District of New Jersey

NEWARK, N.J. – A New York man was arrested today on charges of conspiring to possess with intent to distribute fentanyl and cocaine, U.S. Attorney Philip R. Sellinger announced.

David Patrick Williams, 36, of the Bronx, was charged by complaint, made his initial appearance before U.S. Magistrate Judge Edward S. Kiel in Newark federal court and was released on $100,000 unsecured bond.

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

On March 30, 2020, Williams and two other individuals conspired and agreed to possess with intent to distribute approximately one kilogram of fentanyl and approximately one kilogram of cocaine, and attempted to take delivery of a shipment containing those substances.

The charges of conspiracy to possess with intent to distribute fentanyl and cocaine each carry a statutory mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a maximum fine of $10 million.

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, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Organized Crime/Gangs Unit in Newark.

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 33 months in prison for conspiring to fraudulently obtain more than $700,000, U.S. Attorney Philip R. Sellinger announced. 

Jefferson Robert, 31, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with conspiring to commit wire fraud. Judge Neals imposed the sentence by videoconference today.

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 program unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who are not eligible for other types of unemployment (e.g., self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program that provides an additional $600 weekly benefit to those eligible for PUA and regular UIB. The Washington State Employment Security Department (ESD) administers and manages the regular unemployment and PUA programs in the State of Washington.

Robert opened bank accounts with a fraudulent passport in another individual’s name. He and his conspirators then caused an application to be made to ESD for UIB in the name of a victim. In response, ESD caused UIB to be deposited into one of the fraudulent bank accounts. Robert and his conspirators: partook in business email scams, including causing a victim to transfer approximately $28,000 into one of the bank accounts; partook in romance scams, including causing a victim to make five deposits into one of the bank accounts totaling approximately $19,000; and fraudulently obtained money from the IRS by causing the IRS to transfer payments in four victims’ names into one of the bank accounts. Once the fraudulently obtained money was in the bank accounts, Roberts moved the money, including through the purchase of money orders. Robert and his conspirators caused more than $700,000 in losses.

In addition to the prison term, Judge Neals sentenced Robert to three years of supervised release and ordered him to pay restitution of $675,371.

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 of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.

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 Union County, New Jersey, man was charged today with illegally possessing a firearm and possession of controlled substances with intent to distribute, U.S. Attorney Philip R. Sellinger announced.

Shaquan Little-Bethea, 28, of Elizabeth, New Jersey, is charged by complaint with one count of being a previously convicted felon in possession of a firearm and ammunition and one count of possession with intent to distribute controlled substances. Little-Bethea will have his initial appearance at a date to be determined.

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

Law enforcement officers received information that Little-Bethea was distributing controlled dangerous substances in Elizabeth.  On June 2, 2022, Little-Bethea arranged to meet with an undercover law enforcement agent to sell him the drugs. Just before the meeting, however, Little-Bethea drove away in his car before fleeing on foot. After a pursuit, law enforcement officers apprehended Little-Bethea and recovered an H&K, model VP9, 9mm semi-automatic pistol, with 16 rounds of ball ammunition, along with 38 clear vials containing suspected crack cocaine and 17 glassine envelopes of suspected heroin.

The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison and a fine of $250,000.

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

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit and Assistant U.S. Attorney Matthew DeSaro of the General Crimes Unit, in Newark.

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

NEWARK, N.J. – The former owner of a New Jersey marketing company admitted his role in a scheme to defraud public and private health benefits programs of over $6 million for the billing of medically unnecessary compounded prescriptions, U.S. Attorney Philip R. Sellinger announced today. 

Michael Drobish, 43, of Cedar Grove, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez on March 16, 2022, to an information charging him with conspiracy to commit health care fraud.

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

Compounding is a practice in which a pharmacist or physician combines, mixes, or alters ingredients of a drug to create a medication tailored to the needs of an individual patient. The Food and Drug Administration does not approve compounded drugs and thus does not verify the safety, potency, effectiveness, or manufacturing quality of compounded drugs. Generally, a physician may prescribe compounded drugs when an FDA-approved drug does not meet the health needs of a particular patient.

Between April 2014 and January 2017, Drobish conspired with others to submit fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.

Drobish hired sales representatives through his marketing company to target individuals who had insurance plans that covered compounded medications. The sales representatives then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. The individuals were then directed to certain telemedicine companies, which the marketing company or its affiliates paid to issue the prescriptions. The prescribing physicians at the telemedicine companies would then write the prescriptions without performing any examination or after deliberately conducting cursory examinations that were insufficient to legitimately deem a compounded drug medically necessary. 

Once the prescriptions were written, they were filled by certain compounding pharmacies with which Drobish conspired. The compounding pharmacies would then receive reimbursement from the insurance plans, and would pay Drobish’s marketing company a percentage of the reimbursement amount. Drobish would retain a portion of the payment and provide a “commission” payment to the relevant sales representative.

The conspiracy to commit health care fraud charge carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of his plea agreement, Drobish must forfeit $532,650 in criminal proceeds and pay restitution of at least $6.1 million. Sentencing is scheduled for July 19, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted obstructing justice while on pre-trial release, U.S. Attorney Philip R. Sellinger announced.

Robert Alexander, 45, of Newark, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to a superseding indictment charging him with obstructing justice while on pre-trial release.      

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

On Jan.14, 2019, Alexander pleaded guilty to an information charging him with one count of making a false statement on a loan application in a criminal case that was pending before Chief U.S. District Judge Freda L. Wolfson. On Sept. 4, 2019, Judge Wolfson sentenced Alexander to 46 months in prison.

On Oct. 8, 2019 – the day before Alexander was scheduled to voluntarily surrender to the Bureau of Prisons to begin serving his sentence – he caused a forged medical note to be submitted to Judge Wolfson in support of a request to delay the date of his voluntary surrender. The forged medical note contained falsified information and was submitted with the specific intent to influence and impede Judge Wolfson in the discharge of her duties as the judge presiding over his case. At the time of the offense, Alexander was on pre-trial release.  

The obstruction of justice count carries a maximum penalty of 10 years in prison and a $250,000 fine. The commission of the offense while on pre-trial release carries a maximum penalty of 10 years in prison; any term of imprisonment imposed for committing the offense while on pre-trial release must be consecutive to the term imposed on the obstruction of justice charge. Sentencing is scheduled for July 27, 2022.

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, with the investigation leading to today’s guilty plea. 

The government is represented by U.S. Attorneys Catherine R. Murphy, Chief of the Economic Crimes Unit, and Ryan L. O’Neill of the U.S. Attorney’s Office Health Care Fraud Unit.

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted his role in a scheme to defraud lenders and the Small Business Administration (SBA) by fraudulently obtaining approximately $1.6 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.

Jordan C. Larkins, 32, of Edison New Jersey, pleaded guilty before U.S. District Judge Zahid N. Qurashi by videoconference to an information charging him with one count wire fraud, one count bank fraud, and one count money laundering.

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

From May 2020 through July 2020, Larkins submitted three fraudulent PPP loan applications to three different lenders and 11 EIDL applications to SBA on behalf of numerous purported businesses. 

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 who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. The EIDL program was an SBA program that provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. The CARES Act authorized the SBA to provide EIDLs of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.

On his 14 fraudulent PPP and EIDL applications, Larkins made false representations to the participating lenders and the SBA, including fake federal tax return documentation for his purported businesses and fake bank statements. He also fabricated the identities of certain individuals listed as applicants and the corresponding driver’s licenses of those purported applicants. 

Based on Larkins’ misrepresentations, he obtained approximately $1.6 million in PPP and EIDL funds. Larkins then misused the funds by making a series of cash withdrawals, transferring funds to foreign banks, and for various other personal expenses.

The charge of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine; the charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine; the charge of money laundering carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. Sentencing is scheduled for July 21, 2022.

U.S. Attorney Sellinger credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Damon Wood; special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office’s Government Fraud Unit 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

TRENTON, N.J. – Two members of an extensive drug-trafficking organization, including the leader of the organization, today admitted distributing large amounts of cocaine and crack cocaine throughout Burlington County, U.S. Attorney Philip Sellinger said.

Herbert Mays, 65, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Zahid N. Quraishi in Trenton federal court to Counts One and Two of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and conspiracy to distribute and possess with intent to distribute more than 280 grams of crack cocaine.

Julius Thigpen, 60, of Philadelphia, Pennsylvania, another member of the same organization, pleaded guilty to a superseding information charging him with one count of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine.

Ten other members of the drug trafficking conspiracy – Andre Perkins, Brandon Watts, Craig Moore, John Petrovich, Mecca Grant, Nathaniel McCoy, Ronnie Dawson, Samantha Bolhert, Teron Huggins, and Tracy Williams – previously pleaded guilty. The charges against eight other defendants remain pending.

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

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

The counts to which Mays pleaded guilty each carry a mandatory penalty of 10 years in prison, a maximum potential penalty of a life in prison, and up to a $10 million fine. The count to which Thipgen pleaded guilty carries a mandatory penalty of five years in prison, a maximum potential penalty of 40 years in prison, and up to a $5 million fine. Sentencing for both defendants is scheduled for July 20, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, Newark Field Office, Trenton Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; officers of the Burlington Township Police Department, under the direction of Director of Public Safety Bruce Painter; officers of the Willingboro Police Department, under the direction of Director of Public Safety Ian Bucs; officers of the Burlington City Police Department, under the direction of Chief John Fine; officers of the Florence Police Department, under the direction of Chief Brian Boldizar; officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; officers of the Edgewater Park Police Department, under the direction of Chief Robert Hess; officers of the Ewing Police Department, under the direction of Chief Albert Rhodes; officers of the Westampton Police Department, under the direction of Chief Stephen Ent; officers of the Trenton Police Department, under the direction of Director Steve Wilson with the investigation leading to today’s guilty pleas.

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

The charges and allegations contained in the complaints against the eight remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

NEWARK, N.J. – Nine people were arraigned today on illegal drug and firearms charges contained in a 17-count indictment, U.S. Attorney Philip R. Sellinger announced.

Gilbert Bermudez, aka “Troub,” 29; Brian Elijah Mitchell, aka “Slash,” 32; Jaahan Mitchell, 32; Keith Rogers, aka “Dog,” aka “Z,” 45; Isaiah Bullock, 26; Jennifer Rivera, 41; and Shamika Richardson, 25, all of Newark; Mark Washington, 58, of Irvington, New Jersey; and Torell Brown, 46, of Orangeburg, South Carolina were indicted on various drug and weapons charges last month.

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

On May 14, 2021, in the vicinity of the Pennington Court housing complex in Newark, Bermudez, Brian Mitchell, and Jaahan Mitchell were involved in a shooting. On May 20, 2021, the firearm that Bermudez used in that shooting was recovered from his Essex County residence, loaded with seven rounds of 9mm ammunition.

From April 2021 through May 18, 2021, Brown, a convicted felon, conspired to unlawfully sell firearms. He trafficked six firearms and a large quantity of ammunition from South Carolina to New Jersey, with the intent to sell these weapons to at least one New Jersey resident. On May 18, 2021, Washington attempted to thwart law enforcement from recovering certain of these firearms.

From March 2021 through May 18, 2021, Brown also conspired with Brian Mitchell and Rogers to traffic firearms and ammunition into New Jersey from at least one other state and to use those firearms and ammunition in connection with at least one other felony offense. 

From October 2020 through July 23, 2021, Rogers, Bullock, Rivera, and Richardson conspired to distribute 40 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine base. Rogers and Bullock, both convicted felons, possessed firearms. The four defendants maintained two Pennington Court residences for the purpose of unlawfully manufacturing, storing, distributing, and using a controlled substance, and possessed with the intent to distribute controlled substances.

Each firearms trafficking conspiracy carries a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of a firearm and ammunition by a convicted felon carry a maximum penalty of 10 years in prison and a $250,000 fine.  The drug conspiracy count, and the count of possession with intent to distribute 40 grams or more of fentanyl, each carry a mandatory minimum of five years in prison, a maximum potential penalty of 40 years in prison and a $5 million. Each count of maintaining a drug-involved premises carries a maximum potential penalty of 20 years in prison and a $500,000 fine. The counts of possession with intent to distribute cocaine base each carry a maximum potential penalty of 20 years in prison and a $1 million fine. The counts of possession of a firearm in furtherance of a drug trafficking crime each carry a mandatory minimum term of five years in prison, a maximum potential penalty of life imprisonment, and a $250,000 fine. 

The investigation 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.

It is also part of the Violent Crime Initiative (VCI) in Newark. The 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 to combat 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, N.J. State Board of Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; and special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigations leading to the charges. He also thanked the Newark Police Department, under the direction of Director Brian O’Hara, the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II, for their significant assistance with these cases.

The government is represented by Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit and Assistant U.S. Attorney Samantha Fasanello of the Organized Crime and Gangs Unit.

The charges and allegations contained in the superseding indictment and all related complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A member of the Newark Municipal Council and Board of Directors of the Newark Community Economic Development Corporation (NCEDC) today admitted scheming to obtain bribes and kickbacks and subscribing to a false personal tax return for 2018, U.S. Attorney Philip R. Sellinger announced.

Joseph A. McCallum Jr., 66, of Newark, pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of wire fraud for devising a scheme, using interstate wire communications, to defraud Newark and the NCEDC of the right to McCallum’s honest services and one count of subscribing to a false personal tax return for calendar year 2018.

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

As a member of the Newark City Council, representing the West Ward, and of the NCEDC (now known as Invest Newark!), from 2017 through February 2020, McCallum schemed to receive concealed bribes and kickbacks from an associate, funded by developers, contracting companies, and other businesses seeking contracts and approvals principally related to development, construction, and real estate projects and deals in Newark. These developers and others were solicited by the associate to hire his consulting company for “access,” and were introduced to McCallum as the councilman behind the particular project or deal of interest to them. McCallum then received and planned to receive concealed bribes and kickbacks derived from the fees that the associate obtained from those who retained his company.

In exchange, McCallum used his official positions to assist those who retained the associate’s company. For those who refused or hesitated to pay, McCallum and the associate intended to prevent them from obtaining contracts and work from the NCEDC and the City of Newark. McCallum and the associate used interstate emails and phone calls to further this scheme and took significant steps to conceal these bribes and kickbacks.

The bribes and kickbacks received and sought by McCallum through the associate included the following:

• A $16,000 bribe funded by a payment from a contracting company;
• a $25,000 bribe and kickback funded by a payment from a developer’s company; and
• $500 in cash to cover travel expenses for an out-of-country trip and an attempt to receive part of a $50,000 payment from a second developer.

 

The honest services wire fraud charge in Count 1 of the information to which McCallum pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the pecuniary gain to the defendant or loss to the victims, whichever is greatest. The false tax return charge in Count 3 of the information to which McCallum pleaded guilty carries a maximum potential penalty of three years in prison and a maximum $250,000 fine, or twice the pecuniary gain to the defendant or loss to the victim, whichever is greatest. Sentencing for is scheduled for July 21, 2022.

U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge in Newark George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s guilty plea by McCallum.

The government is represented by Deputy Chief Jihee G. Suh and Assistant U.S. Attorney Elaine K. Lou of the U.S. Attorney’s Office’s Special Prosecutions Division.

TRENTON, N.J. – Omar Feliciano-Estremera, 44, of Trenton, today admitted participating in a string of armed robberies of businesses in New Jersey and Pennsylvania in May and June of 2019, U.S. Attorney Philip R. Sellinger announced.

Feliciano pleaded guilty court before U.S. District Judge Peter G. Sheridan in Trenton federal court to a five-count information charging him with one count of conspiracy to commit Hobbs Act robbery, three substantive counts of Hobbs Act robbery, and one count of aiding and abetting the possession of a firearm which was discharged during a crime of violence.

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

Feliciano and his conspirator Gabriel Lopez, [deceased], formerly of Trenton, committed a string of armed robberies in May and June of 2019 of businesses located in Mercer County, New Jersey, Union County, New Jersey, and Bucks County, Pennsylvania. Lopez entered the businesses, brandished a handgun, and demanded money from the store clerks working the register. After stealing the money, Lopez fled the scene with the assistance of Feliciano, who acted as the getaway driver. While fleeing the scene of one of the robberies, in Union County, New Jersey, Lopez fired a handgun at passing witnesses, shortly before being picked up by Feliciano. Feliciano admitted to conspiring with Lopez to commit eight robberies and aiding and abetting three robberies, including the Union County robbery at which a firearm was discharged.

Each of the Hobbs Act charges carries a maximum penalty of 20 years in prison. The charge of aiding and abetting the possession of a firearm that was discharged during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of 10 years in prison. Each count also carries a maximum fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for July 18, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked officers of the Hamilton Township, Trenton, Rahway, Morrisville, Bristol Township, and Lawrence Township Police Departments 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.

NEWARK, N.J. – A Morris County, New Jersey, man was indicted for his role in a conspiracy to bilk millions of dollars from a bank, U.S. Attorney Philip R. Sellinger announced today.

Kurt Phelps, 53, of Flanders, New Jersey, is charged by indictment returned March 11, 2022, with one count of conspiracy to commit bank fraud and one count of bank bribery. Three of Phelps’ conspirators previously pleaded guilty in connection with the fraud scheme.    

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

From 2013 through 2019, Phelps and his conspirators carried out a scheme to defraud Phelps’ employer, a bank. They obtained millions of dollars of credit from the bank for Starnet Business Solutions Inc. (Starnet), a now-defunct New Jersey based printing company, where Phelps’ conspirators worked. Phelps’ conspirators paid him large cash bribes in connection with the fraud scheme.

In 2013, Starnet received a line of credit from the bank after providing materially false financial information. The bank not only allowed Starnet to maintain the line of credit, at various times it increased the line of credit. By 2018, the line of credit was worth approximately $8 million, and Starnet has not repaid it.

Phelps was aware that financial information Starnet provided to the bank for the line of credit was materially false, and coached Starnet on how to defraud the bank. Phelps would review draft financial information for Starnet and provide feedback on how his conspirators should falsify the information before submission. Phelps also worked to ensure that the bank did not detect the fraud scheme by helping Starnet avoid audits and other quality control measures employed by the bank. 

Phelps solicited large cash bribes – tens of thousands of dollars at a time – from Starnet in connection with the fraud scheme. Phelps’s conspirators pooled cash to pay Phelps bribe payments. Over the course of the conspiracy, Phelps accepted hundreds of thousands of dollars in cash bribes. 

The conspiracy to commit bank fraud and bank bribery charges each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Heather Suchorsky of the

Economic Crimes Unit.

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

NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced today that he is naming an experienced team of women and men to lead the Office’s enforcement of criminal and civil laws. His leadership team, which will include 18 women and people of diverse backgrounds (including 13 women and seven otherwise diverse attorneys), will be among the most diverse in the history of the office. 

“Since taking the oath of office almost three months ago, I have been impressed by the depth and variety of experience in the Office, which is a credit to my predecessors and in line with the long and proud history of the U.S. Attorney’s Office for the District of New Jersey,” U.S. Attorney Sellinger said. “I am reaching into that well of talent to staff the Office’s leadership positions with a roster of exceptional attorneys who are eminently qualified and experienced, and whose diversity reflects the people of New Jersey. Moreover, hiring, retaining, and promoting diverse personnel is a bedrock value of this Office, and my leadership team and I will continue to prioritize it moving forward.”

U.S. Attorney Sellinger announced the executive leadership of the Office:

The First Assistant U.S. Attorney is Vikas Khanna, who returns to the Office from the private sector, where he worked as a partner at an international law firm in New York. Mr. Khanna previously served in the Office as an Assistant United States Attorney for almost nine years, during which he handled some of the Office’s most significant prosecutions of individuals and corporations. During Mr. Khanna’s previous tenure, he served as a line assistant in the General Crimes Unit and the Special Prosecutions Division, before being appointed as Deputy Chief of the Health Care and Government Fraud Unit in June 2017 and then as Deputy Chief of the Criminal Division in June 2018. In the latter role, Mr. Khanna supervised criminal and civil AUSAs in the Health Care and Government Fraud, Opioid Abuse Prevention and Enforcement, and Asset Recovery and Money Laundering Units. Before becoming an AUSA, he served in the private sector from 2007 to 2010 and, in 2006, clerked for the Honorable Mark Wolf, Chief Judge in the District of Massachusetts.

“I am thrilled to welcome Vikas back to the Office as First Assistant U.S. Attorney,” U.S. Attorney Sellinger said. “Vikas is a highly respected alumnus of our Office, celebrated by AUSAs, the defense bar, and members of the judiciary for his exceptional intellect and judgment. I am confident he will be an extraordinary leader of the Office, and I look forward to working together to advance the cause of justice for the people of New Jersey.”

The Executive Assistant U.S. Attorney is Lee M. Cortes Jr., who has been with the Office for 11 years, most recently as Chief of the Health Care Fraud Unit. Caroline Sadlowski, Counsel to the U.S. Attorney, remains in that role. She has been with the office for 19 years, including nine years in the Appeals Division and six years in the Civil Division, where she also served as Chief of the Division. Andrew Carey remains as Deputy U.S. Attorney, overseeing the Trenton and Camden Vicinages. He worked as an Assistant U.S. Attorney for eight years and returned to the Office in 2019 after serving as the Middlesex County Prosecutor for six years.

According to U.S. Attorney Sellinger, “Lee, Caroline, and Andrew are three of the finest attorneys in the Office and have deep experience, leadership skills, and impeccable integrity. I am pleased that they agreed to join my front office.”

U.S. Attorney Sellinger also announced additional leadership positions:

• Bruce Keller has been appointed as Special Counsel to the Front Office.

 

• Nicholas Grippo will continue as Chief of the Criminal Division, while Daniel Shapiro, Osmar Benvenuto, and Desiree Grace will continue as Deputy Chiefs of the Criminal Division, and are joined by Jamel Semper, who also has been appointed Division Deputy Chief.

 

• J. Andrew Ruymann will continue as the Chief of the Civil Division, while Kristin Vassallo and Elizabeth Pascal will continue to serve as Deputy Chiefs of the Civil Division.

 

• Mark Coyne remains the Chief of the Appeals Division

 

• Ronnell Wilson has been appointed Chief of the Special Prosecutions Division, and Jihee Suh will serve as Deputy Division Chief.

 

• Michael Campion has been appointed as the Chief of the newly created Civil Rights Division. 

 

• Molly Lorber and J. Brendan Day will continue to serve as Attorneys-in-Charge of the Camden and Trenton branch offices, respectively. 

 

U.S. Attorney Sellinger also announced the leadership of the Criminal Division Units: 

 

• Lauren Repole and Michelle Gasparian have been appointed as Co-Unit Chiefs of the newly created General Crimes Unit.

 

• R. David Walk has been appointed Chief of the Government Frauds Unit, and David Dauenheimer will continue as the Unit’s Deputy Chief. 

 

• Jason Gould has been appointed Chief of the Health Care Fraud Unit.

 

• Sarah Devlin will continue to serve as Chief of the Assert Recovery and Money Laundering Unit.

 

• Joyce Malliet has been appointed as Chief of the National Security Unit.

 

• Sean Farrell will continue as Chief of the Cybercrime Prevention and Enforcement Unit.

 

• Catherine Murphy will continue as Chief of the Economic Crimes Unit.

 

• Cari Fais will continue as Chief of the Opioid Abuse Prevention and Enforcement Unit.

 

• Francesca Liquori will continue as Chief of the Narcotics/Organized Crime Drug Enforcement Task Force.

 

• James Donnelly has been appointed as Chief of the Organized Crime/Gangs Unit.

 

“The District of New Jersey is fortunate to have such an outstanding group of public servants to lead this Office,” U.S. Attorney Sellinger said. “They have the skill, experience, judgment, and integrity needed to continue this Office’s mission: to protect the public, enforce the laws, promote fairness and equality, and do justice. I am extremely proud of this leadership team and know that they will continue this Office’s longstanding commitment to the pursuit of justice.”

NEWARK, N.J. – A former investment advisor from Union County, New Jersey, was arrested today for allegedly stealing more than $500,000 from multiple clients to fund his gambling and personal expenses, U.S. Attorney Philip R. Sellinger announced.

Mario E. Rivero Jr., 38, of Elizabeth, New Jersey was charged by complaint with two counts of wire fraud, one count of investment advisor fraud, and one count of securities fraud. Rivero was arrested at his home and is scheduled to appear this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.

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

From April 2018 through November 2020, Rivero, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $529,870 from four clients. Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients. He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.

Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The investment adviser fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s charges.

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 120 months’ imprisonment for possessing multiple images and videos depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Robert Klemt, 35, of Wayne, New Jersey previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an Information charging him with one count of possessing child pornography. Judge Hayden imposed the sentence today by videoconference.

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

In June 2020, agents with the Department of Homeland Security – Homeland Security Investigations approached Klemt at his residence after receiving information suggesting that Klemt had accessed a website containing images of child sexual abuse. Law enforcement subsequently discovered on Klemt’s laptop computer over 70 images and videos depicting the sexual abuse of children.

Klemt was previously convicted of endangering the welfare of a child/distribution of child pornography in Essex County in 2014.   

In addition to the prison term, Judge Hayden also sentenced Klemt to 10 years of supervised release. Klemt must also register as a sex offender.  

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, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – An Ohio man pleaded guilty today to his role in a large-scale, multilevel marketing scheme to defraud private and federally funded health care benefit programs, U.S. Attorney Philip R. Sellinger announced.

Kent Courtheyn, 38, of Kent, Ohio, owner and operator of two marketing companies involved in the sales and marketing of compounded medications – IntegriMed Solutions LLC (IntegriMed) and KA Compounding LLC (KA Compounding) – pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with conspiracy to defraud the United States by committing health care fraud and violating the anti-kickback statute.

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

TRICARE is a health care entitlement program of the U.S. Department of Defense (DoD) Military Health System that provides coverage for DoD beneficiaries worldwide, including active duty service members, National Guard and Reserve members, retirees, their families, and survivors. Compounded medications are specialty medications prepared by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a medical professional determines that an FDA-approved medication does not meet the health needs of a particular patient, such as when a patient is allergic to a dye or other ingredient or when a patient cannot consume a medication by traditional means.

From July 2014 through July 2016, Courtheyn, a former medical device sales representative, ran a large-scale scheme to defraud federally funded health care benefit programs, such as TRICARE, as well as privately funded health care benefit programs. Through IntegriMed and KA Compounding, Courtheyn recruited individuals to submit fraudulent claims for medically unnecessary compounded medications, such as pain creams, scar creams, wound creams, and metabolic vitamins, without regard to medical necessity. In total, Courtheyn defrauded health care benefit programs, including TRICARE, of at least $5.8 million.

Courtheyn faces a statutory maximum of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for July 20, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; 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 ongoing investigation leading to today’s guilty plea.

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

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted fraudulently obtaining a federal Paycheck Protection Program (PPP) loan of $237,500, U.S. Attorney Philip R. Sellinger announced.

Cornell McCoy, 49, of Lawnside, New Jersey, pleaded guilty by videoconference before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with one count of bank fraud.

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (the “PPP”). To obtain a PPP loan, a qualifying small business must apply and provide information on its operations, including the number of employees and payroll expenses. Businesses generally had to provide supporting documentation.

In February 2021, McCoy applied for a PPP loan on behalf of Silver Cup Services Group LLC, a company that he owned. McCoy stated on the application that Silver Cup had 12 employees and an average monthly payroll of $95,000. He also submitted federal tax forms and returns that purported to show that Silver Cup paid $300,000 in wages during each quarter of 2019 and that McCoy earned more than $800,000 in income from Silver Cup in 2019. In fact, Silver Cup had no employees other than McCoy himself and paid no wages in 2019. The tax forms submitted with the application were forged. In April 2021, the lender approved the loan based on the fraudulent application and disbursed $237,500 to a bank account controlled by McCoy.

The charge of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million. As part of his guilty plea, McCoy agreed to make restitution in the full amount of the PPP loan and agreed to forfeit the contents of the bank account to which the loan proceeds were disbursed. Sentencing is scheduled for July 20, 2022.

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

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

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

Aaron Jones, 27, of Willingboro, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to commit health care fraud.

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

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

Jones was previously indicted for conspiracy to commit health care fraud and wire fraud and other offenses, along with Goldis, Steven Monaco, and Dr. Daniel Oswari. Oswari pleaded guilty in December 2019 to fraud and kickback charges. Goldis pleaded guilty in June 2020 to four counts of making false statements relating to health care matters. Zappala pleaded guilty to conspiracy to commit health care fraud in September 2017. The charges remain pending against Monaco, who is scheduled for trial before Judge Kugler in Camden federal court on April 4, 2022. 

Jones faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  Sentencing is scheduled for July 12, 2022. 

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

The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Christina O. Hud of the Criminal Division.

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

NEWARK, N.J. – A former New Jersey resident was sentenced today to 29 months in prison for his role in an investment scheme through which he fraudulently obtained more than $1.52 million from at least three families from 2017 through 2019, U.S. Attorney Philip R. Sellinger announced.

Matthew Benjamin, 54, formerly of Englewood, New Jersey, and now of New York, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of wire fraud and one count of securities fraud. Judge Cecchi imposed the sentence today in Newark federal court.

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

From May 2017 through August 2019, Benjamin falsely represented to at least three families that his company, Clear Solutions Group LLC, had lucrative contracts to purchase closeout or excess cosmetic inventory from a company, which he would then resell at a mark-up to a second company. Benjamin told the victims that he had access to these closeout goods through his contacts in the cosmetics and fragrance industry, which he purportedly made through his work at his family’s cosmetic wholesale and distribution business prior to starting Clear Solutions Group. Benjamin induced the victims to provide him with money to purchase the inventory from the first company and promised significant profits in return. Instead of investing the money as he promised, Benjamin misappropriated the investors’ money for his own use and benefit.

Benjamin provided the victims with falsified documents, including fake purchase orders, invoices, promissory notes and bank records showing inflated assets of Clear Solutions Group. To lull victims and induce them to continue investing, Benjamin provided them with documents that purported to detail the investors’ profits.

Benjamin misrepresented to certain investors that portions of their profits on the investment contracts were being reinvested in additional deals to purchase and sell cosmetics, which in turn would generate more profits. From time to time, Benjamin made payments to the investors that were purportedly their profits on certain cosmetics contracts.

In reality, Benjamin misappropriated the investors’ money by making payments to other investors in Clear Solutions Group, which were characterized as those investors’ profits from the nonexistent cosmetic contracts, thereby enabling Benjamin to continue to perpetuate his fraudulent scheme and funding Benjamin’s lifestyle, including paying for car and house rental payments, food, international travel, legal fees, technology equipment, and summer camp tuition for his family members.

In addition to the prison term, Judge Cecchi sentenced Benjamin to three years of supervised release and ordered forfeiture of $1.53 million and restitution of $909,539.

The U.S. Securities and Exchange Commission has filed a civil complaint against Benjamin based on allegations underlying the securities fraud charge. 

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

The government is represented by Assistant U.S. Attorney Jennifer S. Kozar and Catherine R. Murphy, Chief of the Economic Crimes Unit of the U.S. Attorney’s Office.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 108 months in prison for conspiring to obtain mortgage loans to finance the sale of properties to unqualified buyers, securities fraud by inducing a victim into investing over $1.2 million into real estate companies under false pretenses, and violation of supervised release, Attorney for the United States Vikas Khanna announced.

Maurice Bethea, 54, of Newark, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of bank fraud conspiracy and one count of securities fraud. Judge Wigenton imposed the sentence today in Newark federal court.

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

From May 2009 through June 2012, Bethea and others recruited buyers to purchase multi-unit residential properties owned by Westinghouse Redevelopment Act Inc., a company Bethea controlled. Bethea and his conspirators used false information about the buyers’ assets and income to support fraudulent mortgage loan applications to a mortgage company. They falsified the buyers’ loan application by boosting liquid assets. Bethea and his conspirators transferred cash from Westinghouse’s and others’ accounts to the buyers’ bank accounts and falsified documents to hide the transfers. After the loans were approved, Bethea and his conspirators caused the return of the funds to Westinghouse. When it came time to close the transactions, Bethea and his conspirators defrauded the mortgage company by hiding that Westinghouse and others, not the buyers, provided the cash to close the transactions. Ultimately, the buyers were not able to repay the loans, which resulted in losses to several financial institutions.

From April 2017 through May 2018, Bethea deceived an individual into investing in Bethea’s real estate companies. Bethea told the victim that he would invest his money in companies that Bethea owned and that were in the business of buying foreclosed homes, renovating the homes, and then reselling the properties. Bethea falsely promised the victim that Bethea would pay him a 12 percent return on his investment and $10,000 each time one of Bethea’s companies sold a property. In reality, Bethea took the victim’s $1.27 million investment, spent the money for other purposes, and then lied to the victim about Bethea’s failure to make monthly interest payments and the condition of the properties under Bethea’s control.

The 108-month sentence imposed today includes a 21-month sentence for violation of supervised release; Bethea was on supervised release for an earlier conviction at the time he committed the counts he pleaded guilty to in this case. In addition to the prison term, Judge Wigenton sentenced Bethea to five years of supervised release. Restitution will be determined at a later date.

Attorney for the United States Khanna credited 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 U.S. Department of Housing & Urban Development, Office of Inspector General, Mid-Atlantic Region, under the direction of Special Agent in Charge Shawn Rice; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the sentencing.

The government is represented by Assistant U.S. Attorneys Andrew M. Trombly of the Cybercrime Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark, and  Special Assistant U.S. Attorneys Kevin V. Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.

NEWARK, N.J. – An Essex County, New Jersey, man employed as a food services worker in a high school was arrested today for distributing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Ezra W. Saphire, 29, of West Orange, New Jersey, is charged by complaint with one count of distribution of child pornography. He had his initial appearance by videoconference before U.S. Magistrate Judge André M. Espinosa and was released on home confinement with electronic monitoring.

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

Saphire was employed as a food services contractor at a high school in East Hanover, New Jersey. From June 9, 2021, through Jan. 22, 2022, law enforcement conducted undercover online sessions using a publicly-available peer-to-peer (P2P) software application program, a method of communication available to Internet users through the use of special software that allows users to trade digital files through a worldwide network that is formed by linking computers together. Law enforcement officers used P2P software to download 1,014 video files and 659 image files containing images of child sexual abuse through the IP address associated with Saphire’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.

The count of distributing child pornography carries a mandatory minimum term of five years in prison and a maximum term of 20 years in prison and a fine of $250,000, or twice the gross gain or loss caused by the offense.

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, with the investigation leading to today’s charges. He also thanked the West Orange Police Department and the East Hanover Police Department for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud 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.

TRENTON, N.J. – A Monmouth County, New Jersey, man who ran an illegal gambling business today admitted filing a false tax return, U.S. Attorney Philip R. Sellinger announced.

Steven Bryce, 52, of Howell Township, New Jersey, pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to Count Five of an indictment charging him with subscribing to a false tax return.

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

In 2013, Bryce operated an illegal gambling business. On July 14, 2014, Bryce filed with the IRS U.S. Individual Income Tax Return, Form 1040, for the calendar year 2013 on behalf of himself and his spouse, which falsely stated that they had total income of $112,899. The 2013 Tax Return was not true and correct: Bryce received significant income from his gambling business, and, as a result, had income substantially in excess of the amount he reported. As part of his plea agreement, Bryce agreed to pay full restitution of $338,885 to the IRS for tax losses resulting from false tax returns filed by Bryce for calendar years 2011 to 2016.

The charge of subscribing to a false tax return carries a maximum potential penalty of three years in prison and a maximum $250,000 fine. Sentencing is scheduled for July 11, 2022.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sara F. Merin and J Fortier Imbert of the Special Prosecutions Division in Newark.

NEWARK, N.J. – A United States citizen who had been residing in the Dominican Republic was sentenced today to 178 months in prison for conspiring to import hundreds of pounds of cocaine into the United States from Venezuela, Colombia, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced.

Edwin Nieves-Rosado, aka “Tortuga,” 56, previously pleaded guilty before U.S. District Judge Esther Salas to Count One of an indictment charging him with conspiracy to import five kilograms or more of cocaine. Judge Salas imposed a sentence today in Newark federal court.

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

From 2016 through Jan. 10, 2020, Nieves-Rosado and others conspired to import at least 800 kilograms of cocaine. Nieves-Rosado admitted playing a managerial role in this conspiracy, which involved more than five individuals.

In addition to the term of imprisonment, Judge Salas sentenced Nieves-Rosado to five years of supervised release.

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

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

The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit and Assistant U.S. Attorney Francesca Liquori, Chief of the OCDETF/Narcotics Unit.

CAMDEN, N.J. – A Gloucester County, New Jersey, man with five prior felony convictions today admitted to unlawfully possessing and conspiring to sell multiple firearms, U.S. Attorney Philip R. Sellinger announced.

Dylan Ianncelli, 28, of Pitman, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiring to make false statements in obtaining firearms and to illegally engage in the business of dealing in firearms, as well as one count of possession of firearms by a convicted felon.

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

Ianncelli and his conspirator, Jessy Hill, agreed to purchase firearms in Georgia and transport them for resale in New Jersey. On Aug. 12, 2021, Hill purchased 11 firearms from a licensed dealer in Georgia. Hill falsely indicated during the purchase that she was the actual buyer/transferee of the firearms even though she was purchasing the firearms for others.  Ianncelli and Hill drove a car containing the firearms from Georgia to Mantua, New Jersey, where the car was stopped by law enforcement officers the following morning. Officers recovered from the car the 11 firearms purchased by Hill the prior day, as well as ammunition and a 12th firearm with a defaced serial number that Hill purchased a week earlier. 

The count of being a felon in possession of a firearm carries a maximum potential penalty of up to 10 years in prison. The charge of conspiracy carries a maximum potential penalty of up to five years in prison. Each count carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.

Hill is charged by complaint with the same conspiracy. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. 

U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s guilty plea. He also thanked the New Jersey State Police, the Mantua Township Police Department, and the Gloucester County Prosecutor’s Office for their assistance on this investigation.

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

NEWARK, N.J. – A North Carolina man was charged today for defrauding at least 25 people by operating a Ponzi scheme, U.S. Attorney Philip R. Sellinger announced.

David Schamens, 64, of Greensboro, North Carolina, is charged by complaint with one count each of wire fraud, securities fraud and money laundering. He is scheduled to have his initial court appearance in Newark federal court on March 8, 2022.

According to the criminal complaint and statements made in court:

Starting in 2014, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading LLC, TradeStream Analytics LTD, Tradedesk Financial Group Inc. and others, under the promise of annual rates of return of 12 percent to 30 percent. In 2019, Schamens began to solicit investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. In each instance, Schamens directed investors to wire funds directly or to transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.

Once invested, Schamens often moved victim funds through several different bank accounts before he ultimately used the funds for some non-investment related purpose.  Schamens took several steps to keep his customers’ trust, including: sending false account statements; posting false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sending false tax documents reporting earnings that did not exist.

Schamens allegedly misappropriated at least $6.8 million from at least 25 different individuals, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including the purchase of a house, payments for a luxury car, and other personal expenses.

The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 25 years in prison and a fine of $1 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges. He also thanked the U.S. Securities Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for its role in the investigation.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter and Anthony Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.

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

CAMDEN, N.J. – A Bronx, New York, man was sentenced today to 48 months in prison for his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, U.S. Attorney Philip R. Sellinger announced.

Lamar Melhado, 32, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to Count 1 of an indictment charging him with conspiracy to commit bank fraud. Judge Bumb imposed the sentence today in Camden federal court.

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

From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the banks’s call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center.

The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts. Hill-Birdsong was indicted in March 2021 on conspiracy to commit bank fraud, bank fraud and aggravated identity theft; those charges remain pending. The charges and allegations contained in the indictment against Hill-Birdson are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

In addition to the prison term, Judge Bumb sentenced Melhado to five years of supervised release and ordered restitution of $604,096 and forfeiture of $151,024.

U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, 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.

NEWARK, N.J. – A New Jersey man was convicted by a federal jury today of threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced.

Frank Monte, 51, of New Jersey, was convicted following a one-week trial before U.S. District Judge John Michael Vazquez in Newark federal court of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce.

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

On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer.

On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him.

On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.

The count of threatening to murder a federal law enforcement officer based on the July 2019 threat carries a maximum penalty of 10 years in prison. The two counts of threatening to assault a federal law enforcement officer based on the October 2019 threats each carry a maximum penalty of six years in prison. The two counts of transmitting a threat in interstate commerce based on the October 2019 threats each carry a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.

U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s conviction. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.

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

TRENTON, N.J. – A Mercer County, New Jersey, man with prior felony convictions was sentenced to 108 months in prison for unlawfully possessing a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced today. 

Omar Kennedy, 40, of Trenton, previously pleaded guilty by before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Thompson imposed the sentence on March 4, 2022.

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

On May 23, 2019, the Trenton Police Department was called to a residence in Trenton, New Jersey on the report of a domestic disturbance. When officers arrived, the female resident reported that Kennedy pointed a firearm at her and threatened to shoot and kill her. While law enforcement officers were at the location, Kennedy phoned the female victim and repeated his threat to shoot her. Officers located Kennedy in the immediate area of the home, and he was found in possession of a firearm loaded with eight rounds of ammunition.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division; officers with the Trenton Police Department, under the direction of Director Steve E. Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to the sentencing. 

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

NEWARK, N.J. – An Essex County, New Jersey, man with a previous felony conviction made his initial appearance today on a criminal complaint charging him with two counts of illegally possessing a firearm and ammunition, the first count related to a June 2021 shooting in Newark, U.S. Attorney Philip R. Sellinger announced.

Kevin Hills, 21, of Newark, was charged by complaint on Feb. 24, 2022, appeared today by videoconference before U.S. Magistrate Judge André M. Espinosa, and was detained.

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

On June 19, 2021, a shooting took place in Newark. Responding officers of the Newark Police Department (NPD) found an abandoned Jimenez Model JA-Nine 9-millimeter semiautomatic pistol in a vacant lot near the scene and multiple spent shell casings on the sidewalk. NPD detectives later recovered video from the vicinity of the shooting recorded during the morning of the shooting. One video showed an individual matching Hills’ appearance firing a handgun in the same area where the shell casings and handgun were found.

On July 20, 2021, an NPD detective who had been assigned to investigate the shooting saw and stopped Hills. The detective then recovered a Ruger 9-millimeter caliber handgun loaded with 11 rounds of ammunition from Hill’s waistband.

Hills had previously been convicted in January 2019 in the New Jersey Superior Court of aggravated assault on a corrections officer, for which he was sentenced to three years in prison.

Each count of illegal possession of a firearm and ammunition by a convicted felon carries a maximum sentence of 10 years in prison and a maximum fine of $250,000.

U.S. Attorney Sellinger credited officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and members of the Essex County Prosecutor’s Office, under the direction of Acting Essex County Prosecutor Theodore N. Stephens II, with the investigation leading to the charges.

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

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

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

Anselmo Girimonte, 51, of Wharton, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared by videoconference today before U.S. Magistrate Judge James B. Clark III and was detained.

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

From Dec. 27, 2021, through Jan. 17, 2022, Girimonte distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download the P2P program, which is widely available for free on the Internet. The program allows the user to place files into a designated “shared” folder on his or her hard drive, from which other P2P program users can then download those files directly to the “shared” folders of their own computers. Users can then browse, search, select, and directly download, those files. The program typically keeps a log of each downloaded event.

Law enforcement conducted an undercover online session to access the P2P program and to download nine video files containing child pornography from an IP address assigned to an internet service provider account associated with Girimonte’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.

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

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

The government is represented by Assistant U.S. Attorney Camila A. Garces of the Violent 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.

TRENTON, N.J. – A Monmouth County, New Jersey, brother and sister were arrested today on charges of tax evasion, U.S. Attorney Philip R. Sellinger announced.

Enrico Cifelli, 51, of Holmdel, New Jersey, and Michelle Bocchieri, 42, of Matawan, New Jersey, were each charged by indictment on March 3, 2022, with one count of conspiracy to defraud the United States. Cifelli is additionally charged with one count of evasion of payment of payroll taxes, four counts of failure to pay over payroll taxes, and one count of evasion of assessment of income tax. Cifelli and Bocchieri were arrested today and made their initial appearances before U.S. Magistrate Judge Lois H. Goodman via videoconference. Cifelli was released on a $500,000 unsecured appearance bond and Bocchieri on a $250,000 unsecured appearance bond. Arraignment is scheduled for April 4, 2022, by videoconference before U.S. District Judge Peter G. Sheridan.

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

From 2013 through October 2020, Cifelli and Bocchieri, who are siblings, conspired to evade the payment of more than $1.5 million in payroll taxes, penalties, and interest that Cifelli owed the IRS. Cifelli’s tax liability stemmed from the unpaid payroll taxes of two companies that he controlled: Cifelli Disposal Inc., a waste disposal business, and LBAB LLC. Cifelli failed to pay the vast majority of payroll taxes for Cifelli Disposal for the years 2004 through 2008 and for LBAB for the years 2009 through 2015, resulting in more than $1.5 million in taxes, penalties, and interest. 

To avoid paying the IRS and give the false impression that Cifelli lacked the ability to pay his back taxes, Cifelli and Bocchieri conspired to have Bocchieri fund Cifelli’s lifestyle through an entity she nominally owned, but Cifelli controlled. For instance, Bocchieri caused her company to pay the down payment, mortgage, and other expenses for Cifelli’s personal residence.

Cifelli submitted a false Offer in Compromise to the IRS in June 2016, making multiple misrepresentations and material omissions of his assets and household income, while offering to settle his tax debt for pennies on the dollar.

Each count carries a maximum penalty of five years in prison and a fine of up to $250,000, or twice the gross pecuniary gain or loss to any person, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges.

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

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 Union, New Jersey, man was sentenced today to 80 months in prison for illegally obtaining more than $450,000 in unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced. 

Maurice Mills, 30, of Union, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with wire fraud. Judge Martinotti imposed the sentence by videoconference today.

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 provides unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Compensation that provides additional benefits to those eligible for PUA and regular UIB. The New York State Department of Labor administers and manages the regular unemployment and PUA programs in the State of New York.

Between August and September of 2020, Mills submitted fraudulent UIB applications to the State of New York using the names of other individuals. As a result, the State of New York approved and provided, and Mills falsely obtained, more than $450,000 in UIB.

In addition to the prison term, Judge Martinotti sentenced Mills to three years of supervised release and ordered him to pay $486,760 in restitution.

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; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s arrest. He also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.

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 Modesto, California, woman admitted today that she fraudulently created and sold over $9.9 million worth of counterfeit Catalina coupons used at various retail stores across the United States for the purchase of household items, U.S. Attorney Philip R. Sellinger announced.

Tong Lor, aka “Mandy Carr,” 34, pleaded guilty by video conference before U.S. District Judge Esther Salas to an information charging her with one count of conspiracy to commit mail fraud. 

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

From 2017 through May 2021, Lor was involved in a large-scale operation to produce and sell fraudulent Catalina Coupons using the U.S. Postal Service (USPS) mail system. A Catalina Coupon was a full-color, rectangular paper coupon that was part of a program created by numerous manufacturers of household products and honored by hundreds of participating retail stores located throughout the United States. Lor sold the counterfeit coupons via invitation-only internet groups associated with her businesses, which were accessible via the Internet site, Telegram Messenger Inc. (Telegram), a cloud-based, mobile instant communications service.  

Lor printed coupons using fake bar codes and then mailed these counterfeit coupons in over 13,000 USPS parcels to purchasers in New Jersey and throughout the United States. Over 100,000 counterfeit coupons – with a value of over $9.9 million – were sold by Lor for use at retail stores across the country for discounts on household items such as diapers, laundry detergent, and toiletries.

The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Aug. 16, 2022.

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

The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Heather Suchorsky of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

NEWARK, N.J. – A Mercer County, New Jersey, man was sentenced today to 30 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, U.S. Attorney Philip R. Sellinger announced.

Earlja J. Dudley, 28, of Trenton, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence by videoconference today.

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

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

A City of Trenton street camera and other video footage taken by an individual present on the street captured Dudley and an unidentified male open the hood of a police vehicle.  Dudley was then joined by another unidentified male who ignited an object that Dudley was holding. Dudley then placed the flaming object into the engine well of a Trenton Police Department vehicle, attempting to set the police vehicle on fire. Law enforcement later identified Dudley through analysis of street camera and other video footage and he was arrested on June 17, 2020.

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

Dudley is the third of four individuals sentenced in connection with the protest in Trenton. Killian F. Melecio was sentenced in June 2021 to 28 months in prison and three years of supervised release; Justin D. Spry was sentenced in September 2021 to 24 months in prison and three years of supervised release. Kadeem A. Dockery previously pleaded guilty and is awaiting sentencing. 

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

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

NEWARK, N.J. – Two former residents of Monmouth County, New Jersey, now residing in Frisco, Texas, were arrested today for their roles in fraudulently obtaining over $3 million in federal Paycheck Protection Program (PPP) payments, U.S. Attorney Philip R. Sellinger announced.

Jean E. Rabbitt, 51, formerly of Farmingdale, New Jersey, is charged by complaint with bank fraud, conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity. Kevin Aguilar, 51, formerly of Farmingdale, is charged by complaint with conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity. Rabbitt and Aguilar are scheduled to make their initial appearances by videoconference on March 3, 2022, before U.S. Magistrate Judge Kimberly C. Priest Johnson in the Eastern District of Texas.

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. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

Rabbitt submitted fraudulent PPP loan applications on behalf of four businesses that she controlled. The applications contained fraudulent representations to the lenders, including a Federal Home Loan Bank member, and the Small Business Administration (SBA), including fraudulent payroll records and tax records and false certifications as to the number of employees and gross revenue of Rabbitt’s businesses. According to IRS records, none of the purported tax documents that Rabbitt submitted to the PPP lenders were, in fact, filed with the IRS. Other government records showed that, contrary to the fraudulent payroll records and certifications, Rabbitt’s businesses had not in fact paid wages to any employees. Based on Rabbitt’s alleged misrepresentations in the loan applications, Rabbitt’s businesses received approximately $3.33 million in federal COVID-19 emergency relief funds meant for distressed small businesses.

After Rabbitt’s businesses received the PPP loans through the fraudulent applications, Aguilar created sham payroll companies. Rabbitt then wrote checks from Rabbitt’s businesses to the sham payroll companies, falsely indicating on each check that the payments were for payroll. Rabbitt and Aguilar then transferred funds from the sham payroll companies to other companies that Aguilar created. Aguilar and Rabbitt then used the funds to purchase residential properties in Sherman, Texas, and to pay for personal expenses.

Rabbitt also made false and fraudulent statements and used falsified and fraudulent documents in support of applications for forgiveness of certain of the PPP loans. Based on Rabbitt’s false and fraudulent certifications and documents, the SBA paid more than $2 million dollars to lenders in connection with the fraudulent PPP loans Rabbitt obtained.

Each count of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million. Each count of conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity carries a maximum penalty of 10 years in prison. The conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest. The court may impose an alternate fine of not more than twice the amount of the criminally derived property involved in the transaction.

U.S. Attorney Sellinger credited 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; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney.

The government is represented by Assistant U.S. Attorneys Olajide Araromi and David V. Simunovich of the U.S. Attorney’s Office’s Government Fraud Unit, 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 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 defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A property developer and manager from Indiana today admitted his role in a scheme to defraud real estate investors, U.S. Attorney Philip R. Sellinger announced.

Herbert Whalen, aka “Bert Whalen,” 47, of Indianapolis, Indiana, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to the first count in an indictment, charging him with conspiracy to commit wire fraud

“The defendant preyed upon innocent victims’ desire to improve their own financial position through what they thought were sound investments,” U.S. Attorney Sellinger said.  “Working with our partners at the FBI, we were able to discover his illegal activity and ensure that he will now face justice for his crimes.  Combatting investment fraud remains one of our highest priorities, and this conviction sends a clear message that such conduct will be punished.”

“Investment fraud schemes take many forms and as long as there are trusting people, looking for what seems like a good way to protect and grow their money, these fraudsters will continue to strike,” Special Agent in Charge George M. Crouch Jr. said. “The FBI is constantly on watch for thieves who paint their schemes as golden opportunities to build on your wealth when, in fact, they are only building theirs using your hard-earned money. The best protection is still prevention: do your homework and check multiple websites like FBI, SEC, and FINRA, to confirm legitimacy; don’t believe the hype – if it sounds too good to be true, it probably is; and view any seemingly great opportunity through the lens of skepticism. Lastly, if you suspect fraud, report it to tips.fbi.gov.”

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

From August 2016 to July 2018, Whalen, who operated Oceanpointe Property Management in Indianapolis, engaged in a scheme to obtain money from real estate investors by misrepresenting and concealing the poor condition of properties managed by Oceanpointe and by creating fake leases for unoccupied Oceanpointe properties. Investors were promised that, after repairs and rehabilitations were completed, and tenants rented the properties, investors would receive copies of the leases and begin to receive rent payments as their return on investment. In reality, many Oceanpointe properties were not repaired and rehabilitated, and were not ready for occupancy. To conceal this fact from victim investors, Whalen and a conspirator directed Oceanpointe employees to draft fake leases, making it appear to investors that Oceanpointe properties were rented, when, in fact, the properties remained vacant. Whalen instructed Oceanpointe employees to place fake tenant names on leases to send to Oceanpointe investors.

When investors attempted to view the properties that they had purchased, Whalen directed Oceanpointe employees to cover the windows to conceal the poor condition of the properties and the fact that the properties remained vacant. Whalen and others commingled tenant rent payments and selected which investors would be paid from the pool of funds in order to silence investors who voiced concerns and evade detection of the fraud. In order to prevent investors from leaving Oceanpointe and exposing the fraudulent conduct, Whalen directed an Oceanpointe employee to create a false identity and falsely claim, on an online real estate message forum, that the Oceanpointe employee was an investor with Oceanpointe and another company, and that Oceanpointe had addressed all of the concerns regarding the investment property. These misrepresentations and others led to millions of dollars in losses to investors, which Whalen used to, among other things, fund his lifestyle.

The charge of conspiracy to commit wire fraud carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for July 14, 2022.

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

The government is represented by Assistant U.S. Attorneys Carolyn Silane of the Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division in Newark.

CAMDEN, N.J. – A Camden man was sentenced today to 115 months in prison for conspiring to distribute heroin and crack cocaine in the City of Camden, U.S. Attorney Philip R. Sellinger announced.

Waldemar Garcia, 36, of Camden, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb to an information charging him with conspiracy to distribute 100 grams or more of heroin as well as quantities of crack cocaine. Judge Bumb imposed the sentence today 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 like Garcia who worked various shifts selling drugs to customers and collecting drug proceeds.

Seventeen defendants have now pleaded guilty before Judge Bumb to drug conspiracy charges. Two defendants are awaiting trial; the charges and allegations against them are merely accusations, and they are presumed innocent unless and until proven guilty.

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

U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of 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 Chief Robert Kempf; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She 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. – An Essex County, New Jersey, man was charged today with carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Andy Cook, 23, of Newark, is charged by complaint with one count of conspiracy to commit carjacking, one count of carjacking, and one count of conspiracy to use a firearm during a crime of violence. He is scheduled to appear by videoconference today before U.S. Magistrate James B. Clark III.

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

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

The count of conspiracy to commit carjacking carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted scheming with at least one U.S. Postal Service (USPS) employee and others to steal credit cards from the mail and use the stolen cards for hundreds of thousands of dollars of retail and online purchases, First Assistant U.S. Attorney Vikas Khanna announced.

Hakir Brown, 27, Newark, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit bank fraud.

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

Hakir Brown, Jahad Salter, 25, and Dashaun Brown, 31, engaged USPS employees, including Khadijah Banks Oneal, 31, to steal credit cards from the mail in exchange for compensation. Once they obtained the stolen cards, Hakir Brown and his conspirators fraudulently posed as the accountholders of the stolen credit cards when calling the banks that issued the cards and used personal identifying information belonging to the accountholders to obtain or change information about the stolen credit cards. They then used the stolen credit cards to make purchases at retail stores in New Jersey and elsewhere, including New York and online, resulting in attempted losses of over $300,000.

Several of the USPS employees and individuals who participated in the scheme have been charged by complaint for their roles in the scheme, including, Banks Oneal, who worked at a mail processing plant facility in Kearny, New Jersey; another USPS employee, Ashley Taylor, who worked at a post office in New York; Salter; Adeeb Salih, 29, of East Orange, and Yaseen Salih, 24, of Iselin, New Jersey. Dashaun Brown was indicted by a grand jury on Feb. 9, 2022, and his arraignment is scheduled for March 3, 2022, before Judge McNulty. The charges and allegations against these other individuals are merely accusations, and they are presumed innocent unless and until proven guilty.

The charge of conspiracy to commit bank fraud carries a statutory maximum sentence of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for July 7, 2022.

First Assistant U.S. Attorney Khanna credited postal inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector of Charge Raimundo Marrero, Newark Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, District of New Jersey, under the direction of Marshal Juan Mattos Jr.; the U.S. Secret Service, New York Field Office, under the direction of Special Agent in Charge Patrick J. Freaney; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division, under the direction of Special Agent in Charge Andrew S. McKay; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina; the Livingston, New Jersey Police Department, under the direction of Chief Gary Marshuetz; the Newark Police Department, under the direction of Department of Public Safety Director Brian O’Hara; the Essex County, New Jersey Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the New Providence, New Jersey, Police Department, under the direction of Chief of Police Theresa A. Gazaway; and the Berkeley Heights, New Jersey, Police Department, under the direction of Chief of Police Jason Massimino, 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 Camden County, New Jersey, woman was sentenced today to 24 months in prison for receiving hundreds of thousands of dollars of consumer electronics before reselling the stolen goods in connection with a delivery fraud scheme, U.S. Attorney Philip R. Sellinger announce.

Yanira Medina-Roman, 37, of West Berlin, New Jersey, previously pleaded guilty by videoconference before U.S. Senior District Judge Anne E. Thompson to an information charging her with one count of conspiracy to commit wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.

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

From July 2018 through October 2018, Medina-Roman and others carried out a delivery fraud scheme targeting a corporate victim and government agency that resulted in the theft of more than $250,000 of consumer electronics. Medina-Roman and her conspirators used Medina-Roman’s residence – then in Highlands, New Jersey – as the delivery address for the stolen goods. Medina-Roman, under the direction of her conspirators, sold the goods for profit either to a fence of stolen goods, or to third parties through a national classified advertisement website, while retaining for herself a portion of the sale proceeds.

A related cyberattack involved the appropriation without authorization of the identity of an employee of a government agency, which Medina-Roman’s conspirators used by manipulating the employee’s government email address to place orders for consumer electronics and gift cards with a corporate victim located in Maryland. The Maryland corporate victim, believing the emails were authentic and sent by the government employee, with whom the corporate victim had a prior business relationship, was deceived into delivering the consumer electronics to Medina-Roman’s residential address. 

In addition to the prison term, Judge Thompson sentenced Medina-Roman to three years of supervised release and ordered restitution of $266,615 and forfeiture of $25,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the U.S. Secret Service, under the direction of Resident Agent In Charge Preston Fairlamb; special agents of the Defense Criminal Investigative Service, under the direction of Special Agent in Charge of the Cyber Field Office Kenneth DeChellis; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and officers of the Highlands, New Jersey Police Department, under the direction of Chief Robert Burton, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A Pennsylvania man has been arrested for committing immigration documents fraud and aggravated identity theft in New Jersey, U.S. Attorney Philip R. Sellinger announced today.

Luc Fikiri Matthews, 47, of Philadelphia, Pennsylvania was indicted on Feb. 9, 2022, on six counts of submitting false and fraudulent immigration documents and six counts of committing aggravated identity theft. Matthews is scheduled to make his initial appearance later today before U.S. Magistrate Judge Matthew J. Skahill.   

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

In 2017 and 2018, Matthews falsely represented himself as an immigration attorney in order to attract business from noncitizens who did not have legal permanent resident status in the United States. Under the Victims of Trafficking and Violence Prevention Act of 2000, the victims of certain qualifying crimes that occur in the United States, including noncitizen victims who might otherwise be subject to immigration removal proceedings, may be eligible to obtain a U Visa and remain in the United States. After agreeing to represent new clients and charging them fees, Matthews prepared and submitted false and fraudulent U Visa application documents to the U.S. Citizenship and Immigration Service. 

The documents prepared by Matthews included multiple fraudulent statements, such as falsely representing that his clients had been the victims of certain qualifying crimes, or containing false names, signatures, and other false means of identification, from various visa applicants and government officials located in New Jersey and New York. None of Matthews’ clients ever actually received a U Visa.

Each count of immigration documents fraud is punishable by up to 10 years in prison and a maximum fine of $250,000. Each count of aggravated identity theft is punishable by up to two years in prison, which must be served consecutively to any other term imposed, as well as 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 in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sara Aliabadi of the U.S. Attorney’s Office’s Camden office.

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 man was sentenced today to 42 months in prison for role in a scheme to steal prescription HIV medication from the Department of Veterans Affairs, U.S. Attorney Philip R. Sellinger announced.

Wagner Checonolasco, aka “Wanny,” 34, of Lyndhurst, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with conspiring to steal 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 August 2017 through Nov. 20, 2019, Checonolasco conspired with Lisa M. Hoffman and others to steal HIV medication belonging to the U.S. Department of Veterans Affairs. Hoffman allegedly stole the medication from the pharmacy of her employer, the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, and then sold the stolen medication to Checonolasco for cash. Hoffman used her position as a procurement official at the VAMC to order large quantities of HIV prescription medications so that she could steal the excess medication and then sell it to Checonolasco, who then resold it for a profit. Checonolasco and Hoffman stole approximately $8.2 million worth of HIV medication belonging to the VAMC.

In addition to the prison term, Judge Salas sentenced Checolonasco to three years of supervised release and ordered restitution of $8.2 million.

Hoffman, 48, of Orange, New Jersey, previously pleaded guilty to her role in the scheme and is scheduled to be sentenced on March 9, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.

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

TRENTON, N.J. – An attorney operating a law firm in Somerset County, New Jersey, was arrested today for allegedly making false statements in visa applications, U.S. Attorney Philip R. Sellinger announced. 

Steven G. Thomas, 52, of New Hope, Pennsylvania, is charged by complaint with preparing and filing false visa applications on behalf of clients. He is scheduled to appear later today before U.S. Magistrate Judge Tonianne J. Bongiovanni. 

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

Thomas, who operates a law firm in Montgomery Township, New Jersey, encouraged clients to apply for asylum under fraudulent pretenses. He advised clients regarding the manner in which they were most likely to obtain asylum, knowing that these clients did not legitimately qualify for asylum. Thomas also prepared, or caused to be prepared on behalf of those clients, fraudulent applications and affidavits, which were submitted to the U.S. Citizenship and Immigration Services. 

A confidential informant working for law enforcement met with Thomas in January of 2020. Thomas filed on that person’s behalf a visa application containing numerous false statements in April 2020.

U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina; and the U.S. Citizenship and Immigration Service Fraud Detection and National Security Unit in the Newark Asylum office, under the direction of Newark Asylum Director Susan Raufer, with the investigation leading to the arrest.

The government is represented by Senior Civil Rights Counsel Joseph Gribko of the Criminal Division in Newark.

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

NEWARK, N.J. – A Queens, New York, man today admitted his role in coordinating a $653 million money laundering conspiracy, operating an unlicensed money transmitting business, and bribing bank employees in connection with financial transactions, U.S. Attorney Philip R. Sellinger announced.

Da Ying Sze, 43, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiring to commit money laundering, one count of operating and aiding and abetting the operation of an unlicensed money transmitting business, and one count of corruptly giving anything of value to an employee of a financial institution in connection with financial transactions.

“The defendant in this case laundered a staggering amount of money,” U.S. Attorney Sellinger said. “Neither money laundering, the narcotics distribution that funded it, nor the bribery of a financial institution that facilitated the money laundering will be tolerated. A broad cross section of federal and local enforcement partners dismantled this sophisticated money laundering operation.”

“Today's announcement demonstrates that criminals who launder illegitimate profits can't evade detection from IRS Criminal Investigation and our law enforcement partners,” Michael Montanez, Special Agent in Charge IRS Criminal Investigation Newark Field Office, said. “This guilty plea is a significant step toward holding the defendant accountable for his role in conspiring to hide hundreds of millions of dollars gained from narcotics distribution.”

“The money laundering discovered during this investigation allows drug traffickers to expand their operations throughout the U.S. and around the world,” Susan A. Gibson, Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division, said. “The actions of DA Ying Sze contribute to high number of overdose fatalities across the country. The men and women of DEA, along with our law enforcement partners, work tirelessly to disrupt the flow of illicit narcotics proceeds to those drug organizations looking to flood our streets with deadly poison.”

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

From 2016 through 2021, Sze laundered more than $653.3 million in cash, consisting of narcotics and other illicit proceeds, utilizing a variety of financial institutions and methods. Sze routinely accepted illicit proceeds in cash and deposited the cash into financial institutions in New York, New Jersey, Pennsylvania, and elsewhere, utilizing bank accounts in the names of shell companies and conspirators. Sze then further obfuscated the source of the illegal cash by purchasing official bank checks, writing personal and business checks, and making international and domestic wires to transfer the illegal cash to thousands of individuals and entities in the United States, China, Hong Kong, and elsewhere. For his services, Sze received a fee of approximately 1 to 2 percent of the cash laundered.

From 2020 through 2021, Sze routinely provided gift cards and other things of value to employees of at least one financial institution in connection with financial transactions, seeking to corruptly influence financial institution employees to provide Sze with special benefits and to avoid suspicion and reporting of his unusual financial transactions. In 2020 and 2021, Sze provided at least $57,000 in gifts to financial institution employees in connection with financial transactions, and made millions of dollars of profits in connection with such financial transactions.

The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of operating and aiding and abetting the operation of an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000, or twice the amount involved in the offense, whichever is greatest. The charge of bank bribery carries a maximum penalty of 30 years in prison and a fine of $1 million, or three times the value of the thing given, whichever is greatest. Sentencing is scheduled for June 28, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the Morristown, New Jersey, Police Department, under the direction of Police Chief Darnell Richardson; the Federal Deposit Insurance Corporation – Office of Inspector General, New York Division, under the direction of Special Agent in Charge Patricia Tarasca; and the New York City Police Department, under the direction of Commissioner Keechant L. Sewell, with the investigation leading to today’s guilty plea.

This effort 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 Mark J. Pesce of the OCDETF/Narcotics Unit in Newark, Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark, and Assistant U.S. Attorney Angelica Sinopole of the Organized Crime & Gangs Unit in Newark.

NEWARK, N.J. – A Bronx, New York, man today admitted his role in a large international money laundering conspiracy and to using a stolen identity in furtherance of the scheme, U.S. Attorney Philip R. Sellinger announced.

Roberto Mendoza-Arias, 51, pleaded guilty before U.S. District Judge Brian R. Martinotti to a criminal information charging him with one count of conspiracy to commit money laundering and one count of identity fraud. 

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

From May 2019 through March 2020, Mendoza and others laundered over $12.3 million from illegal activity. Mendoza accepted large amounts of cash drug proceeds from conspirators and laundered it by purchasing over 650 cashier’s checks at local bank branches in New Jersey and New York. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization.

In July 2018, Mendoza obtained a fraudulent Pennsylvania driver’s license in someone else’s name. He used the fake ID to open multiple bank accounts and incorporate a business.  Mendoza then used the bank accounts and the business to further the money laundering scheme. 

The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of identify fraud carries a maximum prison sentence of five years and a $250,000 fine. Sentencing is scheduled for June 24, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, the New England Division, under the direction of Special Agent in Charge Brian D. Boyle, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; the New York City Office of the Special Narcotics Prosecutor, under the direction of Special Narcotics Prosecutor Bridget G. Brennan; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate) with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering 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 New Jersey woman today admitted transmitting the proceeds of a fraudulent scheme in which elderly victims were falsely told that they had won large sums of money in a lottery sweepstakes, U.S. Attorney Philip R. Sellinger announced.

Shanile Lyle, 28, of Orange, New Jersey pleaded guilty by videoconference before U.S. District Judge Julian X. Neals to an information charging her with operating an unlicensed money transmitting business.

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

In 2018, Lyle received checks from victims of a lottery scheme in which the victims were told that they had won large sums of money in a lottery sweepstakes and had to pre-pay taxes on their winnings. Lyle then deposited that money into a bank account that she controlled. Lyle kept a fee for herself and then wired the remainder of the funds to other individuals, including individuals overseas.

The charge of operating an unlicensed money transmitting business carries a maximum penalty of five years in prison and a maximum fine of $250,000. Lyle’s sentencing is scheduled for June 28, 2022.

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

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

NEWARK, N.J. – A former federal correctional officer was sentenced today to 26 months in prison for accepting approximately $50,000 in cash bribes in exchange for delivering contraband to federal inmates, U.S. Attorney Philip R. Sellinger announced.

Paul Anton Wright, 36, of Cinnaminson, New Jersey, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of a five-count indictment, charging him with accepting cash bribes to take official action and commit acts in violation of his duties as a public official, specifically as an employee of the Federal Bureau of Prisons. Judge Salas imposed the sentence today.

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

From 2014 through April 2018, Wright was employed as a correctional officer at Federal Correctional Institution Fort Dix (FCI Fort Dix), a Bureau of Prisons facility located in Burlington County. In 2015, while at FCI Fort Dix, Wright agreed to accept cash bribes in exchange for smuggling contraband, including tobacco, K2 (synthetic marijuana) and suboxone (a narcotic used to treat opioid addiction), to inmates.

Wright received cash bribes from two individuals outside of FCI Fort Dix. From February to September 2015, Wright traveled to Philadelphia on multiple occasions to meet with a relative of an FCI Fort Dix inmate and subsequently delivered contraband, including K2, to the inmate. From October to December of 2015, Wright traveled to New York City on multiple occasions to pick up contraband from a different inmate’s associate from whom he also received bribes in return for smuggling the contraband into FCI Fort Dix. 

In addition to the prison term, Judge Salas sentenced Wright to three years of supervised release. Wright previously consented to a $50,000 money judgment against, forfeiting monies he accepted as bribes.

U.S. Attorney Sellinger credited special agents with the U.S. Department of Justice, Office of Inspector General, Washington, D.C., Field Office, under the direction of Special Agent in Charge Russell W. Cunningham, with the investigation leading to today’s sentencing. He also thanked special agents of the FBI for their assistance in the prosecution.    

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

CAMDEN, N.J. – A Burlington County, New Jersey, couple was charged today with forced labor and other crimes involving two undocumented individuals, U.S. Attorney Philip R. Sellinger and Civil Rights Division Assistant Attorney General Kristen Clarke announced.

Bolaji Bolarinwa, 47, and Isiaka Bolarinwa, 65, both of Moorestown, New Jersey, are both charged in an eight-count indictment with two counts of forced labor. Bolaji Bolarinwa is also charged with two counts of bringing in and harboring certain undocumented individuals and two counts of unlawful conduct with respect to documents in furtherance of forced labor. Both defendants are scheduled to appear today by videoconference before U.S. Magistrate Judge Ann Marie Donio.

According to the indictment:

From 2015 to 2016, Bolaji Bolarinwa unlawfully obtained labor and services from one victim by means of serious harm or threats of serious harm, and from another victim by means of force or threats of force. She abused and threatened abuse of legal process against both victims. Bolarinwa’s spouse, Isiaka Bolarinwa, participated in the scheme and financially benefitted from the victims’ forced labor.

Bolaji Bolarinwa knew that both victims had entered the United States illegally and harbored them from detection for her own financial gain. She confiscated and possessed the passports and visas of both victims.

Both defendants face a maximum penalty on each forced labor count of 20 years in prison. Bolaji Bolarinwa faces a maximum penalty on each undocumented individual harboring count of 10 years in prison and a maximum penalty on each unlawful document conduct count of five years in prison.  They also each face a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.

U.S. Attorney Sellinger and Assistant Attorney General Clarke credited special agents of the FBI, Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the indictment.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden and Trial Attorneys Elizabeth Hutson and Vasantha Rao of the Department of Justice’s Civil Rights Division.

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

TRENTON, N.J. – A Hunterdon County, New Jersey, man was sentenced today to 72 months in prison for receiving and possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Daniel Murphy, 48, of Lebanon, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of receipt of child pornography and one count of possession of child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.

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

From Jan. 1, 2017, to Nov. 20, 2019, Murphy downloaded and possessed more than 600 images depicting the sexual abuse of children from a peer-to-peer network on the internet.

In addition to the prison term, Judge Sheridan sentenced Murphy to five years of supervised release and ordered him to pay $19,000 in restitution.

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

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the U.S. Attorney’s Violent Crimes Unit in Newark.

TRENTON, N.J. – A California man was sentenced today to 360 months in prison for conspiracy and manufacturing, distributing, and possessing with intent to manufacture and distribute a fentanyl analogue, U.S. Attorney Philip R. Sellinger announced.

Andrew Tablack, 30, of Beverly Hills, California, was convicted in July 2021 of one count of manufacturing, distributing, and possessing with intent to manufacture and distribute pills containing cyclopropyl fentanyl, an analogue of fentanyl intended for human consumption, and one count of conspiracy to do the same, following a jury trial before U.S. District Judge Michael A. Shipp in Trenton federal court. Judge Shipp imposed the sentence today.

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

From at least March 2017 through December 2017, Tablack ran a pill-making operation that distributed millions of fentanyl analogue pills throughout the United States, including New Jersey. These pills contained a powerful synthetic opioid with significant abuse potential. Tablack manufactured these illegal pills in clandestine labs in and near Los Angeles and sold them anonymously on the dark web, the Internet’s black market, using the moniker “XanaxKing2.” Tablack shipped approximately 400,000 of his illegal pills per month and made millions of dollars from his illegal operation in digital currency that is commonly used in the black market due to its relative anonymity. 

In addition to the prison term, Judge Shipp sentenced Tablack to three years of supervised release and ordered the forfeiture of various cryptocurrency holdings and electronic devices belonging to Tablack, which the trial jury had found were subject to forfeiture.

U.S. Attorney Sellinger credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the U.S. Department of Homeland Security, Homeland Security Investigation (HSI), Newark Division, under the direction of under the direction of Special Agent in Charge Jason J. Molina; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s sentencing.

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 Tazneen Shahabuddin of the Special Prosecutions Division and Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit.

NEWARK, N.J. – A Georgia man today admitted making interstate threats to an executive officer of a New Jersey based company, U.S. Attorney Philip R. Sellinger announced.

Alan Wallace, 59, of Cumming, Georgia, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of transmitting interstate threats.

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

From January 2021 to March 2021, Wallace, a former employee of Company-1, sent threatening email communications to Victim-1, an executive officer of Company-1, a publicly traded company with headquarters in New Jersey. Victim-1’s Company-1 email account received the emails every few days beginning on Jan. 11, 2021, and continuing through early March 2021, with more sporadic emails arriving thereafter. The emails were sent to Victim-1 from an anonymous email service.

The emails threatened violence to Victim-1 and to Victim-1’s family if Company-1’s stock did not exceed a certain share value within 30 days. An email received on Feb. 5, 2021, with the subject line “Blood Bath,” read: “[Victim-1], it seems you don't care about your family. This will be an absolute blood bath if stock isn't over $200 in 2 weeks. Your hurt [sic] so many, and now it is your turn to experience it.”

The interstate threats charge carries a maximum penalty of five years in prison a $250,000 fine. Sentencing is scheduled for June 23, 2022.

U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.

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