District of New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man with a previous felony conviction today admitted illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.

Aazhone Kawashire Edwin, 25, of Paterson, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with possession of a firearm and ammunition by a convicted felon.

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

On June 7, 2020, Edwin possessed a firearm loaded with approximately 15 rounds of 9mm ammunition. Edwin has previously been convicted of at least one felony offense, including possession of controlled substances.

The firearms offense to which Edwin pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 15, 2022.

Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and members of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora, with the investigation leading to today’s guilty plea.

This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. 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 Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

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

Defense counsel: James A. Plaisted Esq., Hackensack, New Jersey

NEWARK, N.J. – A Newark man was sentenced today to 41 months in prison for illegal possession of a machinegun, possession of a firearm by a convicted felon, and possession of an unregistered firearm, Acting U.S. Attorney Rachael A. Honig announced.

Anthony Reynolds, 28, previously pleaded guilty before U.S. District Judge Brian R. Martinotti, who imposed the sentence today.

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

On May 2, 2020, while on patrol near Summer Avenue and May Street, Newark police officers saw Reynolds remove a .40-caliber Glock handgun from his waistband and place it underneath a parked vehicle. The gun was loaded with 11 rounds of ammunition and was fitted with a “Glock Switch,” which effectively converted it into a machinegun. The machinegun was not registered in the National Firearms Registration and Transfer Record, as required by law. Reynolds was previously convicted in federal court in the District of New Jersey of carjacking, an offense punishable by more than one year’s imprisonment.

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

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing. She also thanked the Newark Department of Public Safety, under the leadership of Director Brian O’Hara, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

Defense counsel: Chester Keller Esq., First Assistant Federal Public Defender, Newark

NEWARK, N.J. – A San Bernardino County, California, man today admitted to possessing with intent to distribute approximately one kilogram of fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Jesus Candido Higuera-Parra, 26, of Ontario, California, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with possession with intent to distribute more than 400 grams of fentanyl.

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

On March 24, 2021, Higuera-Parra agreed with others to transport approximately one kilogram of fentanyl to a location in Union County, New Jersey. When Higuera-Parra arrived to meet the purchaser, he was arrested, and the fentanyl was recovered from the vehicle that he occupied.

The offense to which Higuera-Parra pleaded guilty carries a mandatory minimum term of 10 years in prison, a maximum penalty of life in prison, and a fine of $10 million. Sentencing is scheduled for March 23, 2022.

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.

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

Defense counsel: Jason F. Orlando Esq., Jersey City, New Jersey

NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig and Acting Attorney General Andrew J. Bruck today announced the creation of a joint federal-state Civil Rights Criminal Enforcement Initiative to enhance coordination in the investigation and prosecution of federal, state, and local cases involving civil rights violations by law enforcement officers and others acting under color of law.

The Civil Rights Criminal Enforcement Initiative will combine resources from the U.S. Attorney’s Office, the Attorney General’s Office of Public Integrity and Accountability, and the FBI in a cooperative approach to criminal civil rights enforcement. 

“Our experience tackling violent crime with our state and local partners has taught us well that when it comes to areas of mutual concern – and the unconstitutional use of force and other violations of public trust by members of law enforcement is certainly one of those areas – we accomplish more when we work cooperatively than we do when we go it alone,” Acting U.S. Attorney Honig said. “The initiative that we announce today with the New Jersey Attorney General’s Office will ensure that we use all tools available to us to bring worthy cases in the appropriate jurisdiction and to hold accountable all those who would abuse their authority and deprive New Jerseyans of their civil rights.” 

“Today’s message is clear: at all levels of government, we’re committed to holding accountable those who abuse their power and violate the civil rights of others,” said Acting New Jersey Attorney General Bruck. “By working together, we can more effectively deploy our resources to ensure that allegations of civil rights violations are investigated and, where appropriate, prosecuted. We can and must do more to build trust with the communities we serve, and I’m grateful for an excellent working relationship with Acting U.S. Attorney Honig and my former colleagues at the U.S. Attorney’s Office as we tackle this challenge.”

In recent years, the U.S. Attorney’s Office for the District of New Jersey and the New Jersey Attorney General’s Office have identified the criminal enforcement of federal and state civil rights laws as a significant priority. The creation of the Civil Rights Criminal Enforcement Initiative underscores and advances that priority. The initiative will ensure open lines of communication among federal, state, and local partners; permit the simultaneous, rather than sequential, review of evidence by its members; facilitate rapid and efficient decision-making as to the allocation of resources; and foster cooperative decisions regarding the appropriate jurisdiction in which to charge a particular case. Once those decisions have been made, federal, state, and local partners will continue to share case-related information with one another where permissible and provide advice about investigative strategy and best practices. As a result, every case that meets the threshold for prosecution will be brought in the jurisdiction in which that prosecution will have the biggest impact, with the full cooperation and support of all members of the Initiative.

“Our duty to protect American citizens and uphold the Constitution is colorblind,” FBI Special Agent in Charge George M. Crouch Jr. said. “It doesn’t matter if you wear a blue uniform, a black robe, or street clothes when you go to work; every citizen is entitled to fair and equal treatment under the law. This initiative will further enable the FBI and our state and local law enforcement partners to work together in reviewing and evaluating cases. It should signal to anyone who carries a badge that we are even more committed to earning and keeping the trust instilled in us.”

Complaints of civil rights violations may be made by contacting the United States Attorney’s Office for the District of New Jersey at (855) 281-3339 or by filing a complaint online. Complaints may also be made by calling the New Jersey Attorney General’s Office of Public Integrity and Accountability at 1-844-OPIA-TIP (1-844-674-2847).

NEWARK, N.J. – Three men today admitted their roles in a health care fraud and kickback schemes, U.S. Attorney Rachael A. Honig announced.

Nicholas Defonte, 73, and Christopher Cirri, 63, both of Toms River, New Jersey, and Pat Truglia, 53, of Parkland, Florida, each pleaded guilty before U.S. district Judge Kevin McNulty in Newark federal court to conspiracy to commit health care fraud.

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

Each defendant played a role in defrauding health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for completed doctors’ orders for durable medical equipment, namely orthotic braces (DME orders):

• Truglia and his conspirators had financial interests in multiple DME companies. The DME companies paid kickbacks to suppliers of DME orders, including Cirri, Defonte, and Truglia, in exchange for DME orders, which the DME companies subsequently fraudulently billed to Medicare, TRICARE, CHAMPVA, and other health care benefit programs. Truglia and his conspirators concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies.

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

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

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

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest. Sentencing for all three defendants is scheduled for March 22, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to the guilty pleas.

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

NEWARK, N.J. – The Department of Justice filed an agreement today in Newark federal court to resolve its lawsuit against the Port Authority Trans-Hudson Corporation (PATH) under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).

PATH operates a rail transit service between Manhattan and New Jersey. The department’s suit alleges PATH subjected its workers to unnecessary medical exams and sought unnecessary information from those employees about their disabilities and other health conditions. As part of the settlement agreement, PATH will pay a total of $100,000 to certain employees who were harmed by PATH’s exams and inquiries.

“Workers deserve to be free from unlawful inquiries that could reveal a disability or family medical information,” Acting U.S. Attorney Rachael A. Honig said. “This office remains committed to protecting the civil rights of employees by ensuring that employers comply with the requirements of federal law. We thank PATH for its cooperation with our investigation and its commitment to make changes necessary to protect the civil rights of its workers.”

“No employee should be subject to unnecessary medical exams and health inquiries by their employer,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement reflects the Justice Department’s firm commitment to protecting workers from unlawful and probing inquiries into their health and disability status.”

The settlement agreement resolves a lawsuit that the department filed today in federal court in New Jersey. Under the terms of the agreement, which must be approved by the court, PATH has agreed to stop unnecessary medical exams, as well as unnecessary questions about employees’ disabilities, health conditions, and family medical history. In addition to the compensation to two employees, the settlement also requires PATH to train its staff on the ADA and GINA and to periodically submit reports about its compliance with the agreement.

The ADA bars employers from requiring medical exams or inquiries of on-the-job employees unless the information sought is vital to job performance or safety. GINA bars employers from asking employees to disclose genetic information, including questions about family medical history.

This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey after the matter was referred from the Equal Employment Opportunity Commission’s Newark Office. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities.

For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. 

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Unit, and Senior Trial Attorney Alyse Bass of the Civil Rights Division’s Disability Rights Section.

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NEWARK, N.J. – A Jersey City man today admitted possessing a firearm and ammunition after previously being convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.

Javon Alston, 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with possession of a firearm by a convicted felon.

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

On Nov. 6, 2020, Alston entered Victim-1’s apartment, brandished a small gray handgun, and told Victim-1 and her daughter, Victim-2, to leave. Victim-1 and Victim-2 left the apartment and alerted police, who apprehended Alston near Victim-1’s apartment a short time later. When he was arrested, Alston was carrying a silver-and-black handgun loaded with nine rounds of ammunition. Alston had previously been convicted of robbery in the Hudson County Superior Court and sentenced to five years in prison.

The charge of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 15, 2022.

Acting U.S. Attorney Honig 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. She also thanked the Jersey City Police Department, under the leadership of Public Safety Director James Shea, for assistance in the investigation.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

NEWARK, N.J. – A Florida man today admitted his role in a conspiracy to receive kickbacks and bribes from laboratories in exchange for referrals of patient DNA samples and genetic tests, Acting U.S. Attorney Rachael A. Honig announced.

Norman Smiley, 80, of Boca Raton, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to violate the Anti-Kickback Statute. 

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

Smiley owned and operated Sun Health Advocates LLC, a company that was in the business of acquiring patient DNA samples and physicians’ orders for purposes of submitting those samples and orders to clinical laboratories for genetic testing, including Metric Lab Services LLC and Spectrum Diagnostic Labs LLC. Smiley, on behalf of Sun Health, entered into illicit agreements with the Metric and Spectrum laboratories under which the laboratories paid Sun Health kickbacks in exchange for delivering DNA samples and orders for genetic tests. Sun Health concealed these arrangements by issuing sham invoices to the laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the kickback amount, which was based on the revenue the laboratories received from Medicare. Metric and Spectrum paid Sun Health approximately $1.16 million in kickbacks as part of the scheme.

The charge to which Smiley pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 16, 2022.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas J. Mahoney, with the investigation leading to today’s guilty plea.

The government is represented by Bernard J. Cooney, Chief of the Government Fraud Unit. 

CAMDEN, N.J. – A Camden woman was sentenced today to 63 months in prison for conspiring to distribute heroin in the city of Camden, Acting U.S. Attorney Rachael A. Honig announced.

Jasmin Velez, 27, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging her with one count of conspiracy to distribute heroin within 1,000 feet of a school. During her sentencing hearing, Velez agreed that the amount of heroin jointly attributable to her, as a member of the conspiracy, was three to 10 kilograms. She also acknowledged her role, as a member of the conspiracy, with respect to the distribution of cocaine and cocaine base.

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

A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Velez, who worked various shifts selling drugs to customers and collecting drug proceeds. These sellers were supervised by different layers of managers who, in turn, supplied them with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests. 

Sixteen defendants already have entered guilty pleas on drug conspiracy charges. Three defendants are awaiting trial; the charges against them are merely accusations, and they are presumed innocent unless and until proven guilty.

In addition to the prison term, Judge Bumb sentenced Velez to six years of supervised release.

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

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

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

NEWARK, N.J. – A South Carolina couple made their initial court appearance today on charges of trafficking firearms into New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Fuquan Haafiz Ali Bowers, 37, and Christina Lanette Williams, both of Newberry, South Carolina, were arrested Nov. 3, 2021, and are charged by complaint with conspiracy to deal firearms without a license, dealing firearms without a license, and transferring firearms to an out-of-state resident. Bowers was additionally charged with unlawful possession of a firearm and ammunition by a convicted felon. They appeared today before U.S. Magistrate Judge Kevin F. McDonald in South Carolina federal court and were each released on $25,000 unsecured bond.

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

This summer, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and Elizabeth, New Jersey, police officers recovered several firearms in separate investigations in the city of Elizabeth. One of the recovered firearms was at the scene of a shooting; another firearm was recovered from a juvenile; and the third firearm was recovered from a convicted felon. The ATF later discovered that the recovered firearms were purchased by Williams in South Carolina before they were subsequently recovered by law enforcement in New Jersey. The ATF then obtained documents and other evidence revealing that Williams and Bowers traveled from South Carolina to New Jersey to sell the firearms in Elizabeth.

The firearms dealing charges each carry a maximum sentence of five years in prison, and a fine of up to $250,000. The felon in possession of a firearms charge carries a maximum sentence of 10 years and a fine of up to $250,000.

Acting U.S. Attorney Honig credited special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and the Elizabeth Police Department, under the direction of Director Earl J. Graves and Chief Giacomo Sacca, with the investigation leading to these charges.

This arrest was made by a firearms trafficking strike force, part of the Department of Justice’s violent crime reduction initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the spring of 2021, the violent crimes reduction initiative is a comprehensive strategy to deploy federal resources in the most effective way, disrupt the most dangerous threats and support ground-level efforts of local law enforcement. Within the initiative, firearms trafficking strike forces have been launched to reduce violent crime by addressing illegal gun trafficking in significant firearms trafficking corridors.

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

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

NEWARK, N.J. –  A Passaic County, New Jersey, man was sentenced today to time served – 17 months – for his role in a bank fraud conspiracy, Acting U.S. Attorney Rachael A. Honig announced.

Miguel Ortiz, 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence by videoconference today.

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

Ortiz and others participated in a conspiracy to commit bank fraud in which they conspired to break into U.S. Postal Service collection boxes throughout New Jersey and then steal mail. The members of the conspiracy agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, despite the fact that they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.

Judge McNulty also sentenced Ortiz to three years of supervised release and ordered him to pay $90,864 in restitution and $23,123 in forfeiture.

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

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

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing a firearm and ammunition after previously having been convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.

Nathan Miller, 32, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal to an indictment charging him with one count of possession of a firearm by a convicted felon court.

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

On June 28, 2020, law enforcement officers saw Miller with a suspected firearm near the intersection of Oak Street and Martin Luther King Drive in Jersey City. Miller then entered a vehicle and appeared to place the firearm in the glove compartment. Law enforcement officers stopped the vehicle and found a .40-caliber Smith & Wesson semiautomatic handgun, loaded with 13 rounds of ammunition, in the glove compartment. Miller was previously convicted in the Superior Court of Hudson County, New Jersey, of possession of a controlled dangerous substance on school property, a felony punishable by more than one year in prison.

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. Sentencing is scheduled for March 16, 2022.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

TRENTON, N.J. – The former co-owner of a Union City, New Jersey, pharmacy was sentenced today to 41 months in prison for his role in a scheme to pay bribes to health care professionals and evading taxes on $33.9 million in income, Acting U.S. Attorney Rachael A. Honig announced.

Igor Fleyshmakher, 59, of Holmdel, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to violate the federal anti-kickback statute and tax evasion. Judge Shipp imposed the sentence today in Trenton federal court.

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

The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” out of locations in Union City, New Jersey, and Bronx, New York. They processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Igor Fleyshmakher was a co-owner of Prime Aid Union City. Samuel “Sam” Khaimov was the other co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Yana Shtindler was Khaimov’s wife and managing director of Prime Aid Union City. Ruben Sevumyants was Prime Aid Union City’s operations manager, and Alex Fleyshmakher worked at Prime Aid Union City and was an owner of Prime Aid Bronx. Eduard “Eddy” Shtindler (Yana Shtindler’s brother) was a Prime Aid Union City employee.  

Starting in 2010, to obtain a higher volume of prescriptions, Igor Fleyshmakher, Khaimov, Sevumyants, Alex Fleyshmakher, Eddy Shtindler, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce doctors’ offices to steer prescriptions to the Prime Aid Pharmacies. The bribes included expensive meals, designer bags, and payments by cash, check, and wire transfers. The bribes and kickbacks were paid to, among others, doctors and doctors’ employees in New Jersey and New York.

As part of his plea agreement, Igor Fleyshmakher agreed that the improper benefit conferred as part of the conspiracy to violate the federal anti-kickback statute was between $3.5 million and $9.5 million.

In addition, between 2012 and 2014, Igor Fleyshmakher diverted a substantial amount of Prime Aid Union City income into a secret bank account that he opened and controlled. He concealed the account from the pharmacy’s tax preparers and did not report any of the funds he deposited into it on his personal income tax returns. In total, he diverted $33.9 million of income into the secret account, all of which he failed to report to the IRS. As a co-owner of the pharmacy, his conduct resulted in a $5.8 million tax loss to the IRS on his share of that income for tax years 2012 through 2014.

In addition to the prison term, Judge Shipp sentenced Fleyshmakher to three years of supervised release and ordered him to pay $5.8 million in restitution and a $100,000 fine.

Khaimov, Yana Shtindler, and Sevumyants have been charged together by superseding indictment with health care fraud offenses and violations of the anti-kickback statute, and that matter is pending.  In addition, the following individuals associated with the Prime Aid Pharmacies have pleaded guilty for their respective roles in the kickback and bribery scheme described above: Joel Grimshaw, a former Prime Aid sales representative, Yudelka “Vicky” Ayala, a doctor’s employee who received over $200,000 in bribes and kickbacks as part of the scheme, and Alex Fleyshmakher, who also pleaded guilty to conspiring to defraud the IRS, resulting in losses to the IRS of over $9,000,000.  Eddy Shtindler also pleaded guilty for his role in a related kickback conspiracy. These four defendants have not yet been sentenced.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the N.J. Office of the State Comptroller, under the direction of Acting Comptroller Kevin D. Walsh, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.

The charges against and allegations in the information pertaining to Khaimov, Yana Shtindler, and Sevumyants are merely accusations, and those three defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Passaic County, New Jersey, woman today admitted participating in a conspiracy to distribute heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Nysifah Deaveareaux, 28, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging her with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin and one count of distribution of 40 grams or more of fentanyl.

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

From May 2020 through Aug. 13, 2020, Deaveareaux conspired to distribute heroin and fentanyl. On June 11, 2020, Deaveareaux transported approximately 12,500 glassines of heroin and fentanyl from New Jersey to Vermont, where she distributed them to another person.

Each count carries a minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of at least $5 million. Sentencing is scheduled for March 16, 2022.

Acting U.S. Attorney Honig credited special agents and task force officers with the DEA in New Jersey and New England, under the direction of Special Agents in Charge Susan A. Gibson and Brian D. Boyle, respectively, with the investigation leading to today’s guilty plea.

This investigation was conducted as part of the Paterson Violent Crime Initiative (VCI). The VCI was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey and the Passaic County Prosecutor’s Office, for the sole purpose of combatting violent crime in and around Paterson. 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration’s (DEA) New Jersey Division, the Department of Homeland Security – Homeland Security Investigations, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, New Jersey State Parole, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.

NEWARK, N.J. – A Passaic County, New Jersey, man today admitted possessing a firearm and ammunition after previously having been convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.

Harold Mickens, 56, of Paterson, New Jersey, pleaded guilty to an indictment charging him with one count of possession of a firearm by a convicted felon before U.S. District Judge Kevin McNulty in Newark federal court.

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

On Dec. 8, 2019, law enforcement officers received a tip that a male wearing a black coat and black sweatpants was standing next to a blue Cadillac Escalade on Ocean Avenue in Jersey City and holding a gun in a green plastic bag. Law enforcement officers responded to the area and identified Mickens as matching the description provided by the tipster. They searched the green plastic bag Mickens was holding and found it to contain a Rossi .357 revolver loaded with six rounds of ammunition. Mickens had previously been convicted in the Superior Court of Hudson County, New Jersey, of possession of a controlled dangerous substance on school property, a felony punishable by more than one year in prison.

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. Sentencing is scheduled for March 16, 2022.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 188 months in prison for distributing fentanyl that caused the death of a Monmouth County, New Jersey, woman, Acting U.S. Attorney Rachael A. Honig announced.

Quasaan Bethea, 35, of Trenton, previously pleaded guilty before Chief District Court Judge Freda L. Wolfson to one count of conspiring to distribute fentanyl, which Bethea admitted caused the death of a Monmouth County woman. Chief Judge Wolfson imposed the sentence today in Trenton federal court.

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

On May 15, 2018, a woman from Englishtown, New Jersey, referred to in court as Victim-1, sought out Bethea and his conspirator, Tarashanna Blake, to purchase a particular “brand” or “stamp” of heroin the pair sold known as “CAMEL.” Bethea and Blake agreed. The packages Victim-1 purchased from Bethea and Blake, however, contained fentanyl, and not heroin. Shortly after Bethea and Blake distributed the CAMEL-stamped fentanyl to Victim-1, Victim-1 died of a fentanyl overdose.

Later that same day, law enforcement officers, in an undercover capacity, used Victim-1’s cell phone to purchase more heroin from Bethea and Blake. Blake spoke with an undercover law enforcement officer and agreed to the sale. At the agreed upon time and location, the undercover officer advised Blake that he/she had arrived. Blake responded “park” and “my [boyfriend] gonna walk to you.” Bethea parked his vehicle behind the undercover vehicle and exited. As the officer approached Bethea, Bethea discarded objects packaged like heroin and stamped “CAMEL,” which were later determined to be fentanyl. 

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

Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; the Englishtown Police Department under the direction of Peter S. Cooke Jr.; and Trenton Police Department’s Narcotics Task Force, under the direction of Acting Police Director Steve Wilson, for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Ryan L. O’Neill of the Office’s Health Care Fraud Unit.

CAMDEN, N.J. – A Massachusetts man was convicted today by a federal jury of five child pornography offenses, Acting U.S. Attorney Rachael A. Honig announced.

William H. Noble, 56, of Lowell, Massachusetts, was convicted of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent o view child pornography on federal property following a three-day trial before U.S. District Judge Joseph H. Rodriguez.

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

Between Nov. 1, 2016, and April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.

While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.

On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.

Due to the defendant’s prior convictions, the counts of receiving and distributing child pornography and conspiring to receive and distribute child pornography are each punishable by a mandatory minimum sentence of 15 years in prison, a maximum potential penalty of 40 years in prison, and a $250,000 fine. The counts of possessing and accessing child pornography on federal property each carry a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Feb. 3, 2022, before Judge Rodriguez.

The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.

Acting U.S. Attorney Honig 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 verdict. She also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.

The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.

NEWARK, N.J. – An Essex County, New Jersey, man was arrested today for threatening to injure a federal judge, Acting U.S. Attorney Rachael A. Honig announced.

Jonathan D. Williams, 46, of Newark, New Jersey, is charged by criminal complaint with making a threat to assault and murder a United States judge. Williams is scheduled to have his initial appearance Nov. 4, 2021, before U.S. Magistrate Judge Edward S. Kiel.   

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

On Nov. 1, 2021, Williams called a U.S. District Court judge in the District of New Jersey at least two times at the judge’s chambers phone number. The first call was answered by the courtroom deputy for the judge in the judge’s chambers. Williams spoke to the courtroom deputy concerning a civil suit that Williams filed and that is presently before the judge.  Williams stated that he needed to get the case in front of a jury immediately in order “to get my settlement.” Williams called the judge’s chambers a second time and spoke to one of the judge’s law clerks. While discussing issues related to his case, he stated: “Before the snow starts falling on my head, I’m gonna put a bullet in the Judge’s brain . . . he’s a scumbag.”

On Nov. 1, 2021, Williams again contacted the judge’s chambers phone number. Members of the U.S. Marshals Service were present when this call was made and overheard Williams’s conversation with an employee who works in the judge’s chambers. Williams directed sexually-explicit, profane, and racially-disparaging remarks at that employee. Williams then stated: “You’ll see! You’ll lose your job when I kill your boss.” Williams then repeated the threat a second time before the call ended. 

On Nov. 2, 2021, Williams arrived at the entrance of a law firm office in Newark. When he entered the lobby, two security guards who were present denied Williams entry into the law office. Williams pulled down a protective mask he was wearing over his mouth and nose and identified himself by name as “Jonathan Williams.” Williams told the security guards that he was “going to blow the judge’s brains out.” Williams then repeated the threat before leaving the law office lobby.

The charge of making threats to assault and murder a federal judge carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. 

Acting U.S. Attorney Honig credited the U.S. Marshals Service for the District of New Jersey, under the direction of U.S. Marshal Juan Mattos Jr., with the investigation leading to the arrest.

The government is represented by Assistant U.S. Attorney Dean Sovolos of the Office’s National Security 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 former Newark police officer was sentenced today to 46 months in prison for soliciting and accepting cash payments from a brothel owner in Newark in exchange for protecting brothels from police action, and for failing to report those cash payments on his personal federal income tax returns, Acting U.S. Attorney Rachael A. Honig announced.

Julio I. Rivera, 52, of Old Bridge, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to two counts of an indictment charging him with bribery (Count Six) and aiding and assisting in the preparation of a false 2015 personal federal tax return (Count 13). Judge Arleo imposed the sentence today in Newark federal court.

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

From September 2014 to August 2015, Rivera solicited and accepted cash payments from a Newark brothel owner (“Individual 1”) who ran brothels located on Lafayette Street and Emmet Street. In exchange for these cash bribes, Rivera performed official acts and violated his lawful duties for the benefit of Individual 1, including declining to arrest individuals who were committing and promoting prostitution, agreeing to protect these individuals from arrest by other Newark police officers, and agreeing to take adverse action against a competing brothel. Rivera collected between $40,000 and $95,000 in bribes in exchange for protecting those and other brothels in Newark.

Rivera also intentionally withheld information from his tax preparer regarding the cash bribes that he received, which caused Rivera’s filed federal tax returns for certain tax years, including 2015, to understate the total amount of income that Rivera received. Rivera stipulated that this misconduct resulted in a loss to the IRS of $15,000 to $40,000. 

In addition to the prison term, Judge Arleo sentenced Rivera to three years of supervised release, 1,000 hours of community service and ordered restitution of $17,408 and forfeiture of $79,941.

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

The government is represented by Assistant U.S. Attorney Cari Fais of U.S. Attorney’s Office in Newark.

NEWARK, N.J. – A former pharmacy procurement technician today admitted stealing prescription HIV medications from the pharmacy of the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Lisa M. Hoffman, 49, of Orange, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 2 of an indictment charging her with theft of government property. 

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

From October 2015 through November 2019, Hoffman was a procurement officer at the VAMC, who used her authority to order medication for the outpatient pharmacy, including ordering large quantities of HIV medication. Hoffman admitted that she stole HIV prescription medications from the VAMC pharmacy and sold it to her conspirator, Wagner Checonolasco, 34, of Lyndhurst, New Jersey, in exchange for cash. Checonolasco previously admitted to conspiring with Hoffman to steal HIV medication belonging to the U.S. Department of Veterans Affairs. Hoffman and Checonolasco stole approximately $10 million worth of HIV medications belonging to the VAMC during the scheme. 

The theft of government property charge is punishable by a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 9, 2022.

Checonolasco previously pleaded guilty to one count of conspiracy to steal government property and is scheduled to be sentenced on Dec. 15, 2021.

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today for allegedly using force and physical obstruction to intimidate and interfere with providers of reproductive health services in Englewood, New Jersey, on two separate occasions, Acting U.S. Attorney Rachael A. Honig announced. 

Daniel Courney, 37, of Bergenfield, New Jersey, is charged by complaint with two counts of violating the Freedom of Access to Clinic Entrances Act, which protects individuals seeking and providing reproductive health services. Courney appeared by videoconference today before U.S. Magistrate Judge Edward S. Kiel and was released on $50,000 unsecured bond. 

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

On Oct. 16, 2021, Courney approached a patient and her companion arriving by car to seek reproductive health services at a clinic in Englewood. As a volunteer was providing directions, Courney approached the vehicle, told the patient to “save your child,” and shoved the volunteer away from the car to prevent the volunteer from providing directions to the clinic.  

On Oct. 30, 2021, Courney approached the same volunteer as the volunteer escorted a patient inside the clinic.  As the volunteer and patient approached the clinic’s front door, Courney moved his body between the volunteer and the patient and shoved the volunteer toward the street.

Acting U.S. Attorney Honig 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 arrest.

The government is represented by Senior Civil Rights Counsel Joseph Gribko of the Criminal Division in Newark and Assistant U.S. Attorney Susan Millenky of the Civil Rights Unit in Newark.

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

CAMDEN, N.J. – An Atlantic City, New Jersey, woman was convicted today of multiple drug distribution offenses, Acting U.S. Attorney Rachael A. Honig announced.

Rajeri Curry, 32, was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute heroin, following a nine-day trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury did not reach a unanimous verdict on the charge of distribution of heroin and fentanyl that resulted in a death.

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

On Jan. 17, 2018, law enforcement officers executed a search at Curry’s residence, where they recovered heroin stamped with the words “DOA” and “BODY COUNT,” which Curry intended to distribute to her customers in Atlantic City. Between March 2018 and June of 2018, Curry conspired with drug suppliers in Newark, New Jersey, to distribute and possess with intent to distribute heroin and fentanyl. 

The charges of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and possession with intent to distribute heroin carry a maximum potential penalty of 20 years in prison and a maximum fine of $1 million dollars.

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers from the Atlantic City Police Department, under the direction of Deputy Chief James A. Sarkos; and the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys Catherine R. Murphy and Lauren E. Repole of the U.S. Attorney’s Office Criminal Division in Newark.

NEWARK, N.J. – A Union County, Jersey, man was sentenced today to 17 months in prison for offering bribes to a U.S. Postal Service (USPS) employee to steal check books and credit cards from the mail, Acting U.S. Attorney Rachael A. Honig announced.

Jabre Beauvoir, 23, of Elizabeth, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of bribery. Judge McNulty imposed the sentence by videoconference today.

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

In the summer of 2019, Beauvoir offered bribes to USPS employees to steal mail containing check books and credit cards. Beauvoir typically offered $100 per package of check books or credit cards to induce USPS employees to steal such mail matter and deliver it to him. It was further part of the scheme that Beauvoir and others then posed as the actual accountholders to whom the check books or credit cards originally were mailed by fraudulently signing checks, activating the stolen credit cards, and fraudulently using them.

In addition to the prison term, Judge McNulty sentenced Beauvoir to three years of supervised release and ordered him to pay restitution of $23,948.

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, and special agents with the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. She also thanked the U.S. Secret Service, the New Jersey State Police, the Elizabeth Police Department, and the Secaucus Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.

NEWARK, N.J. – A Colombian citizen today admitted conspiring to import hundreds of kilograms of cocaine into the United States from places including Venezuela, Colombia, and the Dominican Republic, Acting U.S. Attorney Rachael A. Honig announced.

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

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

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

The count to which Nieves-Rosado pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison and a maximum penalty of life imprisonment, as well as a fine of up to $10 million. Sentencing is scheduled for March 8, 2022.

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

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

The government is represented by Assistant U.S. Attorney Lauren Repole of the Economic Crimes Unit and Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.

NEWARK, N.J. – A Union County, New Jersey, man today admitted illegally possessing ammunition, Acting U.S. Attorney Rachael A. Honig announced. 

Kevin Cordeiro, 34, of Elizabeth, New Jersey, pleaded guilty today to an indictment charging him with one count of possessing ammunition after having been previously convicted of a felony offense.

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

On Feb. 27, 2021, Cordeiro fired multiple gunshots toward an occupied vehicle that was parked on Westfield Avenue in Elizabeth. Law enforcement officials recovered eight .45 caliber shell casings from the shooting scene. After the shooting, Cordeiro fled to Florida and was arrested by the U.S. Marshals Service on March 29, 2021. Cordeiro was previously convicted of second-degree robbery in New Jersey Superior Court, for which he was sentenced to six years in prison.

The count to which Cordeiro pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for March 9, 2022.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, with the investigation leading to today’s guilty plea.  Acting U.S. Attorney Honig also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos Jr., for its assistance.

The government is represented by Assistant U.S. Attorneys Robert Frazer and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey today reached a settlement with the Port Authority of New York and New Jersey (Port Authority) to resolve findings that the rail station at Newark Liberty International Airport is not accessible to individuals with disabilities, in violation of the Americans with Disabilities Act of 1990 (ADA).

“The Department of Justice upholds and protects the civil rights of all those who live in or travel through New Jersey,” Acting U.S. Attorney Rachael A. Honig said. “Through the settlement announced today, this Office removes a significant barrier that prevented people with disabilities from fully accessing a rail station that is a gateway to travel all over the world. We welcome Port Authority’s commitment to bring Newark Liberty International Rail Station into compliance with the ADA, and we will continue our work to ensure that no one is denied access to any of the rights and accommodations our Constitution and laws ensure.”

Under this agreement, the Port Authority has committed to make Newark Liberty International Rail Station accessible to individuals with disabilities. To ensure equal access for people with disabilities, the Port Authority must modify multiple areas of the rail station, including physical modifications to multiple platforms, waiting areas, and restrooms.

Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.  Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).

The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Unit in Newark, and Assistant U.S. Attorney Kristin Vassallo, Deputy Chief of the Civil Division.

TRENTON, N.J. – A New York man today admitted perpetrating a scheme to defraud more than 70 investors through a long-running securities offering fraud that raised more than $4 million and caused investor losses of more than $3.5 million, Acting U.S. Attorney Rachael A. Honig announced.

Donald A. Milne III, 57, of Massapequa, New York, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of securities fraud. 

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

Beginning in 2012, Milne founded Instaprin Pharmaceuticals Inc. (Instaprin), a purported pharmaceutical corporation that operated in New York, for the stated purpose of developing a fast-acting form of powdered aspirin that could instantly stop heart attacks and strokes. Instaprin was a successor entity to another New York corporation, SPI Acquisition Corp. (SPI), which Milne founded in 2010 for the stated purpose of acquiring assets for the development of the same fast-acting form of powdered aspirin. Milne was the founder, president, and chief executive officer of Instaprin and SPI, and exercised complete and exclusive control over them, including the offer, marketing, and sale of securities issued by those entities.

From as early as 2013 and through 2018, Milne executed a scheme to defraud dozens of investors in Instaprin and SPI securities through multiple and ongoing material misrepresentations concerning, among other things, how the victims’ investment money would be used and how their past investments had performed, so that Milne could misappropriate substantial sums of the investors’ money for his own personal gain and enrichment. Through at least four separate unregistered securities offerings that he caused Instaprin or SPI to issue between 2013 and 2016, Milne received more than $4 million in investment proceeds from victim investors across the country, and deposited the investment funds in one or more bank accounts that he controlled.

Milne misrepresented to victim investors the manner in which he and Instaprin/SPI would maintain and use the funds raised through Instaprin securities offerings. For example, Milne represented in written offering materials transmitted to investors that their investment funds would be used to pay the “normal day-to-day operating expenses” of Instaprin, as well as “the costs involved in developing and commercializing its products,” including “Batch/stability testing,” “Manufacturing,” “Market/advertising consultant,” and “Salaries/rent/insurance [and] General working capital.” Milne also falsely represented in the offering materials that he had assembled “a very strong world renowned board of directors and medical advisory board” that included industry leaders in fields of science and finance. Milne also misrepresented to investors that specific individuals had joined Instaprin as directors, advisors, and/or shareholders of Instaprin, when in fact, those individuals were not involved with Instaprin. Milne made numerous false and misleading statements in investment updates distributed to investors between April 2014 and September 2018, including: Instaprin’s product had been approved by the U.S. Food and Drug Administration (FDA); Instaprin was nearing a product launch and public stock offering; and Instaprin had contracted with a New Jersey research company for an FDA-approved clinical trial. Milne also represented that Instaprin was in negotiations with large pharmaceutical corporations for joint business ventures, which Milne represented were imminent. Milne made these and other similar representations knowing that they were false and misleading.

Milne misappropriated a substantial majority of the investors’ funds to pay out distributions to other investors in a Ponzi-scheme fashion; pay for Milne’s personal expenses, including a Caribbean vacation, boating expenses, divorce payments, clothing, and spa treatments; and to sustain and operate Island Raceway & Hobby Inc., a toy race car business that Milne separately owned.

In May 2019, the Securities and Exchange Commission filed a civil complaint against Milne and Instaprin in New Jersey federal court regarding the fraudulent scheme to which Milne pleaded guilty today. That matter was resolved through the entry of final judgments permanently enjoining Milne and Instaprin from violating the charged provisions of the federal securities laws, ordering full disgorgement, prejudgment interest, and civil penalties.

The securities fraud charge to which Milne pleaded guilty carries a maximum potential sentence of 20 years in prison and a $5 million fine. Sentencing is scheduled for March 24, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI Trenton 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. She also thanked the SEC’s Philadelphia Regional Office, under the direction of Kelly L. Gibson, for its substantial assistance with the investigation.

The government is represented by Assistant U.S. Attorney J. Brendan Day, Attorney-in-Charge of the U.S. Attorney’s Office’s Trenton Office, and Assistant U.S. Attorney Heather Suchorsky of the Economic Crimes Unit in Newark.

NEWARK, N.J. – A Union County man was sentenced today to 97 months in prison for conspiring to distribute cocaine and laundering narcotics proceeds, Acting U.S. Attorney Rachael Honig announced.

Jose Rivera, Jr., 48, of Union, New Jersey, previously pleaded guilty by videoconference before Senior U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to possess with intent to distribute cocaine and one count of conspiracy to commit money laundering.

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

Rivera is a leader of a drug-trafficking and money laundering organization. Law enforcement officers learned that Rivera utilized various locations to conduct narcotics trafficking and money laundering on behalf of the organization, including his residence and a stash location in Union.

On Nov. 6, 2020, law enforcement officers conducted lawful searches of the residence and the stash location and recovered over $1 million in cash, financial paperwork and notations related to narcotics proceeds and transactions. On Nov. 7, 2020, law enforcement officers conducted a lawful search of Rivera’s vehicle and recovered 191 grams of cocaine in a hidden compartment within the glove box of the vehicle.

In addition to the prison term, Judge Chesler sentenced Rivera to three years of supervised release.

Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration under the direction of Special Agent in Charge Raymond Donovan in New York; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark, with the investigation leading to today’s sentencing.

The prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The New York Strike Force is a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the NYPD; the New York State Police; HSI; IRS-CI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection; U.S. Secret Service; the U.S. Marshals Service; New York National Guard; the Clarkstown Police Department; U.S. Coast Guard; Port Washington Police Department; and New York State Department of Corrections and Community Supervision.

The government is represented by Assistant U.S. Attorney Megan Linares of the Organized Crime and Drug Enforcement Task Force Unit.

CAMDEN, N.J. – A Camden County, New Jersey, woman today admitted attempting to bribe a witness to steal a gun from a car that was in the custody of the Camden County Police Department, pending the execution of a search warrant, Acting U.S. Attorney Rachael A. Honig announced.

Saidah A. Davis, “Sacha,” 41, of Woodlynne, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging her with witness tampering. 

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

Davis admitted that on April 16, 2021, she and codefendant Anthony D. Parker, aka “Papa Smurf,” 37, of Camden, went to the home of an individual who she knew worked at a Camden tow lot that impounded vehicles that were seized by the Camden County Police Department for criminal investigations. Davis, an acquaintance of a relative of the tow lot employee, explained that Parker had a problem, and she asked the employee if he could help Parker. Parker said that his vehicle had been seized by the police pending a search warrant application, and that there was a gun and cash inside the vehicle.  Parker offered the tow lot employee $2,000 to break into the vehicle and remove the gun and cash. The tow lot employee refused the bribe, and Davis took the employee’s phone number and said, “we’ll be in touch.”

Parker is charged by indictment with witness tampering and possession of a firearm by a previously convicted felon. His trial is scheduled for Nov. 29, 2021.

The witness tampering charge carries a statutory maximum of 20 years in prison and a potential $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing for Davis is scheduled for March 3, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Acting Special Agent in Charge Brian Herrick in Philadelphia; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; and officers of the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; with the investigation leading to the indictment. 

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the Criminal Division in Camden.

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

NEWARK, N.J. – A former broker and investment advisor from Bergen County, New Jersey, was arrested today for allegedly stealing more than $2.86 million from five clients in order to pay for personal expenses, Acting U.S. Attorney Rachael A. Honig announced.

Kenneth A. Welsh, 41, of River Edge, New Jersey, was charged by complaint with four counts of wire fraud and one count of investment advisor fraud. Welsh was arrested today at his home and is 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 July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $2.86 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control. Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself.

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

Acting U.S. Attorney Honig 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 arrest.

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

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

TRENTON, N.J. – An Ocean County, New Jersey, man was arrested today on charges that he distributed, received, and possessed images and videos of child sexual abuse downloaded from the internet, Acting U.S. Attorney Rachael A. Honig announced.

Jared Faircloth, 24, of Cream Ridge, New Jersey, is charged in a criminal complaint with one count of receiving and distributing child pornography and one count of possessing child pornography. Faircloth appeared this afternoon by videoconference before U.S. Magistrate Judge Douglas E. Arpert in Trenton federal court and was released on $100,000 unsecured bond.

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

From September 2020 to July 2021, Faircloth received and distributed material containing images of child sexual abuse via the BitTorrent Network, a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download P2P software, which is widely available for free on the internet. The software allows the user to place files into a designated “shared” folder on his or her hard drive, from which other BitTorrent users can then download those files directly to the “shared” folders of their own computers. Users can then search, select, and directly download, those files.

Law enforcement used investigative software to access the BitTorrent Network and downloaded video files containing images of child sexual abuse from a device or devices assigned to IP addresses linked to Faircloth. On July 22, 2021, law enforcement searched Faircloth’s residence and found a device belonging to Faircloth that contained more than 2,800 images and videos depicting child sexual abuse, as well as BitTorrent software. Of those approximately 2,800 files, law enforcement identified at least 30 files that law enforcement had previously downloaded from IP addresses linked to Faircloth.

The charge of knowingly receiving and distributing child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to $250,000 or twice the pecuniary gain or loss, whichever is greatest. The charge of knowingly possessing child pornography carries a maximum of 10 years in prison, and a statutory maximum fine equal to $250,000 or twice the pecuniary gain or loss, whichever is greatest.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations, Mount Laurel, New Jersey, under the direction of Special Agent-in-Charge Jason J. Molina in Newark, with the investigation leading to the arrest. She also thanked the Department of the Air Force, Office of Special Investigations, for its assistance.

The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the U.S. Attorney’s Office Criminal Division in Trenton.

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

Defense counsel: Benjamin West Esq., Assistant Federal Public Defender, Trenton

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted his role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, Acting U.S. Attorney Rachael A. Honig announced.      

Jorge Gutierrez, 42, of Merchantville, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with conspiracy to defraud the United States.

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

Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. SIRF schemes generally share a number of hallmarks. Perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico. They then complete Form 1040 tax returns using the fraudulently obtained information and falsifying wages earned, taxes withheld, and other data, always ensuring that the fraudulent tax return generates a refund. They direct the U.S. Treasury Department to mail refund checks to locations that the perpetrators control or can access. With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control or cashing the checks at check cashing businesses.

For the 2013 tax year, in excess of 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico and for which the refunds were directed to be mailed to a small section of Pennsauken, New Jersey. Of the 3,300 returns filed, several of the refund checks were issued and ultimately cashed at check cashing agencies in New Jersey, Philadelphia, and New York using false and fraudulent identifications, including fake New Jersey driver’s licenses, fake Social Security Cards, and fake Department of Homeland Security Permanent Resident Identification cards.

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

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

The conspiracy count to which Gutierrez pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 1, 2021. 

Henriquez is pending trial, which is scheduled to start Nov. 29, 2021, before Judge Kugler in Camden.

On Dec. 10, 2019, Judge Kugler sentenced Sanchez to 45 months in prison. Bisono is awaiting sentencing.

Acting U.S. Attorney Honig credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark and Acting Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi. She also thanked the U.S. Postal Inspection Service for its assistance with the investigation leading to today’s guilty plea. 

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

NEWARK, N.J. – Two Passaic County men today admitted their roles in an illegal money transmitting business, Acting U.S. Attorney Rachael A. Honig announced today.

Erickson Checo-Almonte, 31 of Passaic, New Jersey, and Jordano Abreu-Diaz, 24 of Clifton, New Jersey, separately pleaded guilty by videoconference on Oct. 25, 2021, before U.S. District Brian Martinotti to informations charging them each with aiding and abetting an illegal money transmitting business. 

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

From April 2017 through March 2019, Erickson Checo-Almonte accepted over $3.9 million in cash and purchased over 137 cashier’s checks at local bank branches in New Jersey and elsewhere.  From November 2016 through August 2017, Abreu-Diaz accepted over $1 million in cash and purchased 39 cashier’s checks at banks in New Jersey and elsewhere. Both men admitted that the cash they used to purchase the checks was from illegal activity.  

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 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 greatest. Sentencing for both defendants is scheduled for March 2, 2022.

Acting U.S. Attorney Honig 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, with the investigation leading to today’s guilty pleas.

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

The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Recovery and Money Laundering Unit in Newark.

NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 60 months in prison for conspiring to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and cocaine base and to distributing a quantity of heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Jimir Ricks, 26, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and a quantity of cocaine base and knowingly and intentionally distributing heroin and fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.

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

Ricks and his conspirators are members and associates of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that from at least September 2018 through Oct. 1, 2019, Ricks and his conspirators conspired to distribute narcotics, including heroin and fentanyl.

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

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

Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.

The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.

CAMDEN, N.J. – A Bronx, New York, man today admitted his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, Acting U.S. Attorney Rachael A. Honig announced.

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

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

From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center. The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts.

The conspiracy to commit bank fraud charge to which Melhado pleaded guilty carries a maximum penalty of 30 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense, whichever is greatest. In his plea agreement, Melhado agreed to make restitution for the full amount of the loss, which is estimated at $604,000. Sentencing for Melhado is scheduled for March 7, 2022.

Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Brian Herrick in Philadelphia, with the investigation leading to today’s guilty plea.

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 Hudson County, New Jersey, man was convicted today for his role in trafficking heroin and fentanyl into a New Jersey state prison, resulting in the overdose of one of the inmates, Acting U.S. Attorney Rachael A. Honig announced.

Noel Salgado, aka “Kuko,” 41, was convicted of one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl and one count of distribution and possession with intent to distribute heroin and fentanyl, which resulted in serious bodily injury, following a four-day trial before U.S. District Judge William J. Martini in Newark federal court. The jury did not reach a unanimous verdict against co-defendant Rodgerick Garrett. 

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

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

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

The charge of distribution and possession with intent to distribute heroin and fentanyl, resulting in serious bodily injury, on which the defendant was convicted carries a mandatory minimum penalty of 20 years in prison, and a maximum potential penalty of life in prison, and a maximum $1 million fine. The conspiracy charge on which he was convicted carries a maximum potential penalty of 20 years in prison.

Acting U.S. Attorney Honig credited Special Agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and investigators with the N.J. Department of Corrections under the direction of Acting Commissioner Victoria L. Kuhn, with the investigation leading to today’s conviction.

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

NEWARK, N.J. – In advance of New Jersey’s November 2, 2021 general election, Acting U.S. Attorney Rachael A. Honig announced today that the public may call the U.S. Attorney’s Office Election Hotline at 888-636-6596 to report threats against voters, threats against election workers, or any other activities that would interfere with a citizen’s right to vote. Early voting begins in New Jersey on Saturday, October 23, 2021 and continues through Sunday, October 31, 2021. The Election Hotline will be active from October 22, 2021 through November 3, 2021.

Federal law protects the rights of voters to vote without discrimination and free from acts designed to harass or intimidate them. Federal law also permits voters to have an accessible polling place and to mark their own ballot, or to be assisted by a person of their choice for reasons of disability, illiteracy, or limited English proficiency. As the Department of Justice reiterated when it launched the Task Force to Combat Threats against Election Workers, federal law also prohibits threats against election workers, administrators, officials, and others associated with the electoral process. The Department and its federal law enforcement partners will work with state and local officials to respond to complaints and to ensure that every voter is able to cast a ballot.

Acting U.S. Attorney Honig said, “We are committed to ensuring free and fair elections in New Jersey by protecting the right of every voter to access polling places and cast a ballot and the right of every election worker to work without harassment, threats, or intimidation. We encourage the public to reach out to our Office to report any threats, discrimination, or other concerns.”

In the case of a crime of violence or intimidation, please call 911 immediately. The public may report potential violations of federal voting rights laws at any time by calling the Civil Rights Hotline, 855- 281-3339, or by submitting an online complaint here.

NEWARK –The U.S. Attorney’s Office for the District of New Jersey announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.

Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.

“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”

“Redlining is a form of discrimination that has devastating consequences for communities of color.” said Acting U.S. Attorney Rachael A. Honig. “By systemically and unlawfully denying credit to those in minority neighborhoods, a bank that redlines causes those neighborhoods to deteriorate by unfairly denying residents opportunities to become a homeowner. This office has vigorously enforced the Fair Housing Act and Equal Credit Opportunity Act to combat the practice of redlining. In 2015, together with the Justice Department’s Civil Rights Division and the Consumer Financial Protection Bureau, we filed suit to obtain a consent order requiring Hudson City Savings Bank to end its pattern or practice of redlining predominantly Black and Hispanic neighborhoods. The consent order, which represented the Justice Department’s largest residential mortgage redlining settlement in its history, required the bank to make systemic changes to its practices and pay $25 million in loan subsidies to individuals in the redlined neighborhoods. We are pleased that, earlier this year, the bank satisfied its obligations under the schedule set forth in the consent order. This office enthusiastically joins in the Justice Department’s Combatting Redlining Initiative and will continue its work to end redlining in the District of New Jersey.”

Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.

This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The U.S. Attorney’s Office for the District of New Jersey’s Civil Rights Unit will continue its active partnership with the Civil Rights Division as it joins in this initiative. The initiative will: • Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.

• Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.

• Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.

• Increase coordination with State Attorneys General on potential fair lending violations.

Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Complaints of discrimination may also be made by contacting the United States Attorney’s Office for the District of New Jersey at (855) 281-3339 or by filing a complaint online.

TRENTON, N.J. – A Middlesex County, New Jersey, man was sentenced today to 24 months in prison for attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in Trenton, Acting U.S. Attorney Rachael A. Honig announced.

Justin D. Spry, 22, of South Plainfield, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce. Judge Martinotti imposed the sentence by videoconference today.

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

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

A Trenton street camera and other video footage taken by an individual present on the street captured Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Killian Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.

Melecio pleaded guilty on Jan. 26, 2021, to his role and was sentenced June 28, 2021, to 28 months in prison. Dockery pleaded guilty on May 19, 2021, to his role and is scheduled to be sentenced Oct. 26, 2021.

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

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

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

Defense counsel: Benjamin J. West Esq., Trenton

CAMDEN, N.J. – A California man was sentenced today to 51 months in prison for his role in a conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores in 19 states and to then use that information to make fraudulent withdrawals from the bank accounts of those customers, Acting U.S. Attorney Rachael A. Honig announced.

Jose Salazar, aka “Tito,” 45, of Riverside, California, previously pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to Count 1 of an indictment charging him with conspiracy to commit bank fraud. Judge Rodriguez imposed the sentence by videoconference today.

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

Salazar and his conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.

The conspirators allegedly replaced POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.

In 2011, Salazar recruited individuals to participate in the conspiracy. From April 2011 to May 2011, Salazar, Angel Angulo and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using automated teller machines (ATMs) from hundreds of bank accounts. Angulo pleaded guilty on June 20, 2017, and was sentenced on March 15, 2018, to three years in prison. 

In addition to the prison term, Judge Rodriguez sentenced Salazar to five years of supervised release and ordered him to pay restitution of $617,534.94.

Acting U.S. Attorney Honig credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Henry in Philadelphia, for the investigation leading to today’s sentencing. She also thanked special agents with the U.S. Marshal Service, under the direction of Juan Mattos, and the International Criminal Police Organization for their assistance.

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

Defense counsel: Richard Sparaco Esq., Camden

NEWARK, N.J. – A New York man was sentenced today to 78 months in prison for possessing more than 500 grams of methamphetamine with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.

Joseph McMaster, 58, of Queens County, New York, previously pleaded guilty before U.S. District Judge Brian M. Martinotti in Newark federal court to an information charging him with possession with intent to distribute methamphetamine. Judge Martinotti imposed the sentence today in Newark federal court.

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

On June 8, 2019, McMaster was arrested after he traveled to Lyndhurst, New Jersey, to sell crystal methamphetamine. Agents conducting surveillance identified McMaster when he arrived at the meeting location. A search of his car recovered more than one pound of crystal methamphetamine.

On Sept. 13, 2021, in the Southern District of New York, McMaster was sentenced to 30 months in prison – to be served consecutively to the sentence imposed today – for violating the terms of his supervised release.

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

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Seven leaders of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” and an eighth man who conspired with a Black Axe leader, were charged with multiple federal crimes relating to internet scams they perpetrated from South Africa, Acting U.S. Attorney Rachael A. Honig announced today.

Perry Osagiede, aka “Lord Sutan Abubakar de 1st,” aka “Rob Nicolella,” aka “Alan Salomon,” 52; Enorense Izevbigie, aka “Richy Izevbigie,” aka “Lord Samuel S Nujoma,” 45; Franklyn Edosa Osagiede, aka, “Lord Nelson Rolihlahla Mandela,” aka, “Edosa Franklyn Osagiede,” aka “Dave Hewitt,” aka, “Bruce Dupont,” 37; Osariemen Eric Clement, aka, “Lord Adekunle Ajasi,” aka, “Aiden Wilson,” 35; Collins Owhofasa Otughwor, aka, “Lord Jesse Makoko,” aka, “Philip Coughlan,” 37; and Musa Mudashiru, aka “Lord Oba Akenzua,” 33; all originally from Nigeria, are charged by superseding indictment with wire fraud conspiracy and money laundering conspiracy, spanning from 2011 to 2021. One defendant remains at large.

Perry Osagiede, Franklyn Osagiede, Clement, and Izevbigie are also charged with wire fraud. Perry Osagiede, Franklyn Osagiede, and Otughwor are charged with aggravated identity theft.

Toritseju Gabriel Otubu, aka “Andy Richards,” aka “Ann Petersen,” 41, also originally from Nigeria, is charged by separate indictment with wire fraud conspiracy, wire fraud, aggravated identity theft, and money laundering conspiracy, spanning from 2016 to 2021.

“Americans are too often victimized by criminal organizations located abroad who use the internet to deceive those victims, defraud them of money, and, many times, persuade the victims to wittingly or unwittingly assist in perpetuating the fraudulent schemes,” Acting U.S. Attorney Honig said.  “The public should be on guard against schemes like these. And, more importantly, anyone thinking of engaging in this kind of criminal conduct should understand that the U.S. Attorney’s Office and our partners will find them and bring them to justice, no matter where they are.”

“Transnational organized criminal networks continue to victimize U.S. citizens and threaten the financial infrastructure of the United States,” Secret Service Office of Investigations Assistant Director Jeremy Sheridan said. “The Secret Service, alongside our partner agencies, works tirelessly in its global investigative mission to dismantle these groups and arrest those who lead them. We are proud to be a part of the international law enforcement mission to combat all forms of financial crimes and thank all those involved in this investigation. The U.S. Secret Service extends its gratitude the U.S. Department of State’s Diplomatic Security Service for its assistance.”

“Foreign nationals who think they can hide in another country or in cyberspace while preying on our citizens need to know one thing,” Special Agent in Charge George M. Crouch Jr. said. “The FBI has a global footprint and will use every resource available to protect the American people. The strong working relationship among our federal and international law enforcement partners allows us to reach across geographical boundaries. In other words, anyone who thinks they can avoid American justice simply by operating outside the United States should rethink their strategy.”

According to documents filed in these cases:

Perry Osagiede, Izevbigie, Franklyn Osagiede, Clement, Otughwor, and Mudashiru (the “Black Axe defendants”) were all leaders of the Neo Black Movement of Africa, also known as “Black Axe,” an organization headquartered in Benin City, Nigeria that operates in various countries. The Black Axe is organized into regional chapters known as “zones,” and the defendants were all leaders within the Cape Town, South Africa, Zone. Perry Osagiede founded the Cape Town Zone of Black Axe and worked as its zonal head, along with Izevbigie.  The Black Axe defendants and other members of Black Axe took part in, and openly discussed, fraud schemes amongst their membership.   

From at least 2011 through 2021, the Black Axe defendants and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes. Many of these fraudulent narratives involved claims that an individual was traveling to South Africa for work and needed money or other items of value following a series of unfortunate and unforeseen events, often involving a construction site or problems with a crane. The conspirators used social media websites, online dating websites, and voice over internet protocol phone numbers to find and talk with victims in the United States, while using a number of aliases.   

The conspirators’ romance scam victims believed they were in romantic relationships with the person using the alias and, when requested, the victims sent money and items of value overseas, including to South Africa. Sometimes, when victims expressed hesitation in sending money, the conspirators used manipulative tactics to coerce the payments, including by threatening to distribute personally sensitive photographs of the victim.

The conspirators used the bank accounts of victims and individuals with U.S.-based financial accounts to transfer the money to South Africa. On certain occasions, the conspirators convinced victims to open financial accounts in the United States that the conspirators would then be permitted to use themselves. In addition to laundering money derived from romance scams and advance fee schemes, the conspirators also worked to launder money from business email compromise schemes. In addition to their aliases, the conspirators used business entities to conceal and disguise the illegal nature of the funds.

Otubu also engaged in romance scams and used the victims of those scams to obtain money and to launder the proceeds of business email compromises back to South Africa. Otubu conspired with an individual identified in the criminal complaint as Co-conspirator 1, who was a founding member and leader of the Cape Town Zone of Black Axe.    

The wire fraud conspiracy and wire fraud charges each carry a maximum term of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greatest. The aggravated identity theft charges carry a mandatory term of two years in prison, which must run consecutively to any other term of imprisonment imposed on a defendant.               

Seven defendants were arrested in South Africa yesterday by the South African Police Service. Those defendants had their initial appearances in South Africa and are awaiting extradition to the United States on these charges. Both cases are before U.S. District Judge Michael A. Shipp in Trenton federal court. 

Anyone who believes they may be a victim may visit https://www.justice.gov/usao-nj/blackaxe for information about the case, including a questionnaire for victims to fill out and submit.  

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the FBI Legal Attaché Office at the United States Embassy in Pretoria, South Africa, under the direction of Legal Attaché Jennifer Snell Dent; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, Special Agent in Charge John Hamby in Seattle, Resident Agent in Charge Michael K. Burgin in the Pretoria Resident Office and Special Agent in Charge Jason Kane of the Criminal Investigative Division, with the investigation leading to the charges.

Acting U.S. Attorney Honig also thanked the South African Directorate of Priority Crime Investigations (DPCI) HAWKS, the South African Police Service, the South African National Prosecuting Authority & Asset Forfeiture Unit, the Department of Justice and Constitutional Development for the Republic of South Africa, the U.S. Department of Justice’s Office of International Affairs, and Interpol for their valuable assistance in this case. 

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

The government is represented by Assistant U.S. Attorneys Jamie L. Hoxie and Vera Varshavsky of the Cybercrime Unit in Newark. 

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

NEWARK, N.J. – A supplier of vehicle parts to the military has agreed to pay $850,000 to resolve allegations that it breached contracts with the United States and violated the False Claims Act by selling items that were manufactured in prohibited countries, Acting U.S. Attorney Rachael A. Honig announced today.

The settlement resolves allegations that from 2012 to 2019 Brighton Cromwell LLC knowingly sold items to the Department of Defense’s Defense Logistics Agency that it failed to ascertain and verify were manufactured by or for its suppliers in non-compliant countries under either the Buy American Act or the Trade Agreements Act, in violation of the Defense Federal Acquisition Regulation Supplement. The United States also alleged that Brighton Cromwell was unjustly enriched and breached its contracts with the United States because it sold items to the Defense Logistics Agency that were manufactured or assembled in prohibited countries.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the Naval Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Michael T. Wiest, with the investigation leading to the agreement.

The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark, along with Senior Trial Counsel Art Coulter and Trial Attorney Eric Schmelzer of the Civil Frauds Section of the Civil Division in Washington, D.C.

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

NEWARK, N.J. – An alleged member of a Jersey City gang has been charged with the June 19, 2020, shooting of a Jersey City resident, Acting U.S. Attorney Rachael A. Honig announced today.

Shamar Bey, 29, of Jersey City, New Jersey, is charged by complaint with assault with a dangerous weapon in aid of racketeering and discharging a firearm in furtherance of a crime of violence.

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

Bey is allegedly associated with a street gang known to operate around Salem Lafayette Apartments and the surrounding area from Bramhall Avenue to Forrest Street and between Ocean Avenue and Martin Luther King Drive in Jersey City. On June 19, 2020, Bey allegedly shot an associate of a rival gang with which Salem Lafayette was feuding. 

The count of assault with a dangerous weapon in aid of racketeering carries a maximum sentence of up to 20 years in prison. The count of discharging a firearm during an act of violence carries a mandatory consecutive sentence of 10 years in prison.  Both counts carry a maximum fine of $250,000.

Acting U.S. Attorney Honig credited investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; officers with the Jersey City Police Department, under the direction of Public Safety Director James Shea; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the 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 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 Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Sophie E. Reiter of the Cybercrime Unit and Sarah Sulkowski of the Violent Crime Unit.

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 former executive at a New Jersey publication company was sentenced today to 75 months in prison for embezzling tens of millions of dollars for his own benefit, Acting U.S. Attorney Rachael A. Honig announced. 

Nestor Charriez, 60, of Scotch Plains, New Jersey, previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with one count of devising and carrying out a scheme to commit wire fraud. Judge Kevin McNulty imposed the sentence in Newark federal court.    

According to the charging document and statements made in court:

Charriez was a longtime senior employee of Victim-Company 1, a publication company based in New Jersey. Charriez’s financial responsibilities at Victim-Company 1 included overseeing and managing employee payroll. Charriez would submit Victim-Company 1’s payroll information to an outside payroll company, which would process Victim-Company 1’s payroll requests.   

Beginning as early as 2002 through June 2019, Charriez defrauded Victim-Company 1 by embezzling millions of dollars through unauthorized “bonus” payments to himself. He submitted false payroll instructions to Victim-Company 1’s outside payroll provider, indicating that Charriez was entitled to massive bonuses – hundreds of thousands of dollars at a time – which Victim-Company-1 had not approved. 

Charriez carried out this scheme on numerous occasions over nearly two decades. In total, Charriez stole more than $48 million from Victim-Company 1. Charriez spent the money he stole on personal expenses.

In addition to the prison term, Judge McNulty also sentenced Charriez to three years of supervised release and ordered him to pay restitution of $43.4 million. The court previously entered a forfeiture order of $48 million.

Acting U.S. Attorney Honig 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. Attorneys Heather Suchorsky, Carolyn Silane, and Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 120 months in prison for possessing a handgun in furtherance of a drug crime, Acting U.S. Attorney Rachael A. Honig announced.

Armond Holloway, 45, of Hamilton, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp via videoconference to Count Two of an indictment charging him with possession of a firearm in furtherance of possession with intent to distribute heroin. Judge Shipp imposed the sentence by videoconference today.

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

On July 31, 2017, Holloway was on parole after having served a term of imprisonment.  Holloway’s parole officer received information from an anonymous source that Holloway, who had known gang affiliations, was in possession of a gun, 300-400 bricks of heroin, and a large amount of money at his residence. 

On Aug. 1, 2017, the parole officer, along with other law enforcement officers, conducted a parole search of Holloway’s residence, where they recovered a Masterpiece Arms 9 mm firearm with an obliterated serial number, loaded with 30 rounds of ammunition, under Holloway’s bed. They also found a barrel extension that fit the gun. Also recovered from Holloway’s bedroom was more than $14,000 in cash and more than 400 bricks of heroin from Holloway’s basement.

In addition to the prison term, Judge Shipp sentenced Holloway to five years of supervised release.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; the New Jersey State Parole Board, under the direction of Chairman Samuel J. Plumeri Jr.; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.

NEWARK, N.J. – A former Newark city official and officer of the Newark Community Economic Development Corp. (NCEDC), along with two Newark business owners, were indicted today by a federal grand jury in connection with a conspiracy for the official to obtain corrupt payments intended to influence and reward him for assisting the business owners with the acquisition and redevelopment of various Newark-owned properties, Acting U.S. Attorney Rachael A. Honig announced.

Carmelo G. Garcia, 45, of Hoboken, New Jersey, a former Newark official, and Frank Valvano Jr., 52, of Florham Park, New Jersey, and Irwin Sablosky, 60, of Springfield, New Jersey, co-owners of a New Jersey-based pawnbroker and jewelry business, are charged with: one count of conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services facilitated by the use of interstate wire transmissions; 17 counts of honest services wire fraud; and four counts of use of interstate facilities to promote and facilitate bribery in violation of the Travel Act. Garcia is additionally charged with three counts of receiving bribes in connection with the business of a federally funded local government and organization and Valvano and Sablosky are additionally charged with three counts of offering those bribes. The defendants will be arraigned in federal court on a date to be determined.

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

From at least 2017 through April 2019, while serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), Garcia sought and received significant monetary payments and other benefits from Valvano, Sablosky, and others in exchange for Garcia’s use of his official positions and influence to advance real estate development matters of interest to Valvano and Sablosky., including securing Newark-approved redevelopment agreements (RDAs) to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests. Garcia also received jewelry, including multiple high-end watches and chains, from Valvano’s and Sablosky’s pawnbroker and jewelry business, including a Rolex watch with a “Selling Price” of $8,900, a Cartier watch with a “Selling Price” of $3,295, an Omega watch with a “Selling Price” of $7,295, and a chain with a “Selling Price” of $9,345.

Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by Valvano and Sablosky. In one instance, in June 2018, Garcia, then the City’s acting deputy mayor and director of the city’s Department of Economic and Housing Development (DEHD), received an envelope containing $25,000 in cash, supplied by Valvano through an intermediary, in the restroom of a New Jersey restaurant. Text messages obtained by law enforcement show that Garcia used his personal cellular phone to coordinate the location and timing of the meeting. 

In other text messages, Valvano and Sablosky discussed additional payments of money and jewelry the two had made to Garcia, and also to an associate of Garcia (identified in the indictment as “Individual 1”), as well as their ongoing efforts to obtain RDAs with the city to acquire and redevelop Newark-owned properties. E-mails obtained by law enforcement further show the official actions, assistance, and influence Garcia provided in violation of his duties in exchange for the cash and other non-cash benefits he received from Valvano and Sablosky and the actions that Valvano and Sablosky were seeking from Garcia for those benefits. 

Defendants also took steps to conceal their corrupt and fraudulent arrangement. For example, they used coded language in their electronic communications to refer to the corrupt cash payments that Garcia accepted and agreed to accept, referring to the payments, for instance, as “docs” and “butter.” Also, Valvano informally kept track of the money and jewelry that Garcia received from Valvano and Sablosky in the form of handwritten notes drafted in a manner intended to obscure Garcia’s identity. The notes, for instance, included a list of figures, some annotated with dates or other notations, under the letter “C,” a veiled reference to Garcia using only the first initial of his first name.  

The honest services fraud conspiracy and honest services wire fraud charges each carry a maximum potential penalty of 20 years in prison. The Travel Act charges each carry a maximum potential penalty of five years in prison. The bribery concerning governments receiving federal funds charges each carry a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. The indictment also seeks forfeiture of ill-gotten gains obtained from the bribery scheme. 

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the charges.

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

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

CAMDEN, N.J. B A Camden County, New Jersey, man was sentenced today to 180 months in prison for conspiring to distribute heroin and cocaine in the city of Camden, Acting U.S. Attorney Rachael A. Honig announced.  

Carlos Perez, 48, of Collingswood, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute one kilogram or more of a mixture or substance containing heroin, as well as a mixture and substance containing cocaine, crack cocaine and fentanyl.

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

Nineteen defendants were arrested in late 2018 based on the FBI’s investigation of a drug trafficking organization that ran the open air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug trafficking organization. The organization included street-level sellers who worked various shifts on the “drug set,” selling drugs to customers and collecting proceeds. The sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. Perez was a high-level supervisor for the drug trafficking organization and was responsible for obtaining powder cocaine from drug suppliers, converting or “cooking” the powder cocaine to manufacture crack cocaine and packaging the crack cocaine that was distributed on the Pine Street drug set. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests. Perez agreed, as a member of the conspiracy, that he was jointly responsible for the distribution of over 1 kilogram of heroin, as well as substantial quantities of crack cocaine, cocaine and fentanyl.

Sixteen of the defendants already have entered guilty pleas on drug conspiracy charges before Judge Bumb. Three defendants are awaiting trial. The charges and allegations against those three defendants are merely accusations, and they are presumed innocent unless and until proven guilty.

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

Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of  Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.

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

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

TRENTON, N.J. – A New Jersey man and a Florida man were charged today with conspiring to illegally sell firearms, including multiple handguns and a semi-automatic rifle, in and around Monmouth and Ocean counties, Acting U.S. Attorney Rachael A. Honig announced.

Manuel Espinosa-Ozoria, 31, aka “Chino,” of Bartow, Florida, and Enrique Quijada, 24, aka “El Enano 13,” aka “Kike,” of Freehold, New Jersey, are each charged by indictment with one count of conspiracy to engage in firearms trafficking. Espinosa-Ozoria additional charged with two counts of possession of a firearm by a convicted felon, and Quijada is additionally charged with two counts of possession of a firearm by an alien unlawfully present in the United States.

According to the indictment:

From May 2020 through September 2020, Espinosa-Ozoria, Quijada, and others were members of a gun trafficking conspiracy operating in Monmouth and Ocean counties, in which they unlawfully obtained, possessed, and sold numerous firearms for profit.   

The count of conspiracy to engage in firearms trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of a firearm by a convicted felon and possession of a firearm by an alien unlawfully present in the United States each carry a maximum penalty of 10 years in prison and a $250,000 fine.   

Acting U.S. Attorney Honig 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. She also thanked the FBI Tampa Division, the ATF Newark and Tampa Field Divisions, and the Freehold Borough, New Jersey, Police Department for their assistance.

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.

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 Bronx, New York, man today admitted participating in a conspiracy to distribute heroin and fentanyl from a drug mill in the Bronx to locations in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Reimon Genao Rosario, 25, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Dilson Vazquez Genao, 24, Eddie Urena Rodriguez, 36, Francisco Mercedes Gil, 32, Daury Contreras Ulerio, aka “Majimbou,” 35, and Jose Antonio Vazquez Pena, aka “Tono,” 48, all of the Bronx, all have previously pleaded guilty before Judge Salas to the same charges.

One other individual – Jhan Carlos Capellan Maldonado, 32 – was indicted on the same charge as Rosario in August 2019. His case is pending.

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

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

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

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

Rosario faces a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. Sentencing for Rosario is scheduled for Feb. 15, 2022.

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

The government is represented by Assistant U.S. Attorney Jason S. Gould, Acting Chief of the Violent Crimes Unit in Newark.

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