District of New Jersey

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

Jamir Clark, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.

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

On June 7, 2020, Clark possessed a firearm capable of accepting a large capacity magazine, which was loaded with 14 rounds of .45 caliber ammunition. Clark has previously been convicted of possession of controlled substances within 1,000 feet of a school, a felony offense.

The firearms offense to which Clark pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 22, 2022.

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

This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

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

NEWARK, N.J. – A Bronx, New York, man today admitted his role in a Paterson, New Jersey, kidnapping, Acting U.S. Attorney Rachael A. Honig announced.

Maurice Cottman, 41, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of kidnapping.

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

On Oct. 8, 2020, Cottman and his conspirator, Reginald Law, entered a retail store in Paterson and assaulted the Victim, who was working in the store. Cottman and Law dragged the victim from the store, threw him into the back of a U-Haul truck and drove to New York.  Cottman and Law pistol-whipped the victim in the head and face. Cottman called the victim’s family and demanded $200,000 for his return.

That afternoon, law enforcement officers went to Harlem, New York, where they saw the U-Haul parked on the street. When the officers approached, Cottman and Law fled in the U-Haul and a motor-vehicle pursuit ensued. After some distance, the U-Haul crashed, and a foot pursuit ensued. Cottman was arrested, but Law got away. The officers opened the U-Haul and rescued the victim. Law was arrested on May 26, 2021.

The kidnapping charge to which Cottman pleaded guilty is punishable by a maximum penalty of life in prison and a $250,000 fine. Sentencing is scheduled for Feb. 2, 2022.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.

The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Violent Crimes Unit.

The charges against Law remain pending, and he is presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested today on charges related to his role in fraudulently obtaining $1.3 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), Acting U.S. Attorney Rachael A. Honig announced today.

Jordan C. Larkins, 31, of Edison, New Jersey, is charged by complaint with three counts of bank fraud, seven counts of wire fraud, and two counts of money laundering. Larkins is scheduled to have his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen.

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

Larkins submitted three fraudulent PPP loan applications to two different lenders on behalf of three purported businesses and a total of seven EIDL applications to the Small Business Association (SBA) on behalf of four purported businesses. 

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

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

The applications Larkins submitted allegedly contained fraudulent representations to the participating lenders and the SBA, including bogus federal tax return documentation. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020. Larkins also fabricated bank statements, the identities of certain individuals listed on the applications, and driver’s licenses of purported applicants. 

Lenders and the SBA approved Larkins’s PPP loan applications, EIDL SBA loan applications, and EIDL advance payments, and provided Larkins’s purported businesses with approximately $1.3 million in federal COVID-19 emergency relief funds meant for distressed small businesses.

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

Acting U.S. Attorney Rachael Honig credited postal inspectors of U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John Grasso, with the investigation leading to the charges.

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

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

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for illegal possession of a firearm and possession of methamphetamine and marijuana, Acting U.S. Attorney Rachael Honig announced.

Kevon A. Anderson, 25, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden, who imposed the sentence today by videoconference.

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

On Sept. 10, 2019, while investigating a shooting from the previous evening near Hawthorn Avenue, Newark police officers approached a group of men sitting in an adjacent park to ask them whether they had any information about the shooting. Officers detected the smell of marijuana, and one of the men, later identified as Anderson, abruptly stood up and walked away from the officers. One of the officers saw a bulge in Anderson’s front pants pocket, which the officer believed could be a weapon, and asked Anderson to sit back down. Anderson disregarded the officer and ran across the park. The officers pursued Anderson and caught up with him. As the officers approached him to pat him down, Anderson told them he had a gun on him. In addition to the gun, the officers recovered ecstasy pills and large quantities of marijuana packaged for sale from a fanny pack around Anderson’s waist, as well as a black bag he was carrying. There were also additional live rounds of ammunition in the fanny pack.

In addition to the prison term, Judge Hayden sentenced Anderson to three years of supervised release.

Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office National Security Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted firearms and marijuana distribution offenses, Acting U.S. Attorney Rachael A. Honig announced.

Shatuwan McCall, 20, of Newark, pleaded guilty before U.S. District Judge Kevin McNulty by videoconference to an information charging him with one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute marijuana, and one count of possession of a firearm in furtherance of a drug trafficking crime.

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

On Dec. 4, 2020, at approximately 11:00 p.m., law enforcement officers were patrolling locations that had been the site of recent shootings and homicides while conducting a narcotics investigation in the vicinity of South 17th Street in Newark. They observed a vehicle, occupied by McCall and another individual, engaged in traffic violations. As the officers approached the vehicle and illuminated the occupants with their flashlights, they observed a large plastic bag containing a green leafy substance, suspected to be marijuana, on McCall’s lap.  Law enforcement officers also observed McCall moving his right arm and hand as though adjusting something in the vicinity of the passenger-side floorboard and noticed a handgun in McCall’s right hand. Law enforcement ultimately recovered approximately 15 bags of suspected marijuana, narcotics proceeds, and a .22 caliber Llama revolver loaded with six rounds of ammunition.

The count of being a felon in possession of a firearm is punishable by a maximum of 10 years in prison and a fine of up to $250,000. The count of possession with intent to distribute marijuana is punishable by a maximum of five years in prison and a fine of up to $250,000. The count of possessing a firearm in furtherance of the narcotics trafficking offense carries a mandatory minimum prison term of five years and a maximum of life in prison, and a fine of up to $250,000, which must run consecutively to any other term of imprisonment imposed on the other two counts. Sentencing is scheduled for Jan. 24, 2022.

Acting U.S. Attorney Honig credited members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, and special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, 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, man today admitted his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, Acting U.S. Attorney Rachael A. Honig announced

Jeffrey Bennett, 27, of Irvington, New Jersey, 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. 

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

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

Two of Bennett’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, and Jahaad Flip, 22, of Newark, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing. Charges are still pending against another conspirator, USPS employee Janel Blackman, 42, of Newark. The charges against Blackman are merely accusations, and he is presumed innocent unless and until proven guilty.

The conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 19, 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; 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 Hudson County, New Jersey, man was sentenced today to 43 months in prison for his role in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, and for possessing with intent to distribute heroin and fentanyl, Acting U.S. Attorney Rachael A. Honig announced.

Jason Arteaga-Loayza, aka “Juice,” 30, of Jersey City, New Jersey, a former inmate at Fort Dix, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to defraud the U.S. Bureau of Prisons and one count of possession of heroin and fentanyl with the intent to distribute. Arteaga-Loayza, who was on federal supervised release at the time of the offenses, also pleaded guilty to violating his supervised release. Judge Wigenton imposed the sentence today by videoconference.

Three other men, Adrian Goolcharran, aka “Adrian Ahoda,” aka “Adrian Ajoda,” aka “Adrian Ajodha,” Nicolo Denichilo, and Johansel Moronta also have been charged with using drones to smuggle contraband into Fort Dix prison. 

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

Arteaga-Loayza, an inmate at Fort Dix from June 2017 to September 2018, participated in multiple drone deliveries of contraband into Fort Dix after his release from prison. Between October 2018 and June 2019, Arteaga-Loayza arranged for Goolcharran, with Denichilo’s assistance, to fly drones over Fort Dix and drop packages of contraband into the prison, where it was sold to inmates for a profit. The packages that Arteaga-Loayza smuggled in included cell phones, cell phone accessories, tobacco, weight-loss supplements, eyeglasses, and various other items. Arteaga-Loayza, with Moronta’s assistance inside of the prison, took inmate requests for specific items of contraband and oversaw the collection of payments. Arteaga-Loayza also collected contraband for upcoming drone drops and stored it at his residence in Jersey City. 

Arteaga-Loayza and his conspirators took various steps to prevent BOP officials from detecting and intercepting the contraband. They planned drone drops during the late evening hours or at night, when the drones were less likely to be seen. They flew the drones from concealed positions in the woods surrounding the prison.  The lights on the drones were covered with tape to make it more difficult for prison officials to spot them. 

Arteaga-Loayza and his conspirators used cell phones, including contraband phones concealed within the prison, to coordinate the drone drops. A contraband cell phone used by Moronta, who was an inmate at Fort Dix, contained text messages with Arteaga-Loayza about the collection of profits from the sale of the contraband inside of the prison. In one exchange, for instance, Moronta messaged Arteaga-Loayza about an inmate, “Ok so I am tell him 10 phones and 100 baco (tobacco) he has to pay 10 bands and 500 on each phone?”  Arteaga-Loayza responded, “And well even give him an ounce of weed tell him.” One of Arteaga-Loayza’s cell phones contained messages between him and Goolcharran coordinating drone drops. For example, in April 2019, Arteaga-Loayza sent Goolcharran marked-up aerial photos of Fort Dix to show Goolcharran where to drop the contraband. In another exchange, Arteaga-Loayza sent Goolcharran a message asking, “U think that u cud do something 2m.”  Goolcharran replied, “2m too windy 20mph.”

During a search of Arteaga-Loayza’s residence in June 2019, agents found packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before a drone drop on Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. They also found bags of Bugler tobacco, consistent with the Bugler tobacco recovered in earlier drone drops. Arteaga-Loayza also had a suitcase in his bedroom that contained his driver’s license, 20 packets of Suboxone Sublingual Film, a prescription opiate, and a plastic bag containing over 21 grams of a substance containing heroin and fentanyl.  Following the search of his home, Arteaga-Loayza moved from his home and did not inform his probation officer of his whereabouts.

In addition to the prison term, Judge Wigenton also sentenced Arteaga-Loayza to three years of supervised release.

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

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

The government is represented by Assistant U.S. Attorneys Jeffrey J. Manis and Cari Fais of the U.S. Attorney’s Office in Newark.

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

NEWARK, N.J. –  A Union County, New Jersey, man was sentenced today to 60 months in prison for receipt and possession of images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Jeffrey Shreve, 38, of Scotch Plains, New Jersey, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with receiving and possessing images of child pornography. Judge Martinotti imposed the sentence today in Newark federal court.

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

Shreve used peer-to-peer file sharing software to seek and obtain images of child sexual abuse, including images of prepubescent children.

In addition to the prison term, Judge Martinotti sentenced Shreve to seven years of supervised release and ordered restitution of $6,000. 

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

The government is represented by Counsel to the U.S. Attorney Caroline Sadlowski of the U.S. Attorney’s Office in Newark.

TRENTON, N.J. – A Romanian national was sentenced today to 54 months in prison for his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey and elsewhere, Acting U.S. Attorney Rachael A. Honig announced.

Dorinel Trofin, 47, previously pleaded guilty to conspiracy to commit bank fraud. U.S. District Judge Peter G. Sheridan imposed the sentence today in Trenton federal court.

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

Trofin admitted he was part of an ATM skimming scheme that stole bank account information by installing hidden card-reading devices on ATMs throughout northern and central New Jersey. Trofin previously acknowledged that he and his conspirators created bank cards using the fraudulently obtained account information, which they used to unlawfully withdraw large amounts of cash from various ATMs. The scheme, which involved actual and attempted losses exceeding $1.5 million dollars, impacted over 1,000 bank customers.

In addition to the prison term, Judge Sheridan sentenced Trofin to five years of supervised release and ordered him to pay $443,277 in restitution.  

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; detectives with the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and detectives with the Woodbridge Police Department, under the direction of Police Director Robert Hubner, with the investigation leading to today’s sentencing.

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

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

Keyron Greene, 34, of Paterson, pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of possession of a firearm by a convicted felon.

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

On Dec. 18, 2020, Paterson Police Department officers were patrolling the area of Broadway and Carroll Street when the officers observed Greene, who immediately began to flee upon observing the officers. Greene discarded a large capacity magazine containing 26 rounds of .40 caliber ammunition and a Glock 22 Generation .40 caliber semi-automatic handgun as he ran from the officers before being apprehended and arrested.

Greene has previously been convicted of felony offenses, including possession of controlled substances.

The firearms offense to which Greene pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Jan. 20, 2022.

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

This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

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

CAMDEN, N.J. – A naturalized United States citizen living in India who was arrested in England made his initial court appearance and was arraigned today following his extradition to face charges that he obstructed the parental rights of his child’s mother by kidnapping the child and failing to return him to the United States when ordered to do so, Acting U.S. Attorney Rachael A. Honig announced.

Amitkumar Kanubhai Patel, 38, of Vadodara, India, formerly of Edison, New Jersey, was charged in an indictment that was unsealed today with one count of international parental kidnapping. A federal grand jury sitting in Camden returned the indictment on July 22, 2020. On Sept. 9, 2021, Patel was extradited from England. He appeared by videoconference before U.S. Magistrate Judge Karen M. William in Camden federal court and was detained.

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

The child’s mother, a resident of Cherry Hill, New Jersey, and Patel were in a relationship and resided together in New Jersey from August 2015 through July 2017. They never married. In November 2016, they had a child.

According to the mother, Patel wanted to take the child to India to introduce him to Patel’s parents and obtain DNA testing. Patel claimed DNA testing was necessary for the child to claim property that Patel’s family owned in India. Patel attempted to obtain an Indian visa for the child when the child was approximately four months old. The visa application was denied because Patel did not have documentation of his custodial rights to the child.

Patel told the child’s mother that in order to obtain an Indian visa for the child, he would need to secure sole custody of their son, which required them to go to court. Patel instructed the child’s mother to tell the court that they had a “mutual understanding” regarding the custody of their child. He instructed the mother to state that she did not have a work permit, and since she was unemployed, and could not care for her child.

On May 1, 2017, Patel went to New Jersey Superior Court, Chancery Division Family Court, to obtain sole custody of the child. According to the child’s mother, the majority of the hearing was conducted in English with no translator. At the time of the hearing, the child’s mother spoke limited English. The mother answered the court’s questions as she had been instructed by Patel. She was not represented by an attorney during the hearing.

On May 2, 2017, the court entered an order granting Patel sole legal custody of the minor child and allowing the mother to file for joint legal custody in the future. Upon receiving the court order, Patel obtained visas to India for himself and the child through Quick Travel Inc.  Patel told the child’s mother the trip to India would be for two weeks. On July 26, 2017, Patel and the child traveled to India.

According to the child’s mother, she sent multiple messages to Patel requesting confirmation that the two arrived safely in India and got no response for several days. Patel eventually called the mother and said he was never bringing the child back to the United States. The child’s mother obtained legal counsel, returned to the New Jersey Superior Court, and on Oct. 16, 2018, the court ordered Patel to immediately return the child to the United States. Records show Patel and the child have not returned to the United States since July 2017.

On Oct. 2, 2020, Patel and the child flew from India to the United Kingdom, where Patel was arrested.

The international parental kidnapping count carries a maximum penalty of three years in prison and a maximum fine of $250,000.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley S. Benavides in Philadelphia, with the investigation leading to the indictment. Acting U.S. Attorney Honig also thanked members of the Department of Justice’s Office of International Affairs, the U.K. Crown Prosecution Service and the Metropolitan Police for their assistance in the extradition.

The government is represented by Deputy U.S. Attorney Andrew Carey and Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.

CAMDEN, N.J. – A Camden man was sentenced today to 360 months in prison for conspiring to sell 280 grams or more of cocaine base, and quantities of furanyl fentanyl and heroin as well as distributing and possessing with intent to distribute these drugs, Acting U.S. Attorney Rachael A. Honig announced.

John Gunther, aka “Critty,” 38, was convicted on April 18, 2019, after an 11-day trial before U.S. District Judge Renée Marie Bumb in Camden federal court. Judge Bumb imposed the sentence today in Camden federal court.

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

Brothers John and Taleaf Gunther worked together to lead a prolific drug trafficking organization that sold crack cocaine, heroin, and the synthetic opioid furanyl fentanyl on and around the 1700 block of Filmore Street in Camden, which was controlled by the organization. William Roland assisted the Gunther brothers as a manager within the organization. Ten members of the drug ring were initially arrested in June 2017 following a long-term investigation by the FBI, which utilized multiple telephone wiretaps, surveillance, confidential informants, cooperating witnesses, more than 20 controlled drug purchases, a GPS vehicle tracker and four court-authorized search warrants, among other investigative techniques. The investigation ultimately led to the seizure of more than 300 grams of crack cocaine, quantities of furanyl fentanyl and heroin, a firearm, and drug paraphernalia. Shortly after the execution of search warrants in the case, investigators learned that Taleaf Gunther also attempted to bribe another member of the conspiracy to lie to police about a handgun recovered from a residence he used. An eleventh member of the organization was charged in 2018. Taleaf Gunther and Roland were convicted along with John Gunther and are awaiting sentencing.

In addition to the prison term, Judge Bumb sentenced Gunther to 10 years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; 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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Gloucester Township Police Department, the Camden County Sheriff’s Department, the Cherry Hill Police Department, and the U.S. Department of Homeland Security Investigations (HSI) for their assistance.

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni and Alisa Shver of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 15 months in prison for his role in a scheme to defraud financial institutions of hundreds of thousands of dollars, Acting U.S. Attorney Rachael A. Honig announced.

Dennys Tapia, 55, of Ridgefield Park, New Jersey, previously pleaded guilty before U.S. District Judge Stanley R. Chesler to an information charging him with one count of conspiracy to commit bank fraud. Judge Chesler imposed the sentence today in Newark federal court.

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

From 2015 to 2018, Tapia conspired with others to fraudulently obtain mortgage loans from financial institutions, including “Mortgage Lender A” and “Mortgage Lender B,” to finance the purchase of properties by unqualified buyers. Applicants for mortgage loans are required to list their assets and income on their mortgage loan applications, and mortgage lenders rely on those applications when deciding whether to issue mortgage loans.

Tapia admitted participating in a conspiracy in which he knowingly provided fraudulent documents to a loan officer at Mortgage Lender A for potential borrowers, including fraudulent lease agreements, bank statements, and a gift check and gift letter. Based on this false information, Mortgage Lender A issued mortgage loans to unqualified buyers, which caused Mortgage Lender A hundreds of thousands of dollars in losses. Some of the loans Mortgage Lender A issued to unqualified borrowers were sold to the Federal Home Loan Mortgage Corporation “Freddie Mac,” a government-sponsored enterprise with the mission of providing liquidity, stability, and affordability in the United States housing market.

Tapia also admitted causing a straw borrower, “Individual A,” to apply to Mortgage Lender B for a cash-out refinance mortgage loan that contained multiple misrepresentations of material facts and fraudulent documents, including pay stubs and a verification of employment. Based on the false information submitted by Individual A and Tapia, Mortgage Lender B issued a false and fraudulent cash-out refinance mortgage loan, which resulted in Tapia earnings tens of thousands of dollars in profits.  

In addition to the prison term, Judge Chesler sentenced Tapia to two years of supervised release and ordered restitution of $182,508 and forfeiture of $176,532.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Jonathan Fayer of the Economic Crimes Unit of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Charlie Divine of the Federal Housing Finance Agency, Office of Inspector General.

NEWARK, N.J. – An investment fund manager today admitted orchestrating a $100 million securities fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.

Brenda Smith, 61, of Philadelphia, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to Count Seven of an indictment charging her with securities fraud.  

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

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

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

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

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

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

The securities fraud count to which Smith pleaded guilty carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 20, 2022.

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

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

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

NEWARK, N.J. – Two New Jersey men admitted to drug distribution charges in connection conspiring to distribute cocaine base and distributing fentanyl and cocaine base, Acting U.S. Attorney Rachael A. Honig announced today.

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

Marvin Lagrier, aka “Black Jesus,” 39, of Newark, pleaded guilty before Judge Arleo on Aug. 12, 2021, to a superseding information charging him with one count of possession with intent to distribute 40 grams or more of fentanyl. Lagrier was a Newark Housing Authority employee at the time of his arrest.

In September 2019, Lagrier and Wilson were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine base. Wilson was also charged with possession of a firearm by a convicted felon. Lagrier was indicted on these charges in October 2019.

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

On Sept. 19, 2019, law enforcement officers approached an apartment in Essex County, New Jersey, to execute a court-authorized search warrant. Wilson and Lagrier exited the apartment and attempted to flee the area but were apprehended and placed under arrest. Upon searching the apartment, as well as Wilson’s vehicle and a backpack that Wilson discarded while fleeing, law enforcement officers recovered a large amount of cocaine base, heroin, and fentanyl as well as many items of drug paraphernalia for packaging narcotics. Law enforcement officers also recovered a firearm and several rounds of ammunition as well as several cellular phones. They also recovered several brown Newark Housing Authority uniforms bearing the name tag, “Marvin,” which matched the uniform that Lagrier wore at the time of his arrest. 

The cocaine base conspiracy count to which Wilson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The fentanyl possession count to which Lagrier pleaded guilty carries a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Dec. 16, 2021 for Lagrier and for Jan. 13, 2021, for Wilson.

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

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

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

NEWARK, N.J. – A New Jersey man today admitted his role in a multi-state car theft and fraud ring, Acting U.S. Attorney Rachael A. Honig announced. 

Eric Morgan, 34, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge William J. Martini in Newark federal court to an information charging him with three counts of wire fraud.

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

From November 2016 to March 2019, Morgan engaged in a scheme to sell stolen vehicles through internet-based marketplaces, such as Craigslist and OfferUp. For each fraudulent transaction, once a desirable vehicle was selected, the target vehicle was photographed, and a GPS tracker was attached to the vehicle in order to acquire a pattern-of-life of the original owner before the targeted vehicle was stolen. The target vehicle was then listed for sale on an internet-based marketplace. Potential purchasers of the target vehicles responded to listings and scheduled in-person meetings to purchase the vehicles. Shortly before the scheduled meeting times, the targeted vehicles were stolen with specially made car keys and fraudulently sold to unwittingly purchasers. On three occasions, Morgan, while posing as the lawful owner of a stolen vehicle, met the purchasers and sold them the stolen car while also providing them with a fraudulent motor vehicle registration and the specially made car key. 

Morgan pleaded guilty to his participation in the sale of a 2010 Acura TSX through Craigslist on July 19, 2017, the sale of a 2015 Honda Accord through OfferUp on Nov. 23, 2018, and the sale of a 2016 Honda Accord through Craigslist on March 22, 2019.

The scheme to defraud involves more than 30 stolen vehicles, of which 29 were sold to unwitting buyers. 

The wire fraud counts that Morgan pleaded guilty to each carry a statutory maximum sentence of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Jan. 13, 2022.

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

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

CAMDEN, N.J. – A doctor today admitted defrauding his prior employer’s medical practice by stealing and forging the medical practice’s checks to pay personal expenses, Acting U.S. Attorney Rachael A. Honig announced.

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

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

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

The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss resulting from the offense, whichever is greatest. In his plea agreement, Sytnik agreed to make restitution for the full amount of the loss, which, after the recoupment of some of the stolen monies, is estimated at $416,000. Sentencing is scheduled for Jan. 10, 2022.

Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides in Philadelphia, with assistance from the Voorhees Township Police Department, under the direction of Chief Louis Bordi, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A home health agency (HHA) operator has agreed to pay $17 million to resolve allegations that it violated the False Claims Act by paying kickbacks through the purchase of two HHAs from a retirement home operator in Arizona, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division announced today.

Today’s settlement resolves allegations that BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC, and BAYADA Home Care (collectively, the BAYADA Companies), with headquarters in Moorestown, New Jersey, bought two HHAs to induce referrals to BAYADA of Medicare beneficiaries from other retirement communities operated by the seller throughout the United States. The government alleges that from Jan. 1, 2014, through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.

“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs, and violate federal law,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at HHS-OIG will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”

“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” Acting Assistant Attorney General Boynton said. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.”

The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.

The civil settlement includes the resolution of claims brought under the qui tam, or “whistleblower” provisions, of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in the District of New Jersey and Trial Attorney Samson Asiyanbi of the Civil Division.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

The qui tam case is captioned: United States ex rel. Freedman v. BAYADA Home Health Care, Inc., No. 17-cv-6267 (NLH) (D.N.J.).

BAYADA, BAYADA Home Health Care Inc., BAYADA Health LLC and BAYADA Home Care (collectively, the BAYADA Companies), headquartered in Moorestown, New Jersey, have agreed to pay $17 million to resolve allegations that they violated the False Claims Act’s Anti-Kickback Statute by paying a kickback to a retirement home operator by purchasing two of its home health agencies (HHAs) located in Arizona.

The United States alleges that the BAYADA Companies bought the two HHAs to induce referrals to BAYADA of Medicare beneficiaries from retirement communities operated by the seller throughout the United States, and that from Jan. 1, 2014 through Oct. 31, 2020, the BAYADA Companies submitted false claims for payment to Medicare for services provided to beneficiaries referred to BAYADA as a result of the kickback transaction.

“Parties who pay or receive kickbacks in order to induce referrals undermine the integrity of the health care system,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This resolution reflects the department’s commitment to protect the right of federal health care program beneficiaries to receive medical care that is not influenced by the financial interests of their health care providers.” 

“When healthcare providers make or induce referrals that are based on kickback arrangements rather than the best interests of patients, they risk patient harm, threaten the integrity of federal healthcare programs and violate federal law,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The U.S. Attorney’s Office for the District of New Jersey and our partners in the Department of Justice and at the Department of Health and Human Services Office of Inspector General (HHS-OIG) will continue to pursue those who, like BAYADA, offer kickbacks for patient referrals, no matter the disguise those kickback arrangements might wear.”

The Anti-Kickback Statute prohibits parties who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to induce the recommendation of any item for which payment is made in whole or in part under a covered federal health care program. The prohibition extends to asset purchases that are intended to induce referrals.

The settlement with the BAYADA Companies includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by David Freedman, who was the former director of strategic growth for BAYADA between 2009 and 2016. Under those provisions, a private party can file a civil action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, Mr. Freedman will receive more than $3 million. The matter remains under seal as to allegations against entities other than the BAYADA Companies.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from the HHS-OIG.  

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).

The matter was handled by Trial Attorney Samson Asiyanbi of the Fraud Section and Assistant U.S. Attorney Daniel Meyler for the District of New Jersey.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

 

CAMDEN, N.J. – A Philadelphia man today admitted his role in a conspiracy to smuggle more than $200,000 worth of firearms parts out of the United States, Acting U.S. Attorney Rachael A. Honig announced.

Ibrahim Karabatak, 35, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to violate the Arms Export Control Act and U.S. anti-smuggling laws.

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

The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State. Karabatak admitted that from November 2018 through March 2019, he and other conspirators (including Samet Doyduk) agreed to ship firearms parts from the United States to Turkey and the Republic of Georgia. Karabatak, Doyduk and others used credit cards, Pay Pal accounts, and other forms of payment to purchase firearms parts from suppliers in the United States. Karabatak and Doyduk would then repackage the firearms parts, falsely label the contents of the package, and export the firearms parts to their customers in Turkey and the Republic of Georgia. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, the customers in Turkey and in the Republic of Georgia paid Doyduk and the other conspirators by international wire transfers or directly paid Karabatak in cash while he was in Turkey. The firearms parts included upper receivers, barrels, and magazines for several different types of Glock handguns, including Glocks in the following calibers: 9mm, .40 caliber, and .357 caliber.

During the course of the conspiracy, Karabatak, Doyduk and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to Turkey and the Republic of Georgia without the required export license.

The conspiracy charge to which Karabatak pleaded guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 10. 2022. Doyduk pleaded guilty to the same offense on April 20, 2021 and is scheduled for sentencing on Nov. 15, 2021.  

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), Cherry Hill Resident Agency, under the direction of Special Agent in Charge Jason J. Molina in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia, with the investigation leading to today’s guilty plea. She also thanked HSI agents in Ankara, Turkey and Frankfurt, Germany; U.S. Customs and Border Protection (CBP) and U.S. Postal Inspection Services, JFK airport, for their assistance.

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

NEWARK, N.J. -- Two New Jersey postal employees were arrested today for their alleged roles in a fraud committed in connection with unemployment insurance benefits, Acting U.S. Attorney Rachael A. Honig announced.

Khaori Monroe, 28, of Newark, and Ross Clayton, 30, of Irvington, New Jersey, are each charged by complaint with one count of wire fraud. They are scheduled to appear by videoconference today before U.S. Magistrate Judge Leda Dunn Wettre.

According to the complaints:

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 are not eligible for other types of unemployment (e.g., self-employed, independent contractors, and gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance that provides an additional $600 weekly benefit to those eligible for PUA and regular UIB. Unemployment Insurance (UI) is a state-federal program that provides unemployment insurance benefits (UIB) to eligible workers.

Monroe and Clayton were U.S. Postal Service employees. Monroe and Clayton each took UIB-related mail, including debit cards, from a U.S. Postal Service location in New Jersey and used that mail to obtain unemployment insurance benefits to which they were not entitled.

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

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 Michael C. Mikulka in Manhattan; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s arrests.

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

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. – The Justice Department has reached a settlement with Newark Public Schools to resolve the department’s investigation into the school district’s programs for its English learner students, Acting U.S. Attorney for the District of New Jersey Rachael A. Honig and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today. 

The agreement ends the district’s longstanding and common practice of removing students from English learner programs before they become fluent in English. The district has agreed to improve services for English learner students so they can access the same educational opportunities as other students in the Newark Public Schools. 

The department’s multi-year investigation uncovered wide-ranging failures to properly serve students learning English. The department found that the district failed to hire and retain enough qualified teachers to support its program, resulting in limited instruction time for some students, and for others, no language services at all. The Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey investigated under the Equal Educational Opportunities Act of 1974.

“Our office steadfastly supports the civil rights of all students, including English learners,” Acting U.S. Attorney Honig said. “We are pleased that the Newark Board of Education has agreed to fully embrace its obligation to meet the language needs of its English learners and resolve the serious violations of federal law uncovered during this investigation.  We will continue to hold school districts and other education agencies accountable so that all students in New Jersey have equal access to educational opportunities.”

“School districts must provide effective English learner services so that all students can create an American dream of their own,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue fighting to ensure compliance with our federal civil rights laws as we stand up for every student’s right to equal educational opportunities across our country. The comprehensive requirements in this settlement agreement will create lasting change and provide access to education for thousands of English learner students in Newark.”    

The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years until the district has fully complied with its obligations.

This press release is also available in Spanish, Portuguese, Haitian Creole and French.

The United States is represented by Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit; Renee Wohlenhaus, Deputy Chief of the Civil Rights Division’s Educational Opportunities Section; Jonathan Newton, Trial Attorney, Educational Opportunities Section; and Laura Fentonmiller, Trial Attorney, Educational Opportunities Section.

The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division and of the United States Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.  Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or 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 Hotline at (855) 281-3339.

NEWARK, N.J. – A Sussex County, New Jersey, woman was charged today with producing, distributing, and advertising images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Dominique Saczawa, 31, of Sparta, New Jersey, is charged by complaint with one count of production of child pornography, one count of distribution of child pornography, and one count of advertisement of child pornography. She appeared today by video conference before U.S. Magistrate Judge Leda Dunn Wettre and was detained.

According to documents filed in this case:

In August 2021, Saczawa used a web-based application to share images and videos depicting the sexual assault of a child, and to solicit others to share similar content. Saczawa produced video and images of a minor victim engaged in sexually explicit conduct and Saczawa communicated these to other individuals through the web-based application. 

The charges of production and advertisement of child pornography each carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of five years in prison, a maximum of 20 years in prison, and a $250,000 fine.

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

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

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

CAMDEN, N.J. B A Camden man was sentenced today to 87 months in prison for conspiring to distribute more than 1 kilogram of heroin, Acting U.S. Attorney Rachael A. Honig announced.  

David Velez, 31, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to distribute a controlled substance (heroin) from June 2018 through November 2018. Judge Bumb imposed the sentence today in Camden federal court.

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

Using confidential informants, consensual recordings, over 40 controlled drug purchases, and court-authorized wiretaps, the investigation showed a large-scale drug operation in the 400-500 block of Pine Street in Camden in 2017-2018. Street-level sellers were supervised by managers, who also resupplied them with pre-packaged heroin, cocaine, and crack cocaine. Velez and his brother, Ramon Velez, sold heroin from the area surrounding his residence on Morgan Boulevard. David Velez was arrested on January 8, 2019.

Nineteen defendants were arrested on drug trafficking charges based on the investigation; 16 defendants have pleaded guilty on drug conspiracy charges, 12 of whom are awaiting sentencing. The remaining three defendants are awaiting trial.

The following co-defendants have been previously sentenced: Kaliel Johnson, 28, sentenced on June 3, 2021, to 110 months in prison; Ramon Velez, 44, sentenced on June 9, 2021, to 10 years in prison; Naeem Sadler, 21, sentenced on July 27, 2021, to 130 months in prison; and William Carrillo, 45, sentenced on Aug. 3, 2021, to 130 months in prison.

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

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

This 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 Patrick C. Askin and Sara Aliabadi of the U.S. Attorney’s Office’s Camden Office.  

The charges and allegations against the three defendants awaiting trial are merely accusations, and they are presumed innocent unless and until proven guilty.

NEWARK, N.J.  – A Middlesex County, New Jersey, man today admitted to lying about his educational background in his application for employment with the Drug Enforcement Administration (DEA), Acting U.S. Attorney Rachael A. Honig announced.

Gulshan Manko, 37, of Woodbridge, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements to federal agents.

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

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

The count of providing false statements to which Manko pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.

Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, and special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading today’s guilty plea.

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

NEWARK, N.J. – A Middlesex County, New Jersey, man and an Essex County, New Jersey man were arrested in connection with two criminal complaints charging them with scheming with U.S. Postal Service employees and others to commit mail theft, bank fraud, and aggravated identity theft, Acting U.S. Attorney Rachael A. Honig announced.

Yaseen Salih, 24, of Iselin, New Jersey, and Adeeb Salih, 29, of East Orange, New Jersey, were charged by complaint with conspiracy to commit bank fraud, conspiracy to commit mail theft and to possess stolen mail, and aggravated identity theft. Yaseen Salih was arrested today and made his initial appearance before U.S. Magistrate Judge André M. Espinosa and was detained. Adeeb Salih remains at large. Hakir Brown, 27, of Newark was arrested today and charged by way of a separate complaint with bank fraud, conspiracy to commit mail theft and to possess stolen mail, and aggravated identity theft. He is scheduled to make his initial appearance tomorrow.

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

USPS employees Khadijah Banks Oneal and Ashley Taylor stole envelopes containing credit cards, checks, and U.S. Treasury checks from the mail. From Dec. 12, 2020, to July 31, 2021, Taylor sold stolen mail to Yaseen Salih; from Jan. 30, 2020, until her arrest on July 28, 2021, Banks Oneal sold stolen mail to Jahad Salter and Dashaun Brown and supplied stolen mail to Hakir Brown. Yaseen Salih and Adeeb Salih, Hakir Brown, Salter, and Banks Oneal, fraudulently posed as the accountholders of stolen credit cards, called the banks that issued the stolen credit cards, and used personal identifying information belonging to the accountholder to obtain or change information about the stolen credit cards. They then used the stolen credit cards to, among other things, make purchases at retail stores in New Jersey and elsewhere, including New York and online, resulting in attempted losses of over $300,000. Adeeb Salih deposited stolen checks into bank accounts that were under his control to obtain the checks’ proceeds. 

The charges of bank fraud and conspiracy to commit bank fraud each carry a statutory maximum sentence of 30 years in prison and a maximum fine of $1 million. The charges of mail theft and possession of stolen U.S. Mail, and conspiracy to commit that offense, each carry a statutory maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must be served consecutively to any sentence imposed for bank fraud, and a maximum fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.

The following defendants were also charged in late July and early August 2021 in connection with this scheme:

• Banks Oneal, 30, of Newark, was charged by complaint on July 28, 2021, with conspiracy to commit access device fraud and mail theft. She was arrested the same day, and on July 29, 2021, appeared before Judge Espinosa, and was released on a $30,000 bond. At the time of her arrest, Banks Oneal was employed by the USPS at a mail processing facility in Kearny, New Jersey.

 

• Salter, 25, of Newark, was charged by complaint on July 29, 2021, with conspiracy to commit access device fraud and conspiracy to commit mail theft.  He was arrested on August 9, 2021, appeared before U.S. Magistrate Judge Mark Falk, and was detained.

 

• Dashaun Brown, 30, of Newark was charged by complaint on July 29, 2021 with access device fraud and mail theft. A warrant was issued for his arrest, and he remains at large. 

 

• Taylor, 27, of Bronx, New York, was charged by complaint on Aug. 2, 2021, with conspiracy to commit mail theft and, as a federal employee, accepting bribes. She was arrested on Aug. 3, 2021, appeared before U.S. Magistrate Judge Cathy L. Waldor, and was released on a $30,000 bond. At the time of her arrest, Taylor was employed by the USPS at a post office in New York, New York.

 

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Rodney M. Hopkins, Newark Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the charges. She also thanked the U.S. Marshals Service, District of New Jersey, under the direction of Marshal Juan Mattos Jr.; the U.S. Secret Service, New York Field Office, under the direction of Special Agent in Charge Patrick J. Freaney; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division, under the direction of Special Agent in Charge Andrew S. McKay; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina; the Livingston, New Jersey Police Department, under the direction of Chief Gary Marshuetz; the Newark Police Department, under the direction of Department of Public Safety Director Brian O’Hara; the Essex County, New Jersey Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the New Providence, New Jersey, Police Department, under the direction of Chief of Police Theresa A. Gazaway; and the Berkeley Heights, New Jersey, Police Department, under the direction of Chief of Police Jason Massimino, for their assistance.

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

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. – An Essex County, New Jersey, man with a previous felony was arrested today on charges related to the shooting of two people in a housing complex, Acting U.S. Attorney Rachael A. Honig announced.

Ramad Moultrie, 19, of Newark, is charged by complaint with unlawful possession of ammunition by a convicted felon. He made his initial appearance today before U.S. Magistrate Judge Andre M. Espinosa in Newark federal court and was detained.

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

On Aug. 2, 2021, members of the Newark Police Department responded to multiple shootings at the Grace West Manor Complex on Irvine Turner Boulevard, where they located two victims with gunshot wounds. Surveillance video recorded Moultrie waving members of a crowd, including small children, out of his way before firing a handgun towards the two victims. Three .45 auto caliber casings were recovered from the area where Moultrie discharged the firearm. A .45 caliber handgun and a quantity of heroin were recovered when Moultrie was arrested at his residence.

Moultrie has been convicted twice in the state of New Jersey for possession of a controlled dangerous substance and once for possession with intent to distribute a controlled dangerous substance.

The felon in possession of ammunition charge carries a maximum sentence of 10 years in prison and a maximum fine of $250,000. 

Acting U.S. Attorney Honig credited special deputies of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to these charges.

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

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

NEWARK, N.J. – A Bergen County man was arrested today on four counts of tax evasion, Acting U.S. Attorney Rachael A. Honig announced.

Jason Kronick, 48, of Woodcliff Lake, New Jersey, was charged by indictment on Aug. 25, 2021, with three counts of income tax evasion and one count of employment tax evasion. He made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $1 million unsecured bond.

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

For the tax years 2008 through 2010, Kronick evaded payment of more than $4.3 million in income taxes, not including penalties and interest, despite having earned approximately $20 million in taxable income. Kronick used approximately $1.5 million from his business bank accounts to buy approximately 40 rare and expensive watches; used at least $1.9 million from the business accounts to pay for home renovations; used company funds to pay at least $700,000 in personal credit card bills; transferred more than $700,000 from his business accounts to various casinos, where he converted the money to chips, gambled, and then redeemed chips for cash; and cashed approximately $160,000 in checks at check-cashing businesses to conceal the proceeds from the IRS. Kronick also filed a statement with the IRS in 2011, falsely claiming that he had no income for that year, when in fact he received more than $2.8 million in income.

Each of the four counts of tax evasion carries a maximum penalty of five years in prison and a fine of up to $250,000.

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

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit in Newark.

NEWARK, N.J.  – A Newark man was sentenced today to 360 months in prison for his role in the September 2017 armed robbery of a jewelry exchange in Elizabeth, New Jersey, Acting U.S. Attorney Rachael Honig announced.

William Valentin, 43, was previously found guilty of one count of conspiring to commit Hobbs Act robbery, one count of Hobbs Act robbery, one count of brandishing a firearm during a crime of violence, and one count of conspiring to use a firearm during a crime of violence. Valentin was convicted following a six-day trial before U.S. District Judge Madeline Cox Arleo, who imposed the sentence today in Newark federal court.

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

On the morning of Sept. 5, 2017, four masked individuals, led by Valentin, entered a jewelry exchange located in Elizabeth. Valentin brandished a firearm at an employee while the other conspirators unloaded the contents of the store’s safes into large bags. Video surveillance showed Valentin and other conspirators entering the mall, approaching the jewelry exchange, and running out with the bags of jewelry. Afterwards, Valentin and his conspirators drove away in a black Audi. In January 2018, Valentin was arrested in Holyoke, Massachusetts, with a backpack containing jewelry stolen from the Elizabeth exchange in his possession.

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

Acting U.S. Attorney Rachael A. Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; the Elizabeth Police Department, under the direction of Chief Giacomo Sacca; and the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel, with the investigation. She also thanked the Holyoke Police Department, under the direction of Chief Manny Febo, for its assistance in the case.

The government is represented by Assistant U.S. Attorneys Lauren E. Repole and Cari Fais of the U.S. Attorney’s Office in Newark.

TRENTON, N.J. – A Mercer County, New Jersey, woman made her initial appearance today on a charge that she impersonated an FBI agent, Acting U.S. Attorney Rachael A. Honig announced.

Nealeigh Glasper, 29, of Trenton, is charged by criminal complaint with one count of impersonating an officer of an agency of the United States. She appeared before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court and was released on $25,000 unsecured bond.

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

Late in the evening on April 13, 2021, officers of the Trenton Police Department observed a vehicle with heavily tinted windows, in apparent violation of New Jersey state law, driving in a high-crime area of Trenton. The officers conducted a motor vehicle stop, during which they requested that the driver and passenger lower all four of the vehicle’s tinted windows for the officers’ visibility and safety. Upon lowering the vehicle’s front and rear passenger windows, Glasper immediately and repeatedly told the officers that she was an FBI special agent. She twice told the officers in a loud and clear voice, “I’m FBI,” and introduced herself as “Special Agent Glasper,” and stated that she “work[ed] cybersecurity in the Philly office.” Glasper continued to hold herself out as an FBI special agent, stated multiple times that she worked for the federal government, and offered to provide her badge to the officers. The officers issued the driver a motor vehicle citation and the motor vehicle stop concluded.

Shortly thereafter, the officers returned to the area because Glasper had reported that the driver of the vehicle could not find his driver’s license and believed that the officers had not returned it at the conclusion of the motor vehicle stop. During that follow-up encounter with the same officers, Glasper was wearing an empty gun holster on her right hip and ultimately advised the officers that she would call her “superior” to advise him or her of the misplaced license. Glasper is not, and never has been, an FBI special agent.

The false impersonation charge is punishable by a maximum potential penalty of three years in prison and a maximum fine of up to $250,000.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the Trenton Police Department, under the direction of Interim Police Director, Steve E. Wilson, with the investigation.

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

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

NEWARK, N.J.  – A Newark man today admitted possessing a firearm in furtherance of drug distribution, Acting U.S. Attorney Rachael A. Honig announced.

D’Sean Roper, 27, of Newark, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an information charging him with one count of possession of a firearm in furtherance of drug trafficking.

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

On Jan. 18, 2021, Newark Police Department officers observed a large group of people in front of a house on Fairmount Avenue in Newark. An officer saw what appeared to be a black handle of a gun protruding from Roper's waistband. Officers approached Roper and saw the outline of the object in his pants that appeared to be a gun. He was found to have a Hi-Point 9mm handgun loaded with eight rounds of 9mm ammunition and five bricks of heroin.

The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, a maximum potential penalty of life in prison, and a maximum fine of $250,000. Sentencing is scheduled for Jan. 3, 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, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s guilty plea.

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

The government is represented by Senior Litigation Counsel Robert Frazer of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.

NEWARK, N.J. – A New York, man was sentenced today to 57 months in prison for his participation in a heroin mill located in the Bronx, New York, Acting U.S. Attorney Rachael A. Honig announced.

Johan Manuel Lopez Brito, 34, of the Bronx, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and methamphetamine. Judge Cecchi imposed the sentence today by videoconference.

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

Between 2019 and June 2020, Lopez Brito conspired with others to distribute heroin and other drugs to customers in New Jersey and elsewhere. Lopez Brito worked at the mill packaging narcotics for distribution. On June 30, 2020, law enforcement searched the organization’s mill in the Bronx and recovered heroin, fentanyl, and methamphetamine. The quantity of heroin alone amounted to approximately 8,650 individual doses. Law enforcement seized the drug trafficking organization’s distribution materials, including glassines, tape, scales, cutting agents to mix with narcotics to increase their weight and value, and stamps for the branding of the drugs. Lopez Brito was at the mill during the search and was arrested.

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

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, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – A New York Life insurance broker was sentenced today to 27 months in prison for his role in a scheme to fraudulently use his association with the company to solicit investor money, Acting U.S. Attorney Rachael A. Honig announced.

Ivan Ramos, 39, of Hillside, New Jersey, previously pleaded guilty by videoconference before U.S. District Court Judge Claire C. Cecchi to an information charging him with one count of securities fraud. Judge Cecchi imposed the sentence by videoconference.

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

Ramos, who worked at New York Life selling life insurance, sought out inexperienced investors seeking low-risk investments. The victims met Ramos after purchasing life insurance through him, or through New York Life marketing events, or through mutual acquaintances. Ramos led his victims to believe, through misrepresentations and omissions, that two entities that he controlled, Invexperts LLC and Wealth Seeds Capital LLC, were associated with New York Life when they were not. The victims believed that the money they entrusted to Ramos would be placed in investments through New York Life, and accordingly multiple victims referenced New York Life on the memo line of their investment checks. One victim, for example, attended a New York Life seminar, then subsequently met with Ramos at his office in Edison, and ultimately invested in Invexperts believing it was associated with New York Life.

Ramos falsely told victims that their investments in Invexperts and Wealth Seeds were no-risk with fixed annual returns. Instead of investing their money as he promised he would, Ramos used the funds for purposes not disclosed to the victims, including, among other things, to pay for personal expenses for Ramos and others, to develop a restaurant called “Frisky Bull Barbeque” in Elizabeth, New Jersey, and to repay other investors. 

Ramos obtained over $1 million in investor money through the fraudulent scheme.   

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

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

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

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

NEWARK, N.J. – A former U.S. Postal Service (USPS) employee today admitted stealing credit cards sent through the mail as part of a conspiracy to commit access device fraud, Acting U.S. Attorney Rachael A. Honig announced.

Kyle Williams, 36, of Vauxhall, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit access device fraud.

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

Williams was employed by the USPS. From July 2019 to August 2020, Williams stole from the mail credit cards issued by financial institutions outside of New Jersey and provided those credit cards to his conspirators, who fraudulently activated them and used them to make and attempt to make purchases without the cardholders’ authorization, including buying gift cards and electronics. The investigation to date has revealed that the victims have incurred over approximately $100,000 in intended and actual losses from fraudulent purchases made using their stolen credit cards. In addition to stealing and illegally using credit cards, Williams and his conspirators also schemed to fraudulently use over $11,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of the EIP card fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards, in amounts ranging from approximately $400 to approximately $2,400.

The conspiracy charge is punishable by a maximum potential penalty of 90 months in prison in prison and a maximum fine of up to $250,000. Sentencing is scheduled for Jan. 12, 2022. 

Williams was charged with Jarid Brooks, 27, Justin Brooks, 21, and Kyjuan Hutchins, 22, also of Vauxhall, in October 2020. Jarid Brooks and Justin Brooks were charged in an indictment with conspiracy to receive stolen mail, commit bank fraud, and defraud the USPS and the U.S. Department of Treasury, theft of stolen mail, bank fraud, aggravated identity theft, possession with intent to distribute narcotics (Jarid Brooks only), and possession of a firearm with an obliterated serial number (Justin Brooks only). The indictment is pending before Judge Cecchi. Hutchins has pleaded guilty to conspiring to commit access device fraud and is awaiting sentencing.

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; 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; 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 Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.

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

The charges and allegations against Jarid Brooks and Justin Brooks are merely accusations, and those defendants are presumed innocent unless and until proven guilty.

CAMDEN, N.J. – A Gloucester County, New Jersey, man was charged with possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced today.

Joseph Cooper, 75, of Williamstown, New Jersey, is charged by criminal complaint with one count of possession of child pornography. Cooper is expected to appear by videoconference this afternoon before U.S. Magistrate Judge Sharon A. King in Camden federal court.

According to documents filed in this case:

In October 2020, law enforcement officers executed a search warrant at Cooper’s residence. Computers in Cooper’s residence contained more than 50 videos and 200 images of child sexual abuse, including depictions of prepubescent children engaged in sexually explicit conduct. The computers also contained logs documenting Cooper’s participation in internet chatrooms relating to sexual interest in children.

In a prior federal prosecution in New Jersey in 1999, Cooper was convicted of interstate transportation of child pornography via the internet.  In 2011, Cooper was convicted in the Superior Court of New Jersey, Burlington County, of cruelty and neglect of a child.  The charge of possession of child pornography depicting prepubescent children by a repeat offender carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of 20 years in prison and a $250,000 fine.

Acting U.S. Attorney Honig credited special agents of U.S. Immigrations and Customs Enforcement (ICE), Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s charge.

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

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

NEWARK, N.J. – A Bergen County, New Jersey, woman was sentenced today to 27 months in prison for participating in a scheme to obtain over $300,000 by illegally charging or attempting to charge victims’ financial accounts without authorization, Acting U.S. Attorney Rachael A. Honig announced. 

Briana Burford, 27, of Fort Lee, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging her with wire fraud. Judge Cecchi imposed the sentence today by videoconference.

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

From October 2018 through December 2018, Burford made four Bitcoin transactions. The Bitcoin were sent to accounts associated with carding websites, which are websites that engage in the trafficking of stolen or otherwise illegally obtained credit card, bank account and other personal identification information, as well as services and tools that one can use to engage in fraudulent activity. 

The two telephone numbers used to make the four Bitcoin transactions, along with other telephone numbers, were used to inquire about bank accounts that were later compromised and subject to fraud. For instance, on Aug. 31, 2018, one of the telephone numbers was used to contact a bank and inquire about a specific bank account. Later that day, Burford, without authorization, charged a purchase of approximately $9,000 to that bank account.    

In addition to the prison term, Judge Cecchi sentenced Burford to three years of supervised release and ordered her to pay $245,570 in restitution.

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

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

NEWARK, N.J.  – Three Essex County, New Jersey, men have been charged in connection with possessing five firearms and distributing, and possessing with the intent to distribute, controlled substances in Orange, East Orange, and Newark, Acting U.S. Attorney Rachael A. Honig announced.

Myron Fulton, 29, of East Orange, is charged by complaint with possession of a firearm and ammunition by a convicted felon. Joshua Baltimore, aka “Ab,” 29, of Newark, and Azmar Carter, aka “Bizzy,” 29, of East Orange, are each charged by complaint with distribution and possession with intent to distribute cocaine base, possession of a firearm and ammunition by a convicted felon and possession of a firearm in furtherance of a drug trafficking crime. Carter is also charged with distribution of and possession with intent to distribute heroin. Fulton appeared by videoconference today before U.S. Magistrate Judge Michael A. Hammer and was released on $100,000 bond. Carter and Baltimore appeared by videoconference on Aug. 18, 2021, before Judge Hammer and were detained.

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

The “135 Piru” set of the Bloods street gang operates primarily around Orange and distributes a large quantity of narcotics throughout Essex County. Baltimore, Carter and Fulton are self-admitted members of the 135 Piru set.

On June 30, 2021, law enforcement executed a search warrant on Fulton’s car and recovered a firearm and a high-capacity magazine that contained 33 rounds of ammunition.  Fulton is not permitted to possess a firearm and ammunition based on prior convictions for firearm possession and aggravated assault.

On Aug. 18, 2021, during lawful searches of their respective residences and cars, law enforcement officers recovered the following items: a loaded 9 millimeter pistol; a loaded .40 caliber pistol; a Draco AK 47 pistol and 48 rounds of associated ammunition; a loaded Smith and Wesson AR pistol and 27 rounds of associated ammunition; 479 grams of suspected heroin; 16.4 grams of suspected cocaine base; and $18,632.

The count of being a felon in possession of a firearm and ammunition carries a maximum potential penalty of 10 years in prison. The narcotics counts carry a statutory mandatory minimum penalty of five years in prison, a maximum potential penalty of 40 years in prison, and a fine of $2 million. The counts of possession of a firearm in furtherance of a drug trafficking crime carry a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence imposed, and a maximum potential penalty of life in prison.  Each firearm count carries a maximum fine of $250,000.

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; members of the Orange Police Department, under the direction of Police Director Todd Warren; members of the Elizabeth Police Department, under the direction of Chief of Police Giacomo Sacca and Police Director Earl J. Graves; members of the East Orange Police Department, under the direction of Chief Phyllis Bindi; and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to the charges.

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

The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

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

NEWARK, N.J. – Two Jersey City, New Jersey, men who were involved in a shootout made their initial court appearances today on charges that they possessed ammunition as previously convicted felons, Acting U.S. Attorney Rachael A. Honig announced.

Shamir Blunt, 35, and Mark Franklin, 29, are charged by criminal complaint with one count each of being felons in possession of ammunition.  Blunt and Franklin made their initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.

According to documents filed in this case:

In the early morning hours of May 23, 2021, Blunt was standing on the sidewalk in front of a bodega in the Grove Street area of Jersey City. Franklin parked across the street. Franklin got out of his car, and the two men started arguing. Blunt walked to the bodega and opened the door. Franklin followed him.

As Blunt entered the bodega, Franklin punched him in the face several times. The two struggled until Franklin pulled a gun out and fired a shot. Police later recovered a 9-millimeter shell casing from Franklin’s gun inside the bodega. Franklin then left and put the gun back inside his hoodie.

Emerging from the bodega, Blunt ran at Franklin and shot at him twice from close range. Franklin fell to the ground, and then he pulled out his own firearm and returned fire.  The two men continued to exchange gun shots from across the street.

Franklin and Blunt shot at each other over 15 times, and both men were hit. They eventually got in their cars, sped away, and went to Jersey City Medical Center where police later found each of their cars parked outside. Police also collected their clothing from the hospital, which matched the clothing they were wearing during the firefight.

Police also later found at least nine 9-millimeter shell casings from Franklin’s gun and at least four 9-millimeter shell casings from Blunt’s gun. They also found several bullets lodged in parked cars and in windows of nearby businesses.

At the time, both Blunt and Franklin had at least one prior felony conviction.

The felon in possession of ammunition charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine.

Acting U.S. Attorney Honig credited task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation. She also thanked the Jersey City Police Department for their assistance.

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

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

CAMDEN, N.J. – A Middlesex County, New Jersey, man today admitted that he possessed several kilograms of heroin with the intent to sell, Acting U.S. Attorney Rachael A. Honig announced.

Eduard Avila Rivas, 33, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of possession with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin.

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

On Feb. 10, 2020, Avila Rivas travelled to Clarksboro, New Jersey, and met with an associate in order to carry out a sale of several kilograms of heroin. Following Avila Rivas’ arrival, law enforcement officers searched his vehicle and seized close to three kilograms of heroin packaged for sale.  

The drug trafficking count to which Avila Rivas pleaded guilty is punishable by a minimum of 10 years in prison, a maximum of life in prison, and a maximum fine $10 million.  Sentencing is scheduled for Dec. 22, 2021.

Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Atlantic City Office, under the direction of Special Agent in Charge Jason J. Molina, and the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill, and the Gloucester County High Intensity Drug Trafficking Area (HIDTA) with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK, N.J. – An Essex County, New Jersey, man was indicted by a federal grand jury today for his role in a January 2021 gunpoint robbery of a cell phone store in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Kenneth Graham, 49, of Newark, is charged by indictment with one count of Hobbs Act Robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. He will be arraigned at a date to be determined.

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

On Jan. 18, 2021, Graham was in a cell phone store when he drew a gun and pointed it at a store employee. Graham ordered the employee to place several cell phones from the display case and cash from the register into his bag. Video surveillance footage near the store showed Graham enter a black Nissan Altima after the robbery and drive away. Witnesses confirmed that Graham was the person entering the Nissan Altima after robbing the store.

The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison. It also carries a mandatory minimum sentence of 25 years of prison in this case because Graham was previously convicted of the same crime in 2007 in connection with three gunpoint bank robberies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and members of the East Orange Police Department, under the direction of Chief Phylis Bindi, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Benjamin Levin of the Violent Crimes Unit in Newark.

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

TRENTON, N.J. – A Brooklyn, New York, man was charged today for conspiring to defraud the IRS, Acting U.S. Attorney Rachael A. Honig announced.

Aleksander Zaretser, 41, of Brooklyn, New York, is charged by indictment with conspiracy to defraud the IRS. He will be arraigned on a date to be determined.

According to documents filed in this case:

From 2011 to August 2018, Zaretser helped “Individual-1” conceal millions of dollars in insurance reimbursement checks that Individual-1 diverted from the Prime Aid Pharmacies, located in New Jersey and New York. For a fee, Zaretser either cashed the checks at Brooklyn check-cashing businesses using fraudulent check-cashing accounts or diverted them through Canadian bank accounts back into U.S. accounts that Individual-1 owned and controlled. Zaretser was recorded saying that Canada was “the best place” because it was more lenient “for white collar crime.” Attempting to minimize his criminal activity, Zaretser also stated, “We don’t steal from people we steal from fuckin’ government.”

After law enforcement attempted to question Zaretser about his criminal conduct, Zaretser asked Individual-1 to pay for his legal fees, stating that he would stay quiet and not cooperate with law enforcement. Later, Zaretser encouraged Individual-1 to lie to law enforcement about their scheme and stated that he would not provide information if questioned about hiding checks from the IRS.

The scheme resulted in total tax loss to the IRS of approximately $9.1 million.

The conspiracy charge carries a maximum penalty of five years in prison and a maximum fine of $250,000 fine.

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

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

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

NEWARK, N.J. – Two Bronx, New York, men were sentenced today to 29 months in prison each for their roles in a conspiracy to distribute heroin and fentanyl to customers in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Eddy Urena Rodriguez, 36, and Francisco Mercedes Gil, 33, both previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentences by videoconference today. Dilson Vazquez Genao, 25, also of the Bronx, New York, was sentenced on the same charge last month to 29 months in prison.

Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge in August 2019. Their cases are pending.

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

In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Maldonado employed Genao, Gil, Rodriguez, Daury Contreras Ulerio, and Rosario, to assist in preparing the heroin and fentanyl for distribution to customers in New Jersey. Jose Vasquez Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies.

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

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

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

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

The charge and allegations against Maldonado and Rosario are merely accusations, and those defendants are presumed innocent unless and until proven guilty.

NEWARK, N.J. – A Mexican national was sentenced today to 46 months in prison for his role in transporting approximately two kilograms of fentanyl into New Jersey for distribution, Acting U.S. Attorney Rachael A. Honig announced.

Adrian Vargas Arroyo, 31, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to possession with intent to distribute over 400 grams of fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.

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

In October 2019, Vargas Arroyo drove a tractor trailer into New Jersey with a bag containing four half-kilogram packages of fentanyl. Vargas Arroyo arranged to distribute the narcotics at a location in Middlesex County, New Jersey, where he was ultimately arrested.

In addition to the prison term, Judge Martinotti also sentenced Vargas Arroyo to two years of supervised release.

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

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 27 months in prison for his role in a conspiracy to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.

Allen Varice, 25, of East Orange, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence by videoconference today.

Varice’s conspirators – Dashawn Duncan, 27, of South Orange; Alexander Varice, 22, of South Orange; and Nasheed Jackson, 24, Tamir Duval, 22, and Qshaun Brown-Guinyard, 27, all of Newark, previously pleaded guilty before Judge Wigenton to informations charging each with one count of conspiracy to commit bank fraud. Duncan and Jackson were sentenced last month and each received a two-year sentence. Duval, Alexander Varice, and Brown-Guinyard are awaiting sentencing.  

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

From August 2018 through August 2019, Allen Varice and his conspirators 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 U.S. Postal Service facilities and never reached their intended recipients. After obtaining the stolen credit cards, Allen Varice and his conspirators used them to make unauthorized purchases at various retail stores and to withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. They altered the date, payee, and amount of the stolen checks prior to deposit.  Allen Varice and his conspirators 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 and ordered him to pay restitution of $43,364.

Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, in Newark, under the direction of Acting Inspector in Charge Rodney M. Hopkins, 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. – The first of 12 defendants charged in a stolen mail scheme has admitted responsibility for conspiring to launder money in connection with fraudulently deposited checks, Acting U.S. Attorney Rachael A. Honig announced.

Hans Pierre, 33, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of money laundering conspiracy.

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

From January 2018 through October 2020, Pierre conspired to launder money obtained from bank fraud. Pierre and his conspirators obtained checks written on bank accounts belonging to residents in the Newark area by stealing mail containing the checks from U.S. Post Office collection boxes. The conspirators altered the stolen checks so they appeared to be written payable to a different recipient and for a larger amount. Pierre and other conspirators then deposited the checks into other bank accounts and then transferred the money to each other using web-based money transfer applications. 

The count of money laundering conspiracy carries a maximum term of 20 years in prison and a maximum fine of $500,000, or twice the value of the property involved in the transaction, whichever is greatest. Sentencing is scheduled for Dec. 21, 2021.

Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Inspector in Charge Rodney M. Hopkins, and New York Division, under the direction of Inspector in Charge Philip Bartlett, with the investigation.

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

CAMDEN, N.J. – A Cumberland County, New Jersey, man was sentenced today to 548 months in prison for his role in three armed bank robberies and related charges, Acting U.S. Attorney Rachael A. Honig announced.

Stephan Byrd, 46, of Vineland, New Jersey, was convicted in April 2019 following a two-week trial before U.S. District Judge Robert B. Kugler in Camden federal court on three counts of bank robbery; two counts of using and brandishing a firearm in furtherance of bank robbery; one count of using and discharging a firearm in furtherance of bank robbery; and one count of being a felon in possession of a firearm. Judge Kugler imposed the sentence today in Camden federal court.

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

On June 7, 2014, Byrd entered the Ocean City Home Bank in Mays Landing, New Jersey, armed with a gun. He approached the bank teller counter, pointed his gun at bank employees, warned them not to push the panic alarm button, and ultimately stole $5,576. Byrd fled the scene through the nearby woods.

On July 19, 2014, Byrd entered the Newfield National Bank in Vineland, New Jersey, with Charles Sanders, who pleaded guilty previously to his role in the crime. Both Byrd and Sanders were armed with guns and covered up from head to toe. Sanders remained in the lobby of the bank while Byrd vaulted the bank counters to gain access to the bank tellers and cash drawers. Byrd pointed his gun at various bank employees and stole $10,297 from the bank drawers, after which he and Sanders fled through the nearby woods. The money contained dye packs, which exploded during Byrd’s and Sanders’ escape.

On July 21, 2014, Byrd entered the Newfield National Bank in Malaga, New Jersey, armed with a gun and covered up from head to toe. Byrd vaulted the bank counters to gain access to the teller drawers, pointed his gun at the bank tellers, stole $6,139, and ran into the nearby woods. After Byrd ran into the woods, a bank customer attempted to follow him in order to get identifying information. When Byrd noticed that he was being followed, he pointed his gun at the customer and fired a shot in the customer’s direction. Byrd then fled the scene. 

In addition to the prison term, Judge Kugler sentenced Byrd to five years of supervised release and ordered him to pay restitution of $23,807.

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; officers with the Vineland Police Department, under the direction of Chief Rudy Beu; and officers with the Hamilton Township Police Department, under the direction of Chief Stacy V. Tappeiner, with the investigation leading to today’s sentencing. She also thanked officers of the North Brunswick Police Department, the FBI’s Philadelphia Division, and forensic scientists with N.J. State Police Office of Forensic Sciences and Ballistics Laboratory for their assistance in the case.

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

CAMDEN, N.J. – Four men were arrested Aug. 14, 2021, for their alleged roles in abducting a man from a Camden street, beating him and then holding him captive while trying to extort $100,000 from the victim’s family, Acting U.S. Attorney Rachael A. Honig announced.

Melvin Severino, 25, of Scranton, Pennsylvania; Welber Antonio Jesus, 24, and Yoandry Rodriguez, 21, both of Camden; and Cesar Alexander Batista Alcantara, 23, of Yonkers, New York, were each charged by complaint with kidnapping. The defendants are scheduled to appear before U.S. Magistrate Judge Sharon A. King in Camden federal court on Aug. 17, 2021.

According to documents filed in this case:

The victim was walking down a street in Camden on the night of Aug. 12, 2021, when at least two individuals approached him from behind, covered his head, assaulted him and put him into a vehicle. The assailants drove the victim to a Camden residence where they restrained him and continued to beat him with a hard object the victim could not see. After several hours, the kidnappers removed the head covering and took photographs and video footage of the bloodied and beaten victim with the victim’s cell phone. The kidnappers sent those images to the victim’s family, and threatened to kill the victim if family members did not pay them over $100,000. In the early morning hours of Aug. 14, 2021, the FBI, working in partnership with local law enforcement in New Jersey and New York, located the victim and all four defendants in a Camden residence. The FBI apprehended the defendants and took the victim to Cooper University Hospital for medical treatment.

The kidnapping charge carries a statutory maximum penalty of life imprisonment and a maximum fine of $250,000. 

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of  Acting Special Agent in Charge Bradley S. Benavides in Philadelphia and Assistant Director in Charge Michael J. Driscoll in New York; officers of the Camden County Police Department, under the direction of Police Chief Gabriel Rodriguez; detectives of the New York City Police Department, under the direction of Commissioner Dermot Shea; and the Camden County Sheriff’s Office under the direction of Sheriff Gilbert L. “Whip” Wilson with the investigation leading to the charges.

The government is represented by Molly S. Lorber, Attorney in Charge of the Camden Office.

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

CAMDEN, N.J. – A Cumberland County, New Jersey, man today admitted his role in a conspiracy to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.

Joan Benitez, 41, of Millville, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute at least 50 grams of methamphetamine.

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

On numerous occasions between Jan. 22, 2020, and Sept. 9, 2020, Benitez sold crystalized methamphetamine, also called “ice,” as part of a conspiracy to distribute those drugs. Benitez distributed approximately 1.7 kilograms of “ice” in furtherance of the conspiracy.

The count of conspiracy to which Benitez pleaded guilty is punishable by a maximum sentenced of life in prison and a maximum $10 million fine. Sentencing is scheduled for Dec. 20, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI of the Newark Field Office, Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the New Jersey State Police, the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Atlantic County Prosecutor’s Office, the Atlantic County Sheriff’s Office, the Pleasantville Police Department, and the Atlantic City Police Department, for their assistance in the investigation.

The government is represented by Assistant U.S. Attorney Andrew Johns of the Criminal Division in Camden.

CAMDEN, N.J. – An Atlantic County, New Jersey, man with five prior felony convictions was sentenced today to 151 months in prison for illegally selling and possessing multiple firearms, Acting U.S. Attorney Rachael A. Honig announced.

Brandon Groce, 37, of Newtonville, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of illegally engaging in the business of dealing in firearms and one count of possession of a firearm by a convicted felon. Judge Kugler imposed the sentence today in Camden federal court.

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

On six different dates between February 2019 and September 2019, Groce met with an individual at a parking lot in Paulsboro, New Jersey, to sell firearms. Groce sold at least one firearm and ammunition for cash at each meeting. Groce lacked a license to sell firearms. At the time of the sales, Groce had previously been convicted in New Jersey Superior Court of five felonies, including a firearms offense, resisting arrest, and three controlled substances offenses.

In addition to the prison term, Judge Kugler sentenced Groce to three years of supervised release. 

Acting U.S. Attorney Honig credited special agents of the Newark Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the leadership of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Two men were charged today for their roles in a conspiracy to possess stolen mail, including credit cards and pandemic relief credit cards, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, Acting U.S. Attorney Rachael A. Honig announced.

Jarid Brooks, 27, and his brother, Justin Brooks, 21, both of Vauxhall, New Jersey, are charged by indictment with participating in a scheme to fraudulently obtain money from victim financial institutions and the U.S. Department of Treasury by obtaining credit cards issued by the victim financial institutions and Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury, which were stolen out of the U.S. mail by bribed U.S. Postal Service employees, and fraudulently using the stolen cards to make unauthorized purchases. They also are charged with aggravated identity theft. Jarid Brooks is also charged with possession with intent to distribute fentanyl and heroin, and Justin Brooks is charged with possession of a firearm with an obliterated serial number.

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

From July 2019 to Oct. 6, 2020, Jarid Books and Justin Brooks obtained credit cards stolen from the U.S. mail by U.S. Postal Service letter carriers, and then fraudulently activated those credit cards. They used those credit cards to make and attempt to make purchases without the cardholders’ authorization, including buying gift cards and electronics. The investigation to date has revealed that the victims have incurred approximately $100,000 in intended and actual losses from fraudulent purchases made using their stolen credit cards. In addition to stealing and illegally using credit cards, Jarid Brooks and Justin Brooks also schemed to fraudulently use over $11,000 of funds pre-loaded onto EIP cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards, in amounts ranging from approximately $400 to approximately $2,400.

The indictment contains the following charges:

Counts

Defendants

Charge

1

Jarid Brooks

Justin Brooks

Conspiracy to Possess Stolen Mail, Commit Bank Fraud, Defraud the U.S. Postal Service and the U.S. Department of Treasury

2

Jarid Brooks

Justin Brooks

Receipt of Stolen Mail

3

Jarid Brooks

Justin Brooks

Bank Fraud

4

Jarid Brooks

Aggravated Identity Theft

5

Justin Brooks

Aggravated Identity Theft

6

Jarid Brooks

Possession with Intent to Distribute Fentanyl and Heroin

7

Justin Brooks

Possession of a Firearm with an Obliterated Serial Number

 

The conspiracy, possession of mail theft, and firearm possession charges are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. The aggravated identity theft charge carries a mandatory penalty of two years in prison, which must run consecutively to any other prison sentence imposed. The narcotics possession charge carries a maximum potential penalty of 20 years in prison and a maximum fine of up to $1 million.

Jarid and Justin Brooks were originally charged with Kyle Williams, 36, and Kyjuan Hutchins, 22, also of Vauxhall, in October 2020. The charges against Kyle Williams for his role in the stolen mail and bank fraud conspiracy are still pending. He is presumed innocent unless and until proven guilty. Hutchins has pleaded guilty for his role in the conspiracy and is awaiting sentencing.

Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s charges. She also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.

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

The charge and allegations against Jarid and Justin Brooks are merely accusations, and they are presumed innocent unless and until proven guilty.