District of New Jersey

NEWARK, N.J. – A former Passaic County, New Jersey, man today admitted his role in a large international money laundering conspiracy, U.S. Attorney Philip R. Sellinger announced.

Gilberto Martinez, 33, formerly of Clifton, New Jersey, 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. 

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

In 2016 and 2017, Martinez laundered over $1 million in cash drug proceeds on behalf of a large-scale money laundering organization by purchasing, or directing others to purchase, cashier’s checks with the illegal drug proceeds. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Martinez and his conspirators tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks. 

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. 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 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 Jersey State Police, under the direction of Superintendent Colonel Patrick J. Callahan; the New Jersey Office of the Attorney General, led by Acting Attorney General Matthew J. Platkin; 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 Palm City, Florida, man today admitted participating in a compounded medication kickback scheme that he and others ran out of a pharmacy in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.

Anderson Triggs, 42, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to violate the Anti-Kickback Statute.

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

From 2014 through 2016, Triggs and his conspirators used Main Avenue Pharmacy, a mail-order pharmacy with a storefront in Clifton, New Jersey, to run a kickback scheme involving compounded drugs like scar creams, pain creams, migraine mediation, and vitamins. Compounded drugs are prescribed by a physician when an FDA-approved drug did not meet the health needs of a particular patient, such as when a dye or preservative triggers an allergic reaction, or when a patient can’t swallow an FDA-approved pill.

Triggs started as a consultant to Main Avenue Pharmacy and later became a board member of its corporate parent. The scheme revolved around identifying compounded drugs that would yield exorbitant reimbursements from health insurers, including both federal and commercial payers.

The physicians who signed prescriptions for compounded medications that were filled at Main Avenue frequently had never even spoken to the patients or examined them. Once the prescriptions were signed by a doctor, they would be returned to the marketing company, which would transmit the prescription to Main Avenue Pharmacy, which would fill them and submit claims to health care benefit programs for reimbursement

On compounded medications alone, Main Avenue received over $34 million in reimbursements from health care benefit programs, approximately $8 million of which was paid by federal payers. Triggs earned over $900,000 through the course of the scheme.

The charge of conspiracy to violate the Anti-Kickback Statute carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for June 21, 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; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the charges.

The government is represented by Senior Trial Counsel Jason S. Gould of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – An Essex County, New Jersey man today admitted using a web-based application to distribute multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Mauricio Calderon, 51, of Belleville, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of distribution of child pornography.

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

Between March 2020 and April 10, 2020, Calderon used an encrypted, internet-based application to distribute multiple graphic videos depicting the sexual assault of minors. During the course of the investigation, Calderon publicly posted multiple videos depicting the sexual abuse of children, some of which featured infants and toddlers, in a chatroom and also sent links that redirected to web-pages containing child pornography. Law enforcement also discovered numerous videos and images of child sexual abuse on Calderon’s electronic devices when he was arrested at his home in September 2020.  

The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. Sentencing is scheduled for June 23, 2022.

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

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 48 months in prison for his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.

Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.

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

From February 2019 to May 2020, Bennett conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds before the financial institutions identified the fraudulent checks and blocked further withdrawals. Bennett and his conspirators arranged for U.S. Postal Service (USPS) employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Bennett and his conspirators, who forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, who had given Bennett and his conspirators access to their accounts, also in exchange for cash. Bennett and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.

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

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

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

NEWARK, N.J. – A Union County, New Jersey men was sentenced today to 120 months in prison for drug distribution charges in connection conspiring to distribute cocaine base and distributing fentanyl and cocaine base, U.S. Attorney Philip R. Sellinger announced.

Tyrell Wilson, aka “Hell Rell,” 36, of Rahway, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base. Judge Arleo imposed the sentence today by videoconference.

In September 2019, Wilson and Marvin Lagrier, aka “Black Jesus,” 39, of Newark, were were charged by complaint with conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine base. Lagrier was indicted on these charges in October 2019, pleaded guilty in August 2021, and is scheduled to be sentenced on April 5, 2022.

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

On Sept. 19, 2019, Wilson and Lagrier were arrested for conspiring to sell at least 280 grams of cocaine base.

In addition to the prison term, Judge Arleo sentenced Wilson to five years of supervised release.

U.S. Attorney Sellinger credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.

This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State 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, the Orange Police Department and the Irvington Police Department.

The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.

NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to 19 months in prison for his role in a scheme to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.

Johansel Moronta, 29, of Linden, New Jersey, a former inmate at Fort Dix, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing and obtaining contraband while in prison. Moronta, who had been released from custody several months after the offense occurred and was on federal supervised release thereafter, also pleaded guilty to violating the terms of his supervised release. 

Another former federal inmate, Jason Arteaga-Loayza, previously pleaded guilty to his participation in the scheme as well as to distributing narcotics and was sentenced in September 2021 to 43 months in prison by U.S. District Judge Susan D. Wigenton. Two other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” and Nicolo Denichilo, also have been charged with participating in the scheme to use drones to smuggle contraband into Fort Dix prison.

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

Moronta, an inmate at Fort Dix from April 2018 to March 2019, participated in multiple drone deliveries of contraband into Fort Dix while incarcerated. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband – including cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses – into the prison, where Moronta took possession of the contraband and helped sell it to inmates for a profit.

Moronta admitted in court that, on Oct. 30, 2018, he received a bag dropped by a drone onto the roof of a housing unit at FCI Fort Dix which contained contraband tobacco, cellphone chargers and charging cables. Prison officials recovered that bag which contained 127 bags of Bugler tobacco, 10 cell phone chargers and 10 USB charging cables. Moronta also admitted to possessing a contraband cell phone on that date, which he had used to coordinate the drone drop.  

In addition to the prison term, Judge Arleo sentenced Moronta to one year of supervised release.

U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Superintendent Nicholas Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s sentencing.

He also thanked Federal Bureau of Prisons personnel at Fort Dix; special agents of the FBI; special agents of the U.S. Attorney’s Office; and officers with the Pemberton Borough Police Department; the Pemberton Township Police Department; and Chesterfield Township Police Department, for their assistance.

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

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

NEWARK, N.J. – Two people were arrested today for their roles in a scheme to steal and alter checks from the mail by using stolen U.S. Postal Service keys that access mail receptacles and to fraudulently obtain funds from banks by depositing the stolen and altered checks, U.S. Attorney Philip R. Sellinger announced.

Baba Diakite, 20, of East Orange, New Jersey, and Nasir Johnson, 22, of Hillside, New Jersey, are each charged by complaint with bank fraud conspiracy, conspiracy to commit mail theft and possess stolen mail, and the theft and possession of U.S. Postal Service keys. Both defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Leda Dunn Wettre.

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

From at least January 2020 to October 2021, Diakite, Johnson, and others conspired to steal checks from the mail in Essex, Hudson, Middlesex, Somerset, and Union counties. They sold the checks to third parties or deposited them, sometimes in altered or duplicate form, into the bank accounts of complicit accountholders who had provided access to their bank accounts for the scheme. Diakite obtained stolen official USPS keys, which he used to access mail and steal checks directly from USPS receptacles. Johnson also was in possession of at least one of those keys.

The bank fraud conspiracy is punishable by a maximum penalty of 30 years in prison. The conspiracy to commit mail theft and possess stolen mail is punishable by a maximum penalty of five years in prison, and the theft and possession of stolen USPS keys is punishable by a maximum penalty of 10 years in prison. The bank fraud conspiracy also carries a fine of up to $1 million. All other charges are punishable by a maximum potential fine of up to $250,000 or twice the pecuniary gain or loss, whichever is greatest. 

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service - Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration, under the direction of under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrests. He also thanked the Hillside, Livingston, Millburn, Port Authority of New York and New Jersey, Roselle Park, South Plainfield, Warren Township, and Watchung police departments for their assistance.

The government is represented by Assistant U.S. Attorney Tazneen Shahabuddin of the Special Prosecutions Division in Newark.

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

NEWARK, N.J. – A Bronx woman was sentenced today to 21 months in prison for fraudulently obtaining over $200,000 worth of Apple iPhones, U.S. Attorney Philip R. Sellinger announced.

Rosanna Lucrecia Cruel Blanco, 39, of Bronx, New York, previously pleaded guilty by videoconference before U.S. District Judge Clair C. Cecchi to an information charging her with one count of conspiracy to commit mail fraud. Judge Cecchi imposed the sentence by videoconference today.

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

From December 2017 to January 2020, Blanco and her conspirators devised a scheme to fraudulently obtain replacement cellular phones from an insurance company – Company 1 – by assuming the identities of wireless customers and filing false claims under Company 1’s handset insurance program. The handsets were predominantly Apple iPhones with a value of approximately $700 to $1,000 per handset. 

Blanco and her conspirators contacted Company 1, posed as legitimate customers, and submitted false claims to Company 1 for damage, theft, or loss on hundreds of handsets owned by the customers. Blanco and her conspirators provided Company 1 with false identification – typically a fake New York or New Jersey driver’s license falsified to reflect the name of the legitimate customer. They also provided Company 1 with new shipping contact names and addresses that were different from the actual customer names and addresses. The new shipping addresses included locations in the Bronx, Yonkers, White Plains, Manhattan, and various locations in New Jersey.

Based on the false claims and the fake identifications, Company 1 shipped the replacement cellular telephones via UPS or FedEx to the new contact names and addresses provided by Blanco and her conspirators. The shipped Apple iPhones were then picked up by Blanco and her conspirators. More than 100 replacement cellular telephones were shipped to Blanco and her conspirators and total losses exceeded $200,000.

In addition to the prison term, Judge Cecchi sentenced Blanco to three years of supervised release and ordered restitution and forfeiture of $246,025.

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 Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

NEWARK, N.J. – A Passaic County, New Jersey, man was indicted today for assaulting and attempting to rob two U.S. Postal Service (USPS) mail carriers in January 2021, U.S. Attorney Philip R. Sellinger announced.

Yeniser Cruz Perez, 20, of Paterson, New Jersey, was charged by indictment with two counts of assault and attempted robbery of persons having control over mail matter and government property. He will be arraigned at a date to be determined.

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

On Jan. 20, 2021, in Wyckoff, New Jersey, Cruz Perez approached Victim 1, a USPS mail carrier and demanded that the victim give him a USPS key that is used to access mail collection boxes and apartment panels. Cruz Perez displayed what appeared to be a firearm.  Cruz Perez fled after learning that Victim 1 did not possess such a key.

Later that day, in Woodland Park, New Jersey, Cruz Perez approached Victim 2, another USPS mail carrier, and again demanded a USPS key. Cruz Perez again pulled what appeared to be a firearm from his clothing. Cruz Perez again fled after learning that Victim 2 did not have the key.

Each count of assault and attempted robbery charged in the indictment carries a maximum penalty of 10 years in prison and a $250,000 fine.

U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; the Wyckoff Police Department, under the direction of Chief David V. Murphy; and the Woodland Park Police Department, under the direction of Chief John Uzzalino with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Katherine Calle of the Health Care Fraud Unit.

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 Passaic County, New Jersey, doctor was charged today with multiple counts of illegally prescribing medicines to his patients, U.S. Attorney Philip R. Sellinger announced.

Evangelos Megariotis, 68, of Clifton, New Jersey, an orthopedic surgeon who owned and operated Clifton Orthopedic Associates, is charged by indictment with 34 counts of illegally prescribing controlled substances to his patients. 

According to the documents filed in this case:

 From November 2016 to February 2018, Megariotis prescribed controlled substances, including oxycodone, alprazolam (or “Xanax”), cough syrup with codeine, and stimulants, outside the usual course of professional practice and without a legitimate medical purpose.

The counts charging illegal prescribing of Schedule II opioids and stimulants are punishable by a maximum of 20 years in prison and a $1 million fine. The counts charging illegal prescribing of alprazolam, a Schedule IV controlled substance, are punishable by a maximum of five years in prison and a $250,000 fine. The counts charging illegal prescribing of cough syrup with codeine, a Schedule V controlled substance, are punishable by a maximum of one year in prison and a $100,000 fine. 

U.S. Attorney Philip R. Sellinger credited special agents, diversion investigators and task force officers from the Drug Enforcement Administration’s New Jersey Division under the direction of Special Agent in Charge Susan A. Gibson.

The government is represented by Assistant U.S. Attorney Emma Spiro of the Opioid Abuse Prevention & Enforcement Unit.

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 Union County, New Jersey, man was sentenced today to 250 months in prison for distributing multiple images and videos depicting child sexual abuse and soliciting two children to engage in sexually explicit conduct online, U.S. Attorney Philip R. Sellinger announced.

Christopher Gardiner, 39, of Cranford, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an indictment charging him with one count of distributing child pornography and two counts of online enticement of a minor to engage in criminal sexual conduct. Judge McNulty imposed the sentence today in Newark federal court.

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

From March 2018 to June 2018, Gardiner engaged an undercover agent in an ongoing sexually graphic conversation on a web-based social media application. During the course of the conversation, Gardiner publicly posted multiple videos depicting the sexual abuse of children in a chatroom and sent similar videos to the undercover agent directly. Law enforcement subsequently discovered numerous images and videos of child sexual abuse on Gardiner’s electronic devices when he was arrested at his home in August 2018. Gardiner was previously convicted of endangering the welfare of a child/distribution of child pornography in Union County in 2007.

In addition to the prison term, Judge McNulty also sentenced Gardiner to five years of supervised release. Gardiner must also register as a sex offender.  

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s sentencing. He also thanked the Cranford Police Department, under the direction of Chief Ryan Greco, for its assistance.

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

CAMDEN, N.J. – A Florida man today admitted assaulting two U.S. Air Force military police officers with his car, U.S. Attorney Philip R. Sellinger announced.

Hal Wander, 25, of Port Charlotte, Florida, pleaded guilty by teleconference before U.S. District Judge Joseph H. Rodriguez to an information charging him with assault on two federal officers using a deadly and dangerous weapon, namely, a motor vehicle.

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

On Nov. 16, 2020, Wander drove his vehicle at a high rate of speed into Joint Base McGuire-Dix-Lakehurst, a U.S. military base located in Burlington County, New Jersey, without stopping at the designated check point. Two marked military police vehicles, driven by Victims 1 and 2, gave chase. Victim 1 positioned his car in front of Wander in an attempt to stop Wander, and Wander intentionally drove his car into Victim 1’s military police vehicle. Victim 2 positioned his military police vehicle behind Wander’s vehicle, and Wander intentionally drove his car backwards into Victim 2’s vehicle. While Wander’s car was stopped, Victim 1 reached into Wander’s vehicle and attempted to turn off the ignition. Wander then drove forward, dragging Victim 1 several feet before Victim 1 was able to disengage from Wander’s vehicle.  Wander continued to drive his vehicle dangerously until he hit a utility pole, came to a stop, and was arrested.

The assault charge to which Wander pleaded guilty carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for June 15, 2022.

U.S. Attorney Sellinger credited special agents of the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Special Agent in Charge Nicholas J. Kaplan, with the investigation that led to today’s guilty plea.

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

NEWARK, N.J. – A California man pleaded guilty today to laundering money from fraudulently obtained Small Business Association (SBA) loans and from a law firm that was the victim of a business email compromise, U.S. Attorney Philip R. Sellinger announced.

Eric Bullard, 59, of California, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of money laundering conspiracy. Bullard is currently detained and, at the time of the offense, was on federal supervised release from the U.S. District Court for the Central District of California stemming from armed bank robbery charges. 

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

In June 2020, Victim 1, a resident of Bergen County, New Jersey, communicated via email with a New Jersey law firm, which was advising Victim 1 on a real estate transaction.  During the course of this email correspondence, an unknown person compromised an email account used by the New Jersey law firm. Victim 1 was duped into wiring approximately $560,000 to a business bank account controlled by Bullard. Several hundred thousand dollars were then transferred from Bullard’s account into bank accounts controlled by other individuals.

Bullard and others also conspired to launder the proceeds of fraudulently obtained COVID-19 disaster relief loans guaranteed by the SBA. In July 2020, money obtained through these loans was deposited into Bullard’s bank accounts. 

The money laundering conspiracy charge has a maximum term of 20 years, and a maximum fine of $500,000 or twice the value of the funds involved in the transfer, whichever is greater. 

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

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

CAMDEN, N.J. – A Camden man was sentenced today to 92 months in prison for his role in a bank robbery spree in July 2018, U.S. Attorney Philip R. Sellinger announced.

Laque Hunter, 37, of Camden, previously pleaded guilty to Count Three of an indictment charging him with bank robbery. Judge Renée Marie Bumb imposed the sentence by videoconference today.

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

On July 24, 2018, Anthony L. Livingston, 50, of Camden, recruited Hunter to rob the Collingswood Ocean First bank on his behalf, and drove Hunter to the bank. Hunter robbed the bank with a demand note. Livingston served as the getaway driver, and the two split the proceeds. Livingston was convicted at trial in May 2019 of two counts of bank robbery and was sentenced in November 2021 to 200 months in prison.

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

U.S. Attorney Sellinger credited special agents of the FBI-Cherry Hill, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Grace C. MacAulay; the Camden County Sheriff’s Office, under the direction of Sheriff Gilbert “Whip” Wilson; the Collingswood Police Department, under the direction of Chief Kevin J. Carey; the Gloucester Township Police Department, under the direction of Chief W. Harry Earle; and the Stratford Police Department, under the direction of Chief Ronald M. Morello, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorneys Kristen M. Harberg and Patrick C. Askin of the Camden Office.

NEWARK, N.J. – An Atlantic County, New Jersey, construction company and one of its owners entered into a settlement agreement with the United States in which they admitted violating the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip R. Sellinger announced today.

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

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.

Christopher Construction Company Inc. (the “Company”) and one of its owners, Dennis Christopher, applied for and received a PPP loan totaling $255,507. Christopher, on behalf of the Company, falsely certified in the PPP application that neither the Company nor any individual owning 20 percent or more of its equity was subject to an indictment or other criminal charges. When he completed the application, however, Christopher knew that another owner of the Company was subject to a criminal indictment. Christopher’s false certification on the application caused a bank to approve a PPP loan and caused the Small Business Administration (SBA) to pay a loan processing fee to the lender and to guarantee the loan through the PPP.

Prior to entering into the settlement agreement, the Company repaid the PPP loan balance in full, relieving the SBA of any liability to the lender. The Company and Christopher agreed to pay $53,325 in damages and civil penalties. The settlement with the Company and Dennis Christopher resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. 

  The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office and the Department of Justice Civil Division’s Commercial Litigation Branch, Fraud Section. U.S. Attorney Sellinger also credited special agents of the SBA - Office of Inspector General, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite, with the investigation.

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

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

The qui tam case is captioned United States ex rel. Pat L. Christopher v. Christopher Construction Company, Inc., et al., Civil Action No. 20-7500 (D.N.J.)

CAMDEN, N.J. – A Camden County, New Jersey, woman was charged with embezzling millions of dollars from a New Jersey-based company where she was the senior accountant, accounting manager and senior financial shared services manager, U.S. Attorney Philip R. Sellinger announced today.

Jennifer Vandever, 49, of Atco, New Jersey, is charged by indictment with four counts of wire fraud, one count of unauthorized use of access devices, one count of aggravated identity theft and four count of tax evasion. She appeared by videoconference today before U.S. Magistrate Judge Ann Marie Donio and was released on $100,000 unsecured bond.

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

From 2011 to 2018, Vandever worked as a supervisor in Company 1’s accounting department. Vandever embezzled from Company 1 by charging significant amounts of personal expenses for herself and her family on the company’s corporate credit cards issued in the name of Individual 1 and on a department issued card. Vandever concealed her personal use of the corporate credit cards from Company 1 and directed payment of those personal expenses from corporate funds unbeknownst to her employer. The scheme totaled $3 million. For the four years 2015 through 2018, Vandever attempted to evade $514,801 of federal income taxes on $1.49 million of unreported embezzled taxable income. 

Each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. The count of unauthorized use of access devices is punishable by 10 years in prison and a maximum $250,000 fine. The count of aggravated identity theft is punishable by sentence of two years in prison, which must be served consecutively to any other term imposed, and a maximum of $250,000. The four counts of tax evasion are each punishable by five years in prison and a maximum $250,000 fine.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to the indictment.

The government is represented by Senior Trial Counsel Jason Richardson of the Criminal Division in Camden.

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

NEWARK, N.J. – Two Hudson County, New Jersey, men admitted their roles in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.

Nicolo Denichilo, 40, and Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” 37, both of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to one count each of conspiracy to defraud the United States Bureau of Prisons. 

Two other men, Jason Arteaga-Loayza, and Johansel Moronta, have previously pleaded guilty to participating in the scheme to use drones to smuggle contraband into Fort Dix prison.  Arteaga-Loayza pled guilty to his role in the scheme as well as to one count of possession of heroin and fentanyl with the intent to distribute. In September 2021, Judge Wigenton sentenced Arteaga-Loayza to 43 months’ imprisonment.  On January 10, 2022, Moronta pled guilty before U.S. District Judge Madeline Cox Arleo to his participation in the scheme as well as to violating the conditions of his supervised release stemming from an earlier federal conviction and is pending sentencing on those charges.  

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

Denichilo and Goolcharran participated in multiple drone deliveries of contraband into Fort Dix between November 2018 and March 2020. Arteaga-Loayza and Moronta, while they were federal prisoners at Fort Dix, arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments.  

Denichilo, Goolcharran and their conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when it was dark outside, and the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones against the dark evening sky. Arteaga-Loayza and Moronta also used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops from Denichilo and Goolcharran.

Denichilo and Goolcharran each face a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing for Denichilo is scheduled for June 6, 2022, and for Goolcharran, June 9, 2022.

U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Superintendent Jonathan Jackson; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s guilty pleas.

He also thanked Federal Bureau of Prisons personnel at Fort Dix, under the direction of Warden Lamine N’Diaye; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; officers of the Pemberton Borough Police Department, under the direction of Chief Edward Hunter; Pemberton Township Police Department, under the direction of Chief Jason Watters; and Chesterfield Township Police Department, under the direction of Chief Kyle Wilson, for their assistance.

The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.

NEWARK, N.J. – A Union County, New Jersey, man made his initial appearance today on charges of illegally possessing a weapon and ammunition, U.S. Attorney Philip R. Sellinger announced.

Gregory Dorceus, 27, of Elizabeth, New Jersey, is charged by complaint with one count of being a felon in possession of a firearm and ammunition. He made his initial appearance by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was detained.

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

On Sept. 16, 2021, members of the Elizabeth Police Department responded to a report of an individual in possession of a firearm in the area of Jefferson Park. They observed Dorceus, who matched the description provided, and approached him. Dorceus reached for his waistband and attempted to ball up in the fetal position. Officers recovered a Ruger model P95DC, 9mm firearm loaded with four rounds of ammunition. Dorceus has prior felony convictions for illegal drugs and weapons.

The count of being a felon in possession of a firearm carries a maximum sentence of 10 years and a fine of up to $250,000.

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

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

The government is represented by Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime/Gangs 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.

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

Jose Colon, 37, of Sicklerville, New Jersey, pleaded guilty before U.S. District Judge Christine P. O’Hearn to an information charging him with distribution of controlled substances. 

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

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

The count of distributing controlled substances carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 7, 2022.

U.S. Attorney Sellinger credited special agents of the FBI Newark Division, Atlantic City Resident Agency, 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 the FBI Newark Health Care Fraud Task Force, whose members include the Galloway Township and Middle Township Police Departments, and the Cape May County Prosecutor’s Office, for their assistance.

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

NEWARK, N.J. – A Camden County man made his initial appearance today on charges of possession with intent to distribute fentanyl and methamphetamine, unlawful possession of ammunition, and possession of firearms in furtherance of a drug trafficking crime, U.S. Attorney Philip R. Sellinger announced.

Manuel A. Quinones, 47, of Pennsauken, New Jersey, is charged by complaint with one count of possession with intent to distribute fentanyl and methamphetamine, one count of possession of ammunition by a convicted felon, and one count of possession of firearms in furtherance of a drug trafficking crime. He appeared by videoconference before U.S. Magistrate Judge Edward S. Kiel and was detained.

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

On Jan. 31, 2022, in East Brunswick, New Jersey, law enforcement officers searched Quinones’ vehicle based on probable cause after learning that Quinones possessed narcotics in the vehicle. They recovered approximately 1,000 suspected fentanyl pills and approximately seven pounds of suspected crystal methamphetamine. Law enforcement then obtained written consent to search Quinones’ residence and recovered additional illegal drugs, two firearms, ammunition, a high-capacity drum magazine, and a bulletproof vest. Quinones has previously been convicted of at least one felony offense, including a controlled substance offense.

The charge of possession with intent to distribute fentanyl and methamphetamine carries a mandatory minimum of 10 years in prison, a maximum of life in prison and a $10 million fine. The felon in possession of ammunition charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, a maximum potential penalty of life in prison, and a fine of up to $250,000.

U.S. Attorney Sellinger credited members of the New York Drug Enforcement Task Force (NYDETF) and the N.J. State Police Crime Suppression Central Unit, Opioid Enforcement Task Force, with the investigation leading to the charges. He also thanked special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, for their assistance. The NYDETF comprises special agents and task force officers from the Drug Enforcement Administration, New York Division; New York City Police Department, and the New York State Police. 

The government is represented by Assistant U.S. Attorney Mark J. Pesce of the OCDETF/Narcotics Unit in Newark.

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

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

Nivah Garcis, 51, of North Plainfield, New Jersey, is charged by complaint with one count of bank fraud and one count of money laundering. She made her initial appearance by videoconference today before U.S. Magistrate Judge Edward S. Kiel and was released on $100,000 unsecured bond.

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

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

The count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; postal inspectors of the U.S. Postal Inspection Service, 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; special agents of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Jason J. Molina in Newark, with the investigation leading to the charges.

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

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

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

NEWARK, N.J. – A Somerset County, New Jersey, man was arrested today for his role in fraudulently obtaining over $860,000 in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan payments (EIDL), U.S. Attorney Philip R. Sellinger announced.

Butherde Darius, 49, of North Plainfield, New Jersey, is charged by complaint with one count of bank fraud, one count of wire fraud, and four counts of money laundering. Darius is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.

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.

Darius submitted fraudulent PPP and EIDL loan applications on behalf of his purported business, Fabulous Appetizers LLC. The applications contained fraudulent representations to the lenders, including a Federal Home Loan Bank member, and the Small Business Administration (SBA), including bogus tax information from the IRS and certifications as to the number of employees and gross revenue of Darius’s business. According to IRS records, many of the purported tax documents Darius submitted were never in fact filed with the IRS and Darius fabricated the existence of employees and the revenue of his business. Based on Darius’s alleged misrepresentations in his loan applications, he received approximately $862,000 in federal COVID-19 emergency relief funds meant for distressed small businesses. Darius then spent the proceeds on personal expenses, including hotels and airfare, and made cash withdrawals of over $58,000.

The count of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million; each count of wire fraud carries a maximum penalty of 20 years in prison; and each count of money laundering carries a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; special agents of the 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; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Jason J. Molina in Newark, with the investigation leading to the charges.

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

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

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

CAMDEN, N.J. – A Pennsylvania man today admitted his role in a bank fraud conspiracy that targeted 12 financial institutions in southern New Jersey and southeastern Pennsylvania, U.S. Attorney Philip R. Sellinger announced.

Olugbenga Oyedele, 48, of Collingdale, Pennsylvania, pleaded guilty by videoconference before U.S. district Judge Noel L. Hillman to an information charging him with one count of conspiracy to commit bank fraud.

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

Oyedele was part of a multi-defendant, Nigerian-based, multi-layered criminal organization that engaged in a massive bank fraud conspiracy New Jersey, Pennsylvania, Maryland, Rhode Island and other states from June 2016 to June 2020. Members of the group acquired numerous stolen business checks that were stolen from the United States mail, altered the payee on the checks to a fraudulent name and deposited the checks into bank accounts that had been opened with forged foreign passport documents and fraudulent U.S. visas that matched the names on the stolen checks. Once the banks credited all or a portion of the funds to the accounts – but before the checks had cleared – the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts. Members of the organization have used over 400 fraudulent accounts opened with fake identity documents to defraud the victim banks. To date, the total loss to the victim banks is approximately $6 million.

Olugbenga Oyedele today admitted his role in the conspiracy, which included using several false identities to open fraudulent bank accounts and making several deposits to and withdrawals from the fraudulent accounts.

The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for June 1, 2022.

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, Bellmawr office and Philadelphia Division Office, under the direction of Damon E. Wood, Inspector in Charge, Philadelphia Division; U.S. Postal Inspection Service, Washington, D.C. Division Office, under the direction of Peter R. Rendina, Washington Division Inspector in Charge; Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Special Agent in Charge Jason J. Molina; Homeland Security Investigations Philadelphia Division Office, under the Direction of Acting Special Agent in Charge William S. Walker; Homeland Security Investigations Maryland Division Office, under the direction of James R. Mancuso, Special Agent in Charge, Baltimore; Homeland Security Investigations Rhode Island Office, under the direction of Matthew Millhollin, Special Agent in Charge,  Boston Division Office; and the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of R. Mike Escott, Resident Agent in Charge, Philadelphia Resident Office,  with the investigation leading to today’s guilty plea.

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

The charges and allegations contained in the complaints and indictments against the 10 conspirators are merely accusations, and the defendants in those cases are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Philadelphia man pleaded guilty today to conspiring with Sean Caddle and a longtime accomplice to murder one of Caddle’s associates, U.S. Attorney Philip R. Sellinger announced.    

Bomani Africa, 61, of Philadelphia, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. One of Africa’s conspirators, Sean Caddle, pleaded guilty on Jan. 25, 2022, before Judge Vazquez, to his role in the murder scheme.    

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

In April of 2014, Caddle solicited one of his conspirators (identified as “CC-1”), a Connecticut resident, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. CC-1 then recruited Africa, a longtime accomplice from Philadelphia, to join the plot. After CC-1 confirmed his and Africa’s interest in the job, Caddle told CC-1 that the target was a longtime associate who had worked for Caddle on various political campaigns. 

On May 22, 2014, Africa and CC-1 traveled from out-of-state to the victim’s apartment in Jersey City. After entering the apartment, Africa and CC-1 stabbed the victim to death and then CC-1 set fire to the victim’s apartment. 

After Caddle learned that the victim had been murdered, the following day, he met CC-1 in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid CC-1 thousands of dollars in exchange for the murder, and CC-1 shared a portion of those proceeds with Africa. 

Africa faces a maximum potential penalty of life imprisonment and a $250,000 fine. Sentencing is scheduled for June 7, 2022.

U.S. Attorney Philip R. 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 the Hudson County Prosecutor’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the U.S. Attorney’s Office Health Care Fraud Unit, and Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit.

TRENTON, N.J. – A Monmouth County, New Jersey, man with a prior felony conviction was sentenced today to 60 months in prison for illegally possessing a firearm and conspiring to illegally sell firearms, including multiple handguns and a semi-automatic rifle, in and around Monmouth and Ocean counties, U.S. Attorney Philip R. Sellinger announced.

Javier Rodriguez-Valpais, 33, aka “Broly,” of Morganville, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to engage in firearms trafficking and one count of possession of a firearm by a previously convicted felon. Judge Thompson imposed the sentence today by videoconference.

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

From May 2020 through September 2020, Javier Rodriguez-Valpais and others were members of a gun trafficking conspiracy that spanned from Florida to New Jersey. Rodriguez-Valpais sold a .223 caliber semi-automatic rifle to co-defendant Enrique Quijada, who in turn sold the rifle to an individual working at the direction and supervision of the FBI. 

In addition to the prison term, Judge Thompson sentenced Rodriguez-Valpais to three years of supervised release. 

U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, and the Jersey Shore Safe Streets Task Force, under the direction of Special Agent in Charge George M. Crouch Jr.; and the Freehold Police Department, under the direction of Chief Craig Dispenza, with the investigation leading to the today’s sentencing. He also thanked the FBI Tampa Division, the ATF Newark and Tampa Field Divisions for their assistance in the investigation.

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

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

NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to five years’ probation, including six months’ home confinement, for the interstate sale of carvings made of sperm whale ivory, U.S Attorney Philip R. Sellinger announced.

Richard Gontarek, 55, of Woodbridge, New Jersey, previously pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information, charging him with two counts of violating the Lacey Act, by selling to a buyer in Pennsylvania carvings made of sperm whale ivory that Gontarek should have known were possessed in violation of New Jersey State law. Judge Hammer imposed the sentence today by videoconference.

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

On Jan. 3, 2018, and on Dec. 6, 2018, Gontarek shipped a package containing a carving made from the tooth of a sperm whale to a buyer in Etter, Pennsylvania, in exchange for payment. Sperm whales are listed in Appendix I to the Convention on International Trade in Endangered Species of Wild Fauna and Flora.

The Lacey Act makes it a crime to sell in interstate commerce wildlife possessed in violation of any state law when in the exercise of due care the seller should have known that the wildlife was possessed in violation of the state law. New Jersey state law makes it unlawful for any person to possess with intent to sell ivory or any item that contains or is made from ivory.

Gontarek has agreed to pay a fine of $2,800 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund. He cannot possess, purchase, sell or transport wildlife protected under federal or state law during the probationary period.

U.S. Attorney Sellinger credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Sean Mann, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Government Fraud Unit in Newark.

NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 18 months in prison making false statements to United States government agencies, U.S. Attorney Philip R. Sellinger announced.

Gulshan Manko, 37, of Woodbridge, New Jersey, pleaded guilty on Aug. 30, 2021, by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements to federal agents. He also pleaded guilty on Sept. 11, 2019, to Count Two of an indictment charging him with making false statements in a separate case.

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

Manko submitted an application, referred to as an SF-86 Form, for employment as a federal agent with the Drug Enforcement Administration. Manko submitted fictitious academic transcripts from two higher education institutions located in New Jersey and represented that he had graduated from these two academic institutions. Manko made these statements in his employment application knowing that they were false in an attempt to gain employment with the DEA.

In the earlier case, Manko made false statements during a criminal investigation, including falsely asserting that he had shredded a government identification card.

In addition to the prison term, Judge Wolfson sentenced Manko to two years of supervised release.

U.S. Attorney Sellinger credited 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, and special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading today’s sentencing.

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing multiple firearms and a significant quantity of ammunition, U.S. Attorney Philip R. Sellinger announced.

Walter Lee Nichols, 51, of East Orange, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of possession of firearms and ammunition by a convicted felon.

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

On Nov. 17, 2020, Nichols possessed a firearm and 32 rounds of ammunition in a hidden compartment in his vehicle. In a storage unit rented in his name, Nichols possessed four firearms – including at least one semiautomatic firearm that was capable of accepting a large capacity magazine – and hundreds of rounds of ammunition. Nichols has previously been convicted of at least one felony offense, including a controlled substance offense.

The firearms offense to which Nichols pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 29, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New York Division, under the direction of Special Agent in Charge Raymond Donovan, with the investigation leading to today’s guilty plea. He also thanked special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, for its assistance.

The government is represented by Assistant U.S. Attorney Mark J. Pesce of the OCDETF/Narcotics Unit in Newark.

NEWARK, N.J. – A New Jersey-based political consultant today admitted hiring two men to kill a longtime associate who had worked for him on various political campaigns, U.S. Attorney Philip R. Sellinger announced.   

Sean Caddle, 44, of Hamburg, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez allowed Caddle to remain out on $1 million unsecured bond, home detention with electronic monitoring and travel restrictions.

“This was a callous and violent crime, and this defendant is as responsible as the two men who wielded the knife,” U.S. Attorney Sellinger said. “There is no more serious crime than the taking of another person’s life. The defendant has admitted arranging and paying for a murder by two other people. His admission of guilt means he will now pay for his crime.”

“Today’s guilty plea will bring some sense of closure to the victim’s family who have been left to wonder – for nearly eight years – who murdered their loved one,” Special Agent in Charge George M. Crouch Jr. said. “This should serve as a warning to criminals and potential criminals, alike – while you are going about your life, thinking you ‘got away with it,’ the FBI is piecing together the facts that will serve as your undoing.”

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

In April of 2014, Caddle solicited one of his conspirators (identified as “CC-1”), a Connecticut resident, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. CC-1 then recruited a longtime accomplice from Philadelphia (identified as “CC-2”), to join the plot. 

On May 22, 2014, CC-1 and CC-2 traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, CC-1 and CC-2 stabbed the victim to death and then CC-1 set fire to the victim’s apartment. 

After Caddle learned the following day that the victim had been murdered, he met CC-1 in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid CC-1 thousands of dollars in exchange for the murder, and CC-1 shared a portion of those proceeds with CC-2. 

Caddle faces a maximum potential penalty of life imprisonment and a $250,000 fine. Sentencing is scheduled for June 7, 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 the Hudson County Prosecutor’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the U.S. Attorney’s Office Health Care Fraud Unit, and Assistant U.S. Attorney Sean Farrell, Chief of the U.S. Attorney’s Office Cybercrime Unit.

NEWARK, N.J. – A Monmouth County, New Jersey, man was sentenced today to three years of probation, with six months of home confinement, for falsely labeling as “Toys” a package containing 10 live rhinoceros iguanas that was destined for Hong Kong, U.S Attorney Philip R. Sellinger announced.

Jason Ksepka, 44, of Farmingdale, New Jersey, previously pleaded guilty before U.S. District Judge Zahid Quraishi in Trenton federal court to an information, charging him with one count of violating the Lacey Act by falsely labeling an international shipment of wildlife. Judge Quraishi imposed the sentence today by videoconference.

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

On Nov. 7, 2017, Ksepka shipped a package via U.S. Priority Mail Express from the U.S. Post Office in Lambertville, New Jersey. The package contained 10 live rhinoceros iguanas and was destined for Hong Kong. Ksepka falsely described the contents of the package as “Toys” and the sender as “Luke Jacobs” on a U.S. Postal Service International Shipping Label and Customs Form that accompanied the package. On Nov. 8, 2017, U.S. Fish and Wildlife Service Inspectors intercepted the package at the mail facility at John F. Kennedy International Airport and recovered the rhinoceros iguanas from inside the package.

Ksepka was paid $500 by an individual to falsely label the package and ship it to Hong Kong. One year prior to the shipment, the same individual had paid Ksepka $500 to ship 10 additional rhinoceros iguanas to Hong Kong.

In addition to probation, Judge Quraishi ordered Ksepka refrain from engaging in the “take” of wildlife (defined by law as harassing, harming, pursuing, hunting, shooting, wounding, trapping, capturing, or collecting wildlife or attempting to engage in such conduct). He is also ordered to refrain from the import, export, transport, sale, purchase, or barter of any wildlife. Ksepka agreed, as part of his plea agreement, to pay a fine of $1,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund.

U.S. Attorney Sellinger credited special agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, under the direction of Resident Agent in Charge Sean Mann, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Kathleen P. O’Leary of the U.S. Attorney’s Office Government Fraud Unit in Newark.

TRENTON, N.J. – A Burlington County, New Jersey, man was arrested today on charges that he distributed images and a video depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.

Brian J. Crann, 37, of Joint Base McGuire-Dix-Lakehurst (Joint Base MDL), in Burlington, New Jersey, is charged by criminal complaint with one count of distribution of child pornography. He was arrested today, appeared this afternoon by videoconference before U.S. Magistrate Judge Douglas E. Arpert, and was ordered detained.

According to documents filed in this case:

On Jan. 22, 2022, Crann transmitted a video and two images of child sexual abuse to another individual using an account on an instant messaging mobile application. Crann also transmitted a non-pornographic image of himself with a minor, who appeared to be the same minor victim depicted in the images and video of child sexual abuse.

The investigation revealed that the account was associated with an Android smartphone and that a short time before the user of the account sent the images and video, the account was accessed using a Wi-Fi Internet Protocol address assigned to an internet service account subscribed in Crann’s name at a residential address on Joint Base MDL. The contact number for the internet service account was a mobile telephone number subscribed in Crann’s name at the same residential address. On Jan. 25, 2022, law enforcement officials searched Crann and recovered an Android smartphone with the mobile telephone number subscribed in Crann’s name. A search of the smartphone revealed a copy of the non-pornographic image of Crann with the minor that had been sent from the account via the app on Jan. 22, 2022.

The distribution of child pornography charge is punishable by a statutory mandatory minimum penalty of five years in prison and a statutory maximum penalty of 20 years in prison, and a fine of up to $250,000 or twice the gross pecuniary gain or loss caused by the offense, whichever is greatest.

U.S. Attorney Sellinger credited special agents of the FBI Newark Field Office Crimes Against Children Squad, under the direction of Special Agent in Charge George M. Crouch Jr., and Fort Dix Army CID Resident Unit with the investigation leading to today’s arrest.

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

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

CAMDEN, N.J. – A Newark physician and West New York man are scheduled to make their initial appearances today on charges of defrauding New Jersey state and local health benefits programs and other insurers out of more than $3.4 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Philip R. Sellinger announced.

Kaival Patel, 53, of West New York, New Jersey, and Saurabh Patel, M.D., 51, a Woodbridge, New Jersey, resident, are charged in a 12-count indictment with conspiracy to commit health care fraud, and wire fraud and four counts of health care fraud. Kaival Patel is also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The defendants appeared today by videoconference before U.S. Magistrate Judge Sharon A. King and were released on $250,000 each unsecured bond.

According to the indictment:

Kaival Patel and his wife – referred to in the indictment as “Individual 1” – operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. Saurabh Patel is a medical doctor who owned and operated a clinic – referred to in the indictment as “Medical Practice 1” – in Newark. Saurabh Patel is related to Kaival Patel and Individual 1. Paul Camarda, a pharmaceutical sales representative who is listed as a conspirator, pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice and is awaiting sentencing.

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

Kaival Patel, Saurabh Patel, Camarda, and others learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compounded medications. The defendants submitted fraudulent insurance claims for prescription compounded medications to a pharmacy benefits administrator, which provided management services for certain insurance plans that covered state and local government employees. The defendants steered individuals recruited to receive medications from the compounding pharmacies to Saurabh Patel’s medical practice, which enabled him to fraudulently receive insurance payments for those patient visits and procedures. The conduct caused the benefits administrator to pay out $3.4 million in fraudulent claims.

The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the false statement count carries a maximum penalty of five years in prison – all of these counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. The money laundering charges carry a maximum term of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.

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

The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. 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 Suffern, New York, insurance producer was arrested today for failing to pay $29.5 million dollars in payroll and unemployment taxes, and benefit plan fraud, U.S. Attorney Philip R. Sellinger announced.

Joseph Schwartz, 62, is charged by indictment with 18 counts of willful failure to pay over employment taxes – totaling $29.1 million – two counts of evasion of unemployment taxes – totaling $367,027 – and two counts of failing to file annual financial reports (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored. He is scheduled to appear by videoconference today before U.S. Magistrate Judge André M. Espinosa.

The indictment charges that Joseph Schwartz, the principal owner of Skyline Management Group LLC (Skyline), with its headquarters in New Jersey, willfully failed to pay over Employment and Unemployment taxes relating to the employees at 95 health care and rehabilitation facilities he operated in eleven different states. 

According to the indictment:

In late 2016, Schwartz and at least one other individual controlled the financing and staffing for Skyline’s various health care facilities around the country, and approximately 15,000 employees who worked there. From mid-2017 through June 2018, Schwartz failed to pay over $29.5 million in payroll and unemployment taxes to the IRS.

Schwartz is also alleged to have failed to file annual financial reports (Form 5500) with the Department of Labor relating to Skyline’s 401K Retirement Plan Contributions that are automatically withdrawn from an employee’s gross pay and invested according to the employee’s own choices. Form 5500 annual financial reports are publicly available and provide participants with the details of the plan's financial condition, its operation, and its investments.

Each count of willful failure to collect, account for, and pay over employment taxes and tax evasion is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. The two counts of evasion of unemployment taxes are punishable by a maximum of five years in prison and a maximum fine of $100,000. Each count of 401K benefit plan fraud is punishable by a maximum of 10 years in prison and a $100,000 fine.

U.S. Attorney Sellinger credited Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents and investigators of the U.S. Department of Labor, Employee Benefit Security Administration, under the direction of Thomas Licetti, Regional Director of the New York Office; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the charges.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Organized Crime/Gang Unit and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

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 Hudson County, New Jersey, man was charged today with enticing a minor victim online to produce images and videos of sexually explicit conduct, and producing child pornography, U.S. Attorney Philip R. Sellinger announced.

Erick Solis, 25, is charged by complaint with one count of enticement of a minor to engage in criminal sexual conduct and one count of production of child pornography. He is scheduled to appear by videoconference later today before U.S. Magistrate Judge André M. Espinosa.

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

From July 2020 to February 2021, Solis used a social media application to engage with two underage victims in sexually explicit conversations. Solis ultimately instructed both victims to take sexually explicit photographs and videos of themselves and send them to him. At least on one occasion, one of the victims complied. 

The count of online enticement carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $250,000 fine. The count of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.

U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to these charges. He also thanked the Weehawken Police Department and Hudson County Prosecutor’s Office for their assistance.

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. – The Third Circuit Court of Appeals today affirmed by nonprecedential opinion the convictions and sentence of a former Newark police offer who paid kickbacks to the executive director of the Newark Watershed Conservation Development Corporation (NWCDC), U.S. Attorney Philip R. Sellinger announced.

Janell Robinson, 46, of Newark, was sentenced by U.S. District Judge Susan D. Wigenton on Jan. 7, 2021, to 108 months in prison, three years of supervised release and forfeiture of $288,950. Robinson was convicted at trial of one count of conspiracy to defraud the NWCDC facilitated by use of mails and wire transmissions, two counts of mail fraud, and one count of conspiracy to commit extortion under color of official right affecting interstate commerce, following a jury trial before Wigenton.

Robinson appealed her conviction and sentence, arguing that exculpatory evidence would have shown there could not have been any extortion under color of official right because the NWCDC was neither a government agency nor a department of the City of Newark. The Third Circuit rejected that argument, pointing out that under New Jersey law, entities like the NWCDC are deemed to provide essential governmental functions on behalf of a city and exercise the powers and responsibilities of the city with respect to provision of water supply services.  

The government was represented on appeal by Assistant U.S. Attorneys Bruce P. Keller of the Special Prosecutions Division and Norman Gross of the Appeals Division in Camden and, at trial, by Assistant U.S. Attorney Leslie Schwartz of the Special Prosecutions Division.

The Court of Appeals decision is attached.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in an attempted carjacking in Newark, during which a firearm was discharged, and possessing heroin and cocaine base with intent to distribute, U.S. Attorney Philip R. Sellinger announced.

Antwan Malone, 34, of Newark, pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to one count of attempted carjacking, one count of using and carrying a firearm, which was brandished, during and in relation to the attempted carjacking; and one count of possession with intent to distribute heroin and cocaine base.

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

On Feb. 22, 2021, law enforcement officers responded to the area of the I-78 West entrance ramp and Irvine Turner Boulevard in Newark on a report of an attempted carjacking with a weapon. They learned that Malone had pulled up beside a BMW M5 SUV that was stopped at a stop light and blocked the BMW’s ability to enter I-78. Malone approached the vehicle brandishing a handgun, and then pointed the gun at the driver’s face while repeatedly telling the driver to either exit the vehicle or Malone would shoot them. The driver was able to escape by ramming the BMW into Malone’s vehicle and entering the I-78 entrance ramp. Malone fired two shots at the BMW.

Malone also admitted today that on. Jan. 12, 2021, he possessed cocaine base and heroin with intent to distribute.  

The count of attempted carjacking carries a maximum potential sentence of 15 years in prison. The count of discharging of a firearm during a crime of violence is punishable by a mandatory minimum of 10 years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges. The count of possessing heroin and cocaine base with intent to distribute carries a statutory maximum prison sentence of 20 years and a maximum fine of $1 million, twice the gross profits or other proceeds to the defendant, whichever is greater. Sentencing is scheduled for May 23, 2022.

U.S. Attorney Sellinger credited the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; 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.

This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State 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.

The government is represented by Assistant U.S. Attorneys George L. Brandley of the Health Care Fraud Unit and DeNae M. Thomas of the Violent Crimes Unit in Newark.

NEWARK, N.J. – A Paterson Police officer was indicted today for physically assaulting a victim and then attempting to cover it up, U.S. Attorney Philip R. Sellinger announced.

Kevin Patino, 29, of Paterson, New Jersey, is charged by indictment with one count of conspiracy against rights by depriving a man of his constitutional right to be free from the use of unreasonable force by law enforcement officers, one count of deprivation of rights under color of law and two counts of falsification of records in connection with that incident.

According to documents filed in this case:

At approximately 12:30 a.m. on Dec. 14, 2020, Patino and a conspirator approached the victim, who was walking with his hands in his pockets in Paterson. Patino grabbed the victim.  When the victim attempted to separate himself, Patino struck the victim in the face and body numerous times. During the altercation with victim, the conspirator picked the victim up and threw him to the ground. Patino then repeatedly struck the victim while he was on the ground.      

Patino filed police reports, which contained numerous false statements and omissions, regarding the arrest of the victim.

The violation of civil rights and conspiracy to violate civil rights charges each carry a maximum penalty of 10 years in prison. The false records counts each carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent In Charge George M. Crouch Jr. in Newark; the New Jersey Attorney General’s Office; under the direction of acting Attorney General Andrew J. Bruck; the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force composed of members of FBI and New Jersey State Police.

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

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. – Nine members of a drug trafficking organization were charged today in a superseding indictment for their roles in a heroin, fentanyl, and crack cocaine distribution scheme that sold hundreds of thousands of dollars’ worth of illegal drugs out of a residential building on Fairmount Avenue in Newark, U.S. Attorney Philip R. Sellinger announced.

The 34-count superseding indictment charges all defendants with conspiracy to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 280 grams or more of crack from July 2020 through June 2021. All defendants are charged with at least one count of distribution and possession with the intent to distribute controlled substances from purchases recorded by the FBI and from drug transactions observed by local law enforcement. The defendants were originally charged by complaint and arrested on June 29, 2021. Seven of the defendants have been detained since June. (See chart below)

Three of the defendants – Kasim Thurston, Jamar Hall, and Angel Kearney – are charged with firearms violations for possessing firearms and ammunition while having been previously convicted of a felony offense. Hall and Kearney were also charged with possessing a firearm in furtherance of a drug trafficking crime.

Three other members of the drug organization have previously entered guilty pleas. Elijah Shumate, 50, of Newark, pleaded guilty before U.S. District Judge Brian R. Martinotti on Jan. 13, 2022, to conspiracy to distribute 100 grams or more of heroin. Andre Fuller, 31, of Caldwell, New Jersey, pleaded guilty before Judge Martinotti on Jan. 10, 2022, to conspiracy to distribute 100 grams or more of heroin. Antwan Williams, 30, of Newark, pleaded guilty before Judge Martinotti on Dec. 9, 2021, to conspiracy to distribute one kilogram or more of heroin.

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

The defendants allegedly took advantage of the residential building’s location to sell drugs from the porch area, which was guarded by a locked steel door and difficult for law enforcement to infiltrate despite a constant stream of buyers approaching the front porch area day and night. Defendants stored drugs and guns in apartments that they controlled.

The defendants worked in shifts from 6:00 a.m. until late in the evening. Buyers came on foot, in vehicles and on bicycles to purchase the illegal drugs. The heroin sold was of a high quality and was sold in various “brands,” which were stamped onto the glassine envelopes that contained the heroin and fentanyl, allowing buyers to identify and purchase the brands that they preferred. FBI surveillance and local law enforcement witnessed hundreds of narcotics transactions from July 2020 through June 2021.

The count of conspiracy to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 280 grams or more of crack cocaine carries a minimum sentence of 10 years in prison, a maximum of life in prison and a maximum fine of $10 million. The charges of distribution and possession with the intent to distribute heroin, fentanyl and crack cocaine carry a maximum sentence of 10 years in prison and a maximum fine of $1 million; the charge of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison  and a maximum fine of $250,000; and the charge of possession of a firearm in furtherance of a drug trafficking crime carries a minimum sentence of five years in prison, a maximum sentence of life in prison, and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges and guilty pleas. He also thanked police officers and detectives of the Newark Police Department, officers of the Essex County Sheriff’s Office, detectives of the Essex County Prosecutor’s Office, officers of the East Orange and Bloomfield police departments, and the Essex County Department of Corrections for their assistance with the investigation.

Three other organization members are charged by complaint and their cases are pending. The charges and allegations contained in the complaint and superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The government is represented by Senior Trial Counsel Robert Frazer of the Organized

Crime/Gangs Unit in the Criminal Division in Newark.

 

*denotes free on bail

Defendant

Age

Residence

Charge

Counts

Angel Kearney, aka “Jim,” aka “Dred”

31

East Orange, New Jersey

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine; possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime

1, 21, 26, 27, 29, 30, 31 and 32

Thomas Gibson, aka “Tommy,”

44

Newark

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine;

1, 6, 13, 18, 19, 20 and 34

Jamar Hall, aka “Goo”

35

Hamilton, New Jersey

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine; possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime

1, 21, 22, 23,and 25

Kasim Thurston, aka “Kai,” aka “Kaz”

37

Newark

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine possession of a firearm by a convicted felon; possession of a firearm in furtherance of a drug trafficking crime

1, 12, 15, 17 and 33

Ibn Thurston, aka “Wheezy,” aka “Saheed”

33

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1 and 7

*Kevin Hall

31

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 3, 8, 24, and 28

Akim Gibson, aka “Ching”

24

Newark

Conspiracy to distribute heroin, fentanyl and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 11, 12, and 14

*Shalamar McCall, aka “Shaggy”

 

34

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 9, and 10

Hakis Moses, aka “Hak”

43

Newark

Conspiracy to distribute heroin, fentanyl, and crack cocaine; distribution and possession with intent to distribute heroin, fentanyl and crack cocaine

1, 2, 4, and 5

 

CAMDEN, N.J. – The president and CEO of a commercial diving school was sentenced today to 27 months in prison for fraudulently obtaining funding from the U.S. Department of Education (DOE) and the U.S. Department of Veterans Affairs (VA) for the school and its students, U.S. Attorney Philip R. Sellinger announced.

Tamara Brown, 58, of Haddon Heights, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of wire fraud. Judge Rodriguez imposed the sentence today by videoconference.

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

From January 2012 through July 2018, Brown owned a private, for-profit commercial diving school, which offered educational programs in commercial diving and underwater welding and salvage. As a for-profit institution, the diving school was required to be accredited through an approved accreditation body to be eligible to receive tuition funds from the DOE’s Higher Education Act’s programs. The VA also relies upon the accreditation in evaluating the eligibility of veteran students to receive student aid funding. Given that more than 80 percent of the diving school’s students received financial assistance from the Department of Education, the school stood to lose its largest source of tuition funding for its students if it lost its accreditation.

Prior to 2012, the diving school had been properly accredited. However, when renewing the diving school’s accreditation that year, Brown submitted fraudulent information to the accrediting authority. For example, Brown reported rates of employment of the school’s graduates of between 81 to 84 percent, when the employment rates were closer to 50 to 60 percent, significantly lower than the rate required to maintain accreditation. Brown also provided fraudulent information pertaining to the school’s holding of “advisory board” meetings required for accreditation to ensure that the school’s curriculum would educate students to meet the current demands of the industry and prospective employers. In the school’s accreditation application, Brown reported holding advisory board meetings on various dates and also submitted what purported to be minutes of nine such board meetings. The diving school did not have a formal advisory board and did not regularly conduct meetings as required. Brown submitted wholly fabricated meeting minutes for at least six of the nine dates listed in the school’s accreditation application and, therefore, did not satisfy the minimum accreditation requirements. The diving school nonetheless continued to regularly receive DOE funds via wire transfers, including a wire transfer which occurred on Jan. 18, 2017.

In addition to the prison term, Judge Rodriguez sentenced Brown to three years of supervised release, fined her $50,000 and ordered restitution of $1.1 million.

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; the Philadelphia Resident Agency of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Terry V. Harris, and the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s sentencing.

Students who can show that their school misled them or engaged in other misconduct in violation of certain state laws may be eligible for the discharge of some or all federal student loan debt under certain circumstances pursuant to the Borrower Defense Loan Discharge program. Former students of Divers Academy International who wish to seek federal loan forgiveness may apply at www.studentaid.gov/borrower-defense/.

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 Union County, New Jersey, man today admitted his role in a scheme to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, U.S. Attorney Philip R. Sellinger announced.

Johansel Moronta, 29, of Linden, New Jersey, a former inmate at Fort Dix, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing and obtaining contraband while in prison. Moronta, who had been released from custody several months after the offense occurred and was on federal supervised release thereafter, also pleaded guilty to violating the terms of his supervised release. 

Another former federal inmate, Jason Arteaga-Loayza, previously pleaded guilty to his participation in the scheme as well as to distributing narcotics and was sentenced in September 2021 to 43 months in prison by U.S. District Judge Susan D. Wigenton. Two other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” and Nicolo Denichilo, also have been charged with participating in the scheme to use drones to smuggle contraband into Fort Dix prison.

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

Moronta, an inmate at Fort Dix from April 2018 to March 2019, participated in multiple drone deliveries of contraband into Fort Dix while incarcerated. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where Moronta took possession of the contraband and helped sell it to inmates for a profit. The packages that Moronta helped to smuggle in to FCI Fort Dix included cell phones, cell phone accessories, tobacco, weight loss supplements, eyeglasses, and various other items. Moronta, from inside the prison, helped coordinate inmate requests for specific items of contraband and assisted in the collection of payments. 

Moronta’s conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or overnight when it was dark and the drones were less likely to be seen. Goolcharran, the drone pilot, with Denichilo’s assistance, flew the drones from concealed positions in the woods surrounding the prison. The lights on the drones were covered with tape to make it more difficult for prison officials to spot the drones against the dark evening sky. 

Moronta and his conspirators used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops. A contraband cell phone used by Moronta while an inmate at Fort Dix contained text messages with Arteaga-Loayza about the collection of profits from the sale of the contraband inside of the prison. In one exchange, for instance, Moronta messaged Arteaga-Loayza about an inmate, “Ok so I am tell him 10 phones and 100 baco [i.e. tobacco] he has to pay 10 bands and 500 on each phone?”  Arteaga-Loayza responded, “And well (sic) even give him an ounce of weed tell him.” 

Moronta admitted in court that, on Oct. 30, 2018, he received a bag dropped by a drone onto the roof of a housing unit at FCI Fort Dix which contained contraband tobacco, cellphone chargers and charging cables. Prison officials recovered that bag which contained 127 bags of Bugler tobacco, 10 cell phone chargers and 10 USB charging cables. Moronta also admitted to possessing a contraband cell phone on that date, which he had used to coordinate the drone drop.  

During a search of Arteaga-Loayza’s residence on June 27, 2019, agents found a kitchen closet containing packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before the drone drop of Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. 

Moronta also admitted to physically assaulting his girlfriend in June of 2021 while at a gas station in Fort Lee, after his release from federal prison.

Moronta faces a maximum penalty of one year in prison and maximum fine of $100,000 for the plea to possession of contraband while being a federal inmate. Moronta also agreed to a term of imprisonment of 14 months for violating the terms of his supervised release by assaulting his girlfriend, a term which will be served consecutively to whatever term of imprisonment he receives for the contraband charge. Sentencing is scheduled for Feb. 10, 2022.

U.S. Attorney Sellinger credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; the U.S. Air Force Office of Special Investigations, Detachment 307, under the direction of Special Agent in Charge Nicholas Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Joseph Harris, with the investigation leading to today’s guilty plea.

He also thanked Federal Bureau of Prisons personnel at Fort Dix; special agents of the FBI; special agents of the U.S. Attorney’s Office; and officers with the Pemberton Borough Police Department; the Pemberton Township Police Department; and Chesterfield Township Police Department, for their assistance.

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

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

CAMDEN, N.J. – A doctor was sentenced today to 24 months in prison for defrauding his prior employer’s medical practice by stealing and forging the medical practice’s checks to pay personal expenses, U.S. Attorney Philip R. Sellinger announced.

Walter Sytnik, 35, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of mail fraud. Judge Rodriguez imposed the sentence by videoconference today.

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

Before attending medical school, Sytnik worked for a medical practice in southern New Jersey as a bookkeeper. While employed by the practice, Sytnik stole some of its checks and, from May 2013 through April 2018, used them to steal more than $500,000 from the practice. He opened and maintained credit card accounts at the same banks as used by the doctor at the medical practice, and forged the doctor’s signature on the stolen checks, which he sent through the U.S. Mail to pay his own credit card bills. When Sytnik ran out of checks, he reordered new ones so that he could continue the fraud.

In addition to the prison term, Judge Rodriguez sentenced Sytnik to two years of supervised release and ordered him to pay restitution of $415,995.

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 assistance from the Voorhees Township Police Department, under the direction of Chief Louis Bordi, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – A Salem County man made his initial appearance on a charge of illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced today.

Jabbar Pierce, 41, of Penns Grove, New Jersey, is charged by complaint with one count of possession of a firearm by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Matthew J. Skahill on Jan. 6, 2022, and was detained.

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

On Nov. 9, 2021, law enforcement officers executed a search warrant at a residence in Penns Grove based on probable cause that Pierce, a six-time convicted felon, had committed firearms and drugs crimes and that evidence of those crimes would be at the residence. While executing the warrant, officers encountered Pierce, who told officers that anything illegal in the residence belonged to him. Pierce also told officers that they would find a firearm behind a couch and drugs in a cabinet. Upon searching the residence, officers recovered from behind the couch a .40 caliber rifle and detached 24-round magazine containing 14 rounds of ammunition.  Officers also recovered suspected controlled substances and drug packaging from a kitchen cabinet. 

The felon in possession of a firearm charge carries a maximum penalty of 10 years in prison and a fine of up to $250,000.

U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; the Salem County Prosecutor’s Office, under the direction of Acting Prosecutor Kristin J. Telsey; and the Penns Grove Police Department, under the direction of Officer in Charge Robert Frett, with the investigation leading to the charge.

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

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

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

Julio De La Cruz Acosta, 42, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to a criminal information charging him with aiding and abetting an illegal money transmitting business. 

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

From July 2016 to December 2017, De La Cruz Acosta accepted $1.94 million in cash to purchase 67 cashier’s checks at banks in and around New Jersey and elsewhere. De La Cruz Acosta admitted that he knew that the cash was from an illegal source and that he purchased the cashier’s checks to aid, abet and facilitate an illegal money transmitting business. 

The investigation revealed that the cash was the proceeds of illegal drug distribution.   The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks. 

The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for May 17, 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; 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; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, or DNCD) 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 former sales representative today admitted his role in a scheme to defraud New Jersey state health benefits programs, U.S. Attorney Philip R. Sellinger announced. 

Scott Shekitka, 42, formerly of Westwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez 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 June 2014 and February 2016, Shekitka worked as a sales representative for a marketing company that marketed and sold compounded drugs, including pain and scar creams, metabolic supplements and vitamins. Shekitka recruited patients, including family members, who had prescription drug coverage under the New Jersey State Health Benefits Program and the New Jersey School Employee’s Health Benefits Program, to obtain medically unnecessary prescriptions for compounded drugs. Shekitka paid certain patients he recruited to obtain these medically unnecessary prescriptions and directed patients to telemedicine companies that were paid by the marketing company or its affiliates. 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. 

The marketing company directed the medically unnecessary prescriptions to certain compounding pharmacies that then paid the marketing company a percentage of the health care benefit reimbursement payments they received for each prescription that Shekitka referred. The marketing company, in turn, paid Shekitka based on the compounded prescriptions he generated.      

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, Shekitka must forfeit $329,639 in criminal proceeds and pay restitution of at least $1.39 million. Sentencing is scheduled for May 12, 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 plea.

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

NEWARK, N.J. – Five alleged members and associates of a neighborhood-based Jersey City, New Jersey, gang were charged for their roles in two gang-related shootings, U.S. Attorney Philip R. Sellinger announced today. 

Shaquan Rush, aka “Nut,” aka “Sha,” 21; Darby Shirden, aka “GoHard,” aka “GH,” 21; and Jeremy Perez, aka “Smoov,” aka “JSmoov,” 23, all of Jersey City, are each charged by complaint with one count of murder in aid of racketeering, one count of attempted murder in aid of racketeering, and two counts of discharging a firearm during and in relation to a crime of violence. Devon Tutten, aka “Joker,” 24; and Tyree Witherspoon, aka “Surf,” aka “Sonny,” 29, both of Jersey City, were also each charged with one count of murder in aid of racketeering and one count of discharging a firearm during and in relation to a crime of violence. The defendants will make their initial appearances at a date to be determined.

According to the complaint:

Rush, Shirden, Perez, Tutten, and Witherspoon are all associated with neighborhood-based street gangs in Jersey City – specifically, a street gang that operates in the area of Rutgers Avenue and Triangle Park. 

On April 1, 2020, in retaliation for the murder of a high-ranking Rutgers Avenue gang member on March 31, 2020, Rush, Shirden, and Perez traveled to the territory of rival gang members that associate with the Salem Lafayette Apartments and opened fire on a group of people on the street. Two victims were shot: one individual associated with the Salem Lafayette street gang and a 17-year-old girl who was walking down the street. The girl died the following day as a result of her gunshot wound.

On April 4, 2020, in retaliation for an attempted shooting on April 3, 2020, Tutten and Witherspoon traveled to the territory of rival gang members that associate with Wilkinson Avenue and opened fire on a group of people on the street. An individual associated with the Wilkinson street gang was shot in the head and pronounced dead shortly thereafter. 

The charge of murder in aid of racketeering activity carries a mandatory punishment of death or life in prison without the possibility of parole. For their respective charges for discharging a firearm during and in relation to a crime of violence, all five defendants face mandatory minimum terms of 10 years in prison and a maximum sentence of life, which must run consecutively to any term of imprisonment imposed on any other charges. For their respective charges for attempted murder in aid of racketeering, Rush, Shirden, and Perez also face additional terms of imprisonment of up to 10 years.

U.S. Attorney Sellinger credited the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; the Jersey City Police Department, under the direction of Public Safety Director James Shea; and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to the charges.

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

The case is being prosecuted by Desiree Grace, Deputy Chief of the Criminal Division in Newark.

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

CAMDEN, N.J. – A Pennsylvania man today admitted his role in a bank fraud conspiracy that targeted over 12 financial institutions in southern New Jersey and southeastern Pennsylvania, U.S. Attorney Philip R. Sellinger announced.

Ayanniyi Alayande, 47, of Darby, Pennsylvania, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an information charging him with one count of conspiracy to commit bank fraud.

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

Alayande was part of a multi-defendant, Nigerian-based, multi-layered criminal organization that engaged in a massive bank fraud conspiracy in several states, including New Jersey, Pennsylvania, Maryland and Rhode Island, between June 2016 and March 2020. Members of the group acquired numerous business checks that were stolen from the United States mail, altered the payee on the checks to a fraudulent name and deposited the checks into bank accounts that had been opened with forged foreign passport documents and fraudulent U.S. visas that matched the names on the stolen checks. Once the banks credited all or a portion of the funds to the accounts – but before the checks had cleared – the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts. Members of the organization used over 400 fraudulent accounts opened with fake identity documents to defraud the victim banks. To date, the total loss to the victim banks is approximately $6 million.

Ayanniyi Alayande today admitted his role in the conspiracy, which included using false identities to make several deposits to and withdrawals from the fraudulent accounts. As part of his plea, Alayande agreed to forfeit his interest in approximately $90,000 worth of money orders, which were proceeds of the bank fraud and which were seized from a public storage facility in Philadelphia used by the conspirators to store additional fraudulent identity documents and proceeds of the bank fraud.

The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for May 12, 2022.

U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, Bellmawr office and Philadelphia Division Office, under the direction of Damon E. Wood, Inspector in Charge, Philadelphia Division; U.S. Postal Inspection Service, Washington, D.C. Division Office, under the direction of Peter R. Rendina, Washington Division Inspector in Charge; Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Special Agent in Charge Jason J. Molina; Homeland Security Investigations Philadelphia Division Office, under the Direction of Acting Special Agent in Charge William S. Walker; Homeland Security Investigations Maryland Division Office, under the direction of James R. Mancuso, Special Agent in Charge, Baltimore; Homeland Security Investigations Rhode Island Office, under the direction of Matthew Millhollin, Special Agent in Charge,  Boston Division Office; and the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of R. Mike Escott, Resident Agent in Charge, Philadelphia Resident Office,  with the investigation leading to today’s guilty plea.

Charges against 11 other defendants remain pending.

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

The charges and allegations contained in the complaints and indictments against the 11 defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Jersey City, New Jersey, man was sentenced today to 108 months in prison for receipt of child pornography, U.S. Attorney Philip R. Sellinger announced.

Benigno Gonzalez-Mendoza, 37, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of receipt of child pornography. Judge Wigenton imposed the sentence today by videoconference.

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

From March 9, 2019, through July 27, 2019, Gonzalez-Mendoza knowingly received images and videos of child sexual abuse, including videos of adults sexually abusing prepubescent children.  

In addition to the prison term, Judge Wigenton sentenced Gonzalez-Mendoza to 10 years of supervised release and ordered him to pay restitution of $18,000.

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 Olta Bejleri of the U.S. Attorney’s Office’s Criminal Division in Newark.

 

NEWARK, N.J. – A citizen of the Dominican Republic was sentenced today to 70 months in prison for her role in a drug trafficking conspiracy, U.S. Attorney Philip R. Sellinger announced.

Yaquelin Altagracia Alberto Guerrero, 45, of the Dominican Republic, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of conspiracy to distribute fentanyl. Judge Cecchi imposed the sentenced today by videoconference.

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

In August 2020, Guerrero and two conspirators conducted two sales of fentanyl in New York City to buyers they knew had traveled from New Jersey to New York to make the purchases. On Aug. 10, 2020, Guerrero and two conspirators participated in the sale of approximately one kilogram of fentanyl. On Aug. 12, 2021, Guerrero again worked with others to sell fentanyl to individuals whom she knew had traveled from New Jersey to New York for the sale. The aggregate weight of fentanyl involved in the case was approximately three kilograms.

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

U.S. Attorney Sellinger credited special agents of the Drug Enforcement Administration under the direction of Special Agent in Charge Susan A. Gibson in Newark, and the Asbury Police Department, under the direction of Chief David Kelso, with the investigation leading to today’s sentencing.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, tax preparer today admitted using false information to increase her clients’ tax refunds and filing her own false tax returns, U.S. Attorney Philip R. Sellinger announced.

Michele Griffin, 42, of Galloway, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph R. Rodriguez to Count 11 of an indictment charging her with aiding and assisting in the preparation of a false income tax return.

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

Griffin prepared multiple fraudulent tax returns on behalf of her clients by falsifying their education expenses, dependent care expenses, business income, dependent information, and unemployment income. As a result, her clients’ returns requested higher tax credits and higher refunds than the clients were entitled to receive. Griffin prepared 19 false tax returns on behalf of six clients for tax years 2013 through 2016 and filed three false tax returns for herself for tax years 2013 through 2015. She admitting causing a tax loss of approximately $135,000.

The charge to which Griffin pleaded guilty carries a maximum potential penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for May 10, 2022.

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

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

NEWARK, N.J. – Two members of a violent street gang operating in Newark were arrested today on charges of possession with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking offenses, U.S. Attorney Philip R. Sellinger announced.

Hazir Burwell, aka “Hazzy,” 19, and Jaizon Bennett, aka “Glizzy,” 19, both of Newark, are each charged by complaint with one count of possession with intent to distribute controlled substances and one count of possession of a firearm in furtherance of a drug trafficking crime.  They both appeared today by videoconference before U.S. Magistrate Judge Cathy L. Waldor and were and were detained.

“Today’s charges demonstrate the importance and effectiveness of our collaborative approach to combating violent crime,” U.S. Attorney Sellinger said. “We are committed to working with our state and local partners in law enforcement to ensure that those individuals who commit acts of violence and cause harm to our communities are held accountable for their actions.”

“I am grateful for our partnership with U.S. Attorney Sellinger’s office to reduce violent crime in Newark,” Newark Public Safety Director Brian O’Hara said. “These arrests are truly impactful for those in our community most harmed by such weapons of war and dangerous drugs, and this will result in lives saved not only from gun violence, but from drug overdoses as well. Thanks to the U.S. Attorney’s Office, the federal charges these suspects now face should send a strong, unified message that we are all very serious about ensuring that our neighborhoods are safe.”

“Today’s arrests are part of an ongoing coordinated strike by law enforcement to address the gang-related violence and reduce the guns and drugs on the streets of Newark,” FBI Newark Special Agent in Charge George M. Crouch Jr. said. “The Newark Division is committed to working side by side with our local, state, and federal partners to improve the quality of living in our communities.”

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

Since at least February 2021, law enforcement officials have been investigating a criminal enterprise in Newark operating in the area of Evergreen Avenue and Hanford Street, known as “Seth Boyden” or the “500 block.” The investigation, which has been centered on drug distribution and acts of violence that have occurred on and around Hanford Street, a dead-end block just north of Evergreen Avenue, revealed that both Burwell and Bennett are members and associates of this criminal enterprise who distribute controlled substances and commit acts of violence for and on behalf of the enterprise. 

Members of the Newark Police Department, with assistance from the FBI, arrested Burwell and Bennett today on state charges that pertain to a March 2021 shooting. At the time of his arrest, Burwell was found in possession of 188 glassine envelopes of suspected heroin; 24 jugs of suspected cocaine base; a 9mm Smith & Wesson M&P semi-automatic pistol loaded with nine rounds of 9mm ammunition; two extended magazines capable of holding 30 rounds of ammunition; and a drum magazine capable of holding 50 rounds of ammunition. At the time of his arrest, Bennett was found in possession of 50 glassine envelopes of suspected heroin and a 9mm Taurus G2C handgun with a defaced serial number, which was loaded with eight rounds of 9mm ammunition. 

The charge of possession with intent to distribute controlled substances carries a maximum potential penalty of 20 years in prison and a $1 million fine. The charge of possession of a firearm in furtherance of drug trafficking offense carries a mandatory minimum sentence of five years in prison imprisonment, a maximum potential penalty of life in prison, and a $250,000 fine.

U.S. Attorney Sellinger credited the Newark Department of Public Safety, under the direction of Public Safety Director O’Hara, and special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark, with the investigations leading to the charges and arrests. He also thanked the Bloomfield Police Department, the Essex County Sheriff’s Office, the Essex County Department of Corrections and the N.J. State Board of Parole for their assistance.

This case is 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 Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, 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; the N.J. State Board of Parole; the Union County Jail; the N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center; the N.J. Department of Corrections; the East Orange Police Department; and the Irvington Police Department.

The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office’s Organized Crime and Gangs Unit in Newark.

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