro Network Companies

Approximate Month and Year of Formation

State of Formation

Pro Network LLC

August 2013

New Jersey

Netech Solutions LLC

November 2016

Florida

Target Network Solutions LLC

January 2017

Florida

Easy Network LLC

April 2017

New Jersey

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

April 2017

New Jersey

My Network Dealer LLC

April 2017

New Jersey

1701 Doral LLC

May 2017

New Jersey

Maytech Trading LLC

August 2017

Florida

NFD Trading LLC

September 2017

Florida

Kenet Solutions LLC

September 2017

Florida

Team Tech Global LLC

January 2018

New Jersey

Tenek Trading LLC

January 2018

Florida

The Network Gears LLC

February 2018

Florida

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

April 2018

Florida

San Network LLC

October 2018

Florida

Pro Network US Inc.

January 2019

Florida

Jms Tek LLC

August 2019

Florida

Renewed Equipment LLC

August 2021

Florida

Pro Ship US LLC

August 2021

Florida

 

Pro Network Amazon Storefronts

Pro Network Amazon Storefront

Approximate Date of Earliest

Known Activity

Albus Trade Hub

January 2014

EasyNetworkUS

March 2014

Get Better Trade

July 2015

Mercadeal

February 2017

Netech Solutions

February 2018

Netkco LLC

September 2014

NFD Trading LLC

January 2018

Palm Network Solutions

June 2017

Renewed Equip

August 2017

Servtaur

August 2019

Smart Network

July 2017

SOS Tech Trade

August 2017

Target-Solutions

September 2020

TeamTech Global

March 2016

TradeOrigin US

August 2015

 

Pro Network eBay Storefronts

Pro Network eBay Storefront

Approximate Date of Earliest

Known Activity

connectwus

March 2014

futuretechneeds

July 2017

getbettertrade

July 2017

getontrade

April 2016

maytechtradingllc

October 2017

netechsolutions

April 2017

netkco

September 2014

nfdtrading

February 2018

smartnetworkusa

January 2014

tenektradingllc

May 2018

 

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

NEWARK, N.J. – An Austin, Texas, woman was charged today for using a passport belonging to another individual when she flew out of Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.

Kaitlin Armstrong, 34, is charged by complaint with one count of misuse of a passport.  Armstrong will make her initial appearance at a date to be determined.

According to the complaint:

The city of Austin, Texas, obtained an arrest warrant for Armstrong on May 17, 2022, for a murder that allegedly occurred on May 11, 2022, in Austin. The victim died after suffering multiple gunshot wounds. On May 12, 2022, Austin Police Department officers interviewed Armstrong about the death. Armstrong flew from Texas to New York La Guardia Airport in Queens, New York, two days later. 

On May 18, 2022, Armstrong boarded a flight from Newark Liberty International Airport to Juan Santamaría Airport in Costa Rica after presenting a ticket and United States passport in the name of another individual known to Armstrong, and whom Armstrong represented as herself. On June 29, 2022, law enforcement officers apprehended Armstrong in Costa Rica, where she was in possession of both her own passport and the passport that she presented to officials when she flew from Newark Liberty International Airport.

Misuse of a passport carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. 

U.S. Attorney Sellinger credited the U.S. Marshals Service, under the direction of U.S. Marshal for the Western District of Texas Susan Pamerleau; and special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Keith Byrne. He also thanked the U.S. Attorney’s Office for the Western District of Texas, Homeland Security Investigations, the Austin Police Department, and U.S. Customs and Border Protection, for their assistance with the investigation.

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

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

NEWARK, N.J. – Six Essex County, New Jersey, residents were arrested today for scheming to fraudulently obtain Paycheck Protection Program (PPP) loans, U.S. Attorney Philip R. Sellinger announced.

Nyan Terry, aka “Racks,” 23, of Irvington; Samir Jefferson, aka “Tank Jeffe,” 23, of Newark; and Nasir Williams, aka “Harlem Pete,” 29, Hymeen Reynolds, aka “Meen,” 21, Brian Brown, aka “Bizz,” 40, and Cadece Lapread, 35, all of East Orange, are each charged by complaint with one count of bank fraud. Terry, Reynolds, Brown, Lapread, and Jefferson are also charged with one count each of bank fraud conspiracy. The defendants made their initial appearances today before U.S. Magistrate Judge Jessica S. Allen.

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

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

To obtain a PPP loan, a qualifying small business was required to apply and provide information on its operations, including the number of employees and expenses. In addition, businesses generally had to provide supporting documentation.

In April and May 2021, Terry, Jefferson, Williams, Reynolds, Brown, and Lapread schemed to defraud PPP lenders by submitting fraudulent PPP loan applications in the names of nonexistent small businesses, along with forged tax forms. Based on the defendants’ misrepresentations, lenders approved at least three fraudulent PPP loans and disbursed more than $62,000 in federal COVID-19 emergency relief funds.

The counts of bank fraud and bank fraud conspiracy each carry a maximum penalty of 30 years in prison and a maximum fine of $1 million.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges. He also thanked the Bloomfield Police Department, the Essex County Sheriff’s Office, the Essex County Prosecutor’s Office, and the Newark Department of Public Safety for their assistance in the investigation.

The government is represented by Special Assistant U.S. Attorney Timothy Shaughnessy and Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.

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