District of New Jersey

NEWARK, N.J. – A Suffolk County, New York, man was sentenced today to 33 months in prison for illegally possessing a firearm, Acting U.S. Attorney Rachael A. Honig announced.

Keith Richter, a/k/a “Conan,” 62, of Bay Shore, New York, previously pleaded guilty to an information charging him with one count of possession of a firearm by a convicted felon.  Judge McNulty imposed the sentence today by videoconference.   

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

Richter is the national president of the Pagan’s Motorcycle Club (the “Pagans”)—an outlaw motorcycle gang known by law enforcement to engage in illegal activity including narcotics trafficking, weapons trafficking, and violent crimes. 

On or about February 20, 2021, the Pagans hosted a party in Lancaster, Pennsylvania.  While Richter was traveling from the party to his home in Suffolk County, New York, law enforcement pulled the vehicle over in Mercer County, New Jersey.  Law enforcement recovered a loaded Ruger P345 .45 caliber handgun from a front-seat compartment in the vehicle.  As a result, law enforcement obtained a warrant for Richter’s arrest, which was executed on February 26, 2021. 

Richter was previously convicted of felony offenses, including conspiracy to commit murder and aggravated assault in aid of racketeering, for which he served a 16-year term of imprisonment.

In addition to the prison term, Judge McNulty sentenced Richter to three years of supervised release.

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

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

NEWARK, N.J. – A Peruvian woman was sentenced today to 30 months in prison for smuggling approximately seven kilograms of cocaine into the United States from Peru, Acting U.S. Attorney Rachael A. Honig announced.

Yolanda Fonseca Melgarejo, 60, a legal permanent resident of the United States and a citizen of Peru, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging her with one count of importation of controlled substances. Judge Wigenton imposed the sentence today in Newark federal court.

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

Fonseca Melgarejo arrived at Newark Liberty International Airport aboard a flight from Lima, Peru, on March 31, 2019.  Law enforcement officers discovered that Fonseca Melgarejo possessed approximately seven kilograms of cocaine concealed within wrapped chocolate candy in her luggage.

In addition to the prison term, Judge Wigenton sentenced Melgarejo to two years of supervised release.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina; and officers of U.S. Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Frank Russo, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in Newark.

NEWARK, N.J. – A dual New York and Florida resident today admitted his role in a scheme to fraudulently obtain federal Paycheck Protection Program (PPP) loans totaling over $6.8 million, Acting U.S. Attorney Rachael A. Honig and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced today.

Gregory J. Blotnick, 34, of Florida, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of wire fraud and one count of money laundering. 

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

From April 2020 through March 2021, Blotnick submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of nine purported businesses that Blotnick controlled.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

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

On Blotnick’s fraudulent PPP applications, which sought a total of approximately $6.8 million in total loans, Blotnick falsified various information to the lenders, including the number of employees, the federal tax returns for his purported businesses, and payroll documentation. Blotnick obtained approximately $4.6 million in PPP funds and then misused the loan proceeds, including by transferring the funds to brokerage accounts from which he placed more than approximately $3 million in losing stock trades. 

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

Acting U.S. Attorney Rachael Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.

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

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

TRENTON, N.J. – A federal jury today found three men guilty of various narcotics and firearms offenses for their roles in a Trenton-based drug trafficking conspiracy, Acting U.S. Attorney Rachael A. Honig announced.

Jerome Roberts, 51, of Delran, New Jersey, was convicted of one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and one count of distribution and possession with intent to distribute 100 grams or more of heroin

Timothy Wimbush, 31, of Trenton, was convicted of one count each of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin; possession with intent to distribute heroin; possession of firearms in furtherance of a drug-trafficking crime; and being a felon in possession of firearms and ammunition.

Taquan Williams, 24, of Trenton, was convicted of being a felon in possession of firearms and ammunition. The jury found Williams not guilty of possession with intent to distribute heroin and possession of firearms in furtherance of a drug-trafficking crime.

The jury deliberated for approximately 2½ days before returning the verdicts following a three-week trial before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court.

In October 2018, Roberts, Wimbush, Williams, and 23 other individuals were charged by criminal complaint with conspiracy to distribute heroin; Wimbush, Williams, and others also were charged with firearms offenses. On Feb. 27, 2020, a grand jury returned a 10-count third superseding indictment charging Roberts, Wimbush, Williams, and four other defendants with conspiracy to distribute one kilogram or more of heroin and various other drug and firearms offenses. Roberts, Wimbush, and Williams are the last of the 26 defendants charged in the original criminal complaint to be convicted of one or more federal criminal offenses. The other 23 defendants have pleaded guilty.

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

In 2018, Roberts, Wimbush, and others participated in a large drug trafficking conspiracy that operated in various areas of Trenton, and which sought to profit from the distribution of heroin. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that defendant Jerome Roberts and conspirator Jakir Taylor obtained regular supplies of hundreds of “bricks” of heroin from conspirator David Antonio, whom they referred to as “Pop” and “Papi,” and that they distributed those supplies of heroin to other dealers and end users in and around Trenton. In August and September 2018, Roberts and Taylor agreed to obtain a massive supply of heroin of more than 1,400 “bricks,” which Roberts referred to as “the motherload.” On Oct. 25, 2018, law enforcement executed a search of supplier Antonio’s residence in Trenton and recovered nearly 1½ kilograms of heroin and a substantial amount of packaging paraphernalia.

On Sept. 6, 2018, law enforcement officers stopped a green 2002 Volkswagen Passat after observing Williams, a previously convicted felon, enter the vehicle carrying a yellow plastic bag believed to contain contraband. The Passat was driven by, and registered to, Wimbush, who also was a previously convicted felon. During a subsequent search of the vehicle, law enforcement officers recovered from a secret trap compartment installed under the rear passenger’s seat approximately 57 bricks of heroin, four semiautomatic firearms – including a .223 caliber assault rifle linked with a shooting in Trenton four days earlier – hundreds of rounds of ammunition, and the yellow plastic bag that defendant Williams had carried into the vehicle moments earlier. Law enforcement officers discovered in the yellow bag two boxes of .45 caliber ammunition and three .45 caliber firearm magazines, which matched one of the semiautomatic firearms also found in the trap compartment. Law enforcement officers identified the heroin as having been supplied by Taylor and another member of the conspiracy.

Roberts faces a combined statutory mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison, and a maximum fine of $10 million. Wimbush faces a combined statutory mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison, and a maximum fine of $5 million. Williams faces a statutory a maximum term of imprisonment of 10 years, and a maximum fine of $250,000.

Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews; officers of the Trenton Police Department, under the direction of Police Director Steve Wilson; officers of the Princeton Police Department, under the direction of Chief of Police Christopher Morgan; officers of the Ewing Police Department, under the direction of Chief of Police Albert Rhodes; officers of the Burlington Township Police Department, under the direction of Acting Public Safety Director James Sullivan; and detectives of the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, with the investigation leading to today’s charges. She also thanked officers of the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; detectives of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri; officers of the Mercer County Sheriff’s Office, under the direction of Sheriff John A. Kemler; and members of the New Jersey State Board of Parole for their assistance in the investigation and prosecution of the case.

The government is represented by Attorney-in-Charge J. Brendan Day and Assistant U.S. Attorney Alexander Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Greater Trenton Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies to enhance the identification, apprehension, and prosecution of individuals involved in gang-related activities, violent crime, and drug distribution in and around the greater Trenton area. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.

NEWARK, N.J. – Six South Carolina residents have been charged with conspiring to illegally sell firearms, including nine handguns, in and around New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Kendell McFadden, 28, Laronmir McFadden, 27, Savon Harrison, 25, Dontavian Jones, 24, Donjanea McClary, 24, and Michael Gamble, 31, all of Florence, South Carolina, are each charged by amended criminal complaint with one count of conspiracy to engage in the business of unlicensed firearms dealing. Kendell McFadden is also charged with one count of possession of firearms and ammunition by a convicted felon. 

Gamble made his initial appearance today before U.S. Magistrate Judge Jessica S. Allen and was released on $100,000 unsecured bond.

McClary had her initial appearance before Judge Waldor by videoconference on Sept. 28, 2021 Kendell McFadden, Laronmir McFadden, Harrison, and Jones, appeared by video conference before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court on Sept. 27, 2021. All of these defendants were released on $100,000 unsecured bonds.

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

From August 2019 through September 2021, Kendell McFadden, Laronmir McFadden, Harrison, Jones, McClary, and Gamble and others engaged in a conspiracy to traffic firearms from South Carolina to New Jersey. Kendell McFadden, a convicted felon, and Laronmir McFadden, directed Harrison, McClary and other straw purchasers to purchase firearms in or around Florence, South Carolina, and then transported and sold those firearms to individuals in and around Paterson, New Jersey, and elsewhere. 

On Sept. 26, 2021, law enforcement intercepted a vehicle containing Kendell McFadden, Laronmir McFadden, Jones and Harrison traveling from South Carolina to New Jersey and recovered nine firearms. Two of the firearms recovered were purchased by McClary in South Carolina.

On July 9, 2021, Harrison and Gamble purchased approximately five firearms in South Carolina using Gamble’s debit card. One of the firearms purchased using Gamble’s card was recovered approximately four days later in Paterson. Another firearm purchased using Gamble’s card was recovered in Paterson last week. And records obtained from accounts associated with Kendell McFadden showed that Kendell McFadden had transmitted multiple payments to Gamble in and around July 9, 2021.

The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of a firearm by a felon carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

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.

Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Division, and Special Agent in Charge Vince Pallozzi, Charlotte, South Carolina Division; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges.

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

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

CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to a federal prison term for leading a conspiracy to distribute and sell oxycodone, Adderall, and Xanax while also defrauding the federal Supplemental Nutrition Assistance Program (SNAP), and his son was sentenced for conspiring with his father to distribute Adderall, distributing oxycodone, and defrauding the SNAP program by using unlawfully obtained benefits sold to him by his father, Acting U.S. Attorney Rachael A. Honig announced.

Rocco DePoder, 68, of Gloucester City, New Jersey, was sentenced to 70 months in prison. His son, Michael DePoder, 41, also of Gloucester City, was sentenced to five years of probation, with 14 months of home detention with location monitoring. Rocco DePoder previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with conspiring to distribute and possess with intent to distribute oxycodone, distributing a quantity of oxycodone, and unlawfully acquiring SNAP benefits in exchange for controlled substances and unlawfully using and possessing those and other SNAP benefits. Michael DePoder previously pleaded guilty by videoconference before Judge Bumb to an information charging him with conspiring to distribute and possess with intent to distribute Adderall, distributing oxycodone, and unlawfully acquiring and using SNAP benefits. Judge Bumb imposed both sentences today in Camden federal court.

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

Rocco DePoder admitted that on multiple occasions from June 2019 to March 2020, he worked with Erick Bell and others to sell oxycodone in New Jersey. Rocco DePoder obtained 60 80 mg. oxycodone pills for $25 per pill from Bell on February 3, 2020, with the intention of distributing the pills to other people. He also admitted to purchasing resale quantities of oxycodone, Adderall, and Xanax from conspirators and reselling the pills to others, serving as a leader of criminal activity in that conspiracy. Rocco DePoder admitted to selling oxycodone, Adderall, and Xanax pills to another person in exchange for a total of $8,374 in SNAP benefits, which were on Electronic Benefit Transfer (EBT) cards, and then personally using some of those SNAP benefits and selling and giving EBT cards to others so they could unlawfully use the SNAP benefits. SNAP, formerly known as the Food Stamp program, is administered by the U.S. Department of Agriculture. EBT cards are similar to debit cards and are used to make food purchases with SNAP benefits – when an EBT card is swiped at a food store authorized for participation in the SNAP program, the amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the purchase amount is credited to the retailer’s designated bank account.

Michael DePoder admitted that on multiple occasions from December 2019 to March 2020, he distributed Adderall to his father, Rocco DePoder, as part of a drug distribution conspiracy. Michael DePoder also independently sold oxycodone pills to an associate on multiple occasions. He also admitted to unlawfully acquiring SNAP benefits from his father and unlawfully using and possessing those and other SNAP benefits totaling $2,676.

In addition to the prison terms, Judge Bumb sentenced Rocco DePoder three years of supervised release, ordered him to pay restitution of $8,374 and forfeit cellphones, a police badge and $6,598 in case. She ordered Michael DePoder pay $2,676 in restitution. 

Nine other defendants – Marcus Rushworth, 48of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 58, of Myrtle Beach, South Carolina, formerly of Blackwood; Eric Bell, 50, Steven Walker, 50, William Summers, 69, and Neal Thompson, 58, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.  Kenneth Rushworth, 60, of Gloucester City, was previously sentenced to 1 year in federal prison, and Alexander Siaca, 56, of Camden was sentenced to 3 years’ probation, including 3 months of home detention with location monitoring.  Charges remain pending against Maurice Williams, 40, and Lolita Paynter, 56, both of Camden, and Holly Clark, 40, of West Deptford, New Jersey.

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

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

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

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 100 months in prison for possessing more than 40 grams of fentanyl with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.

Derrick Norwood, 58, of Neptune, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging him with one count of possession with intent to distribute more than 40 grams of fentanyl.  Judge Thompson imposed the sentence today by videoconference.

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

On July 18, 2019, Norwood knowingly possessed 39 bricks, or 1,982 individual glassine bags, of heroin mixed with fentanyl inside a safe in his residence.  Norwood admitted that he possessed the heroin-fentanyl mixture for the purpose of distributing it to others in and around Monmouth County.

In addition to the prison term, Judge Thompson sentenced Norwood 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, and detectives from the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey, with the investigation leading to today’s sentencing. 

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

NEWARK, N.J. – A Hudson County, New Jersey, man will make his initial appearance today on charges that he defrauded victims by promising to invest their money in a ticket purchase and resale business, when in fact he diverted their investments for his own personal use and benefit and to pay back prior investors, Acting U.S. Attorney Rachael A. Honig announced.

Michael J. Clarke, 62, of Jersey City, New Jersey, is charged by superseding indictment with two counts of wire fraud. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Jessica S. Allen.

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

From October 2015 to October 2016, Clarke, who was a licensed municipal securities trader, represented to his victims that he separately operated a ticket brokering business that purchased tickets to entertainment and sporting events and then resold those tickets for a profit.  Clarke also represented that he had access to permanent seat licenses for the U.S. Open Tennis Championships that could be purchased and resold for a profit. The victims relied on his misrepresentations and invested money with Clarke, believing that they would receive a share of the profits from the sales of those tickets or U.S. Open seat licenses. Instead of using the victims’ money as promised, Clarke used their investments for his personal expenditures or to pay back prior investors in his ticket brokering business. In total, Clarke obtained approximately $617,400 from the victims over the course of the fraudulent scheme.

The counts of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine $250,000, 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 charges.

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

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

NEWARK, N.J. – A general contracting company based in Newark was sentenced today to five years’ probation for violating Occupational Safety and Health Administration (OSHA) standards, leading to the death of an employee, Acting U.S. Attorney Rachael A. Honig announced.

Trustworthy LLC, d/b/a “Trustworthy Roofing and Siding,” (Trustworthy) via its owner, Derico Ferreira, previously pleaded guilty before U.S. Magistrate Judge Mark Falk in Newark federal court to an information charging it with one count of willfully violating OSHA standards by failing to provide fall protection to employees engaged in the construction of a residential home, which caused the death of an employee. 

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

On Oct. 15, 2016, Ferreira and four employees began installation of a new roof on a two-story residential home located in Fair Lawn, New Jersey. Trustworthy did not use or provide to its employees any personal fall protection equipment, such as safety harnesses, lanyards, tie-off ropes, guard rails, safety nets, or other feasible means of fall protection, while they were working on the roof. 

During the installation of an ice and water shield, one of Trustworthy’s employees (Employee 1), fell off the left corner of the roof. Employee 1 was not wearing any fall protection gear at the time. Ferreira had the required equipment in his truck, and could have also installed a guard rail system around the perimeter of the roof from a ladder, prior to the start of roofing work, but failed to do so. Trustworthy LLC was previously cited by OSHA during an inspection in 2014 for failing to provide fall protection to its employees.

In addition to the five years of probation, Trustworthy will pay restitution of $305,275 to the estate of Employee 1. The plea agreement also includes specified conditions that Trustworthy must follow, including providing training procedures to all its employees and a requirement to follow enhanced safety provisions for future construction jobs. The company must also notify OSHA of each new construction job it undertakes and permit entry to OSHA employees at all of its worksites. 

Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Acting Special Agent in Charge Jonathan Mellone; Daniel Hennefeld, Counsel for OSHA Office of the Solicitor, Region 2, and OSHA Compliance Officers with the investigation leading to today’s guilty plea. 

The government is represented by Special Assistant U.S. Attorney Jason P. Garelick of the U.S. Attorney’s Office Government Fraud Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 33 months in prison for his role in a conspiracy to steal check books and credit cards from the postal system, Acting U.S. Attorney Rachael A. Honig announced.

Tashon Ragan, aka “Ta,” 21, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence by videoconference.

Three of Ragan’s conspirators, Jeffrey Bennett, 27, of Irvington, New Jersey, and Jahaad Flip, 22, and Janel Blackman, 42, both of Newark, pleaded guilty before Judge Wigenton earlier this year to conspiracy to commit bank fraud and are awaiting sentencing. Blackman also pleaded guilty to filing fraudulent applications with the U.S. Small Business Administration (SBA) for Economic Injury Disaster Loans.

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

From February 2019 to May 2020, Ragan conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at victim financial institutions and withdrawing funds from those accounts before the fraudulent checks were identified and further withdrawals were blocked. Ragan and his conspirators arranged for USPS employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Ragan and his conspirators. Ragan and his conspirators forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students and who had given Ragan and his conspirators access to their accounts, also in exchange for cash. Ragan and his conspirators created counterfeit checks, including counterfeit pandemic relief checks. Ragan and his conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Ragan and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.

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

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

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

NEWARK, N.J. – A Cumberland County, New Jersey, man will make his initial appearance today on charges related to his explosive devices and the materials used to manufacture them, Acting U.S. Attorney Rachael A. Honig announced.

Thomas Petronglo, 63, of Vineland, New Jersey, is charged by indictment with one count each of unlawful possession of a destructive device, unlawful making of a destructive device, and unlawful storage of explosive materials. He is scheduled to appear by videoconference later today before U.S. Magistrate Judge Jessica S. Allen.  

According to documents filed in this case:

On March 12, 2021, Petronglo was found in possession of one destructive device, a 5 ¾-inch diameter metal can, containing a quantity of an explosive mixture of potassium perchlorate and aluminum, with a fuse sticking out of the device.

Petronglo also possessed multiple intact improvised explosive devices and explosive materials, including:

• One suspected improvised explosive device containing a plastic cylinder, suspected explosive mixture inside the plastic cylinder, with cardboard tubing and a fuse sticking out of the device;
• One suspected improvised explosive device containing a plastic cylinder, M class device inside the plastic cylinder, with suspected explosive mixture wrapped in black electrical tape with a fuse sticking out of the device;
• One suspected improvised explosive device, containing a black plastic cylinder wrapped in black electrical tape, inside the cylinder is a suspected explosive mixture, with a fuse sticking out of the device;
• One suspected improvised explosive device, containing cardboard tubing with twine wrapped around the cardboard tubing and the wrapped in black electrical tape, with a suspected explosive mixture inside the cardboard tubing and a fuse sticking out of the device;
• Two M class devices – one 3-inch M class device and one 2-inch M class, both suspected devices in red cardboard tubes with wooden plug at the end of the devices, inside the cardboard tubing is a suspected explosive mixture with a fuse sticking out of the device;
• Numerous materials used to manufacture destructive devices, including precursor chemicals, hobby fuse, time fuse, the explosive making materials such as the cardboard tubing, and black plastic cylinders.

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 Vineland Police Department, under the direction of Chief Pedro Casiano; the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae, and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the charges. 

The counts of possession of a destructive device and making of an explosive device each carry a maximum penalty of 10 years in prison and a $10,000 fine. The count of unlawful storage of explosives carries a maximum penalty of one year in prison.

The government is represented by Assistant U.S. Attorney Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit.

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

NEWARK, N.J. – A Paterson, New Jersey, man was sentenced today to 55 months in prison for distributing fentanyl, Acting U.S. Attorney Rachael Honig announced.

Maurice Tisdale, 28, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an information charging him with knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence today by videoconference.

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

Tisdale is a member and associate 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 officers determined that from at least September 2018 through Oct. 1, 2019, Tisdale and other members and associates of the 230 Boys distributed narcotics, including heroin, fentanyl, and cocaine base, in and around Paterson. On June 25, 2019, Tisdale worked with other members and associates to distribute fentanyl to another individual.

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

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

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 officers of the Passaic County Sheriff’s Office, under the leadership 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.

NEWARK, N.J. – A former U.S. Army major and his wife today were sentenced for a third time for their respective roles in abusing their adopted children – who all were less than 4 years old and developmentally delayed – through neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, Acting U.S. Attorney Rachael Honig announced.

Carolyn Jackson, 44, was sentenced to time served and her husband, John E. Jackson, 46, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, was sentenced to 18 months of home confinement.

Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson had received 24 months in prison and John E. Jackson had received probation and 400 hours of community service when they were originally sentenced in December 2015. The government appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which ruled in July 2017 that the District Court had committed several errors in the process of imposing those sentences. The defendants were resentenced on April 11, 2018. Carolyn Jackson received a sentence of 40 months in prison, with credit for time served. John Jackson received the same probationary sentence. The government appealed for a second time and the U.S. Court of Appeals vacated and remanded for a second resentencing after finding once again several errors.

The Jacksons were each found guilty following a four-month trial before U.S. District Judge Katharine S. Hayden in Newark federal court of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child. Judge Hayden imposed the sentences today in Newark federal court.

The case falls under federal jurisdiction because the crimes were committed on a military base. John Jackson was discharged from the Army in May 2015.

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

From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.

After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.

As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple. 

None of the children, adoptive and biological, remain in the custody of the defendants.

Judge Hayden also sentenced Carolyn Jackson to one year of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s sentencings. She also thanked the U.S. Army Criminal Investigation Command, under the command of Major General David E. Quantock, and the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll.

The government is represented by Assistant U.S. Attorneys John Romano and Naazneen Khan of the U.S. Attorney’s Office in Newark.

NEWARK, N.J. – A Cumberland County, New Jersey, man today admitted conspiring to distribute and possessing with intent to distribute 400 grams or more of fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Emanuel Figueroa-Martinez, 36, of Millville, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to distribute 400 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl.

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

In April 2020, Figueroa-Martinez conspired to distribute five kilograms of fentanyl. On April 24, 2020, Figueroa-Martinez transported the fentanyl to a location in Monmouth County, New Jersey. Upon arrival, he was arrested, and the fentanyl was recovered from his car.

The offenses to which Figueroa-Martinez pleaded guilty each carry 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 Feb. 8, 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, the Asbury Park Police Department, under the direction of Chief David Kelso, and the Neptune Township Police Department, under the direction of Chief James Hunt, with the investigation leading to today’s guilty plea. 

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

NEWARK, N.J. – Alexander Varice, 27, of South Orange, New Jersey, was sentenced today to 21 months in prison for his role in a conspiracy to defraud two banks out of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.

Varice’s conspirators, Allen Varice, 25, of East Orange; Dashawn Duncan, 27, of South Orange; Nasheed Jackson, 24, of Newark; Qshaun Brown-Guinyard, 27, Newark; and Tamir Duval, 22, of Newark; previously pleaded guilty by video before U.S. District Judge Susan D. Wigenton to Informations charging each with one count of conspiracy to commit bank fraud.  Judge Wigenton imposed the sentence on Varice today via video conference. Duncan, Jackson, Brown-Guinyard, Allen Varice have been sentenced by Judge Wigenton. Duval is scheduled to be sentenced in December of this year.  

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

From in and about August 2018 through in or about January 2020, Varice and his coconspirators engaged in a scheme to use stolen credit cards and/or checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme.

The credit cards and blank checks were stolen from various New Jersey-based United States Postal Service facilities, and never reached their intended recipients. After obtaining the stolen credit cards, Varice and his coconspirators used them to make unauthorized purchases at various retail stores and/or to withdraw cash from automated teller machines (“ATMs”) in New Jersey and elsewhere.  With respect to the stolen blank checks, Varice and the coconspirators altered the date, payee, and amount of the stolen checks prior to deposit.  Varice and his coconspirators then fraudulently withdrew money at various ATMs from third-party account holders’ accounts.

In addition to the prison term, Judge Wigenton sentenced Varice to three years of supervised release.

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

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

NEWARK, N.J. – An Essex County, New Jersey, man today admitted that he conspired to fraudulently obtain more than $700,000, Acting U.S. Attorney Rachael A. Honig announced. 

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

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

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal program unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who are not eligible for other types of unemployment (e.g., self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program that provides an additional $600 weekly benefit to those eligible for PUA and regular UIB. The Washington State Employment Security Department (ESD) administers and manages the regular unemployment and PUA programs in the State of Washington.

Robert opened bank accounts with a fraudulent passport in another individual’s name. He and his conspirators then caused an application to be made to ESD for UIB in the name of Victim 1. In response, ESD caused UIB to be deposited into one of the fraudulent bank accounts. Robert and his conspirators: partook in business email scams, including causing a victim to transfer approximately $28,000 into one of the bank accounts; partook in romance scams, including causing a victim to make five deposits into one of the bank accounts totaling approximately $19,000; and fraudulently obtained money from the IRS by causing the IRS to transfer payments in four victims’ names into one of the bank accounts. Once the fraudulently obtained money was in the bank accounts, Roberts moved the money, including through the purchase of money orders. Robert and his conspirators caused more than $700,000 in losses.

The charge of conspiring to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Robert or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Feb. 15, 2022.

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

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

NEWARK, N.J. – A Kansas man who executed an elaborate foreign currency Ponzi scheme that took in more than $900,000 from investors was sentenced today to 36 months in prison, Acting U.S. Attorney Rachael Honig announced.

Thomas Lanzana, 54, of Wichita, Kansas, previously pleaded guilty before U.S. District Judge John Michael Vazquez to Count One of an indictment charging him with wire fraud. Judge Vazquez imposed the sentence today in Newark federal court.

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

Lanzana fraudulently solicited approximately $900,000 from at least 20 customers to invest in what he claimed were highly successful, algorithm-based trading pools in foreign currency derivatives (“forex”) and other financial instruments.

To maintain the victims’ trust, Lanzana sent false account statements to his customers, posted false monthly account statements to his companies’ websites showing balances and trading activity for forex trading accounts that did not exist, and generated and sent false tax documents to customers reporting earnings that did not exist.

Lanzana misappropriated hundreds of thousands of dollars in investor funds, using some to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including purchases on Amazon.com, payments to a luxury car dealer and a jewelry retailer, and golf expenses.

In addition to the prison term, Judge Vazquez sentenced Lanzana to three years of supervised release. 

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing. She also thanked the U.S. Commodity Futures Trading Commission’s Division of Enforcement for its assistance.

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

CAMDEN, N.J. – A Camden man today admitted to possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Desmund M. Walker, 36, pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with possession with intent to distribute fentanyl.                                                                                                                                                                                                                                                                                       

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

On May 16, 2020, patrol officers from the Camden County Police Department encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers through Robert B. Johnson Park, was apprehended, and found to be in possession of 17.67 grams of fentanyl wrapped in 93 white wax folds. 

The maximum penalty for possession with intent to distribute fentanyl is 20 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 10, 2022.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s plea. She also thanked the Camden County Police Department, under the direction of Chief Gabriel Rodriguez, for its assistance.

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

CAMDEN, N.J. – A Camden County, New Jersey, man today admitted defrauding a victim of almost $2 million in connection with a fraudulent investment scheme, Acting U.S. Attorney Rachael A. Honig announced.

Frank N. Tobolsky, 59, of Cherry Hill, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of wire fraud.

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

Beginning in 2013, Tobolsky raised money from a victim, purportedly as an investment that would loan money to season ticket holders who owned seat licenses for the Philadelphia Eagles. The seat licenses would be used as collateral to secure the loans. The victim sent Tobolsky approximately $2.4 million to invest in the purported business venture. The money was not used for loans to season ticket holders. Instead, Tobolsky used a substantial portion on personal expenses.  

The charge of wire fraud to which Tobolsky pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross loss to any victim or gain to Tobolsky, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office for the District of Delaware for assisting in the investigation.

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

NEWARK, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, was arrested today for allegedly assaulting and physically punishing inmates, Acting U.S. Attorney Rachael A. Honig announced.

John Makos, 41, of Millville, New Jersey, was charged by complaint with participating in a conspiracy to deprive inmates of civil rights. Makos is scheduled appear this afternoon by videoconference before U.S. Magistrate Judge James B. Clark 3rd.

“Prisoners are entitled to be treated with basic dignity, not pummeled and humiliated at the whim of correctional officers,” Acting U.S. Attorney Honig said. “We once again affirm our commitment to uphold the civil rights of all persons, including those living in a correctional setting.”

“Our investigation alleges that the actions in this case included beatings of people without provocation or justification in violation of their civil rights,” FBI Special Agent in Charge George M. Crouch Jr. said. “A badge is not a license to abuse the power it conveys or to deny the civil rights of the people in one’s custody. It matters not whether the wearer belongs to a federal, state, or local law enforcement agency, or a correctional facility, we all bear the same responsibility to respect and defend the rights of those in our care. Let me be clear, the FBI protects and upholds the rights of all of our citizens. We will go wherever we are needed to weed out illegal activity and arrest the perpetrators.”

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

From at least April 2019 through December 2019, while working as a corrections officer, Makos conspired with others at Bayside State Prison to assault and punish certain inmates in a cruel and arbitrary manner by using excessive force that caused physical injury and pain to the victims. Makos and at least one other corrections officer established an ad hoc regime of physical punishments for actual and perceived violations of the prison’s rules and customs and meted out such punishments in a cruel and degrading manner, at times with the assistance of other inmates. 

Makos and at least one other corrections officer assaulted a victim inmate using what was known to inmates as “the fence treatment:” one of the victim’s arms would be handcuffed to a fence in the back area of the prison’s kitchen and the other arm would be handcuffed to a swinging door, so that the inmate would appear to be crucified. Another inmate, working with Makos and at least one other corrections officer, moved the swinging door so that the victim inmate’s body expanded and collapsed while Makos and at least one other corrections officer delivered closed fist strikes to the victim’s body. 

Makos and at least one other corrections officer also attempted to ensure that their victims would not report the abuse to prison authorities by leading the inmates to believe that if they reported the abuse, they would lose their kitchen jobs, the income associated with those jobs, and the attendant access to better and more plentiful food items, all of which were highly valued within the prison.

The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.

Acting U.S. Attorney Honig credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation.  She also thanked the New Jersey Department of Corrections, under the direction of Acting Commissioner Victoria Kuhn, for their assistance in the investigation. 

The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel of the U.S. Department of Justice’s Civil Rights Division.

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.  – Three members of the U.S. Attorney’s Office, District of New Jersey, are among those who were honored by the Department of Justice’s 37th Annual Director’s Awards this year, Acting U.S. Attorney Rachael A. Honig announced today.

Connie Jones won for Superior Performance in a Litigative Support Role, recognized for her outstanding contributions to criminal prosecutions in the District of New Jersey over the past 27 years. Since 2018, when she became a supervisor overseeing half of the Criminal Division’s paralegals, Jones has been integral to the district’s effort to redefine the role of paralegals in criminal matters. She developed standardized operating procedures and protocols to ensure consistency in the preparation of grand jury subpoenas, the maintenance of case files, the organization of evidence, and the management of discovery. Jones helps manage the office’s “Triggerlock” program, ensuring the safety of the community by assisting in the prosecutions that result in the seizure of hundreds of unlawfully possessed firearms.

Ronnell Wilson and Dean Sovolos won for Superior Performance by an AUSA – Criminal. Wilson and Sovolos coordinated and led the response of the U.S. Attorney’s Office for the District of New Jersey to two tragic incidents of violent extremism that took place in a span of only eight months: the first, the domestic terror attack fueled by anti-Semitism that took place in Jersey City, New Jersey; and the second, the bias-motivated attack on U.S. District Judge Esther Salas and her family. Wilson and Sovolos demonstrated extraordinary skill and professionalism in working tirelessly to investigate these attacks and find answers for the victims and their families. Their work on these investigations was supported by many others in the U.S. Attorney’s Office.

“I am proud to congratulate our office’s three recipients of this year’s Director’s Awards,” Acting U.S. Attorney Honig said. “The recognition of their work in the litigation support and criminal areas reflects not only on their tremendous contributions to protecting the people of New Jersey, but on all of the people in this office. They work every day – under especially trying circumstances during the COVID-19 pandemic – and maintain the highest levels of professionalism and performance. I am grateful to be their colleague.”

The traditional ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building was again cancelled this year in response to the COVID-19 pandemic.

The Executive Office for U.S. Attorneys provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

NEWARK, N.J.– A Passaic County, New Jersey, man was arrested today in connection with a scheme to defraud investors of over $1 million through various misrepresentations and omissions about his business operations and his background, Acting U.S. Attorney Rachael A. Honig announced.

Gregory Ciccone, 43, of Woodland Park, New Jersey, is charged by complaint with securities fraud. He appeared this afternoon by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was released on $300,000 unsecured bond.

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

Ciccone, who was previously convicted of wire fraud and filing a false tax return, once again orchestrated an investment fraud scheme whereby he obtained approximately $1.5 million from at least 22 investors through short-term, high-interest promissory notes in less than two years. Ciccone represented to prospective investors that his companies, Platinum Travel and Entertainment LLC, a New Jersey-based LLC, and Platinum Enterprises & Concierge Services Inc. (Platinum) were reserving blocks of rooms at luxury hotels, which would later be resold to elite clients at a profit.

Investors were promised 15 percent to 50 percent return on their investments for term periods ranging from one month to six months. Instead of using the funds to reserve blocks of rooms at luxury hotels, Ciccone diverted the funds for personal expenses and, in certain instances, paid other investors to make them believe that their investment was generating profits. When confronted with requests for transparency and redemptions by certain investors, Ciccone failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation.

Ciccone did not disclose to certain victim investors before they invested that he had a federal criminal conviction and that the conditions of his supervised release prohibited him from entering into promissory notes without approval of his U.S. Probation officer, which he had not requested.

From May 2019 through November 2019, Ciccone also made material misrepresentations to additional victim investors directly and through Individual 1, who began raising money on behalf of Ciccone in May 2019. Ciccone told Individual 1 about, and sent emails containing, lists of Platinum’s purported “immediate bookings” at various hotels to support his need to raise money for Platinum. Ciccone made these statements to Individual 1 knowing Individual 1 would communicate the information to investors and prospective investors. Ciccone’s statements to Individual 1, which Individual 1 disseminated to investors, were false. Platinum and Ciccone had not secured the hotel reservations, and Ciccone did not use the funds obtained from the Victim Investors to secure the hotel bookings listed in these communications.

Over the course of the scheme, Ciccone misappropriated the majority of funds received from victim investors, totaling at least $1.35 million, by using the money to pay for personal items, such as $54,330 to buy a BMW; approximately $235,000 to purchase clothes, wine, and other personal items; and over $216,000 in cash withdrawals. Ciccone also used investor funds to pay approximately $120,000 to other investors with overdue notes.

The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine.

Acting U.S. Attorney Honig thanked special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and special agents of IRS – Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s charges. She also thanked the U.S. Securities and Exchange Commission’s Denver Regional Office, under the direction of Regional Director Kurt Gottschall, for its assistance.

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

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

NEWARK, N.J. – A caseworker employed by the New Jersey Department of Children and Family Services, Division of Child Protection and Permanency, was charged today with possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Trent Collier, 55, of Kearny, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was released on $50,000 unsecured bond.

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

On Sept. 28, 2021, Collier arrived at Newark Liberty International Airport aboard a flight from the Dominican Republic. Law enforcement officials searched his luggage and located a tablet device and a cellular phone. A forensic search of both devices identified at least two images of child sexual abuse depicting prepubescent children. Based on an analysis of the phone, Collier sent these images via WhatsApp message.

The maximum penalty if convicted is 10 years in prison and a maximum fine of $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to someone else, whichever is greatest.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Katherine Calle of the Criminal Division in Newark.

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for conspiring to defraud two banks of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.

Qshaun Brown-Guinyard, 27, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.

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

From August 2018 through January 2020, Brown-Guinyard and his conspirators engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey. Because the cards were stolen, they never reached the intended cardholders. After obtaining the stolen cards, Brown-Guinyard and his conspirators used them to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere.  

The blank checks were also stolen from various New Jersey-based post office facilities, and never reached their intended recipients. Once obtained, Brown-Guinyard and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit. He and his conspirators would then fraudulently withdraw money at various ATMs from the third-party account holders’ accounts.

Four of Brown-Guinyard’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, and Allen Varice– have previously pleaded guilty to identical informations. Jackson and Duncan were each sentenced to 24 months in prison, and Allen Varice was sentenced to 27 months in prison. Alexander Varice is scheduled to be sentenced Oct. 5, 2021.

In addition to the prison term, Judge Wigenton sentenced Brown-Guinyard to five years of supervised release and ordered him to pay restitution of $181,158.

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 in Newark, with the investigation leading to today’s sentencing.

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

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

Willy Cruz-Bonilla, 24, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a criminal information charging him with aiding and abetting an illegal money transmitting business. 

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

From August 2016 through August 2017, Cruz-Bonilla accepted over $2.5 million in cash and purchased over 90 cashier’s checks at local bank branches in New Jersey and elsewhere.  The investigation revealed that the cash was the proceeds of illegal drug distribution. The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks. 

The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Feb. 1, 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, DNCD) with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted assaulting a U.S. Postal Service employee by pointing a handgun at the employee, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Cartagena, 34, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to one count of assaulting a federal employee.

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

On March 3, 2021, an employee of the U.S. Postal Service was driving his Postal Service truck in Jersey City, New Jersey, when Cartagena requested that the employee pull over, which he did. The postal employee then exited his truck and approached Cartagena to ask why he had asked him to pull over. Cartagena pulled out a handgun and pointed it at the postal employee.  The postal employee immediately pushed Cartagena’s hand away and ran into traffic to get away. Cartagena then entered his car and drove away.

The charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 9, 2022.

Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Raimundo Marrero, and the Jersey City Police Department, with the investigation leading to the charges.

The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 65 months in prison for distributing and conspiring with others to distribute more than 28 grams of cocaine base, Acting U.S. Attorney Rachael A. Honig announced.

Nasir Williams, 24, of Newark, previously pleaded guilty by videoconference before U.S. District Court Judge John Michael Vazquez to an information charging him with one count each of conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine case and distribution of 28 grams or more of cocaine base. Judge Vazquez imposed the sentence today in Newark federal court.

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

Stephen Crane Village is a public housing complex in Newark, on the border with Belleville, New Jersey. From at least February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated there.

Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, law enforcement officers determined that numerous individuals, including Williams, conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village. On Jan. 15, 2020, in Stephen Crane Village, Nasir Williams sold approximately 31 grams of cocaine base to an individual while under surveillance by law enforcement.  

In addition to the prison term, Judge Vazquez sentenced Williams to four years of supervised release.

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; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s guilty plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.

This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities.  This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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

CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 120 months in prison for conspiring to distribute heroin and cocaine in Camden, Acting U.S. Attorney Rachael A. Honig announced.  

Dwight Williams, 20, of Mount Holly, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to a superseding information charging him with conspiracy to distribute 100 grams or more of a mixture or substance containing heroin, as well as a mixture and substance containing cocaine. During his sentencing hearing, Williams agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was three to 10 kilograms. 

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 various investigative tactics including 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 drug proceeds.  The street-level 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. 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 of these defendants already have pleaded guilty to drug conspiracy charges before Judge Bumb in the United States District Court. Three defendants are awaiting trial, and 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 Williams to five years of supervised release.

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

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

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

Orlando Delgado, 31, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit money laundering and one count of identity fraud. 

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

From August 2018 through December 2019, Delgado laundered over $6.5 million in cash drug proceeds on behalf of a large-scale money laundering organization with close ties to drug trafficking organizations in the Dominican Republic and elsewhere. Delgado accepted large amounts of cash drug proceeds and laundered it by purchasing over 390 cashier’s checks at local bank branches in New Jersey, New York, and Florida. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Delgado tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks. 

In August 2019, Delgado obtained a fraudulent identification card in someone else’s name and used it to open multiple bank accounts, which he then used to purchase over $1.5 million in cashier’s checks with cash drug proceeds. 

The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of identify fraud carries a maximum prison sentence of five years and a $250,000 fine. Sentencing is scheduled for Feb. 8, 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, and the New York Division, under the direction of Special Agent in Charge Raymond Donovan; 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, “DNCD”) with the investigation leading to today’s guilty plea.

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

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

NEWARK, N.J. – An Illinois man was arrested today for allegedly using other individuals’ personal identification information to obtain unemployment insurance benefits while he was incarcerated, Acting U.S. Attorney Rachael A. Honig announced.

Devontae Stokes, 27, of Country Club Hills, Illinois, is charged by complaint with conspiracy to commit wire fraud. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Jeffrey Cole in the Northern District of Illinois.

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

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new, temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional weekly benefit to those eligible for PUA and regular UIBs. 

Between August 2020 and November 2020, Stokes was incarcerated at FCI Fort Dix, a federal correctional institutional with an adjacent satellite camp located in Fort Dix, New Jersey. While incarcerated, Stokes and his associates caused UIB applications to be made to numerous states in the names of three victims. In response, the states provided more than $70,000 in UIB.

The charge of conspiring to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Stokes or twice the gross loss suffered to the victims of his offense.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in Manhattan, New York; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest. She also thanked Federal Bureau of Prisons personnel at Fort Dix for their assistance.

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

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

NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a scheme to defraud banks of more than $1 million using stolen and counterfeited checks and stolen identities, Acting U.S. Attorney Rachael A. Honig announced.

Frank Ambrosio, 36, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.

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

Ambrosio and his conspirators, including Benjamin Rich and Felix Alamo, agreed to defraud banks across New Jersey by using the stolen personal identification information of other individuals to open fraudulent bank accounts and deposit stolen and counterfeited checks. Rich used stolen identities, which included Social Security numbers belonging to minors, to create sham businesses. Ambrosio, Rich, Alamo and others opened bank accounts for the sham businesses and deposited stolen or counterfeited checks into the accounts and attempted to withdraw or transfer the funds before the banks could detect the fraud. Over the course of the scheme, Ambrosio and his conspirators deposited approximately $1 million in fraudulently obtained checks into the fraudulent business bank accounts, resulting in at least $250,000 in losses to the various banks.

The charge of bank fraud carries a maximum of 30 years in prison and a statutory maximum fine of $1 million, or twice the gain derived from the offense or loss caused by the offense, whichever is greatest.

The charge of aggravated identity theft carries a statutory minimum prison term of two years in prison, to run consecutively to any term of imprisonment imposed on the bank fraud charge. Sentencing is scheduled for February 9, 2022.

Alamo previously pleaded guilty and is scheduled to be sentenced on Oct. 4, 2021.

Rich was indicted on these charges on June 25, 2021, and his trial date has not been scheduled.

Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the Treasury Inspector General for Tax Administration under the direction of Special Agent in Charge Andrew McKay; and the New York Police Department’s Special Fraud Squad under the direction of Assistant Police Chief Jason Wilcox.

The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office in Newark.

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

Defense counsel: William Strazza Esq., Chester, New Jersey

NEWARK, N.J. – A Lyndhurst, New Jersey woman admitted to her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced today.

Ruby Baroni, 54, of Lyndhurst, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Julien Xavier Neals to a two-count information charging her with one count of wire fraud and one count of subscribing to a false tax return.

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

Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company.  In that capacity, Baroni had authority to cut checks against the company’s bank accounts.  During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company.  Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals.  Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use.  In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company.  Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return.  Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on September 20, 2021.

The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine.  The charge of subscribing to a false tax return carries a maximum penalty of 3 years in prison and a $250,000 fine.  Sentencing is scheduled before Judge Neals for January 25, 2022.

Acting U.S. Attorney Honig credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raiumundo Marrero, and the Internal Revenue Service—Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.

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

Defense counsel: Amie E. DiCola, Esq., Passaic, New Jersey

TRENTON, N.J. – A New Jersey man has been arrested for charging unauthorized credit card transactions for music lessons that were not provided to students, and laundering these funds outside of the United States, Acting U.S. Attorney Rachael A. Honig announced.

Michael Lawson, 49, was indicted in 2013 on six counts of wire fraud and six counts of international money laundering. Lawson was extradited from the Czech Republic, made his initial appearance today before U.S. Magistrate Judge Bongiovanni in Trenton federal court, and was released.

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

Lawson was the owner of several internet-based companies that matched art and music teachers with students in need of lessons throughout the United States. The students entered into contracts with Lawson’s companies and agreed to pay for lessons via online credit card transactions. Beginning in November 2008, Lawson started renewing students’ contracts for music lessons without the students’ knowledge and consent, and started charging the students’ credit cards for the lessons that they had not requested. Lawson then directed the funds to be transferred internationally to accounts that he controlled abroad. 

The counts of wire fraud are punishable by a maximum of 20 years in prison and a maximum fine $250,000, or twice the gross gain or loss from the offense, whichever is greatest.  The counts of money laundering are punishable by a maximum penalty of 20 years in prison and a maximum fine of $500,000, or twice the amount involved in the offense, whichever is greater.

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 U.S. Marshals Service; the Ministry of Justice of the Czech Republic; the Czech Police Presidium; INTERPOL; the office of FBI Legat Prague; the office of FBI Legat "The Hague;" and FBI-New York JFK Airport Resident Agency, for their assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing Lawson’s arrest and extradition from the Czech Republic.  

The government is represented by Assistant U.S. Attorney Eric Suggs in Trenton.

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

NEWARK, N.J. – A former Union County, New Jersey, woman today admitted stealing credit cards sent through the mail while employed as a clerk at the U.S. Postal Service (USPS) in Elizabeth, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Myriam Jimenez-Valentin, 33, now of Barbourville, Virginia, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging her with one count of theft of mail.

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

From April 1 to July 23, 2019, Jimenez, then a postal employee, admitted stealing credit cards addressed to third-party victims and mailed to addresses on postal routes in Elizabeth and Roselle Park, New Jersey, that she provided to other individuals in exchange for offers of $100 per card. The fraudulent charges on the credit cards Jimenez stole totaled over $2,000.

The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine. Sentencing is scheduled for Feb. 1, 2022.

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of 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 charge. 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 Philadelphia man today admitted orchestrating a $2 million PPE fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.

Guaravjit Singh, 26, pleaded guilty by videoconference before U.S. District Court Judge Peter G. Sheridan to an information charging him with one count of wire fraud.

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

Beginning in May 2020, in the midst of the COVID-19 pandemic, Singh engaged in a scheme to enrich himself by fraudulently inducing 10 victims to send him over $2 million to obtain personal protective equipment (PPE).  He stole the money, spending it on personal expenses, and he did not provide the promised PPE to the victims. 

For instance, Singh induced victims to enter into an agreement pursuant to which Singh would be paid approximately $7.1 million in exchange for approximately 1.5 million medical gowns, which ultimately were to be sourced to the City of New York. Under the terms of the agreement, the victims wired Singh, though his company GJS Solutions LLC, approximately $712,500, representing a 10 percent deposit for the medical gowns. After receiving these funds from the victims, Singh made additional misrepresentations and excuses to the victims, ensuring them that they would receive the medical gowns. Instead of purchasing and delivering medical gowns, Singh used the funds for personal expenses, including transferring funds to his brokerage account and using the funds for online gaming and other personal expenditures.

The count of wire fraud is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.

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

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

NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted the interstate sale of carvings made of sperm whale ivory, Acting U.S Attorney Rachael A. Honig announced.

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

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

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

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

As part of his plea agreement, Gontarek has agreed to pay a fine of $2,800 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund.

Each of the charges to which Gontarek pleaded guilty carries with it a maximum penalty of one year in prison and a maximum fine of $100,000.  Sentencing is scheduled for Jan. 25, 2022.

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

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

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

Shamir Williams, 26, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to an information charging him with conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and 100 grams or more of heroin and distribution of fentanyl.

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

From May 2020 through Aug. 13, 2020, Shamir Williams, 26, conspired with others to distribute heroin and fentanyl. On June 11, 2020, Williams negotiated the sale of approximately 12,500 glassines of heroin, and then arranged for the delivery of the heroin, from the District of New Jersey to the District of Vermont.

The drug conspiracy charged in count one of the information carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison, and a fine of at least $5 million. Distribution of fentanyl, as charged in count two of the information, carries a maximum penalty of 20 years in prison and a fine of at least $1 million. Sentencing is scheduled for Feb. 2, 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. – An Essex County, New Jersey, public school teacher today admitted his role in conspiring to defraud the N.J. School Employees’ Health Benefits Program (SEHBP) with phony claims for medically unnecessary prescriptions, Acting U.S. Attorney Rachael A. Honig announced.    

Jason Nardachone, 51, of Nutley, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an indictment charging him with one count of conspiracy to commit health care fraud.

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

Nardachone participated in a scheme to defraud the SEHBP by knowingly causing the billing of medically unnecessary compounded medications, such as metabolic vitamins, pain creams, and scar creams, for himself and three other teachers. From September 2015 through February 2016, Nardachone and others received medically unnecessary compounded medications that cost the SEHBP from $3,300 to $22,800 per medication. Nardachone bribed the three other teachers with monthly payments of $500 in exchange for their agreement to obtain compounded medications they did not need. The scheme resulted in losses to the SEHBP of more than $550,000.

The count of conspiracy to commit health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Feb. 1, 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.

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

NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted falsely labeling as “Toys” a package containing 10 live rhinoceros iguanas that was destined for Hong Kong, Acting U.S Attorney Rachael A. Honig announced.

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

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

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

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

Ksepka has agreed, as part of his plea agreement, to pay a fine of $1,000 to the U.S. Fish and Wildlife Service Lacey Act Reward Fund.

The charge to which Ksepka pleaded guilty carries with it a maximum penalty of five years’ imprisonment and a fine of $250,000. Sentencing is scheduled for Jan. 25, 2022.

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

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

CAMDEN, N.J. – Two Camden men have been charged for their roles in robbing a gas station in Camden County, Acting U.S. Attorney Rachael A. Honig announced today.

Paul Rogers, 27, and Kamau Bradshaw, 19, are each charged by complaint with one count of Hobbs Act robbery. They appeared by videoconference before U.S. Magistrate Judge Sharon A. King on Sept. 17, 2021, and were detained.

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

On Sept. 14, 2021, a gas station in Pennsauken, New Jersey, was robbed by two masked individuals carrying an AR-style rifle. One of the robbers wore a gray Nike hooded sweatshirt and scuffed tan work boots. The second robber wore a tan hooded sweatshirt with “REACTIVE” printed on the sleeves and striped boxershorts. They obtained cash and cigarettes while brandishing the firearm. Two days later, a robber wearing what appears to be the same grey Nike sweatshirt and brandishing an AR-style rifle obtained several hundred dollars after committing another armed robbery of a gas station in Haddon Township, New Jersey. Shortly after each robbery, two individuals were seen returning to a residence in Camden with a large duffle bag. On Sept. 17, 2021, law enforcement officers executed a federal search warrant at the Camden residence and recovered, among other items, a duffle bag, an AR-style rifle, a grey Nike sweatshirt, scuffed tan work boots, and a tan hooded sweatshirt with “REACTIVE” printed on the sleeves. Rogers and Bradshaw were present when law enforcement agents executed the search warrant, at which time Bradshaw was wearing striped boxershorts consistent with those worn by one of the robbers during the robbery on Sept. 14, 2021.

Each defendant faces a maximum penalty of 20 years in prison and a fine of up to $250,000.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Pennsauken Police Department, under the direction of Acting Police Chief Phil Olivo; the Haddon Township Police Department, under the direction of Chief Mark Cavallo; the Vineland Police Department; the Bridgeton Police Department, under the direction of Chief Michael A. Gaimari Sr.; and the Brooklawn Police Department, under the direction of Chief Shamus Ellis, with the investigation leading to the charges.

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

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

NEWARK, N.J.  – Six members of a Jersey City gang have been charged with the Aug. 3, 2020, stabbing of an individual on a busy street in Jersey City, Acting U.S. Attorney Rachael A. Honig announced today. 

Sheldon Mays, aka “Thottie,” 21, Jermaine Jennings, aka “Maine” and “Drill,” 20, Divine Abraham, aka “Dee,” 21, Jamil Bowens, 20, and Jaylen Boone, 21, all of Jersey City, made their initial appearances before U.S. Magistrate Judge André M. Espinosa today and were detained. Yahsier Brown, 19, of Jersey City, New Jersey, previously made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained. They each are charged by complaint with one count of assault with a dangerous weapon in aid of racketeering activity.

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

Mays, Jennings, Abraham, Bowens, Boone and Brown are allegedly members of a street gang known to operate around the Curries Woods Housing Complex in Jersey City. In retaliation for a prior assault of Mays by Individual-1 and other members of a rival gang, and in furtherance of an ongoing feud amongst the two gangs, the defendants sought out Individual-1, assaulted him, and stabbed him in broad daylight on a busy street in Jersey City. Individual-1 suffered life-threatening injuries. 

The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison.

Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Hudson County Department of Corrections 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. Attorneys Tracey Agnew and DeNae Thomas in the Criminal Division in Newark.

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

NEWARK, N.J. – A Union, New Jersey, man today admitted that he illegally obtained more than $450,000 in unemployment insurance benefits, Acting U.S. Attorney Rachael A. Honig announced. 

Maurice Mills, 29, of Union, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with wire fraud.

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

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Compensation that provides additional benefits to those eligible for PUA and regular UIB. The New York State Department of Labor administers and manages the regular unemployment and PUA programs in the State of New York.

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

The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits to Mills or loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Feb. 3, 2022.

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

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

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced to today to 30 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Rachael A. Honig announced.

Khalil I. Howard, 24, of Neptune, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of being a felon in possession of a firearm.  Judge Sheridan imposed the sentence today in Trenton federal court.

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

On April 7, 2019, officers with the Asbury Park Police Department were on foot patrol in the area of the Asbury Park Gardens, a multi-building public housing complex known to local law enforcement as a high-crime area due to numerous recent gang, firearms, and narcotics-related investigations and arrests at that location. They had been advised of a gathering in honor of a recently deceased gang member that was taking place at the Asbury Park Gardens. The officers proceeded to the area where the gathering was taking place and conducted a walk-through of the premises. One of the officers observed Howard, a previously convicted felon, on the second floor attempting to conceal a large bulge in his left jacket pocket. Howard quickly turned with his left arm clenched to the side of his body and walked to the third floor. The officers ordered Howard to stop, and apprehended him. They found a stolen Beretta 9-millimeter semi-automatic handgun, loaded with one round of 9-millimeter ammunition in the chamber and an additional seven rounds of 9-millimeter ammunition in the magazine, secreted inside Howard’s left jacket pocket. As a previously convicted felon, Howard is not permitted to possess firearms under federal law.

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

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews, as well as officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso, with the investigation leading to today’s sentencing. 

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

NEWARK, N.J. – The Department of Justice announced today that the New Jersey Higher Education Student Assistance Authority (HESAA) has agreed to enter into a settlement and pay $50,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against two servicemembers who had co-signed student loans.

Under the proposed consent decree, which was filed today in the U.S. District Court for the District of New Jersey and must still be approved by the court, HESAA will pay $15,000 each to two servicemembers who had default judgments entered against them, and will pay a civil penalty of $20,000 to the United States. The consent decree also requires HESAA to provide SCRA training to its employees and outside counsel and to comply with new policies and procedures consistent with the SCRA.

“Through this settlement, we honor the brave members of our armed services by ensuring that their rights are protected when called to duty,” Acting U.S. Attorney Rachael A. Honig said. “This office remains steadfast in its commitment to protect the rights of servicemembers in New Jersey. We thank HESAA for its cooperation with our investigation and HESAA’s acknowledgement that protecting the rights of servicemembers under the SCRA is of significant public importance.”

“Congress enacted the Servicemembers Civil Relief Act to protect those who risk their lives serving our nation,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “This settlement clearly sends the message that the Department of Justice will continue enforcing the Act vigorously to protect servicemembers and to ensure that all covered industries, including providers of student loans, comply fully with the law.”

The Civil Rights Unit of the U.S. Attorney’s Office for the District of New Jersey launched its investigation after Coast Guard legal assistance attorneys in Portsmouth, Virginia, reported that HESAA had obtained a default judgment in 2019 against a Coast Guard petty officer who had co-signed for two student loans. The SCRA protects servicemembers from default judgments in circumstances in which, because of their military service, they may be unable to appear in court and defend themselves. Under the SCRA, if a lender files a civil lawsuit against a borrower and then seeks a default judgment, the lender must notify the court of the borrower’s military status. If the borrower is in military service, the court cannot enter judgment until it appoints an attorney to represent the borrower, and the court must, in most circumstances, postpone the proceedings for at least 90 days.

In a complaint filed today with the proposed consent decree, the Department of Justice alleges that HESAA obtained default judgments against two SCRA-protected servicemembers by failing to disclose their military service and filing affidavits that inaccurately stated that they were not in the military. Lenders can verify an individual’s military status by searching the Defense Manpower Data Center’s (DMDC) free, publicly available website or by reviewing their files to see if there are applications, military leave and earnings statements, or military orders indicating military status. After conducting DMDC database searches that confirmed that the servicemembers were in military service, HESAA, through its outside counsel, nevertheless filed affidavits in state court that inaccurately stated that the servicemembers were not in military service.

This matter was handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.

Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at:  http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

The government is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Civil Rights Unit, Civil Division, in consultation with the Civil Rights Division’s Housing and Civil Enforcement Section.

NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a multi-year embezzlement scheme and subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced.

Estela Laluf, 76, of River Edge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return.

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

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

The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of subscribing to a false tax return carries a maximum penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 24, 2022.

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 of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.

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

CAMDEN, N.J. – A federal grand jury today returned a five-count indictment charging a Gloucester County, New Jersey, man with defrauding his employer’s health insurance plan out of more than $4 million by submitting fraudulent claims for medically unnecessary compounded medications, Acting U.S. Attorney Rachael A. Honig announced today. 

Christopher Gualtieri, 48, of Franklinville, New Jersey, is charged with conspiracy to commit health care fraud and mail fraud and individual acts of mail fraud. Gualtieri was also charged with making false statements to federal agents during the investigation, as well as preparing and filling fraudulent oxycodone prescriptions. Gualtieri is scheduled to appear today by videoconference before U.S. Magistrate Judge Sharon A. King. The case is assigned to U.S. District Judge Robert B. Kugler in Camden.

According to the indictment:

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

Gualtieri and others learned that certain compound medication prescriptions – including vitamins, scar creams, pain creams, and sunscreens – were reimbursed by their health insurance plan for up to thousands of dollars for a one-month supply. Gualtieri recruited co-workers who were covered by their employer’s self-funded health insurance plan to agree to receive medically unnecessary compounded medications for themselves and their family members. Gualtieri and others caused the submission of fraudulent prescriptions to compounding pharmacies, which filled the prescriptions and billed the health insurance plan’s pharmacy benefits administrator.  The pharmacy benefits administrator paid the compounding pharmacies more than $4 million for compounded medications arranged by Gualtieri and two conspirators for themselves, their dependents, and other family members. Gualtieri received a portion of the amount paid by the pharmacy benefits administrator to the compounding pharmacies. Gualtieri then paid cash and other remuneration to his conspirators for their participation in the scheme. When questioned by special agents of the FBI, Gualtieri falsely denied recruiting others to receive compounded medications and falsely denied paying cash to others for their participation in the scheme. 

During the same time period as the conspiracy involving compounded medications, Gualtieri also prepared and filled fraudulent prescriptions for oxycodone for himself and a family member. 

Gualtieri faces a maximum penalty on the conspiracy and mail fraud counts of 20 years in prison, a maximum penalty on the false statements count of five years in prison, and a maximum penalty on the obtaining drugs by fraud count of four years in prison. He also faces a fine on each count of up to $250,000 or twice the gross gain or gross loss from the offense, whichever is greatest.  

Acting U.S. Attorney Honig credited agents of the FBI, Philadelphia Field Office, Health Care Fraud Task Force, under the direction of Acting Special Agent in Charge Bradley S. Benavides, and task force members from the Pennsylvania Attorney General’s Office, Department of Health and Human Services – Office of Inspector General, and the Philadelphia Police Department, as well as diversion investigators of the Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the indictment. Acting U.S. Attorney Honig also thanked U.S. Postal Service – Office of Inspector General, for their assistance in the investigation.

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

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

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted stealing dozens of cell phones from mail that passed through a postal distribution center where he was employed, Acting U.S. Attorney Rachael A. Honig announced.

Kyle Terry, 36, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with one count of theft of mail by a postal employee.

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

Terry was employed by the U.S. Postal Service as a mail handle assistant at a national postal distribution center in Jersey City. From Nov. 1, 2017, to Jan. 28, 2018, Terry stole 39 cell phones having a total approximate value of $35,000 from mail that passed through that distribution center.

The theft of mail by a postal employee charge carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 17, 2022.

Acting U.S. Attorney Honig credited special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz of the U.S. Attorney’s Office’s Special Prosecutions Division in Newark.

NEWARK, N.J. – A Pennsylvania man today admitted to conspiring to distribute 430 kilograms of khat imported through Newark International Airport, Acting U.S. Attorney Rachael A. Honig announced.

Azeez Adebari, 46, of Harrisburg, Pennsylvania, pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with one count of conspiring to distribute and to possess with intent to distribute a quantity of a mixture containing cathinone and cathine.

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

On April 21, 2021, U.S. Customs and Border Protection (CBP) officers identified a freight container suspected of containing khat that had arrived by air at Newark International Airport.  Khat is a flowering shrub that is abused for its stimulant-like effects and has no accepted medical use in the United States. Khat contains two active ingredients that are controlled substances:  cathinone, a Schedule I controlled substance, and cathine, a Schedule II controlled substance. 

CBP officers determined that the shipment contained approximately 430 kilograms gross weight of khat. The shipping manifest and other customs documentation identified the contents of the shipment as clothing, and ground melon and pepper, among other things. On May 3, 2021, Adebari, who was listed as the consignee on the shipment, arrived at Newark Airport to pick up the khat shipment and was arrested.  

The charge to which Adebari pleaded guilty carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 27, 2022.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and officers of CBP, under the direction of Marty Raybon, Acting Director of Field Operations, New York Field Office, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, woman today admitted stealing checkbooks and credit cards from the mail while employed as a U.S. Postal Service (USPS) clerk and filing fraudulent applications for loans intended for small businesses experiencing disruptions due to the COVID-19 pandemic, Acting U.S. Attorney Rachael A. Honig announced. 

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

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

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

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

Three of Blackman’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, Jahaad Flip, 22, of Newark, New Jersey, and Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing.

The conspiracy charge and the false statement charge are each punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 27, 2022.   

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man admitted possessing multiple images and videos of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced today.

Robert Klemt, 34, of Wayne, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden on Sept. 14, 2021, to an information charging him with one count of possession of child pornography.  

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

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

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

The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.

Acting U.S. Attorney Honig credited special agents with the DHS-HSI, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s guilty plea.

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