District of New Jersey

NEWARK, N.J. – The former chief executive officer of a publicly traded health care company was charged in an indictment filed today with two counts of securities fraud in connection with his alleged participation in a scheme to mislead investors about the company’s procurement of COVID-19 rapid test kits in the early days of the pandemic, U.S. Attorney Philip R. Sellinger, District of New Jersey, and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced.

Marc Schessel, 62, of Greenwich, Connecticut, is charged by indictment with two counts of securities fraud. He is scheduled to make his initial court appearance June 7, 2022, in Newark federal court.

“As alleged in the indictment, Marc Schessel exploited the scarcity of COVID-19 tests at the outset of the pandemic to defraud investors and artificially increase his company’s stock price,” U.S. Attorney Sellinger said. “His alleged fraud cost investors millions of dollars in losses.” 

“Schessel allegedly took advantage of the COVID-19 crisis as an opportunity to scam investors and manipulate the market,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s indictment reinforces our commitment to rooting out schemes that have exploited the pandemic and holding accountable those who have prioritized greed during an unprecedented public health emergency.”

“It is a different type of profiteer who tries to benefit from a national disaster such as a weather event or a pandemic,” FBI Acting Special Agent in Charge Michael Messenger said. “This defendant allegedly took advantage of the public’s angst and panic over a deadly virus and put forward false information to drive up his bottom line. The FBI is committed to fighting fraud and protecting the public at all times, but especially when our country is in the midst of a crisis.”

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

Schessel caused his company to issue multiple public statements claiming that it was buying and reselling at least 48 million COVID-19 test kits, despite knowing that such statements were false and misleading. In early April 2020, Schessel executed a supply agreement with an Australian company to obtain 2 million COVID-19 test kits per week for six months, beginning on April 24, 2020. The agreement was based on the Australian company’s representations that it had the appropriate permissions from the U.S. Food and Drug Administration (FDA) and was already distributing COVID-19 tests. Contemporaneously, Schessel received a purchase order from a U.S.-based company that planned to purchase the weekly shipments of 2 million COVID-19 test kits from Schessel’s health care company.

Despite learning new information on April 11, 2020, that called into question whether the Australian company had COVID-19 tests to sell to Schessel’s company that could be distributed in the United States, Schessel caused his company to issue a press release on April 13, 2020, in which it announced the purchase order for 48 million COVID-19 rapid test kits. Following this press release, Schessel received additional information that further called into question his company’s arrangements for the COVID-19 test kits. Despite learning facts that cast significant doubt on the status of the COVID-19 test kit deals, Schessel repeatedly confirmed the status and terms of those arrangements on numerous occasions between April 13, 2020, and April 17, 2020. In the wake of the April 13 announcement, the health care company’s share price surged, rising by over 400 percent from approximately $2.25 per share to an intraday high of $14.88. per share. As a result of this scheme, investors lost at least $116 million.

The first count of securities fraud is punishable by a maximum of 20 years in prison and the second count of securities fraud is punishable by a maximum of 25 years in prison.

U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of the FBI, under the direction of Acting Special Agent in Charge Messenger, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorneys Sean Sherman and Lauren Repole of the District of New Jersey, and Acting Principal Assistant Chief Justin Weitz and Trial Attorneys Lucy Jennings and Spencer Ryan of the Criminal Division’s Fraud Section.

The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing Victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

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 federal jury convicted a Paterson Police Department sergeant today of conspiring to violate civil rights and filing a false police report, U.S. Attorney Philip R. Sellinger announced.

Michael Cheff, 51, of Oakland, New Jersey, was convicted following a five-day trial before U.S. District Judge Katharine S. Hayden on one count of conspiracy to deprive persons of civil rights and one count of falsification of a police report.

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

Eudy Ramos, Daniel Pent, Jonathan Bustios, Matthew Torres, and Frank Toledo were police officers with the Paterson Police Department. Cheff, who was a sergeant, supervised their activities and approved their reports and other paperwork related to arrests and seizures of money, narcotics, and firearms. Ramos, Pent, Bustios, Torres, and Toledo, while on official duty, violated the civil rights of individuals in Paterson. They stopped and searched motor vehicles without any justification and stole cash and other items from the occupants. They also illegally stopped and searched individuals in buildings or on the streets of Paterson and seized cash from them. They concealed their activities by submitting to Cheff false reports that omitted, or falsified, their illegal activities. Cheff signed off on those false police reports and routinely received a portion of these stolen monies from some of these officers.

On Nov. 14, 2017, Cheff joined Bustios, Ramos, and Torres in stealing cash from an apartment in Paterson. Bustios, Ramos, and Torres stopped and arrested an individual in Paterson. The officers went to the individual’s apartment and were joined by Cheff. After the arrested individual was coerced to sign a consent to search form, and while the arrested individual was handcuffed in a police car, Cheff, Bustios, and Ramos went to search the individual’s apartment. After obtaining consent to search the apartment by lying to the individual’s mother, Cheff, Bustios, and Ramos then searched the individual’s room and located a safe inside the room. Cheff took money and narcotics from the safe and put the money in his pocket. Cheff handed a small portion of the money stolen from the safe to Bustios and told Bustios to log it into evidence. Cheff also approved a police report that falsely stated that the officers had recovered $319 from on top of a shelf in the individual’s room.

Later that day, Bustios and Toledo exchanged text messages discussing Cheff’s theft of money. Bustios said, among other things, that Cheff “got us for over a stack today,” that “there was a safe” and that Cheff “grabbed the cash.” According to the individual whose apartment was searched, the safe contained approximately $2,700, and all of it was missing after the search was completed. 

The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison. The false records charge carries a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing will be scheduled at a later date. Ramos, Pent, Bustios, Torres, and Toledo previously pleaded guilty and are awaiting sentencing.

 U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s conviction. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its assistance.

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

TRENTON, N.J. – Three Monmouth County, New Jersey, individuals were indicted today for their role in a years-long scheme to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized under the governing contracts, U.S. Attorney Philip R. Sellinger announced.

Linda Mika, 70, and Paul Mika, 74, both of Jackson, New Jersey, and Kenneth Mika, 50, of Ewing, New Jersey, are charged by indictment with one count of conspiracy to commit wire fraud and five counts of wire fraud in connection with the scheme. Kenneth Mika was additionally charged with two counts of making false statements.

According to documents filed in this case:

From at least March 2016 through April 2020, the Mikas conspired with each other and others to defraud the DoD and one of its combat logistic support arms, the Defense Logistics Agency (DLA), by engaging in a pattern of unlawful product substitution. Paul Mika was the founder and owner of Monmouth Marine Engines Inc. (Monmouth Marine), a maritime equipment and servicing facility, which, as an approved federal contractor, also entered into contracts with DLA to supply DoD contracting entities with replacement hardware for DoD’s military branches. Linda Mika, Paul Mika’s wife, and Kenneth Mika, Paul and Linda Mika’s son, were employees of Monmouth Marine.

The Mikas, on behalf of Monmouth Marine, obtained contracts with the DoD by falsely claiming that the military parts they contracted to provide would be exact products furnished by authorized manufacturers or suppliers. Once awarded the contracts, however, the Mikas sourced non-conforming substitute parts at a significantly reduced cost to fill the contracts. They did this to maximize their profit margin while also suppressing fair competition in the bidding of federal contracts. Upon receipt by Monmouth Marine, the non-conforming parts were then shipped to DLA in packaging disguising the parts’ identities in an effort by the Mikas to deceive DLA and its unwitting downstream purchasers.

During an audit of Monmouth Marine conducted in February 2020, Kenneth Mika falsely stated to DLA auditors that Monmouth Marine had been authorized by certain representatives of the Defense Contract Management Agency to substitute parts under DLA contracts. Kenneth Mika repeated these false representations to FBI and Defense Criminal Investigation Service agents in July 2020.

Each count of conspiracy to commit wire fraud and wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. Each count of making false statements is punishable by a maximum penalty of five years in prison and a maximum $250,00 fine. 

U.S. Attorney Sellinger credited special agents of and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger with the investigation leading to today’s indictment.

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

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

NEWARK, N.J. – A former pharmacy procurement technician was sentenced today to 57 months in prison for stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Lisa M. Hoffman, 50, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property. Judge Salas imposed the sentence today in Newark federal court.

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

From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 35, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. The loss amount was more than $8.2 million. 

In addition to the prison term, Judge Salas sentenced Hoffman to three years of supervised release, ordered restitution of $8.29 million and forfeiture of $450,000.

Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and was sentenced in February 2022 to 42 months in prison.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri; and the VA Police Service of New Jersey, under the direction of Chief Minelli Torres Sukola, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 360 months in prison for heroin trafficking, firearms and witness tampering charges, U.S. Attorney Philip R. Sellinger announced.

Sean Figaro, aka “Carlito,” aka “Carlito the don,” 35, was convicted in July 2019 of distribution of heroin, possession of a firearm in furtherance of his heroin distribution, witness tampering, conspiracy to commit witness tampering, and unlawful possession of a firearm by a convicted felon. Figaro was convicted following a one-week trial before U.S. District Judge Renée Marie Bumb, who imposed the sentence today in Camden federal court.

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

On Jan. 10, 2017, law enforcement officers from the Atlantic City Child Exploitation Task Force executed a state search warrant on Figaro’s hotel room at the Econo Lodge on Pacific Avenue in Atlantic City, where Figaro had been staying off and on for at least a year. Officers recovered Figaro’s cell phone and a safe, containing a Jennings .22 caliber pistol loaded with five rounds, including one in the chamber, 119 individually packaged bags of heroin and various items used for packaging drugs for distribution, including additional bags, a digital scale, razor blades and a straw. 

Officers obtained a separate search warrant for Figaro’s phone, which contained additional evidence of Figaro’s drug trafficking and firearm possession, including text messages offering heroin for sale, and also describing how he earned his living: “my occupation is drug dealership;” and “I’m a dealer, not a pimp, not law, a street hustler.”  

In order to dissuade a witness from testifying against him, Figaro sent and caused to be sent messages to a potential witness, including labeling the witness as a “rat” and a “snitch” on Facebook, and later attempting to persuade the witness not to testify against him by feigning affection and promising to love and care for the witness.

In addition to the prison term, Judge Bumb sentenced Figaro to five years of supervised release.

U.S. Attorney Sellinger credited special agents from the FBI, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and the New Jersey Human Services Police, under the direction of Commissioner Sarah Adelman, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Kristen M. Harberg.

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 84 months in prison for gun trafficking offenses, U.S. Attorney Philip R. Sellinger announced.

Mark Hernandez, aka “Skrap,” 26, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to a three-count information charging him with conspiracy to unlawfully deal in firearms, unlawfully dealing in firearms, and possession of firearms and ammunition by a convicted felon. Judge Cecchi imposed the sentence in Newark federal court.   

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

From December 2019 through June 2020, Hernandez and his conspirators, Clifford Behler, 43, and Francis Zyla, 56, unlawfully distributed more than two dozen firearms – including shotguns, rifles, and firearms capable of accepting large-capacity magazines – in and around Elizabeth, New Jersey. Hernandez unlawfully obtained several of those guns and supplied them to his conspirators for redistribution. Hernandez was previously convicted of unlawful possession of a handgun in New Jersey Superior Court and is prohibited from possessing firearms and ammunition under federal law. 

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

Behler previously pleaded guilty to a three-count information charging him with narcotics and firearms offenses, and was sentenced to a 60-month term of imprisonment in December 2021. The case against Zyla is still pending. The charges against him are merely accusations, and he is presumed innocent unless and until proven guilty.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the Union County Prosecutor’s Office, under the direction of William A. Daniel; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.

In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.

The government is represented by Assistant U.S. Attorneys Samantha C. Fasanello and Robert Frazer U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

NEWARK, N.J. – A Florida woman was charged with wire fraud after she stole over $3 million from the law firm where she worked as a bookkeeper, U.S. Attorney Philip R. Sellinger announced today.

Janet Lee Blissitt, 66, of Margate, Florida, is charged by complaint with one count of wire fraud. Blissitt was arrested earlier this morning and made her initial appearance before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, Florida, federal court. She was released on $150,000 bond.

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

Blissitt worked as a bookkeeper and assistant at a law firm in Boca Raton, Florida. She had access to several of the firm’s business bank accounts, including the firm’s client trust accounts. Starting in October 2021 and continuing through March 2022, Blissitt transferred money from several of the law firm’s business accounts to her personal account and other business bank accounts in New Jersey and Ohio. Blissitt would sometimes falsely note that the purpose of the transfers was to pay fees. Blissitt embezzled an estimated $3 million from the law firm.         

The wire fraud charge has a maximum term of 20 years, and a maximum fine of $250,000 or twice the pecuniary gain to the defendant or loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark and Special Agent in Charge Eric B. Smith in Cleveland, Ohio, with the investigation leading to the charges. He also thanked the Boca Raton Police Services Department 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 in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 46 months in prison for distributing and conspiring to distribute oxycodone pills, making him the ninth person sentenced for his role in a drug trafficking ring operating in and around Camden and Gloucester City, U.S. Attorney Philip R. Sellinger announced.

Maurice Williams, 41, of Pennsauken, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to two counts of a five-count indictment that charged 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:

Williams previously admitted that on multiple occasions from January 2020 to March 10, 2020, he obtained oxycodone from Erick Bell in and around Camden and resold that oxycodone. Williams was charged along with 17 others in March 2020 in connection with an investigation by the FBI into the illegal distribution of prescription drugs, including high dosage oxycodone pills, to customers in Gloucester City and Camden. Bell pleaded guilty to his role in the scheme and is scheduled to be sentenced by Judge Bumb on June 28, 2022.

In addition to the prison term, Judge Bumb sentenced Williams to three years of supervised release. Williams also agreed to forfeiture of $16,800.

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 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.

TRENTON, N.J. – A California man was sentenced today to 15 months in prison for his role in a conspiracy to broker patients as part of a multi-state patient scheme in which recruiters were directed to bribe drug-addicted individuals to enroll in drug rehabilitation, U.S. Philip R. Sellinger announced.

Dr. Akikur Mohammad, 58, of West Hills, California, previously pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan, to an information charging him with one count of conspiracy to violate the Eliminating Kickbacks in Recovery Act (EKRA). Judge Sheridan imposed the sentence today by videoconference.

EKRA, enacted by Congress in October 2018 as part of a broader package of legislation aimed at combatting the opioid crisis, bars the payment of kickbacks in exchange for the referral of patients to drug treatment facilities. Mohammad’s EKRA conviction is among the first such convictions in the country using the new charge.

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

A number of conspirators owned and operated a marketing company in California. They used the marketing company to help orchestrate a scheme in New Jersey, Maryland, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers, generating fees from those facilities. One facility in California that paid such referral fees was owned and operated by Mohammad. His facility and other facilities typically paid the marketing company a fee of $5,000 to $10,000 per patient referral.

In addition to the prison term, Judge Sheridan sentenced Mohammad to three years of supervised release and ordered him to pay restitution of $493,104.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s sentencing. He also thanked the FBI, under the direction of Assistant Director in Charge Kristi Koons Johnson in Los Angeles, California, and the District Attorney’s Office in Orange County, California, for their assistance.

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

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

Igor Michael Terrero, 49, of Succasunna, New Jersey, was charged by complaint with one count of distributing child pornography. Terrero made his initial appearance by videoconference today before U.S. Magistrate Judge Jessica S. Allen and was released on $100,000 unsecured bond, with home detention and electronic monitoring.

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

From Aug. 30, 2021, through April 20, 2022, Terrero shared more than 85 media files, including images and videos depicting the sexual abuse of children.

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

U.S. Attorney Sellinger credited the special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll; and the Roxbury Township Police, under the direction of Chief Dean Adone, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Matthew C. DeSaro of the U.S. Attorney’s Office General Crimes Unit in Newark.

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

NEWARK, N.J. – A citizen of the Dominican Republic who was extradited to the United States on money laundering charges made his initial appearance in New Jersey federal court, U.S. Attorney Philip R. Sellinger announced. 

Jonathan Humeau-Hernandez, 41, is charged by indictment with five counts of money laundering and conspiracy to commit money laundering for his role in laundering millions in illegal cash drug proceeds from the United States to the Dominican Republic. Humeau-Hernandez was arrested in the Dominican Republic at the request of the United States on Feb. 20, 2022, and extradited to the United States. He had his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was detained. 

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

Humeau-Hernandez was part of a criminal conspiracy that arranged to have large sums of cash drug proceeds in the United States laundered through the U.S. banking system and transferred to the Dominican Republic and elsewhere. From November 2018 through February 2020, Humeau-Hernandez coordinated with conspirators in New Jersey to pick up millions of dollars in cash drug proceeds and convert the cash into cashier’s checks or deposit the cash into accounts specified by Humeau-Hernandez so it could be transferred to other accounts. Humeau-Hernandez took these steps in order to conceal the nature, source, ownership, and control of the illegal drug proceeds and to avoid scrutiny by law enforcement and banking institutions.

The money laundering charges against Humeau-Hernandez carry a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. 

U.S. Attorney Sellinger credited special agents 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 of IRS Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; and the Morristown, New Jersey, Police Department, under the direction of Chief Darnell Richardson; with the investigation leading to the charges. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest of Humeau-Hernandez and his extradition to the United States. 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 Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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

NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of participating in a multimillion-dollar conspiracy to traffic counterfeit computer networking devices, U.S. Attorney Philip R. Sellinger announced.

Musa Karaman, 35, of North Arlington, New Jersey, is charged by complaint with one count of conspiracy to commit mail and wire fraud. He appeared by videoconference today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $300,000 unsecured bond.

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

From at least September 2017 through May 2021, Karaman, Israfil “David” Demir and another an uncharged conspirator, formed and operated numerous entities in the business of selling computer networking equipment, particularly, networking devices manufactured by Cisco Systems Inc., a major U.S. technology conglomerate. Although Karaman and his conspirators advertised the Cisco products they offered for sale as new and genuine, the products were in fact counterfeit Cisco devices that the conspirators procured from various illicit suppliers based in China.

In May 2021, federal agents executed a search warrant at a Woodland Park, New Jersey warehouse used by Karaman and his conspirators as their business headquarters and discovered thousands of counterfeit Cisco devices, including 7,260 counterfeit Cisco transceivers with a total manufacturer’s suggested retail price of approximately $13.77 million. Cisco informed law enforcement officials that this is one of the largest volumes of counterfeit Cisco transceivers ever seized in the United States, and that the total value of the seized counterfeit Cisco transceivers was unprecedented. From September 2017 to May 2021, U.S. Customs and Border Protection seized approximately $3.8 million worth of counterfeit Cisco products contained in over 20 shipments sent by illicit China-based suppliers to various locations under the control of Karaman and his conspirators, including their warehouse and home addresses, often under bogus names.

Demir was charged by criminal complaint on May 26, 2021, in this matter.

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

U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), Newark Office, under the direction of Special Agent in Charge Jason J. Molina; officers from the Port of New York/Newark, U.S. Customs and Border Protection, Office of Field Operations New York Field Office, under the direction of Acting Port Director TenaVel T. Thomas, and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s arrest.

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.

TRENTON, N.J. – A New York man today admitted transporting multiple items depicting child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.

Jesus Modesto Sanchez, 31, of New York, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography.

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

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

The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. Sentencing is scheduled for Sept. 20, 2022.

U.S. Attorney Sellinger credited Special agents with the FBI, under the direction of Acting Special Agent in Charge Michael Messenger; and members of the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Annmarie Taggart, with the investigation leading to the charge.

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

22-190 

Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey

NEWARK, N.J. – A Florida man was sentenced today to 120 months in prison for his role in a health care fraud and kickback scheme, U.S. Attorney Philip R. Sellinger announced.

Pat Truglia, 54, of Parkland, Florida, previously pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to conspiracy to commit health care fraud. Judge McNulty imposed the sentence today in Newark federal court. Two co-defendants, Nicholas Defonte, 73, and Christopher Cirri, 64, both of Toms River, New Jersey, previously pleaded guilty to the same conspiracy and are awaiting sentencing.

According to documents filed in these cases and statements made in court:

Each defendant played a role in defrauding health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for completed doctors’ orders for durable medical equipment, namely orthotic braces (DME orders): • Truglia and his conspirators had financial interests in multiple DME companies. The DME companies paid kickbacks to suppliers of DME orders, including Cirri, Defonte, and Truglia, in exchange for DME orders, which the DME companies subsequently fraudulently billed to Medicare, TRICARE, CHAMPVA, and other health care benefit programs. Truglia and his conspirators concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies.

• Truglia, Cirri, Defonte, and their conspirators owned and operated multiple call centers through which they obtained DME orders for beneficiaries of Medicare and other federal health care programs. The call centers paid illegal kickbacks and bribes to telemedicine companies to obtain DME orders for these beneficiaries. The telemedicine companies then paid physicians to write medically unnecessary DME orders. The DME orders were provided to DME supply companies owned by Truglia and others in exchange for bribes. The DME supply companies in turn provided the braces to beneficiaries and fraudulently billed the health care programs.

• Cirri, Defonte, and their conspirators had business relationships with call centers through which they obtained prescriptions for compounded medications and other medical products reimbursable by federal and private health care benefit programs. Cirri and Defonte provided these prescriptions for compounded medical prescriptions and other medical products in exchange for kickbacks and bribes from companies that fraudulently billed them to health care programs.

The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $50 million.

In addition to the prison term, Judge McNulty sentenced Truglia to three years of supervised release and ordered restitution of $33,777,799.67 and forfeiture of $9,477,925.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement and Health Care Fraud Units in Newark, Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark, and Trial Attorney Darren Halverson of the Criminal Division’s Fraud Section.

Defense counsel:

Truglia: Bernard M. Cassidy Esq., Fort Lauderdale, Florida
Cirri: Timothy Anderson Esq., Red Bank, New Jersey
Defonte: Robert Weir Esq., Little Silver, New Jersey

NEWARK, N.J. – A Pennsylvania man was charged for his role in a scheme to fraudulently obtain over $1.7 million in federal Paycheck Protection Program (PPP) loans for himself and others, U.S. Attorney Philip R. Sellinger announced today.

Darryl Duanne Young, aka “Darryl Duanne Isom Young,” 59, of Kingston, Pennsylvania, is charged by complaint with one count of conspiracy to commit bank fraud, four counts of bank fraud, and two counts of money laundering. Young made his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on $150,000 unsecured bond.

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 the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The law authorized up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

Young engaged in a scheme to illegally obtain, for himself and his conspirators, over $1.7 million in PPP loans through numerous misrepresentations to banks. Young submitted and directed others to submit fraudulent PPP loan applications. He submitted falsified tax documents and bank statements to a victim lender in support of PPP loan applications. He received over $230,000 in PPP loans for businesses he controlled and received a percentage of loan proceeds for assisting in submitting fraudulent applications on behalf of others.

The counts of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine. The counts of money laundering each carry a maximum potential penalty of 10 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 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 Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Jason J. Molina in Newark, with the investigation leading to the charges.

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

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

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

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted making threatening telephone and email communications to New Jersey state officials, judges, law enforcement officers, and attorneys, and phoning in false bomb threats to local and state government offices, a police department, two law firms and a commercial establishment, U.S. Attorney Philip R. Sellinger announced.

Eric G. Hafner, 31, formerly of Monmouth County, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp to one count of making threating communications in interstate or foreign commerce with intent to extort, one count of making threatening communications in interstate or foreign commerce, and one count of conveying false information concerning the use of an explosive device.     

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

Between July 2016 and May 2018, while residing outside the United States, Hafner communicated threats to numerous individuals located in and around Monmouth County and elsewhere. The victims were elected officials, judges, police officers, attorneys, and their families. Hafner sought to extort $350,000 from some of his victims. During this time period, Hafner also made false bomb threats to an elected official’s office, a county courthouse, a police department, two law firms, and a commercial establishment.

The count of making threating communications in interstate or foreign commerce with intent to extort carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The count of conveying false information concerning the use of an explosive device carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The count of making threatening communications in interstate or foreign commerce carries a maximum penalty of five years in prison and a $250,000 fine. Hafner’s sentencing is scheduled for Sept. 21, 2022.     

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger, with the investigation leading to today’s guilty plea. He also thanked detectives of the Monmouth County Prosecutor’s Office; officers of the Monmouth County Sheriff’s Office; New Jersey State Police; the Bradley Beach Police Department; Fairhaven Police Department; Aberdeen Police Department; the Hazlet Police Department; Shrewsbury Police Department; the Red Bank Police Department; the Freehold Township Police Department; the Middletown Police Department; the Neptune Township Police Department; the Oceanport Police Department; the Deal Police Department; and the Manasquan Police Department for their assistance in the investigation.

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

NEWARK, N.J. – An Essex County, New Jersey, woman was sentenced today to 36 months in prison for stealing checkbooks and credit cards from the mail while employed as a U.S. Postal Service (USPS) clerk and filing fraudulent applications for loans intended for small businesses experiencing disruptions due to the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced. 

Janel Blackman, 42, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of conspiracy to commit bank fraud and one count of making false statements to the U.S. Small Business Administration (SBA). Judge Wigenton imposed the sentence today by videoconference.

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

From February 2019 to May 2020, Blackman conspired to obtain money from victim financial institutions fraudulently, by, among other things, stealing credit cards and blank checkbooks from a post office in Summit, New Jersey, where she was employed as a clerk, and providing them to conspirators in exchange for cash. Blackman’s conspirators then fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given the conspirators access to their accounts, also in exchange for cash. Blackman’s conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Blackman and her conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.

From July 2020 to February 2021, Blackman also filed fraudulent applications for Economic Injury Disaster Loans (EIDL), which are intended for small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. The applications were for businesses that did not exist and were intended to induce the SBA to provide funding to Blackman under false pretenses. For example, on Oct. 25, 2020, Blackman filed an EIDL application in the name of Hard Times Café, stating that it was a liquor store in Newark with 10 employees. In fact, no such business existed. Blackman further falsely stated that she, as the listed owner of Hard Times Cafe, was not then presently subject to formal criminal charges in any jurisdiction, even though as of Sept. 17, 2020, she had been arrested and charged by criminal complaint in the District of New Jersey with the bank fraud conspiracy described above. The SBA did not approve the application. 

Three of Blackman’s conspirators have pleaded guilty and were sentenced: Tashon Ragan, 22, of Hillside, New Jersey, 33 months in prison; Jahaad Flip, 22, of Newark, New Jersey, 28 months in prison; and Jeffrey Bennett, 27, of Irvington, New Jersey, 48 months in prison.

In addition to the prison term, Judge Wigenton sentenced Blackman to three years of supervised release and ordered restitution of $61,438.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s sentencing. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.

The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.

CAMDEN, N.J. – A Camden County, New Jersey, man with four prior felony convictions today admitted to possessing with intent to distribute fentanyl and to illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.

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

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

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

The possession with intent to distribute fentanyl charge carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The charge of illegally possessing a firearm carries a maximum of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21, 2022.

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

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

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

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

Jon Paul Dadaian, 53, of New York, a board-certified anesthesiologist and pain management specialist, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with unlawfully selling prescription cancer medication, which had been previously purchased using his medical license and under the representation that such medication was to be used to treat his patients.

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

While operating his medical practice in Elmwood, New Jersey, Dadaian befriended two individuals who owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of these individuals, and in return for approximately $130,500 in payments, Dadaian used his medical license – and allowed others to use it – to purchase expensive prescription drugs, primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases. By recruiting and using Dadaian and his medical license to purchase the drugs, the two individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses. By using Dadaian and his medical license to purchase their prescription drugs, these two individuals also obtained discounted community physician pricing for the prescription drugs with respect to some of the drug purchases. The discounted community physician pricing was based upon specialized discounts that the pharmaceutical manufacturers only offered to treating physicians and others similarly situated. The two individuals and their businesses would not have been qualified to receive this favorable pricing if they had attempted to purchase the prescription drugs directly from the pharmaceutical manufacturers.

In purchasing the drugs, Dadaian and the two individuals made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Dadaian purchased the drugs to use to treat his patients, and that the drugs would not be resold or redistributed. In actuality, none of the drugs were administered to Dadaian’s patients, but were ultimately sold to customers of the two businesses for a profit. The scheme ran from June 2012 through April 2018, during which tens of millions in prescription drugs were purchased in Dadaian’s name and using his medical license.

The sale of prescription drugs purchased by a healthcare entity is punishable by a maximum of three years in prison and a $10,000 fine. In his plea agreement, Dadaian also agreed to make restitution for the full amount of any loss resulting from his offense. Sentencing for Dadaian is scheduled for Sept. 20, 2022.

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

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

NEWARK, N.J. – A federal jury has convicted a Bronx, New York, man of engaging in a violent, multi-state crime spree during which he kidnapped and sexually assaulted his former girlfriend, assaulted a federal employee, set fire to a used car dealership, and rammed multiple police vehicles before being apprehended, U.S. Attorney Philip R. Sellinger announced today.

Luis Figueroa, 41, was convicted of kidnapping (Count One); criminal sexual abuse (Count Two); possession of a firearm in furtherance of a crime of violence (Count Three); and assaulting an employee of the United States (Count Four), following a two-week trial before U.S. District Judge John Michael Vazquez in Newark federal court. Figueroa had previously pleaded guilty to possession of a firearm by a previously convicted felon and arson.

“The conduct for which this defendant was convicted describes an almost unimaginable level of violence and depravity,” U.S. Attorney Sellinger said. “All of the federal, state and local law enforcement agencies that worked on finding, capturing and prosecuting him did outstanding work in this case. This conviction, and the severe punishment the defendant now faces, should ensure that he is no longer a threat to public safety.”

“This guilty verdict brings accountability to a violent criminal who will answer for his multi-state crime spree and acts of violence,” Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews said. “I commend the hard work and collaborative efforts of the U.S. Attorney’s Office, ATF, and our local and state partners involved in this investigation and prosecution. Our commitment to protecting the public, combatting violent crime in our communities, and maintaining vital partnerships with local and state agencies, along with the results of this investigation demonstrate the common goals and resolve of all parties involved.”

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

On the morning of June 6, 2014, Figueroa, armed with a shotgun, waited outside the Hazleton, Pennsylvania, apartment of his former girlfriend. When she emerged from the apartment, Figueroa struck the victim in the face with the shotgun and said: “I told you I was going to kill you.” Figueroa then proceeded to physically assault both the former girlfriend and her sister, who, at the time, was eight-months pregnant. As Figueroa attacked the women, another family member took Figueroa’s and the ex-girlfriend’s young child into a bedroom to shield the child from the violence.

After struggling with the pregnant woman and causing her to fall down a flight of stairs, Figueroa collected the shotgun from the apartment and led his former girlfriend to a red SUV, where he forced her into the backseat. Figueroa then drove the victim across state lines to New Jersey. Figueroa eventually stopped at the Kittatinny Point Visitor’s Center, which is located on federal property, and sexually assaulted his former girlfriend.

After the assault, the victim convinced Figueroa to dispose of the shotgun. When Figueroa went to do so, the former girlfriend climbed into the driver’s seat of the red SUV and drove away to safety.

After returning and discovering both his former girlfriend and the red SUV were no longer there, Figueroa approached a National Park Service employee, and led the employee to a nearby storage room, where he slammed the victim’s head against a door and threatened to harm the victim if he did not hand over the keys to his car. The employee complied and Figueroa fled the scene in the victim’s car.

Figueroa drove to Paterson, New Jersey, where he entered a used car dealership operated by a person with whom Figueroa had a business relationship. Figueroa asked an employee for a portable gas canister, which he filled shortly thereafter at a nearby gas station, and then returned to the dealership and doused the office with gasoline. After a brief struggle with an employee, Figueroa ignited a match and set the building on fire, engulfing the structure in flames and setting himself on fire in the process. Figueroa then fled the scene in another vehicle. 

Law enforcement officers spotted Figueroa’s vehicle driving erratically towards the George Washington Bridge heading into New York. Figueroa ignored officers’ commands to stop, leading to a high-speed chase in which Figueroa rammed his vehicle into multiple police vehicles, injuring a police officer. Figueroa then got out of his vehicle and fled on foot. Officers placed Figueroa under arrest shortly thereafter.

The kidnapping charge and the aggravated sexual abuse charge each carry a maximum penalty of life in prison and a $250,000 fine. The possession of a firearm in furtherance of a crime of violence charge carries a mandatory minimum sentence of seven years in prison, a maximum penalty of life in prison, and a fine of up to $250,000.

The possession of a firearm by a convicted felon charge carries a maximum penalty of 10 years in prison and a $250,000 fine. The assaulting an employee of the United States charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The arson charges carries a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years in prison and a $250,000 fine.

Sentencing is scheduled for Sept. 8, 2022.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Matthews in Newark, for the investigation leading to today’s verdict. He also thanked the Hazelton City, Pennsylvania, Police Department; the Luzerne County, Pennsylvania, District Attorney’s Office; the Pennsylvania State Police; the New Jersey State Police; the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office for their assistance.

The government is represented by Assistant U.S. Attorneys Vera Varshavsky and Naazneen Khan of the U.S. Attorney’s Office’s Criminal Division in Newark.

TRENTON, N.J. – A Mercer County, New Jersey, man was arrested today for tax evasion and filing false tax returns, U.S. Attorney Philip R. Sellinger announced.

Gordian A. Ndubizu, 67, of Princeton Junction, New Jersey, is charged in an eight-count indictment unsealed today with four counts of tax evasion and four counts of filing false tax returns in tax years 2014 through 2017. He is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni.

According to documents filed in this case:

During tax years 2014 through 2017, Ndubizu was a professor of accounting at a university in Pennsylvania as well as the co-owner of Healthcare Pharmacy in Trenton. The pharmacy was organized as an S corporation, the income of which flowed through to Ndubizu and his wife and was to be reported on their personal income tax returns. Ndubizu prepared fraudulent books and records for Healthcare Pharmacy inflating the pharmacy’s costs of goods sold to reduce and underreport the pharmacy’s actual profits flowing through to Ndubizu and his wife. Ndubizu identified certain wire transfers as payments to purchase goods sold by the pharmacy when these wire transfers were in fact made to personal bank accounts under Ndubizu’s control and to bank accounts in Nigeria associated with an automotive company under Ndubizu’s control. Each of Ndubizu’s tax returns for tax years 2014 through 2017 falsely underreported his income and falsely reported that he had no financial interest in or signature authority over any foreign bank accounts. Ndubizu failed to report approximately $3.3 million in income from the pharmacy, resulting in the evasion of approximately $1.3 million in tax due and owing.

Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $100,000. Each count of filing a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $100,000.

U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation Division, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s arrest. He also thanked diversion investigators with the Drug Enforcement Administration, officers of the Trenton Police Department, and Mercer County Prosecutor’s Office for their assistance.  

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

The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty. Ndubizu’s wife, Florence Ndubizu, the co-owner of Healthcare Pharmacy, was also arrested today on federal controlled substance offenses charged in a separate indictment. She is not charged in the tax fraud case. 

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

Jonathan Lattif, 44, of Jersey City, is charged by complaint with one count of possessing child pornography. Lattif is scheduled to have his initial appearance by videoconference before U.S. Magistrate Judge Jose R. Almonte.

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

On March 18, 2022, Lattif possessed at least three videos depicting sexual abuse of minors, including prepubescent children, on his mobile device.

Lattif has a prior state conviction for possession of child pornography. Accordingly, a charge of possession of child pornography depicting prepubescent children by a repeat offender carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and Customs and Border Proection Officers from the Port of New York/Newark, U.S. Customs and Border Protection, Office of Field Operations New York Field Office, under the direction of Acting Port Director TenaVel T. Thomas, with the investigation leading to the charge.

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

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

NEWARK, N.J. – Four men were charged today for their roles in a scheme to steal catalytic converters from vehicles in New Jersey and transport the stolen goods to New York, U.S. Attorney Philip R. Sellinger announced.

Carlos Gonzalez Sabino, 27, and Marcos Rivas Cruz, 21, both of the Bronx, New York, Juan Jose Flores Nolasco, 27, of Paterson, New Jersey, and Jeffrey Sena, 27, of New Rochelle, New York, are charged by complaint with interstate transportation of stolen goods. They are scheduled to make their initial appearances by videoconference this afternoon before U.S. Magistrate Judge José R. Almonte.

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

Law enforcement officials identified a white BMW in connection with approximately 15 catalytic converter thefts in New Jersey from January 2022 through May 2022. On May 11, 2022, law enforcement learned that the BMW was traveling in New Jersey and had been identified by witnesses in connection with several catalytic converter thefts that had occurred in the morning. Law enforcement officials determined that the BMW would likely travel from New Jersey into New York, via the George Washington Bridge, with the stolen catalytic converters, and established surveillance there. They stopped the BMW and apprehended the defendants. Law enforcement officials found seven stolen catalytic converters, collectively valued at approximately $5,600, and other items.

Interstate transportation of stolen goods carries a maximum potential penalty of 10 years in prison and maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Transnational Organized Crime Task Force, under the direction of Acting Special Agent in Charge Michael Messenger; the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent of Police Edward T. Cetnar; and the Cranford Police Department, under the direction of Chief of Police Ryan Greco, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Kimberly Mitchell of the Organized Crimes and 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.

TRENTON, N.J. – A former pharmacist was arrested today for her role in distributing and dispensing outside the course of professional practice large quantities of oxycodone and other controlled substances from a pharmacy located in Trenton, U.S. Attorney Philip R. Sellinger announced.

Florence Ndubizu, 62, of Princeton Junction, New Jersey, is charged in a three-count indictment unsealed today with one count of conspiracy to unlawfully distribute and dispense and to possess with intent to distribute and to dispense Schedule II controlled substances, including oxycodone, between 2014 and 2017; one count of unlawfully distributing and dispensing a controlled substance; and one count of maintaining a premises for the illegal distribution of a controlled substance. Ndubizu is scheduled to make her initial appearance by videoconference this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni.

According to documents filed in this case:

Between 2014 and 2017, Ndubizu was the co-owner and pharmacist-in-charge of Healthcare Pharmacy in Trenton. She and her employee conspirators, acting at her direction, systematically filled fraudulent prescriptions outside the usual course of professional practice, knowing that the drugs would not be used for a legitimate medical purpose, but instead would be illegally diverted, including to street-level drug dealers. Ndubizu, operating a single-location pharmacy, purchased and distributed millions of dosage units of oxycodone, including over 800,000 pills in 2014; over 900,000 pills in 2015; over 800,000 pills in 2016; and over 200,000 pills in 2017, until the DEA suspended the pharmacy’s registration. During each of the years 2014, 2015, 2016, and 2017, Healthcare Pharmacy was one of the largest purchasers of oxycodone in the state of New Jersey. On Aug. 31, 2017, the DEA served Ndubizu with an order immediately suspending Healthcare Pharmacy’s ability to distribute controlled substances, including oxycodone.

Ndubizu diverted oxycodone pills to cash-paying customers, including street-level drug dealers with fraudulent prescriptions, and then evaded state and federal reporting requirements by manipulating the pharmacy’s dispensing records to conceal the missing inventory. The DEA conducted an audit of Healthcare Pharmacy’s inventory records and government reporting records and found that between April 2015 and August 2017 alone, Ndubizu and Healthcare Pharmacy diverted more than 80,000 oxycodone containing pills, containing more than 2 kilograms of oxycodone.

The conspiracy charged in Count One and substantive unlawful distribution of Schedule II controlled substances charged in Count Two each carry a maximum potential penalty of 20 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. Count Three, charging Ndubizu with maintaining Healthcare Pharmacy as a drug-involved premises carries a maximum penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited diversion investigators, special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s arrest. He also thanked special agents of IRS - Criminal Investigation, officers of the Trenton Police Department, and the Mercer County Prosecutor’s Office for their assistance.  

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

The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty. Ndubizu’s husband, Gordian A. Ndubizu, the co-owner of Healthcare Pharmacy, was also arrested today on tax evasion offenses charged in a separate indictment. Florence Ndubizu is not charged in the tax case.

NEWARK, N.J. – A federal jury has convicted a Hudson County, New Jersey, man of possessing three firearms and ammunition and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.

Justin A. Rodriguez, 29, of West New York, was convicted following a six-day trial before U.S. District Judge Stanley R. Chesler on one count of possession of firearms and ammunition by a convicted felon and one count of possession with intent to distribute cocaine.

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

On July 2, 2020, while conducting surveillance, law enforcement observed an unknown individual place what appeared to be a handgun into Rodriguez’s vehicle. A search of Rodriguez’s vehicle pursuant to a search warrant yielded one 9-millimeter handgun loaded with nine rounds of 9-millimeter ammunition; one .45-caliber handgun loaded with eight rounds of .45-caliber ammunition; one .38-caliber revolver; one clear plastic bag containing cocaine; and four bags containing marijuana.

The firearm charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. The cocaine trafficking charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. Sentencing is scheduled for

U.S. Attorney Sellinger credited members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura: deputy marshals with the U.S. Marshals Service in the District of New Jersey, under the supervision of U.S. Marshal Juan Mattos Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Jeffrey L. Matthews; and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the conviction.

The government is represented by Assistant U.S. Attorneys Sarah A. Sulkowski and Benjamin Levin of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A woman from California and a woman from Arkansas today admitted their roles in a multi-state patient brokering scheme in which they paid referral fees from their rehabilitation centers in exchange for patient referrals, Attorney for the United States Vikas Khanna announced.

Lauren B. Philhower, 33, of Los Angeles, California, and Anastasia A. Passas, 33, of Bentonville, Arkansas, each pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging them each with one count of conspiracy to violate the Travel Act.

Five other individuals have previously pleaded guilty for their roles in the scheme. Peter Costas, of Red Bank, New Jersey, pleaded guilty in May 2020 to conspiracy to commit health care fraud; Seth Logan Welsh, of Forest Hill, Maryland, and John C. Devlin, of Baltimore, Maryland, pleaded guilty in September 2020 to the same charge; Kevin M. Dickau, of Georgtown, Texas, pleaded guilty in September 2020 to the same charge; and Dr. Akikur Mohammad, of West Hills, California, pleaded guilty in September 2020 to conspiracy to violate the Eliminating Kickbacks in Recovery Act (EKRA).

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

Dickau, Welsh, Devlin, and their conspirators owned and operated a marketing company in California. They used the marketing company to help orchestrate a scheme in New Jersey, Maryland, California, and other states that involved bribing individuals addicted to heroin and other drugs to enter into drug rehabilitation centers so Welsh, Devlin, and their conspirators could generate referral fees from those facilities. Two such facilities in California that paid such referral fees were operated by Philhower and Passas.

The marketing company run by Dickau, Welsh, and Devlin maintained contractual relationships with drug treatment facilities around the country, including the ones run by Philhower and Passas. The marketing company also engaged a nationwide network of recruiters – including Costas in New Jersey – to identify and recruit potential patients, from New Jersey and other states, who were addicted to heroin or other drugs and who had robust private health insurance.

To convince drug-addicted individuals to travel to and enroll in rehabilitation when they otherwise would not have, Costas and other recruiters offered to bribe them—often as much as several thousand dollars—with the approval of Dickau, Welsh, and Devlin. Once the patients agreed to enroll in drug rehabilitation in exchange for the offered bribe, Dickau, Welsh, Devlin, and Costas would arrange and pay for cross-country travel to the drug treatment centers in California and other states, in concert with the owners of the facilities themselves, including Philhower and Passas. Costas would stay in touch with the New Jersey patients at the facilities and specifically instruct them to stay at the facilities long enough to generate referral payments, and he would pass along information to Dickau, Welsh, and Devlin about the patients’ status at the facilities.  Dickau, Welsh, and Devlin would monitor the other patients they brokered by speaking to other recruiters or to the owners and employees of the drug treatment facilities themselves.

Philhower and Passas’s drug treatment facilities had a contract with the marketing company run by Dickau, Welsh, and Devlin. Their facilities and other facilities typically paid the marketing company run by Dickau, Welsh, and Devlin a fee of $5,000 to $10,000 per patient referral. Dickau, Welsh, Devlin, and their conspirators shared that money among themselves. Costas and other recruiters received approximately half that amount for each patient they brokered. Dickau, Welsh, Devlin, and their conspirators brokered scores of patients to drug treatment facilities around the country, including the ones run by Philhower and Passas, and the conspiracy caused millions of dollars of losses for health insurers.

Philhower and Passas each face a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing for Philhower is scheduled for Sept. 13, 2022, and for Passas, Sept. 14, 2022.

Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s guilty pleas. He also thanked the FBI, under the direction of Assistant Director in Charge Kristi Koons Johnson in Los Angeles, and the District Attorney’s Office in Orange County, California, for their assistance.

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

NEWARK, N.J. – Two owners of a nationwide telemedicine company today admitted their roles in conspiracies to bribe doctors and to commit health care fraud, Attorney for the United States Vikas Khanna announced.

Stephen Luke, 54, of Phoenix, Arizona, and David Laughlin, 48, of Buckeye, Arizona, each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with one count of conspiracy to violate the federal Anti-Kickback statute and one count of conspiracy to commit health care fraud.

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

Medicare is a federal program that provides free or below-cost health care benefits to certain individuals, primarily the elderly, blind, and disabled. TRICARE is a federal health care benefit program for the U.S. Department of Defense (DoD) Military Health System that provided health insurance coverage for beneficiaries worldwide, including active-duty military service members, National Guard and Reserve members, retirees, their families, and survivors.

Luke and Laughlin owned and operated RediDoc LLC, a purported telemedicine company based in Phoenix. From September 2017 through December 2019, Luke and Laughlin conspired together and with others to unlawfully enrich themselves by submitting and causing to be submitted false and fraudulent claims to federal health care benefit programs. They did so through a circular scheme of kickbacks and bribes paid to doctors and solicited from marketing companies, pharmacies, and providers of durable medical equipment (DME).

Pharmacies and DME providers agreed to pay bribes and kickbacks to marketing companies in exchange for drug prescriptions and doctor’s orders for DME. The marketing companies obtained the personal information of Medicare and TRICARE beneficiaries, which they sent to RediDoc, along with pre-filled prescriptions and DME orders. RediDoc then gave the beneficiary information and pre-marked prescriptions and DME orders to doctors to whom it paid bribes and kickbacks. The doctors often approved the prescriptions and DME orders without having had any contact with the beneficiary and without making a bona fide assessment that the medications or DME were medically necessary. Participants in the scheme selected particular drugs largely based on the reimbursement amounts that Medicare and TRICARE would pay, and not the medical needs of the beneficiaries.

Once RediDoc’s doctors had signed the prescriptions and orders regardless of medical necessity, RediDoc then transmitted them to pharmacies and DME providers around the country for fulfillment and billing. When the pharmacies filled the prescriptions and orders and were reimbursed by health care benefit programs, they sent a portion of the reimbursement amount to the marketing companies, who further shared those funds with Luke, Laughlin, and RediDoc to purchase additional prescriptions and DME orders.

Through RediDoc, Luke and Laughlin received approximately $32 million from marketing companies. RediDoc paid several million dollars in kickbacks to doctors who were located in dozens of states around the country, including New Jersey. As part of their guilty pleas, Luke and Laughlin admitted that they and their conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $64 million. Those claims were ineligible for federal health care benefit program reimbursement, in part, because they were procured through the payment of kickbacks and bribes.

The charges of kickback conspiracy are punishable by a maximum of five years in prison; the health care fraud conspiracy counts are punishable by a maximum of 10 years in prison, along with fines, restitution, and forfeiture penalties as to both counts. Sentencing for both defendants is scheduled for Oct. 11, 2022.

Attorney for the United States Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty with the investigation leading to today’s guilty pleas.

The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri and Hayden M. Brockett of the Health Care Fraud Unit in Newark and Senior Trial Counsel Barbara Ward of the Asset Recovery and Money Laundering Unit in Newark.

NEWARK, N.J. – An Indiana man was sentenced today to 222 months in prison for plotting to pay a purported hitman to kill his ex-wife and for attempting to tamper with witnesses, U.S. Attorney Philip R. Sellinger announced.

Narsan Lingala, 58, of Noblesville, Indiana, was previously convicted of one count of conspiring to commit murder for hire, one count of traveling interstate or using interstate facilities with intent that a murder for hire be committed, and two counts of attempting to tamper with a witness. Lingala was convicted following an eight-day jury trial before Chief U.S. District Judge Freda L. Wolfson. Judge Wolfson imposed the sentence today in Trenton federal court.

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

Lingala conspired and attempted to hire a purported hitman to kill his ex-wife. He also attempted to tamper with the testimony of a co-conspirator and an undercover law enforcement officer. The conduct for which he was convicted occurred between approximately May 2018 and March 2019.

In addition to the prison term, Judge Wolfson sentenced Lingala to three years of supervised release.

Lingala’s conspirator, Sandya Reddy, pleaded guilty in April 2019 to her role in the scheme and was sentenced on Aug. 10, 2020, to 63 months in prison.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and the Woodbridge Police Department, under the direction of Police Director Robert Hubner, with the investigation leading to today’s sentence.

The government is represented by Assistant U.S. Attorneys Matthew Feldman Nikic of the Cybercrime Unit and Thomas S. Kearney of the Special Prosecutions Division in Newark.

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

Usama Malik, 47, of Washington, D.C., is charged in a three-count indictment with insider trading, securities fraud, and securities fraud conspiracy.

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

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

Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Lauren S. Wood, 33, also of Washington, D.C. Wood lived with Malik at the time and was formerly employed by the same company as him. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618.

Wood is charged by complaint with securities fraud. The charges and allegations against both Malik and Wood are merely accusations, and they are presumed innocent unless and until proven guilty.

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

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

The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit, and Osmar J. Benvenuto, Deputy Chief of the Criminal Division.

NEWARK, N.J. – A former research technician and scientist for a worldwide consumer products company that researched, developed, designed, manufactured, marketed, and sold oral care consumer products was sentenced today to 21 months in prison for his role in a wire fraud conspiracy, U.S. Attorney Philip R. Sellinger announced.

Muamer Reci, 58, of Haskell, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud. Judge Cecchi imposed the sentence today in Newark federal court.

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

In August 2012, two individuals established a consumer hygiene and cleaning products company, Reci & Sons, which, in November 2015, established a subsidiary, Reci Enterprises, in Macedonia. Reci never disclosed the existence of Reci & Sons or Reci Enterprises to his employer.

A document dated July 31, 2016, and titled “Project Eurodent” was recovered from Reci’s work email account. The document (the Eurodent Business Plan) described a plan for Reci Enterprises to develop, manufacture, and sell a toothpaste named Eurodent. The Eurodent Business Plan listed as one of its objectives to “Launch Reci Enterprises research labs, and manufacturing complex to the public by fourth quarter of Year 2017.” The Eurodent Business Plan valued the business at roughly $2 million.

As the anticipated construction date for the manufacturing facility approached, Reci sent several emails to an individual at Reci & Sons attaching his employer’s proprietary toothpaste formulas for existing products and an unreleased toothpaste product, as well as proprietary laboratory procedures for the employer’s products. For example, on Aug. 9, 2017, Reci sent an email to someone stating: “[p]rint this [sic] formulas and file them.” Attached to the email were proprietary toothpaste formulas belonging to the employer, including formulas for a dry mouth toothpaste that the employer had not yet launched, and a children’s toothpaste marketed by the employer. The email also attached the formula for Reci Enterprises’ Eurodent toothpaste, which contained proprietary signature features of the employer’s existing product. 

In addition to the prison term, Judge Cecchi sentenced Reci to three years of supervised release and ordered him to pay $188,384 in restitution.

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

The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

NEWARK, N.J. – A former U.S. Postal Service (USPS) employee today admitted that he fraudulently obtained unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced. 

Khaori Monroe, 29, of Newark, pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with one count of wire fraud.

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

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act 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.

Monroe was employed as a mail carrier with the USPS. He and others stole credit/debit cards containing unemployment insurance benefits from a location in New Jersey. Monroe and others then activated the cards and used the cards to obtain more than $40,000.

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Monroe or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 14, 2022.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A British citizen was charged today with attempted online enticement of a minor and travel with the intent to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced.

Stephen Hudson, 51, of Ealing, England, is charged by complaint with one count of attempted online enticement of a minor and one count of travel with the intent to engage in illicit sexual conduct. He appeared by videoconference today before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.

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

From April 14, 2022, to May 6, 2022, Hudson used an encrypted email account to communicate with federal law enforcement, acting in an undercover capacity, to facilitate his access to and sexual abuse of two minor female children. Hudson agreed to travel from Massachusetts to New Jersey and pay approximately $1,200 in cash in exchange for, among other things: 1) engaging in sexual acts with 11- and 12-year-old girls; 2) supplying Hudson with illicit drugs; and 3) administering the illicit drugs and alcohol to the 11- and 12-year-old girls.  On May 6, 2022, Hudson traveled to an agreed-upon location in New Jersey for the purpose of engaging in sexual activity with the two minors and provided approximately $1,200 in cash to the undercover law enforcement agents as previously agreed. After providing the cash to law enforcement, Hudson was arrested. 

The charge of attempted online enticement of a minor carries a maximum statutory penalty of life in prison, a mandatory minimum sentence of 10 years, and a maximum fine of $250,000. The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Camila A. Garces of the General Crimes Unit in Newark.

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

NEWARK, N.J. – An information technology service provider to the United States military has agreed to pay $800,000 to resolve allegations that it violated the False Claims Act by purchasing items for the personal use of their employees and billing those items against its government contracts, U.S. Attorney Philip R. Sellinger announced today.

The settlement resolves allegations that from Jan. 1, 2012, to Jan. 31, 2017, employees of Subsystems Technologies Inc. (STI), of Arlington, Virginia, purchased various electronic and luxury items for personal use, and then provided those items, along with sporting event tickets and other things of value, to government employees in order to gain favorable treatment. STI admitted that its employees purchased electronic and luxury items for the personal use by both STI employees and government employees while improperly charging those items against the government contracts awarded to STI for services at Picatinny Arsenal in Morris County, New Jersey.

U.S. Attorney Sellinger credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; and special agents of the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge is Larry S. Moreland, with the investigation that led to the settlement.

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

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

NEWARK, N.J. – A Camden County, New Jersey, man was arrested for his role in an unemployment insurance benefits fraud scheme, U.S. Attorney Philip R. Sellinger announced today.

Willie Carter, 22, of Bellmawr, New Jersey, is charged by complaint with one count of wire fraud. He was arrested on May 5, 2022, appeared by videoconference before U.S. Magistrate Judge Jessica S. Allen, and was released on $150,000 bond.

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

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act expanded states’ ability to provide assistance to many workers impacted by COVID-19, including workers who are not ordinarily eligible for unemployment insurance benefits. The CARES Act provided for three new temporary programs: Pandemic Unemployment Assistance, Pandemic Emergency Unemployment Compensation and Federal Pandemic Unemployment Compensation.

Between July 2020 and October 2020, unemployment insurance applications in the name of Willie Carter were made to 10 different states. Each application used the same Internet Protocol Address. Between June 2020 and November 2020, the IP Address was associated with approximately 34 unemployment insurance benefits claims to various states, which paid out approximately $150,000. The investigation revealed that the IP Address is associated with Carter. Some of the more than $150,000 was transferred into two bank accounts in Carter’s name.

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

U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan, with the investigation leading to the arrest. He also thanked the U.S. Postal Inspection Service in Newark; special agents of the FBI in Newark, and special agents of the Department of Homeland Security, Office of Inspector General, for their assistance.

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

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

CAMDEN, N.J. – A New Jersey man admitted to conspiring with others to obtain and distribute several kilograms of cocaine, U.S. Attorney Philip R. Sellinger announced.

Lavinston Lamar, 40, of Bridgeton, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiring to distribute cocaine. Lamar also pleaded guilty to violating the conditions of his supervised release from a prior conviction for conspiring to distribute cocaine.

According to documents filed in this and other cases and statements made in court:

Lamar admitted that from June 2020 through July 13, 2021, he conspired with Carl Lee Holloway, Marvin Murphy, and others, to distribute and to possess with intent to distribute cocaine, with the intent to facilitate the sale of cocaine by Holloway to a third party for which Lamar would receive a cash payment from the third party.

On July 13, 2021, Holloway met undercover agents in a hotel room in Mount Laurel, New Jersey. Lamar and Murphy separately entered the hotel room with bags containing approximately $243,000. They briefly inspected one of the kilograms of cocaine previously brought into the room by undercover agents, after which agents entered the room and arrested Holloway, Lamar, and Murphy. 

The conspiracy count to which Lamar pleaded guilty carries a maximum potential penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for Sept. 6, 2022.

Holloway and Murphy are charged by complaint with the same conspiracy. The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

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 Special Agent in Charge Chad Plantz in San Diego, with the investigation leading to today’s guilty plea. 

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

NEWARK, N.J. – A Bergen County doctor was sentenced today to 72 months in prison for distributing opioids without a legitimate medical reason and falsifying medical records to cover it up, U.S. Attorney Philip R. Sellinger announced.

Robert Delagente, 48, of Oakland, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with one count of conspiracy to distribute controlled dangerous substances, three counts of distribution of controlled dangerous substances, and one count of falsifying medical records. Judge Cecchi imposed the sentence today.

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

Beginning in May 2014, Delagente was a doctor at a medical practice called North Jersey Family Medicine (NJFM) in Oakland, New Jersey. Delagente knowingly prescribed controlled substances, such as oxycodone, Percocet, Tylenol with codeine, and various benzodiazepines (alprazolam, diazepam, clonazepam, and temazepam), outside the ordinary course of professional practice and without a legitimate medical purpose. He ignored the inherent danger and medical risk of overdose, drug abuse, and death that can accompany prescriptions of highly addictive opioids, benzodiazepines, and muscle relaxers, both on their own and in combination with one another.

Delagente also was charged with altering medical records of patients who received controlled substance prescriptions from him after law enforcement officials had subpoenaed the records in late April 2019.

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

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

The government is represented by Assistant U.S. Attorneys Jason S. Gould of the Health Care Fraud Unit and Sean M. Sherman of the Opioids Unit in Newark.

NEWARK, N.J. – An investment fund manager was sentenced today to 109 months in prison for orchestrating a $100 million securities fraud scheme, U.S. Attorney Philip R. Sellinger announced.

Brenda Smith, 61, of Philadelphia, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to Count Seven of an indictment charging her with securities fraud. Judge Arleo imposed the sentence today in Newark federal court.

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

Smith managed and controlled Broad Reach Capital LP, a pooled investment fund/hedge fund that was established in February 2016 and was open to accredited investors with a minimum investment of $1 million.

From February 2016 through August 2019, Smith orchestrated a scheme in which she made misrepresentations to investors and promised that she would invest their funds in particular trading strategies that Broad Reach Capital was allegedly optimally situated to execute. Smith referred to these strategies as dividend capture, VIX Convergence, and opportunistic trading. 

Smith misrepresented the success and performance of Broad Reach Capital to investors and prospective investors. She touted Broad Reach Capital as a trade-focused investment fund that was highly liquid and employed a robust risk management program. Smith distributed written materials about Broad Reach Capital to investors and prospective investors that included purported historical performance information, such as claimed annual returns of over 33 percent in 2017 and positive monthly returns in 2018. In fact, the total cash and securities in the Broad Reach Capital bank and brokerage accounts decreased from approximately December 2016 through June 2019. For example, the written materials claimed that Broad Reach Capital had a 1.76 percent return in February 2018 when in reality, Broad Reach Capital’s brokerage accounts lost approximately 50 percent of their value.

To lull investors and induce them to continue investing, Smith provided monthly account statements to investors that falsely showed that their investments were safe and earning significant returns. Smith also falsely represented that she was personally invested in Broad Reach Capital and provided a fictitious account statement to at least one investor.

Over the course of the scheme, Smith collected more than $100 million of cash into Broad Reach Capital from approximately 40 investors. At its peak, however, the value of cash and securities in the Broad Reach Capital bank and brokerage accounts did not exceed approximately $32 million. Instead of investing the money as she promised, Smith transferred tens of millions of dollars out of Broad Reach Capital to entities she controlled for purposes inconsistent with the trading strategies, including more than approximately $10 million for mineral mining operations and approximately $2 million for American Express credit card bills.  When investors requested redemption of their investments, Smith diverted other investors’ funds to pay the requested redemption amounts. 

In addition to the prison term, Judge Arleo sentenced Smith to three years of supervised release and ordered her to pay restitution of $47.2 million.

The U.S. Securities and Exchange Commission (SEC) Philadelphia Regional Office previously filed a civil complaint against Smith based on the same conduct.

U.S. Attorney Sellinger credited special agents of the FBI Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s sentencing. She also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Co-Acting Regional Directors Scott Thompson and Joy G. Thompson, for its assistance.

The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – The leader of an international money laundering organization in the Dominican Republic today admitted his role in a conspiracy to commit money laundering, U.S. Attorney Philip R. Sellinger announced. 

Luis Velazquez-Cordero, aka El Pequeño, 37, a citizen of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti to Count One of an indictment charging him with conspiring to commit money laundering. Velazquez-Cordero was extradited to the United States after his arrest the Dominican Republic on July 28, 2020.

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

Velazquez-Cordero was the leader of a money laundering organization that used the United States banking system to convert over $80 million in cash from illegal drug sales into cashier’s checks and then deposit the checks into United States bank accounts so that the money could be transferred back to international drug trafficking organizations in the Dominican Republic and other countries. Velazquez-Cordero directed conspirators in New Jersey, New York, and Florida to pick up cash drug proceeds and exchange the cash for cashier’s checks at United States banks. Velazquez-Cordero provided the amount of each check, the payee, and the bank accounts into which the checks should be deposited.  The checks were then deposited into the payee accounts, many of which were controlled by shell corporations and used as a means to facilitate laundering illegal drug proceeds. The cashier’s check scheme was designed to conceal the nature, source, ownership, and control of the illegal drug proceeds in order to avoid scrutiny by law enforcement and banking institutions.

As part of his plea, Velazquez-Cordero also agreed to forfeit $1.4 million in United States currency seized during the investigation, as well as five properties in the Dominican Republic and 10 vehicles, including a Ferrari. 

The money laundering count to which Velazquez-Cordero pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $500,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Sept. 14, 2022.

U.S. Attorney Sellinger credited special agents 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 of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo; the Morristown, New Jersey, Police Department, under the direction of Chief Darnell Richardson; the Clifton, New Jersey, Police Department, under the direction of Chief Tom Rinaldi; the Passaic, New Jersey, Police Department, under the direction of Chief Luis A. Guzman; the New York City Police Department, under the direction of Commissioner Keechant L. Sewell; the New York City Office of the Special Narcotics Prosecutor, under the direction of Special Narcotics Prosecutor Bridget G. Brennan; the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes; the Bergen County Prosecutor’s Office under the direction of Bergen County Prosecutor Mark Musella; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; the New Jersey Office of the Attorney General, under the direction of Acting Attorney General Matthew J. Platkin, with the investigation leading to today’s guilty plea. The Justice Department’s Office of International Affairs provided valuable assistance in securing Velazquez-Cordero arrest and extradition. 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 National Security Unit 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.

NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for his role in a drug trafficking conspiracy, U.S. Philip R. Sellinger announced.

Rahim Jackson previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an indictment charging him with conspiracy to distribute heroin. Judge Martinotti imposed the sentence today in Newark federal court.

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

From 2018 through July 31, 2019, Jackson and others conspired to distribute and possess with intent to distribute at least one kilogram of heroin. Jackson admitted using the Rotunda Recreation and Wellness Center on Clifton Avenue, where he was employed, in furtherance of the conspiracy.

In addition to the prison term, Judge Martinotti sentenced Jackson to five years of supervised release.

U.S. Attorney Sellinger credited special agents of Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.

He also thanked the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, the Rockaway Township Police Department, under the direction of Chief Martin McParland, and special agents from the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark.

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

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

The government is represented by Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office’s OCDETF Unit in Newark and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit.

CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 168 months in prison for conspiring to commit wire and money laundering, and tax evasion, in connection with a romance fraud scheme, U.S. Attorney Philip R. Sellinger announced.

Rubbin Sarpong, 38, of Millville, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to commit wire fraud, conspiring to commit money laundering and tax evasion. Judge Bumb imposed the sentence today in Camden federal court.

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

From January 2016 to Sept. 3, 2019, Sarpong and his conspirators, several of whom reside in Ghana, allegedly participated in an online romance scheme, defrauding victims in New Jersey and elsewhere. Sarpong and the conspirators set up dating profiles on various dating websites, using fictitious or stolen identities and posing as United States military personnel who were stationed overseas. They contacted victims through the dating websites and then pretended to strike up a romantic relationship with them. After establishing virtual romantic relationships with victims on the online dating platforms and via email, the conspirators asked them for money, often for the purported purpose of paying to ship gold bars to the United States. Although the stories varied, most often Sarpong and the conspirators claimed to be military personnel stationed in Syria who received, recovered, or were awarded gold bars. The conspirators told many victims that their money would be returned once the gold bars were received in the United States. 

Sarpong and the conspirators used several email accounts and Voice Over Internet Protocol phone numbers to communicate with victims and instruct them on where to wire money, including recipient names, addresses, financial institutions, and account numbers. At least 40 identified victims wired money to Sarpong and others in the United States, including to 13 bank accounts controlled by Sarpong, some of which were in the names of his friends, relatives, and a fictitious business entity, Rubbin Sarpong Autosales. Occasionally, victims also mailed personal checks or cashier’s checks to the conspirators and also transferred money to the conspirators via money transfer services, such as Western Union and MoneyGram. The funds were not used for the purposes claimed by the conspirators – that is, to transport non-existent gold bars to the United States – but were instead withdrawn in cash, wired to other domestic bank accounts, and wired to other conspirators in Ghana.

While engaged in this fraud, Sarpong purchased property in Ghana and posted photographs of himself on social media showing him with large amounts of cash, high-end cars, designer clothing and expensive jewelry. Despite having received approximately $1.14 million in taxable income from the scheme during tax years 2016 through 2018, Sarpong filed no income tax returns and paid no income tax, resulting in a tax loss of $387,923.

In addition to the prison term, Judge Bumb sentenced Sarpong to three years of supervised release and ordered him to pay restitution of $3.08 million to 36 victims, $387,923 to IRS, $4,096 to the New Jersey Department of Health and Human Services and $6,903 to the U.S. Department of Agriculture.

U.S. Attorney Sellinger credited special agents of the FBI, Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Michael Messenger 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; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A Camden man was sentenced to 140 months in prison for conspiring to distribute large amounts of heroin, cocaine, and crack in Camden, U.S. Attorney Philip R. Sellinger announced today.

Jose Diaz, 30, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiracy to distribute one hundred grams or more of heroin as well as quantities of cocaine and crack cocaine. Judge Bumb imposed the sentence on April 28, 2022, in Camden federal court.

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

Nineteen defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The organization included street-level sellers who were supervised by shift managers, who in turn were supervised by higher-level “runners.” Diaz admitted that he had a supervisory role as a shift manager, in the drug trafficking organization. The shift managers and runners supplied the sellers pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The runners also collected drug proceeds from the shift managers and provided those proceeds to higher-level members of the conspiracy.

Seventeen of these defendants pleaded guilty before Judge Bumb to drug conspiracy charges. Two defendants are awaiting trial, which is scheduled for July 18, 2022. The charges and allegations against those two defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

In addition to the prison term, Judge Bumb sentenced Diaz to five years of supervised release.

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

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

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

NEWARK, N.J. – A Middlesex County, New Jersey man today admitted to filing a false tax return on behalf of his company, U.S. Attorney Philip R. Sellinger, Acting Assistant Attorney General David A. Hubbert, and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced.

Gabriel M. Ferrari, 64, of Edison, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to Count Four of an indictment that charged him with subscribing to a false tax return.

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

Ferrari was the sole owner of Buses and Trucks Inc., an automotive repair business in Linden, New Jersey. In January 2015, Ferrari subscribed to and caused to be filed a corporate tax return for Buses and Trucks for tax year 2011. As Ferrari knew at the time, that return was false in that it understated Buses and Trucks’ gross receipts for tax year 2011. In fact, Ferrari had diverted Buses and Trucks’ gross receipts to pay personal expenses, including gambling on horse races, and did not report those diverted receipts on the Buses and Trucks 2011 corporate tax return.

The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum fine of $250,000. Sentencing is set for Sept. 14, 2022.

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

The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark and by Trial Attorney Ann M. Cherry of the Tax Division in Washington, D.C.

NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 264 months in prison for his role in trafficking heroin and fentanyl into a New Jersey state prison, resulting in the overdose of one of the inmates, U.S. Attorney Philip R. Sellinger announced.

Noel Salgado, aka “Kuko,” 41, was previously convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, following a four-day trial before U.S. District Judge William J. Martini, who imposed the sentence today in Newark federal court.

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

While incarcerated at Bayside State Prison, Salgado directed associates to provide narcotics proceeds to him and his associates and to smuggle narcotics into prison to distribute to other inmates.

On Oct. 17, 2015, Salgado called an associate from prison to arrange for the purchase and smuggling into the prison of heroin and fentanyl. Another conspirator picked up the narcotics and smuggled them to Salgado on Oct. 18, 2015. The following day, an inmate to whom Salgado had distributed the narcotics was found unresponsive in his cell suffering from a drug overdose. The inmate stopped breathing on his own and remained unconscious for approximately 20 minutes before medical personnel administered Narcan to revive him. The inmate was hospitalized for two days.

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

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger, and investigators with the N.J. Department of Corrections, under the direction of Acting Commissioner Victoria L. Kuhn, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A California man was convicted on six counts related to the theft of over $23 million dollars from the U.S. Department of Defense (DoD), money destined for one of its jet fuel suppliers, U.S. Attorney Philip R. Sellinger announced today.

Sercan Oyuntur, 40, of Northridge, California, was convicted on April 28, 2022, of one count of conspiracy to commit wire, mail and bank fraud; two counts of bank fraud; one count of using an unauthorized access device to commit fraud; one count of aggravated identity theft; and one count of making false statements to federal law enforcement officers, following an eight-day trial before U.S. District Judge Joseph H. Rodriguez in Camden federal court.

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

A corporation that had a contract with the DoD to supply jet fuel to troops operating in southeast Asia employed an individual in New Jersey, who was responsible for communicating with the federal government on behalf of the corporation through a government computer system. Through a complex phishing scheme, Oyuntur and criminal conspirators in Germany, Turkey, and New Jersey targeted the corporation and the individual so that the conspirators could steal money that DoD intended to pay to the corporation for providing jet fuel.

Oyuntur’s conspirators created fake email accounts in other people’s names and designed fake webpages that resembled the General Services Administration’s (GSA) public-facing website. From June to September 2018, the conspirators caused phishing emails to be sent to various DoD vendors, including the individual from New Jersey who represented the corporation, to trick these vendors into visiting the phishing pages. These emails appeared to be legitimate communications from the United States government, but were actually sent by the conspirators, and contained electronic links that automatically took individuals to the phishing pages. There, they saw what appeared to be a GSA website and were prompted to enter their confidential login credentials, which were then used by the conspirators to make changes in the government systems and ultimately divert money to the conspirators.

As part of his participation in the scheme, Oyuntur worked closely with another conspirator, Hurriyet Arslan, who owned a used car dealership, Deal Automotive Sales, in Florence, New Jersey. Arslan opened a separate shell company based in New Jersey for use in the criminal scheme, obtained a cell phone number for the shell company, hired another person to pose as the shell company’s owner, and opened a bank account in the name of the shell company. 

On Oct. 10, 2018, based on the fraudulent activities of Oyuntur and his conspirators, DoD transferred $23.5 million that had been earned by the victim corporation into Arslan’s Deal Automotive bank account. Arslan went to the bank and was able to access some of this money, but the bank would not release all of the funds to Arslan. That same day, a conspirator in Turkey sent Arslan an email with an altered government contract that falsely indicated Deal Automotive had been awarded a DoD contract valued at approximately $23 million dollars. Oyuntur instructed Arslan to take this fake contract into the bank to explain why he had received the money, so that Arslan could convince the bank to release the remaining funds.

The conspiracy and bank fraud counts of which Oyuntur was convicted each carry a maximum potential penalty of 30 years in prison. The count of using an unauthorized access device to commit fraud carries a maximum potential penalty of 10 years in prison. The false statement count carries a maximum potential penalty of five years in prison. The aggravated identity theft count carries a statutory mandatory consecutive term of two years in prison. The conspiracy and bank fraud counts each carry a maximum fine of equal to the greatest of $1 million or twice the gross profits or loss resulting from the offense, whichever is greatest; the remaining counts carry a $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Oyuntur will be sentenced on a date to be determined.

Arslan pleaded guilty in January 2020 to conspiracy, bank fraud, and money laundering and is scheduled to be sentenced on June 21, 2022. 

U.S. Attorney Sellinger credited criminal investigators of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the General Services Administration, Office of Inspector General, under the direction of Special Agent in Charge Eric D. Radwick; special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office and the Cyber Field Office, under the direction of Special Agent in Charge Patrick Hegarty and Special Agent in Charge Kenneth A. DeChellis; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s conviction.

The government is represented by Senior Trial Counsel Jason M. Richardson of the Civil Rights Division in Camden and Assistant U.S. Attorney Sara A. Aliabadi of the Special Prosecutions Division in Camden.

CAMDEN, N.J. – A New York man was sentenced today to 24 years in prison for attempting to entice a minor and traveling from New York to New Jersey to meet an individual, whom he believed was a 13-year-old girl, to engage in sexual activity, U.S Attorney Philip R. Sellinger announced.  

Eduardo Silva, 44, of Bronx, New York, previously pleaded guilty via videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count of coercion and enticement of a minor and one count traveling with the intent to engage in illicit sexual conduct with a minor. Judge Bumb imposed the sentence today in Camden federal court.

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

On Sept. 5, 2020, Silva, while using an online social media application, sent a message to an individual he believed was an underage girl, but who was in fact an undercover federal agent. Silva asked whether the minor was “into older guys” and over the next several days sent a series of explicit online communications and text messages, discussing his intent to travel to meet the minor and engage in sexual activity with her. On Sept. 23, 2020, Silva was arrested when he traveled from the Bronx to a motel in Bordentown, New Jersey, intending to meet a 13-year-old girl for sex.  

In addition to the prison term, Judge Bumb sentenced Silva to lifetime supervised release.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencing. He also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, and the Bordentown Township Police Department, under the direction of Chief of Police Brian Pesce, for their assistance in the investigation.

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

NEWARK, N.J. – A Somerset County, New Jersey, man today admitted his role in a drug trafficking network that was responsible for the importation of large quantities of heroin into New Jersey, U.S. Attorney Philip R. Sellinger announced.  

William T. Bouza, 45, of Watchung, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with conspiracy to distribute heroin and possession of heroin with intent to distribute.

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

In February 2019, Bouza arranged for a vehicle that was equipped with a secret compartment, or “trap,” containing 15 kilograms of heroin, to be shipped from California to a location in Union County. Law enforcement intercepted the vehicle, seized the narcotics, and identified Bouza as the intended recipient. In the following months, law enforcement determined that Bouza was storing and processing narcotics for street-level distribution at multiple locations in Essex County. In October 2019, Bouza was apprehended. Law enforcement subsequently discovered more than 1,000 packages, or “bricks” of heroin, each containing approximately 50 individual doses, in one of Bouza’s stash-houses. In total, law enforcement seized over 18 kilograms of heroin belonging to Bouza.

The controlled substances offenses carry a maximum penalty of life in prison, a mandatory minimum term of 10 years in prison and a $10 million fine. Sentencing is scheduled for Sept. 13, 2022.

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

U.S. Attorney Sellinger credited law enforcement officers with the United States Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, the New Jersey State Police, and other law enforcement agencies within the Opioids Task Force with the investigation.

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

TRENTON, N.J. – An Ocean County, New Jersey, man today admitted unlawfully possessing a privately manufactured short barrel rifle, a silencer, and five imitation badges of various federal agencies, U.S. Attorney Philip R. Sellinger announced.

Jeffrey Backlund, 57, of Waretown, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with unlawfully possessing firearms that were not registered in the National Firearms Register and Transfer Record, and unlawful possession of an official badge or identification card.

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

On Sept. 6, 2020, after investigating a domestic disturbance, law enforcement executed a search warrant at Backlund’s residence and located a number of firearms and imitation federal identification badges. They found one short-barreled, AR-style, .223 caliber rifle bearing no serial number and no branding. Attached to the rifle, they found a tan metal cylindrical device that law enforcement determined to be a silencer. Given the physical characteristics of the rifle and silencer, Backlund was required to, but did not, registered these items in the National Firearms Register and Transfer Record pursuant to the National Firearms Act.

Law enforcement officers also located two bi-fold wallets containing FBI Special Agent identification credentials bearing Backlund’s picture and personal information, a United States Marshals Service badge, a Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent badge, and a Drug Enforcement Administration Special Agent badge. All badges and identifications were imitation and Backlund did not have the authority to possess any of them.

The charge of possessing firearms not registered in the National Firearms Registration and Transfer Record carries a maximum prison sentence of 10 years and a maximum fine of $10,000; the charge of unlawful possession of an official badge or identification card carries a maximum prison sentence of six months and a maximum fine of $5,000. Sentencing is scheduled for Sept. 13, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; detectives with the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, and officers of the Ocean Township Police Department, under the direction of Chief Michal J. Rogalski, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Martha K. Nye of the Criminal Division in Trenton.

CAMDEN, N.J. – A Gloucester City, New Jersey, man was sentenced today to 37 months in prison for conspiring to distribute oxycodone pills and selling Xanax pills, making him the eighth person to be sentenced for his role in a drug trafficking ring operating in and around Gloucester City and Camden, U.S. Attorney Philip R. Sellinger announced.

Marcus Rushworth, 48, of Gloucester City, 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 a quantity of Xanax. 

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

Rushworth admitted that on multiple occasions from January 2020 to March 2020, he worked with Rocco DePoder to sell oxycodone and Xanax to customers in and around Gloucester City. Rushworth also obtained a quantity of Xanax from DePoder on Feb. 17, 2020, in order to sell to a drug customer. Rushworth was charged along with 17 others in March 2020 in connection with an investigation by the FBI into the illegal distribution of prescription drugs, including high dosage oxycodone pills, to customers in Gloucester City and Camden. 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 Rushworth 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 Newark office.

NEWARK, N.J. – A Bergen County, New Jersey, company was fined $67,668 today and sentenced to one year of probation 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.

TSC Agency LLC (TSC), a logistics and freight forwarding company based in Mahwah, New Jersey, 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, TSC and two partners purchased 250,000 KN95 filtering facepiece respirators from a foreign manufacturer. TSC 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. TSC 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, TSC 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 Special Agent in Charge Peter Fitzhugh in New York, with the investigation.

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. – A Bergen County, New Jersey, woman was sentenced today to 27 months in prison for participating in a multi-year embezzlement scheme and subscribing to a false personal income tax return, U.S. Attorney Philip R. Sellinger announced.

Estela Laluf, 76, previously pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return. Judge Neals imposed the sentence today in Newark federal court.

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

Between October 2010 and August 2016, Laluf held a management position at a New Jersey guided-tour company. During that time, Laluf and another employee, who held an accounting position at the company and had authority to write checks against the company’s bank accounts, devised a scheme to embezzle funds from the company. Laluf would direct the employee to write company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. The employee would then cash these checks, and Laluf and the employee would convert the resulting funds to their personal use.  Laluf and the employee embezzled hundreds of thousands of dollars from the company. Laluf then fraudulently omitted the proceeds of the embezzlement scheme from her tax year 2016 tax return.

In addition to the prison term, Judge Neals sentenced Laluf to two years of supervised release and ordered her to pay $295,297 in restitution.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to today’s sentencing.

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