District of New Jersey

NEWARK, N.J. – An Essex County man with a previous felony conviction was arrested yesterday for illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.

Farrakhan Lovett, 24, Belleville, New Jersey, is charged by complaint with one count of unlawful possession of a firearm and ammunition by a convicted felon. He made his initial appearance today by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was detained.

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

Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed a search warrant on a vehicle that Lovett was observed driving in Belleville. They found a Taurus model G3 9x19mm firearm loaded with 18 rounds in a high-capacity magazine. Lovett was previously convicted of felonies in Essex County Superior Court.

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

Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, Newark Field Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai, and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges. She also thanked the East Orange, Orange and Newark police departments for their assistance.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

The government is represented by Assistant U.S. Attorney Naazneen Khan 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. – An Essex County, New Jersey, man today admitted his role in a conspiracy to steal check books and credit cards from the postal system, Acting U.S. Attorney Rachael A. Honig announced.

Tashon Ragan, 21, of Hillside, 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, Ragan conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at victim financial institutions and withdrawing funds from those accounts before the fraudulent checks were identified and further withdrawals were blocked. Ragan and his conspirators arranged for USPS employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Ragan and his conspirators. Ragan and his conspirators forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students and who had given Ragan and his conspirators access to their accounts, also in exchange for cash. It was also part of the conspiracy that Ragan and his conspirators created counterfeit checks, including counterfeit pandemic relief checks. Ragan and his conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and blocked further withdrawals. Ragan and his conspirators obtained and attempted to obtain approximately $280,000 from victim financial institutions.

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 Sept. 20, 2021.   

Acting U.S. Attorney Honig credited 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; 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. – An Essex County, New Jersey, man today admitted to conspiring to defraud two banks of more than $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.

Qshaun Brown-Guinyard, 27, of Newark, 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 August 2018 through January 2020, Brown-Guinyard and his conspirators engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme. The credit cards were stolen from facilities used by the U.S. Postal Service in Pine Brook and Warren, New Jersey. Because the cards were stolen, they never reached the intended cardholders. After obtaining the stolen cards, Brown-Guinyard and his conspirators used them to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere.  

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

Four of Brown-Guinyard’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, and Allen Varice – pleaded guilty over the past two months to identical informations, and they are due to be sentenced in July and August 2021.

The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1,000,000.  Sentencing is scheduled for Sept. 15, 2021.

Acting U.S. Attorney Honig credited 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 guilty plea.

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

NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a cocaine trafficking and money laundering conspiracy, Acting U.S. Attorney Rachael A. Honig announced.

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

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

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

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

The charge of conspiracy to possess with intent to distribute cocaine carries a maximum penalty of 20 years in prison and a statutory maximum fine of $1 million, or twice the amount involved in the offense. The charge of money laundering conspiracy carries a maximum penalty of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction. Sentencing is scheduled for Sept. 29, 2021.

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

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

The government is represented by Assistant U.S. Attorneys Lauren E. Repole of the Economic Crime Unit and Alexandra Tsakopoulos Saker of the OCDETF/Narcotics Unit in Newark.

TRENTON, N.J. – Two men have been sentenced to federal prison for their roles in a drug trafficking organization that sold illegal drugs in Mercer County, New Jersey, and in Philadelphia, Pennsylvania, Acting U.S. Attorney Rachael A. Honig announced today.

Jawaan Foreman, 37, of Trenton, was sentenced today to five years in prison. Foreman previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of possession with intent to distribute 28 grams or more of cocaine base.

Duane Paulino-Escalera, 28, of Philadelphia, was sentenced May 7, 2021, to five years in prison. Paulino-Escalera previously pleaded guilty before Judge Shipp to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin. 

Paulino-Escalera and Foreman are the ninth and 10th defendants to be sentenced in conjunction with this investigation. Judge Shipp imposed both sentences in Trenton federal court.

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

From June 2018 through May 2019, the defendants and others engaged in a heroin trafficking conspiracy in the areas of Stuyvesant, Hoffman, and Highland avenues in Trenton, and around Barbary Road in Philadelphia.

Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Robert M. Gbanapolor obtained regular supplies of “bricks” of heroin (approximately 50 smaller, individually packaged glassine envelopes or baggies containing heroin) from Paulino-Escalera, whom Gbanapolor referred to as “Papi.”

Members of the conspiracy distributed the heroin supplied by Paulino-Escalera to other conspirators, distributors, sub-dealers, and end users in and around Trenton. Law enforcement officers intercepted numerous discussions among the conspirators regarding issues such as heroin quality and availability, branding, quantity, and customer satisfaction.   

Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, New Jersey Division, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; and task force officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, with the investigation leading to today’s sentencing. She also thanked detectives and officers of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine Hoffman; detectives and officers of the Gloucester Township Police Department, under the direction of Chief Harry Earle; members of the N.J. State Police, under the direction of Col. Patrick J. Callahan; detectives and officers of the Bordentown Township Police Department, under the direction of Chief Brian Pesce; and special agents of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai.

These sentencings are part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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

Gbanapolor was charged Feb. 25, 2021, in a superseding indictment with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, one count of distribution and possession with intent to distribute heroin, and one count of possession with intent to distribute 100 grams or more of heroin. That case remains pending. The charges and allegations against the him are merely accusations and he is presumed innocent unless and until proven guilty.

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 40 years in prison for producing images of himself sexually abusing young children, Acting U.S. Attorney Rachael A. Honig announced.

Sebastien Attar, 36, of Brick, New Jersey, previously pleaded guilty before U.S. District Peter G. Sheridan to an information charging him with two counts of sexual exploitation of children. Separately, Attar also pleaded guilty before Judge Sheridan to a superseding indictment charging him with one count of advertising child pornography. Judge Sheridan imposed the sentence today in Trenton federal court.

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

Beginning in mid-2017, federal law enforcement began investigating individuals participating in a private chat messaging group dedicated to the discussion and dissemination of images and videos depicting the sexual abuse of children. The private chat group was named “Taboo Train 2.0,” and law enforcement identified Attar as a member of that group, operating with the account identifier “Seb Seb.” The investigation revealed that on multiple occasions and in response to requests from other users, Attar, operating as “Seb Seb,” shared with the “Taboo Train 2.0” chat group images depicting adults sexually abusing very young children.

In March 2018, in connection with the investigation of the “Taboo Train 2.0” chat group, federal law enforcement agents executed a search warrant at Attar’s Brick, New Jersey residence, and seized a number of electronic devices and electronic storage media. In July 2018, a grand jury sitting in the Northern District of Georgia returned a superseding indictment charging Attar and others with advertising child pornography.

During a forensic review of the electronic media seized pursuant to the search of Attar’s residence, law enforcement discovered graphic images in which an individual – later identified as Attar – had photographed himself sexually abusing two infants. Attar was subsequently arrested and charged in a criminal complaint filed in the District of New Jersey. As part of the plea agreement, the superseding indictment filed in the Northern District of Georgia against Attar was formally transferred to the District of New Jersey so that Attar could plead guilty to that charge in conjunction with his guilty plea to the information filed in this district.

In addition to the prison term, Judge Sheridan sentenced Attar to lifetime supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI-Newark Field Office, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of the FBI-Atlanta Field Office, under the direction of Special Agent in Charge J.C. Hacker, with the investigations leading to today’s guilty pleas. She also thanked prosecutors from the U.S. Attorney’s Office for the Northern District of Georgia, under the direction of Acting U.S. Attorney Kurt R. Erskine, for their assistance.

The government is represented by J. Brendan Day, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 240 months in prison for his role as the leader of a heroin trafficking conspiracy in Newark, Acting U.S. Attorney Rachael A. Honig announced.

Keith Herd, 33, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to a third superseding indictment charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and distribution of and possession with intent to distribute heroin. Judge Wigenton imposed the sentence today by videoconference.

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

Herd was the leader of a drug trafficking organization that dealt heroin and crack cocaine in and around Newark, specifically around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC). The organization was comprised of members of the Brick City Brim set of the Bloods street gang.

The investigation revealed that in addition to selling drugs, members of the organization alerted each other to police presence and the presence of rival gang members or drug dealers within NCC. The members also shared narcotics supply, narcotics proceeds, and customers, and raised bail money for each other following their numerous arrests. Members of the organization have also engaged in violence and been the subjects of violent crime in connection with their narcotics trafficking activities.

In addition to the prison term, Judge Wigenton sentenced Herd to five years of supervised release.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and members of the Newark Department of Public Safety, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing. She also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, the New Jersey State Parole Commission, and the U.S. Marshals Service for their assistance.

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

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

NEWARK, N.J. – A Bronx woman today admitted fraudulently obtaining over $200,000 worth of Apple iPhones, Acting U.S. Attorney Rachael A. Honig announced.

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

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

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

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

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

The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. Sentencing is scheduled for Oct. 5, 2021.

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

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

CAMDEN, N.J. – Two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018 while brandishing a firearm were both sentenced today to federal prison, Acting U.S. Attorney Rachael A. Honig announced.

Antwaine Thomas, 41, of Philadelphia, was sentenced to 272 months in prison and Kareem Moore, 31, of North Wales, Pennsylvania, was sentenced to 168 months in prison. Both previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging them with armed bank robbery and brandishing a firearm during a bank robbery. Judge Rodriguez imposed both sentences today in Camden federal court.

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

On July 30, 2018, Thomas and Moore walked into the Fulton Bank in Carneys Point, Salem County. Thomas pointed a loaded handgun at four bank employees while demanding cash. Thomas then handed the handgun to Moore, and Moore also demanded cash while displaying the handgun in such a way that the bank employees could see it. Thomas and Moore took cash from the bank and fled. Responding officers arrived at the bank within minutes of the robbery, and after a brief foot pursuit across the street, they tackled and arrested Moore, who had a portion of the proceeds hidden inside of his pants. Thomas was arrested several hours later, and he was captured on surveillance video in a nearby residential area, disposing of the cash, gun, and his clothing. 

In addition to the prison terms, Judge Rodriguez sentenced both Thomas and Moore to five years supervised release, and ordered them to each to pay $103,444 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; the Salem County Prosecutor’s Office, under the direction of Salem County Prosecutor John T. Lenahan; officers of the Carneys Point Police Department, under the direction of Chief Dale VanNamee; and officers of the Penns Grove Police Department, under the direction of Lt. Jason Spera, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden.

NEWARK, N.J. – A Hudson County, New Jersey, man previously convicted of three felonies was sentenced today to 60 months in prison for illegally possessing a firearm and ammunition in connection with a June 2020 shooting in Jersey City, Acting U.S. Attorney Rachael A. Honig announced.

Jamel Armfield, 20, of Jersey City, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Arleo imposed the sentence today.

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

On June 24, 2020, Armfield knowingly possessed a .45 caliber Springfield Armory semi-automatic handgun, Model XD-45 ACP, and 14 rounds of .45 caliber ammunition when he fired nine rounds of ammunition from that handgun at a moving vehicle traveling on Gates Avenue in Jersey City. The motive and intended target(s) remain unknown. The shooting was captured on a nearby surveillance camera.  The firearm was then hidden by Armfield and recovered by members of the Jersey City Police Department. It contained five additional rounds of ammunition. At that time, Armfield had previously been convicted in Hudson County Superior Court of possession of a controlled dangerous substance, possession with intent to distribute controlled dangerous substances on or near school property, and resisting arrest, all of which are felonies.

In addition to the prison term, Judge Arleo sentenced Armfield to three years of supervised release.

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

Acting U.S. Attorney Honig credited special agents and task force officers of the ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing. She also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, for its assistance with the investigation.

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

TRENTON, N.J. – A New York man with prior felony convictions today admitted illegally possessing a firearm, Acting U.S. Attorney Rachael A. Honig announced.

Kevon Belfon, 35, of Jamaica, New York, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of being a felon in possession of a firearm.

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

On July 24, 2020, Belfon knowingly possessed a Taurus 9-millimeter semi-automatic handgun loaded with 10 rounds of ammunition in his vehicle in Stafford Township, New Jersey.  Belfon has two prior felony convictions, one of which involved a firearm. As a previously convicted felon, Belfon is not permitted to possess firearms.

The charge of possession of a firearm by a previously convicted felon carries a maximum penalty of 10 years in prison and a fine up to $250,000. Sentencing is scheduled for Sept. 13, 2021. 

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Craig B. Kailimai; and the Stafford Township Police Department, under the direction of Chief of Police Thomas Dellane, with the investigation leading to today’s guilty plea.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.  For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

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

TRENTON N.J. – A Morris County, New Jersey, man was sentenced today to 84 months in prison for distribution of child pornography, Acting U.S. Attorney Rachael A. Honig announced.

Mark Miller, 63, of Mount Arlington, New Jersey, previously pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of distribution of child pornography. Judge Wolfson imposed the sentence today in Trenton federal court.

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

In August 2018, Miller knowingly possessed more than 600 images of child sexual abuse, including materials depicting prepubescent minors, sadistic or masochistic conduct or other depictions of violence, and sexual abuse or exploitation of an infant or toddler. Miller knowingly distributed these materials on the Internet through a publicly available peer-to-peer file sharing network.

In addition to the prison term, Judge Wolfson sentenced Miller to five years of supervised release.

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

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

CAMDEN, N.J. – The president of a company providing goods to government agencies today admitted to attempting to defraud businesses in connection with government contracting, Acting U.S. Attorney Rachael A. Honig announced.

Keith Fisher Sr., 62, of Philadelphia, Pennsylvania, and Burlington, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with one count of mail fraud. Fisher also pleaded guilty to violating the conditions of his supervised release from a prior conviction.

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

On July 18, 2017, Fisher was sentenced by Judge Bumb to 60 months in prison for conspiring to commit mail fraud using various companies he owned and controlled. In that case, Fisher and his companies won bids for U.S. government contracts; subcontracted with victim-businesses to provide goods to the government pursuant to the contracts; collected payments from the government for fulfilling the contracts; and then failed to pay the subcontractor victim-businesses that actually provided the goods.

The fraud scheme charged today involved another company, Atlantic Safety Corp., controlled by Fisher, and began when Fisher was nearing the end of his previous prison sentence. Fisher used Atlantic Safety to bid on federal contracts through Unison Marketplace, a reverse auction online marketplace that enabled government agencies to post requirements for goods. Upon submitting a winning bid, Atlantic Safety was awarded a contract to provide goods to a government agency.

Fisher orchestrated his fraud by using an alias to subcontract with a third-party vendor to provide goods directly to the government agency. Fisher induced the third-party vendor to ship the goods to the government agency on credit by falsely promising to pay the vendor for the goods. Fisher also made fraudulent representations to other potential subcontractor vendors about the creditworthiness and financial status of Atlantic Safety.

The mail fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 13, 2021.

Acting U.S. Attorney Honig credited special agents with the U.S. Naval Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Michael T. Wiest; special agents with the General Services Administration Office of Inspector General, Office of Investigations Mid-Atlantic Division, under the direction of Special Agent in Charge Eric D. Radwick; and special agents with the U.S. Department of State Office of Inspector General, Office of Investigations, under the direction of Special Agent in Charge Michael Speckhardt, with the investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A Jersey City, New Jersey, man made his initial appearance today on charges stemming from his arrest for illegally possessing two loaded firearms, another handgun, and ammunition, Acting U.S. Attorney Rachael A. Honig announced.

Davone Adams, aka “Dikim Adams,” 42, appeared by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was released on home confinement. He is charged by indictment with one count of possession of a firearm and ammunition by a convicted felon. He was also charged by complaint today with being in possession of another handgun and more ammunition.

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

On Feb. 23, 2021, Adams, who had previously been convicted of a crime punishable by a term of at least one year in prison, was found by law enforcement officers to be in possession of one Ruger, Model P95, 9-millimeter Luger pistol loaded with 10 rounds of 9-millimeter ammunition, as well as one Windam Weaponry, Model WW-15, .223/5.56-millimeter rifle loaded with 30 rounds of 5.56-millimeter ammunition. An additional Ruger handgun and additional ammunition were found today at his residence.

Each count of illegally possessing a firearm carries a maximum sentence of 10 years in prison and a fine of up to $250,000. 

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai; and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

The government is represented by Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office in Newark.

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

NEWARK, N.J. – A Bronx, New York, man was sentenced today to 120 months in prison for conspiring to distribute 500 grams or more of cocaine and a West New York, New Jersey, man admitted to conspiring to distribute 500 grams or more of cocaine, Acting U.S. Attorney Rachael A. Honig announced.

Derrick Johnson, 49, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. In addition to the prison term, he was sentenced to eight years of supervised release. Judge Hayden imposed the sentence today via videoconference.

Also today, Akeil Beggs, 32, pleaded guilty by videoconference before Judge Hayden to an indictment charging him with one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. Beggs is scheduled to be sentenced on Sept. 14, 2021.

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

In October 2019, Johnson and Beggs conspired with each other and others to distribute and possess with intent to distribute cocaine in New York and New Jersey. On Oct. 31, 2019, Johnson traveled to Beggs’ apartment in West New York, where Johnson and Beggs coordinated to purchase approximately four kilograms of a substance they believed was cocaine from an individual. Agents with the U.S. Drug Enforcement Administration arrested Johnson and Beggs and seized $153,577 from Johnson’s vehicle, a loaded firearm from a hidden compartment in Johnson’s vehicle, and $23,607 from Beggs’ apartment.

Acting U.S. Attorney Honig credited special agents with the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Raymond Donovan in New York, with the investigation leading to today’s sentencing and guilty plea.

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

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

Jimir Ricks, 26, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to Count One of a third superseding indictment charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, 40 grams or more of fentanyl, and a quantity of cocaine base and knowingly and intentionally distributing heroin and fentanyl.

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

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

The count of conspiracy to distribute heroin, fentanyl, and cocaine base carries a mandatory minimum of five years in prison, maximum penalty of 40 years in prison and a fine of at least $5 million. The count of distribution of fentanyl and heroin carries a maximum of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Sept. 14, 2021.

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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

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

NEWARK, N.J. – A Bronx, New York, man was sentenced today to 60 months in prison for conspiring to distribute 500 grams or more of cocaine, Acting U.S. Attorney Rachael A. Honig announced.

Jordan Urrutia, 32, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine. Judge Wigenton imposed the sentence today in Newark federal court.

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

In August 2019, Urrutia conspired with others to distribute cocaine in New Jersey. Urrutia and a conspirator traveled from the Bronx into Bergen County, New Jersey, to deliver approximately two kilograms of cocaine before being identified and arrested by agents with the U.S. Drug Enforcement Administration.

In addition to the prison term, Judge Wigenton sentenced Urrutia to four years of supervised release.  

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

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

CAMDEN, N.J. – Two South Jersey men were arrested for conspiring to manufacture and distribute firearms, including machine guns, Acting U.S. Attorney Rachael A. Honig announced today.

David Bibler, 55, of Haddon Heights, New Jersey, and Francis Hillsee, 36, of Mt. Laurel, New Jersey, are each charged by complaint with conspiring to manufacture and distribute firearms without a license and possession of a machinegun. Hillsee was also charged with unlawful possession of ammunition by a felon. Bibler appeared before U.S. Magistrate Judge Ann Marie Donio in Camden federal court on May 6, 2021, and was detained. Hillsee is currently in custody on an unrelated matter and will have his initial appearance at a future date.

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

From December 2020 to February 2021, Bibler was identified as a firearms manufacturer who offered for sale homemade firearms, including fully automatic pistols and rifles, as well as silencers. Hillsee was identified as Bibler’s conspirator, orchestrating sales and pricing. Bibler and Hillsee manufactured and sold 12 firearms, including two fully automatic pistols and one fully automatic rifle, and one silencer. Hillsee also sold boxes of ammunition. When he was arrested, Bibler had in his home eight firearms, including rifles and pistols, as well as firearm manufacturing equipment, explosive powder, and a large amount of ammunition. 

Each count of conspiring to engage in the business of manufacturing and distributing firearms without a license carries a maximum potential penalty of five years in prison and a $250,000 fine. Each count of possession of a machinegun carries a maximum potential penalty of 10 years in prison and a $250,000 fine. The possession of ammunition by a felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Camden Field Office of the Newark Field Division, under the direction of Acting Special Agent in Charge of Craig B. Kailimai; the Drug Enforcement Administration, Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Gloucester Township Police Department, under the direction of Chief David J. Harkins; the Haddon Heights Police Department under the direction of Chief Michael Scardino; the Mt. Laurel Police Department under the direction of Chief Steve Riedener; and the Gloucester City Police Department under the direction of Chief Brian Morrell, with the investigation leading to the charges.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian

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

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

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 30 months in prison for being a felon in possession of two firearms, and for distributing heroin and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.

Aughkay L. Green, a/k/a “K-Boogie,” 50, of Newark, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to a three-count indictment charging him with possession of heroin and cocaine base with intent to distribute and with being a felon in possession of numerous firearms and ammunition.

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

On Jan. 12, 2017, Green sold 25 bricks – later determined to be 38 grams – of heroin to “Individual 1,” for $1,200. On March 22, 2017, Green sold Individual 1 48.9 grams of crack cocaine for $2,250. Green was under law enforcement surveillance and observed to be dressed in his Newark Parking Authority uniform.

On April 1, 2017, Green, accompanied by an unidentified male associate, met Individual 1 in Irvington, New Jersey, where Green’s associate provided Individual 1 with: (1) a Smith and Wesson Model 21 .44 caliber handgun; (2) a Smith and Wesson Model 15 .38 handgun, and (3) 50 rounds of hollow-point .44 caliber ammunition marked “44 REM MAG FC.” Green’s associate received $1,360 from Individual 1, and subsequently provided Green with proceeds from the sale and discussed using these proceeds for the purchase of narcotics.

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

Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark.

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

CAMDEN, N.J. – A Newark man was sentenced today to 110 months in prison for his role in robbing a barbershop, Acting U.S. Attorney Rachael Honig announced.

Philip Hedgespeth, 45, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of Hobbs Act robbery, one count of possessing a firearm in furtherance of a crime of violence and one count of possessing a firearm as a previously 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 May 1, 2018, Hedgespeth entered the Cache Barbershop located in Newark and brandished a firearm at an employee and customer, demanding cash from them. The customer was an off-duty Newark police officer, who attempted to stop Hedgespeth and prevent the robbery. Hedgespeth escaped and jumped into a waiting vehicle. Newark police engaged in a motor vehicle chase with the suspects, which ended when the suspects’ vehicle became disabled on McCarter Highway. Hedgespeth then attempted to flee the scene on foot but was apprehended after a brief chase.

In addition to the prison term, Judge Kugler sentenced Hedgespeth to five years of supervised release.

Acting U.S. Attorney Honig credited law enforcement officers 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 Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Organized Crimes and Gangs Unit in Newark.

NEWARK, N.J. – A dual New York and Florida resident was charged for his role in fraudulently obtaining federal Paycheck Protection Program (PPP) loans totaling $3.8 million, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division announced today.

Gregory J. Blotnick, 34, of New York City and West Palm Beach, Florida, is charged by complaint with eight counts of wire fraud affecting a financial institution and six counts of money laundering. Blotnick is scheduled to have his initial appearance by videoconference on May 20, 2021, before a U.S. Magistrate Judge.

“The funds made available through the Paycheck Protection Program are intended to help businesses and their workers get through the financial hardships caused by the COVID-19 pandemic, not to enrich the unscrupulous few who, like this defendant, lie to obtain those funds for their own personal profit,” Acting U.S. Attorney Honig said. “We will continue to protect the viability of important federal programs like these by working quickly to identify, investigate, and prosecute the individuals who see a time of national crisis as an opportunity to commit fraud.”   

“Not only did Blotnick fraudulently obtain almost $4 million in relief funds reserved for those suffering serious financial harm from the tragic COVID-19 pandemic, he also lied about how he would use those funds, placing millions of dollars in losing stock trades,” said Acting Assistant Attorney General McQuaid said. “The Justice Department and its law enforcement partners remain committed to aggressively pursuing and holding accountable fraudsters who treat COVID relief programs like a personal piggy bank.”

“There are many small businesses out there that are suffering who are relying on the CARES Act to keep them and their employees afloat as we continue to feel the financial hardships brough on by this pandemic,” Michael Montanez, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “As alleged in the Complaint, Mr. Blotnick took advantage of the emergency financial assistance by lying and submitting fraudulent applications for loans he did not deserve.  IRS Criminal Investigation will work with our law enforcement partners to root out corrupt individuals who try to illegally obtain CARES Act assistance they are not entitled to receive.”

“As the Federal government moves to support small businesses during this critical time, members of the Federal Home Loan Bank system play an integral role in the Paycheck Protection Program,” Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), said. “The charges announced today serve as a reminder that those who mislead lenders and seek to defraud the CARES Act will be held accountable.  We are proud to work with the Department of Justice and our federal law enforcement partners during this unprecedented crisis.”

“These charges demonstrate our commitment to hold accountable those who attempt to defraud pandemic-related assistance programs designed to aid businesses and employees in these challenging times,” said Special Agent in Charge John F. Grasso, Social Security Administration Office of the Inspector General (SSA-OIG). “We will continue to collaborate across agency lines to combat this self-serving type of fraud. I want to thank the Federal Housing Finance Authority OIG, IRS Criminal Investigation, Federal Deposit Insurance Corporation OIG, and the U.S. Attorney’s Office for their efforts to bring this individual to justice.”    

“These charges reflect greed and a selfish attempt to increase personal wealth on the backs of Americans suffering from the ongoing pandemic,” Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region, said. “As with this case, we will continue to vigorously investigate financial crimes and we appreciate the cooperation of our fellow law enforcement partners.”

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

Blotnick submitted eight fraudulent PPP loan applications to several lenders on behalf of seven purported businesses.

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

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

Blotnick submitted eight fraudulent PPP loan applications to several lenders on behalf of seven purported businesses. The applications allegedly contained fraudulent representations to the participating lenders, including documentation of federal tax returns. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020. Blotnick also fabricated the existence of employees listed in purported payroll expense sheets submitted to the various financial institutions. 

Based on Blotnick’s alleged misrepresentations, the lenders approved Blotnick’s PPP loan applications and provided Blotnick’s purported business with approximately $3.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses. Blotnick then transferred most of the proceeds into a brokerage account and lost most of it through stock trading.

The eight counts of wire fraud affecting a financial institution each carry a maximum penalty of 20 years in prison and a $250,000 fine; the six counts of money laundering each carry a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater.

Acting U.S. Attorney Rachael Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Manchak; special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Montanez; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Grasso; special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Special Agent in Charge Tarasca in New York; and special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Special Agent in Charge Stephen Donnelly, with the investigation leading to 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 and Trial Attorney Cory E. Jacobs of the Department of Justice, Criminal Division, Market Integrity and Major Frauds Unit.

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.

A criminal complaint was filed in the District of New Jersey today charging a dual-resident of New York and Florida with fraudulently obtaining and laundering nearly $4 million in funds from the COVID-19 relief Paycheck Protection Program (PPP).

According to court documents, Gregory J. Blotnick, 34, of New York City and West Palm Beach, used a variety of false representations to fraudulently obtain more than $3.8 million in federal COVID-19 PPP funds. To obtain the loan money, Blotnick submitted eight falsified loan applications to numerous lenders on behalf of five of Blotnick’s businesses, including his New York City-based hedge fund management firm, Brattle Street Capital LLC and related entities. To obtain the PPP loans, Blotnick submitted false information, including the number of his employees, federal tax returns for his businesses, and his payroll documentation, and he certified that he would use the loan money only for business-related purposes. After fraudulently obtaining the loans, Blotnick laundered and misused the loan proceeds by, among other things, transferring those proceeds to brokerage accounts and placing more than $3 million in losing stock trades.  

“Not only did Blotnick fraudulently obtain almost $4 million in relief funds reserved for those suffering serious financial harm from the tragic COVID-19 pandemic, he also lied about how he would use those funds, placing millions of dollars in losing stock trades,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Justice Department and its law enforcement partners remain committed to aggressively pursuing and holding accountable fraudsters who treat COVID-19 relief programs like a personal piggy bank.”

“The funds made available through the Paycheck Protection Program are intended to help businesses and their workers get through the financial hardships caused by the COVID-19 pandemic, not to enrich the unscrupulous few who, like this defendant, lie to obtain those funds for their own personal profit,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “We will continue to protect the viability of important federal programs like these by working quickly to identify, investigate, and prosecute the individuals who see a time of national crisis as an opportunity to commit fraud.”   

“As the federal government moves to support small businesses during this critical time, members of the Federal Home Loan Bank system play an integral role in the Paycheck Protection Program,” said Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG). “The charges announced today serve as a reminder that those who mislead lenders and seek to defraud the CARES Act will be held accountable. We are proud to work with the Department of Justice and our federal law enforcement partners during this unprecedented crisis.”

“These charges demonstrate our commitment to hold accountable those who attempt to defraud pandemic-related assistance programs designed to aid businesses and employees in these challenging times,” said Special Agent in Charge John F. Grasso of the Social Security Administration OIG (SSA-OIG) New York Field Division. “We will continue to collaborate across agency lines to combat this self-serving type of fraud. I want to thank the Federal Housing Finance Authority OIG, IRS Criminal Investigation, Federal Deposit Insurance Corporation OIG, and the U.S. Attorney’s Office for their efforts to bring this individual to justice.”  

“These charges reflect greed and a selfish attempt to increase personal wealth on the backs of Americans suffering from the ongoing pandemic,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region. “As with this case, we will continue to vigorously investigate financial crimes and we appreciate the cooperation of our fellow law enforcement partners.”

Blotnick is charged with eight counts of wire fraud and six counts of money laundering. The defendant is scheduled for his initial court appearance on May 20. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud, and a maximum of 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FHFA-OIG, IRS-CI, SSA-OIG and the FDIC-OIG are investigating the case.

Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.

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

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. 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 Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.

Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

TRENTON, N.J. – A Monmouth County, New Jersey, business owner was sentenced today to 12 months and one day in prison for tax evasion and failure to pay the IRS over $540,000 in employment taxes, Acting U.S. Attorney Rachael A. Honig announced today.

Wilson Salas-Molina, 41, of Howell, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with one count of payroll tax evasion and one count of failure to collect, account for, and pay over payroll taxes. Judge Sheridan imposed the sentence today in Trenton federal court.

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

Salas-Molina was the owner and operator of US Contractor Inc. (aka Wilson Contractors Inc., aka WC Contractor Inc.), a roofing business located in Monmouth County. From 2012 to 2018, Salas-Molina was required to withhold and pay over to the IRS the employment taxes for US Contractor employees. Salas-Molina cashed checks he received from roofing clients at a check cashing service and paid his 14 employees in cash to conceal his payment of wages and his failure to report, account for, and pay over employment taxes to the IRS. The scheme resulted in a failure to withhold and pay over $540,000 in employment taxes to the IRS.   

In addition to the prison term, Judge Sheridan sentenced Salas-Molina to three years of supervised release and ordered Salas-Molina to pay $541,181 in restitution to the IRS.

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 today’s sentencing.

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

NEWARK, N.J. – Four Union County, New Jersey, men were charged for their roles in conspiracies to distribute and possess with intent to distribute narcotics, Acting U.S. Attorney Rachael A. Honig and Acting Union County Prosecutor Lyndsay V. Ruotolo announced today.

Tyshawn Jones, 45; Walter Gibbs, 50; Rodney McCrae, 51; and Syhid Ellison, 37; all of Elizabeth, New Jersey, are charged by complaint with conspiracy to distribute and possess with intent to distribute heroin and fentanyl. Each defendant is also charged with additional narcotics offenses. Jones, McCrae, and Ellison were arrested this morning and are scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Edward S. Kiel. Gibbs remains at large.

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

From August 2020 through May 2021, the defendants sold heroin and fentanyl in an open-air narcotics market around Third Street between Court Street and Magnolia Avenue in Elizabeth. Through numerous controlled purchases of drugs, surveillance, and the analysis of telephone records, the investigation uncovered evidence that the defendants conspired with each other and others to distribute heroin and fentanyl. The defendants sold heroin that is frequently mixed with fentanyl, a potent, synthetic opioid that is approximately 50 times stronger than heroin.

Each count charged in the complaint carries a maximum penalty of 20 years in prison and a fine of at least $1 million.

Acting U.S. Attorney Honig credited investigators of the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Ruotolo; special agents and task force officers with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Elizabeth Police Department, under the direction of Police Chief Giacomo Sacca; and investigators of the Somerset County Prosecutor’s Office, under the direction of Prosecutor Michael H. Robertson, with the investigation leading to the charges.

The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the Violent Crimes Unit and Assistant U.S. Attorney Kimberly Mitchell of the OCDETF/Narcotics Unit in Newark.

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

TRENTON, N.J. – A New York doctor was sentenced today to 57 months in prison for distributing opioids without a legitimate medical reason and soliciting sexual favors from patients in exchange for opioid prescriptions, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Santiamo, 65, of Staten Island, New York, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiracy to distribute oxycodone, a controlled dangerous substance. Judge Shipp imposed the sentence by videoconference today.

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

From Jan. 1, 2012, through May 3, 2018, Santiamo owned and operated a medical practice in Staten Island focused on internal medicine and geriatric care. He prescribed large quantities of oxycodone outside the ordinary course of professional practice and without a legitimate medical purpose. For some of his patients, there was no medical necessity for Santiamo to treat them with oxycodone, nor to prescribe the large quantities that he did. In addition, Santiamo solicited sexual favors from certain of his younger patients in exchange for unlawful oxycodone prescriptions. These patients were all under the age of 40 at the time Santiamo provided them with prescriptions and thus would not typically be treated by a geriatric care physician like Santiamo. In some instances, Santiamo did this despite evidence that certain patients were abusing opioids.

In addition to the prison term, Judge Shipp sentenced Santiamo to three years of supervised release and fined him $30,000.

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

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

CAMDEN, N.J. – A convicted felon and his girlfriend were sentenced today to prison for their roles in a scheme to buy firearms in Georgia and transport them to New Jersey for resale, Acting U.S. Attorney Rachael A. Honig announced.

Anthony Doyle, 30, was sentenced to 46 months in prison and three years of supervised release; Anastacia Thomas, 28, was sentenced to 12 months and one day in prison and two years of supervised release. Doyle and Thomas, both of Fayetteville, North Carolina, previously pleaded guilty before U.S. District Judge Joseph Rodriguez to conspiring to illegally traffic firearms. Doyle also pleaded guilty to being a felon in possession of a firearm. Judge Rodriguez imposed the sentences today in Camden federal court.

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

On Jan. 25, 2018, law enforcement officers conducted a traffic stop of a car driven by Thomas and occupied by Doyle in Deptford, New Jersey. Law enforcement officers observed in plain view a Glock handgun, which was loaded with 14 hollow tip bullets. A search of the car and a backpack revealed four additional handguns and three firearm boxes.

The investigation revealed that from Nov. 30, 2017, to Jan. 25, 2018, Doyle and Thomas conspired and worked together to deal firearms without a license. Doyle, who was a convicted felon and therefore could not legally purchase firearms, was the driving force behind the conspiracy. He was responsible for selecting the firearms, transporting them up to New Jersey, finding buyers, and selling the firearms at a profit. Doyle used his social media accounts to advertise the firearms for sale, negotiate pricing, and arrange the sales. Doyle’s online discussions regarding illegal firearm trafficking are documented in hundreds of pages of online messages that were analyzed by law enforcement.

Thomas’ role in the scheme was to purchase firearms from federally licensed firearms dealers because Doyle could not do so as a convicted felon. She also purchased firearms from pawn shops, helped Doyle transport the firearms to New Jersey for resale and handled the profits from the resales.

This case is part of Project Guardian, the U.S. Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai, Newark Field Division, with the investigation leading to today’s sentencings.

The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Christina O. Hud of the U.S. Attorney’s Office Criminal Division in Camden.

NEWARK N.J. – A Bergen County, New Jersey, man was sentenced today to 51 months in prison for defrauding lenders and corporations of $4.9 million by impersonating two bank executives interested in funding syndicated loans for global companies, Acting U.S. Attorney Rachael A. Honig announced.

Matthew O’Callaghan, 43, of Upper Saddle River, New Jersey, previously pleaded guilty before U.S. District Court Judge Susan D. Wigenton via videoconference to count one of an indictment charging him with wire fraud. Judge Wigenton imposed the sentence today in Newark federal court.

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

From 2016 through 2019, O’Callaghan defrauded at least two global financial services groups and four global companies of millions of dollars by deceiving them into believing that “Bank A” was agreeing to commit funds to revolving credit facilities. He contacted the victim-lenders and victim-companies using the aliases “Edward Tierney” and “Michael Nash,” whom he falsely represented were executives at Bank A. O’Callaghan induced the victim-lenders and victim-companies into agreeing to pay Bank A to take on a commitment to fund revolving credit facilities.

O’Callaghan submitted numerous fraudulent documents to the victim-lenders and victim-companies that were designed to deceive them into believing that Nash and Tierney were legitimate representatives of Bank A, when in fact they were not. O’Callaghan created email addresses to resemble legitimate Bank A email addresses, false email signature blocks for Tierney and Nash that bore the Bank A logo and listed the business address for Bank A, fraudulent wiring instructions bearing Bank A’s logo and address, and a tax form bearing a tax identification number for Bank A.

O’Callaghan directed the victim-lenders and victim-companies to wire funds to a bank account at Bank A that O’Callaghan controlled and then converted the money for personal expenses, the purchase of an automobile, gambling, travel, and payments to a private club.

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

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and inspectors of the U.S. Postal Inspection Service, Newark Division, 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 Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.

NEWARK, N.J. – A Union County, New Jersey, man was indicted today for illegal possession of ammunition, Acting U.S. Attorney Rachael A. Honig announced. 

Kevin Cordeiro, 34, of Elizabeth, New Jersey, has been indicted by a federal grand jury for possessing ammunition after having been previously convicted of a felony offense.

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

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

The charged offense carries a maximum sentence of 10 years in prison and a fine of up to $250,000. 

Cordeiro was first charged by federal criminal complaint and had an initial appearance in the District of New Jersey before U.S. Magistrate Judge Andre Espinosa via video conference on April 29, 2021. He was detained without bail. 

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai; special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Lyndsay V. Ruotolo; and the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, with the investigation leading to this charge. She also thanked the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr., for their assistance with this investigation.

This case is a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities.

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

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

NEWARK, N.J. – Two New York men were arrested today for their participation in a scheme to steal and alter checks from the mail and engage in bank fraud, Acting U.S. Attorney Rachael A. Honig announced.

Nigel Lynch, 19, of Yonkers, New York, and Alique Jordan Clarke, 20, of Bronx, New York, are each charged by complaint with one count of conspiracy to commit bank fraud. They are scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Edward Kiel.

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

From February 2020 to November 2020, Lynch, Clarke, and others conspired to steal checks from mailboxes in Morris, Essex, Somerset, and Passaic counties, alter the stolen checks, and deposit the altered checks into bank accounts controlled by Lynch, Clarke and their conspirators. The investigation has identified over 294 checks with a face value of over $1.3 million that have been stolen, altered, and deposited in accounts controlled by Lynch, Clarke, and their conspirators.

The conspiracy to commit bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.

Acting U.S. Attorney Honig credited special agents of the U.S. Postal Inspection Service Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to today’s charges. 

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

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

NEWARK, N.J. – A Passaic County, New Jersey, man was arrested and charged with the conspiring to distribute narcotics after he purchased a large quantity of fentanyl, Acting U.S. Attorney Rachael A. Honig announced today.

Ruddy Manuel Santos Corcino, 32, of Passaic, New Jersey, is charged by complaint with one count of conspiracy to distribute fentanyl. He appeared by videoconference before U.S. Magistrate Judge Edward S. Kiel and was released on home confinement.

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

On May 4, 2021, law enforcement officers conducted surveillance in the area of West 183rd Street and University Avenue in Bronx, New York, and observed Corcino arrive in a white Acura SUV and take a wad of currency and approach the front driver side of a black Toyota Camry. Law enforcement officers then observed Corcino hand the driver of the Camry (Individual-3) the wad of currency in exchange for a heavy-weighted reusable Shoprite bag. Law enforcement officers approached the Camry, detained both Corcino and Individual-3, and retrieved the bag from Corcino. The bag contained approximately three kilograms of suspected narcotics. Law enforcement officers also recovered the currency from Individual-3 and determined that Individual-3 was in possession of approximately $4,000. A field-test confirmed that the suspected narcotics in the bag contained a detectable amount of fentanyl.

The count of conspiracy to distribute fentanyl carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million.

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

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

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

TRENTON, N.J. – A California man was sentenced today to 60 months in prison for his role in a drug distribution conspiracy connected to the seizure of fentanyl and heroin at a New Jersey rest stop last year, Acting U.S. Attorney Rachael A. Honig announced today.

Luis Aponte, 50, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute fentanyl and heroin. Judge Sheridan imposed the sentence today in Trenton federal court.

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

On March 1, 2019, Aponte drove a tractor-trailer truck to a rest stop in Bloomsbury, New Jersey. The next day, he met his co-defendant, Denny Diaz, 31, of Philadelphia, Pennsylvania, in a car and gave Diaz approximately six kilograms of fentanyl. Both men were arrested shortly thereafter. Law enforcement officers searched Aponte’s truck at the rest stop and found an additional two kilograms of fentanyl and 11 kilograms of heroin inside. Diaz pleaded guilty in September 2019 and was sentenced on May 26, 2020, to 33 months in prison.

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

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Raymond P. Donovan, New York Division; New York City Police Commissioner Dermot F. Shea; and New York State Police Superintendent Keith M. Corlett with the investigation leading to today’s sentencing. This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police.

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

NEWARK, N.J. – An Arizona man was sentenced today to 46 months in prison for conspiring to distribute fentanyl and for possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.

Jose Manuel Ramos Lemus, 51, a citizen of Mexico residing in Arizona, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl. Judge Cecchi imposed the sentence today by videoconference.

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

On July 6, 2019, Ramos Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had five kilograms of China White heroin for distribution. After leaving the vehicle, Ramos Lemus returned with a duffle bag containing five kilograms of fentanyl and was arrested.

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

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

The government is represented by Assistant United States Attorney Lauren E. Repole of the Economic Crimes Unit.

NEWARK, N.J. – A Union County, New Jersey, man today admitted receiving images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Hinksmon, 41, of Cranford, New Jersey, pleaded by videoconference before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with receipt of child pornography.

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

From July 10, 2019, through July 24, 2019, Hinksmon accessed the internet to download and receive videos and images of child sexual abuse to his personal hard drive. Hinksmon’s computer devices contained more than 600 images of child sexual abuse that Hinksmon had downloaded from the internet, including images of prepubescent children.

The charge of receiving child pornography carries a mandatory minimum sentence of five years in prison, a maximum of 20 years in prison, and a $250,000 fine. Hinksmon will be required to register as a sex offender. Sentencing is scheduled for Sept. 23, 2021.

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

The government is represented by Assistant U.S. Attorney John Wilson Jr. of the Criminal Division in Newark.

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

Azeez Adebari, 46, of Harrisburg, Pennsylvania, is charged by complaint with one count of conspiring to distribute and to possess with intent to distribute a quantity of a mixture containing cathinone and cathine. He made his initial appearance by videoconference before U.S. Magistrate Judge Edward S. Kiel on May 3, 2021, and was detained.

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

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

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

The count with which the defendant is charged carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. 

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

The government is represented by Assistant U.S. Attorney Angelica M. Sinopole 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.

TRENTON, N.J. – A Passaic County, New Jersey, man was sentenced today to 21 months in prison for assaulting with a dangerous weapon two people who were swimming in the Delaware River, Acting U.S. Attorney Rachael A. Honig announced.

Jeffrey A. Mulcahy, 59, of Wayne previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of assault with a dangerous weapon with intent to do bodily harm. Judge Shipp imposed the sentence today in Trenton federal court.

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

On Sept. 2, 2019, two individuals (Victim 1 and Victim 2) were swimming in the Delaware River in the Kittatinny Point area of the Delaware Water Gap in Warren County, New Jersey. Mulcahy approached them and began speaking to them about fishing. After a few minutes, Mulcahy departed the area, returning approximately 15 minutes later, holding a can of beer. He continued to talk to Victim 1 and Victim 2 about fishing, however, Mulcahy appeared agitated. Victim 1 and Victim 2 had gotten out of the river and were standing near the riverbed.    Mulcahy removed what appeared to be a handgun from his waistband and pointed it at Victim 2’s head. While pointing the gun at Victim 2, Mulcahy ordered Victims 1 and 2 to the ground.  Mulcahy then pointed the gun at Victim 1 and stated that he was going to kill Victim 1 if Victim 1 did not listen to him. Mulcahy struck Victim 1 in the head and neck area with the handgun.  Mulcahy then began pulling rope out of his pocket and attempted to get Victim 1’s hands behind Victim 1’s back. Victim 1 resisted and was able to take Mulcahy to the ground, where the two began a physical struggle. Mulcahy’s handgun fell to the ground and Victim 2 recovered it and left to contact law enforcement. After the brief physical altercation, Victim 1 ran off to a nearby picnic area to locate Victim 2. Mulcahy departed the area and was later apprehended by law enforcement officers in Hackettstown, New Jersey. Subsequent investigation of the handgun that Victim 2 recovered from Mulcahy revealed that it was a pellet gun. 

In addition to the prison term, Judge Shipp sentenced Mulcahy to three years of supervised release and fined him $2,000.

Acting U.S. Attorney Honig credited park rangers of the U.S. National Park Service, under the direction of Chief Ranger Eric Lisnik, the Hackettstown Police Department, under the direction of Chief James A. Macaulay, and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. 

The government is represented by Assistant U.S. Attorney Nicholas P. Grippo, Deputy Chief of the Criminal Division in Newark.

NEWARK N.J. – A Passaic County, New Jersey, couple were sentenced to prison today for engaging in a food stamps fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.

Ibrahim Zughbi, 67, of Wayne, New Jersey, was sentenced to 41 months in prison and his wife, Miriam Zughbi, 63, also of Wayne, was sentenced to 24 months in prison. Ibrahim Zughbi previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with Supplemental Nutrition Assistance Program (SNAP) benefit fraud and money laundering. Miriam Zughbi previously pleaded guilty to an information charging her with conspiracy to defraud the United States through SNAP benefit fraud. U.S. District Judge Anne E. Thompson imposed the sentences today in Trenton federal court.

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

From January 2014 to January 2018, the defendants owned and worked at Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey, that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. While the Zughbis ran the store, another individual owned the store and was the person registered with SNAP. From between 2014 and 2018, through unlawfully exchanging SNAP benefits for cash, Ibrahim and Miriam Zughbi defrauded SNAP more than $4.5 million. 

Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account. In addition to the high volume of SNAP benefits redemptions for Jamaica Meat Market indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where both defendants exchanged money for SNAP benefits.

Ibrahim Zughbi had previously participated in SNAP when he was the owner of Neighborhood Supermarket, a grocery store that operated out of the same location as the Jamaica Meat Market. In March 2011, the USDA had permanently disqualified Ibrahim Zughbi from SNAP when Zughbi and the Neighborhood Supermarket were administratively charged with SNAP violations. Another individual took over the business, changed its name to Jamaica Meat Market, and certified in writing to the USDA that Ibrahim Zughbi would have nothing to do with the business or its participation in the program. Ibrahim Zughbi continued to run Jamaica Meat Market, and he and his wife continued to exchange cash for SNAP benefits.

To conceal the proceeds of the SNAP benefit fraud, from January 2014 to January 2018, Ibrahim Zughbi wrote inflated checks from the Jamaica Meat Market account containing the SNAP fraud proceeds to a supplier, and then received funds back in cash from the supplier. Zughbi also issued checks to family members with no apparent connection to Jamaica Meat Market. 

In addition to the prison term, Judge Thompson sentenced Ibrahim Zughbi and Miriam Zughbi to three years of supervised release and ordered them to pay restitution of $4.66 million.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Agriculture –Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and Homeland Security Investigations (HSI), Newark, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencings. She also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.

The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for possessing a handgun in furtherance of a drug trafficking crime, Acting U.S. Attorney Rachael A. Honig announced today.

Ricky Terrell, 24, of Newark, previously pleaded guilty before U.S. District Court Judge John Michael Vazquez via videoconference to a one-count Information charging him with possession of a firearm in furtherance of a drug trafficking crime, specifically the possession with intent to distribute heroin and cocaine. Judge Vazquez imposed the sentence today in Newark federal court.

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

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

Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that numerous individuals conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village.

On Feb. 25, 2020, law enforcement lawfully searched Terrell’s residence and found heroin and cocaine, a Smith & Wesson .40 caliber handgun, and numerous rounds of ammunition.

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

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

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

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

NEWARK, N.J. – A Bergen County, New Jersey, man today admitted engaging in a conspiracy to divert to his personal use over $516,000 in customer payments owed to his former employers, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Spaccavento, 41, of Ramsey, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit wire fraud.

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

From February 2013 through September 2018, Spaccavento conspired with a former co-worker, Melissa Corso, to divert customer payments owed to their former employers for their own use and benefit. Corso instructed certain customers of the victim companies to submit their payments to a PayPal account (the “Scheme Account”) registered in Spaccavento’s name and associated with Corso’s work email address. The account was not authorized by the victim companies.

Spaccavento and Corso caused withdrawals to be made from the Scheme Account and diverted the funds to the personal PayPal accounts of Spaccavento, Corso, and others. Spaccavento and Corso also caused transfers of funds from the Scheme Account to various commercial retailers to pay for personal expenses. Purchases from these commercial retailers were shipped to the home and work addresses of Spaccavento, Corso, and others. The victim companies lost $516,857.

Corso was arrested on Feb. 5, 2021, and charged by complaint with two counts of wire fraud for diverting customer payments owed to the victim companies to the Scheme Account for personal use. Those charges and allegations against Corso contained in the complaint, which is still pending, are merely accusations, and Corso is presumed innocent unless and until proven guilty.

The conspiracy to commit wire fraud count is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross amount of gain or loss from the offense, whichever is greater. Sentencing is scheduled for Sept. 9, 2021.

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

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

TRENTON, N.J. – A Somerset County, New Jersey man, was sentenced today to 78 months in prison for engaging in a $2 million Ponzi scheme targeting elderly investors and for subscribing to a false tax return, Acting U.S. Attorney Rachael A. Honig announced.

Daniel Rivera, 51, of Hillsborough, New Jersey, a former financial advisor, previously pleaded guilty before U.S. District Judge Anne E. Thompson to a superseding information charging him with one count of wire fraud and one count of subscribing to a false tax return. Judge Thompson imposed the sentence today in Trenton federal court.

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

From 2008 through 2017, Rivera solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera represented to investors that Robbins Lane was a company staffed by experienced real estate professionals that invested in real estate ventures. Rivera told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio. In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.

During the course of the fraudulent scheme, on March 5, 2014, Rivera filed with the IRS a federal income tax return that underreported his taxable income by $33,276.

In addition to the prison term, Judge Thompson sentenced Rivera to three years of supervised release and ordered him to pay restitution of $1.47 million to his victims and $284,863 to the IRS.

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 IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Two men were sentenced to federal prison terms for possessing a large quantity of cocaine, Acting U.S. Attorney Rachael A. Honig announced today.

Jose Reyes, 60, of the Dominican Republic, was sentenced by videoconference before Chief U.S. District Judge Freda L. Wolfson to 57 months in prison. Ramon Fabian-Pena, aka “Rafael,” 60, of Passaic County, New Jersey, was sentenced by Judge Wolfson on April 21, 2021, to 30 months in prison.

Reyes and Fabian-Pena each previously pleaded guilty to an information charging them with one count of conspiracy to distribute cocaine and one count of possession to distribute cocaine.

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

On Jan. 7, 2020, Reyes traveled from New York to Passaic, New Jersey, to oversee the delivery of approximately six kilograms of cocaine. At the direction of Reyes, Fabian-Pena took possession of the narcotics from another individual. Law enforcement officers were conducting surveillance of the narcotics transaction and recovered a bag containing approximately six kilograms of cocaine. A lawful search of messages contained on Reyes’ cell phone revealed that Reyes coordinated the narcotics transaction.

In addition to the prison terms, Judge Wolfson sentenced each defendant to three years of supervised release. 

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing. She also thanked members of the Mercer County Prosecutor’s Office and the Hamilton Township Police Department for their assistance.

This investigation was conducted by a DEA New Jersey Task Force, led by the New Jersey State Police, and composed of DEA special agents and officers from various county and local police departments. 

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

TRENTON, N.J. – A New York woman, an Ohio man, and a New Jersey man admitted their roles in a large-scale conspiracy to commit bank fraud in states including New Jersey, New York, Pennsylvania, Maryland, Virginia, and Michigan, Acting Attorney Rachael A. Honig announced today.

Erm Ayaz, 36, of Bayside, Brooklyn, pleaded guilty today by videoconference before Chief Judge Freda L. Wolfson to an information charging her with one count of conspiracy to commit bank fraud. Syed Abbas, 32, of Westerville, Ohio, and Habib Majid, 35, of North Brunswick, New Jersey, pleaded guilty before Chief Judge Wolfson on April 27, 2021, and April 21, 2021, respectively, to informations that charged them each with one count of conspiracy to commit bank fraud.

Ayaz, Abbas, and Majid are among seven individuals that have pleaded guilty as part of the scheme.

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

From 2018 through April 2020, Ayaz, Majid, Abbas, and others conspired to defraud several major banks and electronic merchant processors. They established bank accounts associated with sham entities that had no legitimate purpose and issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators also conducted numerous fraudulent credit card and debit card transactions between shell companies to credit payee accounts and fraudulently overdraw payor accounts. Members of the conspiracy also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred. 

Members of the criminal organization withdrew the “existing” funds (through ATMs or bank tellers) that banks and/or merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.

The investigation revealed that Ayaz, Majid, Abbas, and other conspirators attempted to defraud financial institutions and merchant processors of approximately $10 million dollars and did in fact cause a loss of approximately $3.5 million.

The conspiracy charges which Ayaz, Abbas, and Majid pleaded guilty carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or loss to others, whichever is greater. Ayaz’s sentencing is scheduled for Sept. 14, 2021. Abbas’ and Majid’s sentencings are scheduled for Sept. 9, 2021.

Four co-defendants – Awaise Dar, Rana Sharif, Naveed Arif, Ali Abbas – have previously pleaded guilty to informations charging them with conspiracy to commit bank fraud in connection with the scheme.

Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; the Social Security Administration Office of Inspector General, under the direction of John F. Grasso; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the guilty pleas.

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

NEWARK, N.J. – Ten people have been charged for their roles as members and associates of “UpTop,” a Paterson, New Jersey-based street gang involved in the distribution of drugs, including heroin, fentanyl, and cocaine base, Acting U.S. Attorney Rachael A. Honig announced today.

Corey Boyd, 23; Leo Edwards, 27; Kwame Ellis, 30; Sean Morgan, 21; and Brent Staton, 20; and Kassan Drakeford, 31; all of Paterson; and Stefan Cameron, 25, of Hackensack, New Jersey, are charged by complaint with one count of conspiracy to distribute heroin, fentanyl and cocaine base. Six of the defendants were arrested this morning and are scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Mark Falk. Ellis remains at large.

Also charged in the same complaint, and already in state custody on other charges, are Devin Kyle, 21; Edwin Diaz, 19; and Anthony Herring, 38, all of Paterson. They will have their initial appearances on a date to be determined.

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

The defendants are all members and associates of the UpTop street gang, which operates primarily in the Fourth Ward of Paterson. Through numerous controlled purchases of drugs, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, the investigation uncovered evidence that from January 2020 through April 29, 2021, the defendants conspired to distribute heroin, fentanyl and cocaine base.

UpTop derived its name from its location; its turf is colloquially described as being "up the hill" in the Fourth Ward of Paterson. Members of UpTop sell heroin that is frequently mixed with fentanyl, a potent, synthetic opioid that is approximately 50 times stronger than heroin.

Members and associates of UpTop sometimes compete with each other for narcotics customers within the gang's turf. However, the investigation has shown that UpTop members work together to ensure that outsiders are unable to distribute narcotics within the turf. Members and associates of UpTop work together to preserve and protect the power, territory, and reputation of the gang, and to hinder, obstruct, and prevent law enforcement officers from identifying their criminal activities, from apprehending offenders of the crimes, and from successfully prosecuting and punishing the offenders.

The count of conspiracy charged in the complaint carries a maximum penalty of 40 years in prison and a fine of at least $5 million, with a mandatory minimum prison sentence of five years.

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 Acting Special Agent in Charge Craig B. Kailimai; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; officers of the Paterson Police Department, under the direction of Police Director Jerry Speziale and Police Chief Ibrahim M. Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. She also thanked the U.S. Marshals Service for their assistance with the case.

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

The government is represented by Senior Trial Counsel Francesca Liquori and Special Assistant U.S. Attorney Kendall Randolph of the Organized Crime/Gangs Unit in Newark.

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

NEWARK, N.J. – A Georgia man was arrested today on charges that he made interstate threats to an executive officer of a New Jersey based company, Acting U.S. Attorney Rachael A. Honig announced.

Alan Wallace, 58, of Cumming, Georgia, is charged by criminal complaint with two counts of making interstate threats. He is scheduled to appear today before U.S. Magistrate Judge Russell G. Vineyard in Atlanta federal court.

According to the complaint:

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

The emails threatened violence to Victim-1 and to Victim-1’s family if Company-1’s stock did not exceed a certain share value within 30 days. The threats contained ominous subject lines such as, “Gun or Knife,” “Blood Bath,” and “You about sealed your family’s fate,” and content consistent with those subject lines. For example, an email received on Jan. 31, 2021, read: “[Victim-1] - you are about to lose family due to your actions hurting others and inaction to elevate the stock price. Weep and remember.”

The counts of making interstate threats each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross amount of gain or loss from the offense, whichever is greater.

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

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

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

CAMDEN, N.J. – A Camden County man today admitted illegally possessing eight firearms, Acting U.S. Attorney Rachael Honig announced.

Kareem McCargo, 38, of Camden, pleaded guilty to a superseding information charging him with one count of being a felon in possession of a firearm before U.S. District Judge Robert B. Kugler in Camden federal court.

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

On Oct. 31, 2018, Camden County Police officers encountered McCargo as he exited his vehicle. Upon seeing the officers, McCargo fled, but was ultimately apprehended. A search of McCargo’s vehicle revealed eight firearms and over 400 rounds of ammunition. McCargo admitted to knowingly possessing all eight firearms and ammunition. He further admitted that at the time he possessed these firearms, he knew that he was a convicted felon.

The charge of possession of a weapon by a convicted felon carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 8, 2021.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.

Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Acting Special Agent in Charge Craig B. Kailimai; and the Camden County Police Department, under the direction of Police Chief Gabriel Rodriguez, with the investigation leading to today’s guilty plea. She also thanked the Camden County Prosecutor’s Office and the Drug Enforcement Administration for their assistance with the investigation.

The government is represented by Assistant U.S. Attorney Martha K. Nye of the of the U.S. Attorney’s Office’s Criminal Division in Trenton.

NEWARK, N.J. – Twelve people have been charged for their roles as members and associates of “Harlem World/12th Avenue,” a Paterson, New Jersey-based street gang involved in the distribution of drugs, including cocaine base, heroin, and fentanyl, Acting U.S. Attorney Rachael A. Honig announced today.

Michael Booker, 38; Kenron Boyd, 28; Ronald Hammond, 53; Damir Horne-Casper, 28; Marcell Jackson, 26; Roger Jacobs, 25; Damond King, 31; Naquis Martin, 24; Korri Muckle, 40; Troy Taylor, 35; and Shamir Thompson, 26, all of Paterson, New Jersey; and Tahj Smith, 20, of Haledon, New Jersey, are each charged by complaint with one count of conspiracy to distribute heroin, fentanyl and cocaine base.

King, who is already in custody on state charges, is additionally charged by complaint with one count of possession of a firearm by a convicted felon. Booker, Jackson, and Taylor are at large. The remaining eight defendants who were arrested today will appear by videoconference this afternoon before U.S. Magistrate Judge Mark Falk.

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

The defendants are members and associates of the Harlem World/12th Avenue street gang, which operates primarily around 12th Avenue and East 23rd Street in Paterson. Through numerous controlled purchases of drugs, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone records, the investigation uncovered evidence that from February 2020 through April 26, 2021, the defendants conspired to distribute heroin, fentanyl, and cocaine base.

Harlem World/12th Ave derives its name from a reference to an area in Paterson on

and around 12th Avenue. An individual is eligible to join Harlem World/ 12th Avenue if he resides within the gang's turf and is willing to participate in street level narcotics sales. Members of the gang distribute decks of heroin that are almost always stamped or labeled with various “brand names” in colored ink to allow dealers and purchasers alike to differentiate and market batches of heroin. For example, on various occasions, glassine envelopes were stamped “Coca Cola,” “Larry Bird,” “Kobe Bryant,” “Paid in Full,” “Best Buy,” and “K.O.,” and have since October 2020 been linked to over 10 fatal overdoses.

The count of conspiracy to distribute at least 28 grams of cocaine base and a quantity of heroin and fentanyl carries a maximum penalty of 40 years in prison and a fine of at least $5 million. The count of possession of a firearm by a convicted felon carries a maximum of 10 years in prison and a fine of $250,000.

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 Acting Special Agent in Charge Craig B. Kailimai; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; officers of the Paterson Police Department, under the direction of Police Director Jerry Speziale and Police Chief Ibrahim M. Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. She also thanked the U.S. Marshals Service for their assistance with the case.

This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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

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

CAMDEN, N.J. – A Salem County man made his initial appearance today on charges of illegally possessing ammunition, Acting U.S. Attorney Rachael A. Honig announced.

Sharif Hallman, 38, of Carneys Point, New Jersey, is charged by complaint with one count of possession of ammunition by a convicted felon. He appeared by videoconference before U.S. Magistrate Judge Karen M. Williams and was detained.

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

On March 7, 2021, Penns Grove and Carneys Point police officers responded to an apartment complex in Carneys Point in response to a 911 call reporting a shooting. Officers encountered Hallman, a 13-time convicted felon, with a bicycle. Additional information from dispatchers reported that the suspected shooter was on a bike. Officers attempted to detain Hallman. A pistol became dislodged from Hallman and landed on the ground. The pistol had one round in the chamber, and an extended magazine containing another 22 rounds of ammunition. 

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

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.

Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Acting Special Agent in Charge Craig B. Kailimai in Newark; officers of the Penns Grove Police Department, under the direction of Officer in Charge Lt. Jason G. Spera; officers of the Carneys Point Police Department, under the direction of Chief of Police Dale VanNamee; and the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, with the investigation leading to the charges.

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

The charge and allegation contained in the complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

CAMDEN, N.J. – The president and CEO of a commercial diving school today admitted fraudulently obtaining funding from the U.S. Department of Education (DOE) and the U.S. Department of Veterans Affairs (VA) for the school and its students, Acting U.S. Attorney Rachael A. Honig announced.

Tamara Brown, 57, of Haddon Heights, New Jersey, pleaded guilty by videoconference before U.S. District Judge Joseph H. Rodriguez to an information charging her with one count of wire fraud.

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

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

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

The wire fraud charge to which Brown pleaded guilty 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. Under the terms of the plea agreement, Brown must pay restitution of $1.1 million. Sentencing is scheduled for Aug. 30, 2021.

Acting U.S. Attorney Honig credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll in Philadelphia, the Philadelphia Resident Agency of the U.S. Department of Education, Office of Inspector General, under the direction of Special Agent in Charge Terry V. Harris, and the Northeast Field Office of the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigation leading to today’s guilty plea.

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

CAMDEN, N.J. – An Iowa man today was sentenced to 300 months in prison for producing and possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Donavon Oliphant, 38, of Independence, Iowa, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of sexual exploitation of a minor and one count of possession of child pornography. Judge Hillman imposed the sentence today in Camden federal court.

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

In August 2019, Oliphant produced 11 images and four videos of child sexual abuse. The videos depicted sexual acts involving a pre-pubescent child and an adult male. Oliphant then used a peer-to-peer file-sharing program to share these images and videos with an individual located in Gloucester County, New Jersey. When law enforcement accessed Oliphant’s file-sharing account, they found more than 1,700 videos and 200 images of child sexual abuse.

In addition to the prison term, Judge Hillman sentenced Oliphant to a lifetime term of supervised release, ordered him to pay restitution of $3,000, and ordered him to register as a sex offender.

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

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

NEWARK, N.J. – Two Paterson Police Officers are facing civil rights and obstruction of justice charges for allegedly assaulting a victim in Paterson and then lying about it, Acting U.S. Attorney Rachael A. Honig announced.

Paterson Police Officers Kevin Patino, 29, of Paterson New Jersey, and Kendry Tineo-Restituyo, 28, also of Paterson, New Jersey are both charged by complaint with depriving a victim of his Constitutional right to be free from the use of unreasonable force by law enforcement officers and with filing a false police report. Patino surrendered this morning and Tineo-Restituyo is expected to surrender later this morning. The defendants are scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge André M. Espinosa.

“Police officers who abuse their positions to exert power over and injure the citizens they are supposed to protect violate our Constitution and erode trust in our public institutions,” Acting U.S. Attorney Honig said. “The U.S. Attorney’s Office is committed to working closely with the FBI and our state partners to investigate and prosecute these civil rights violations and restore the public trust.” 

“Civil rights violations are one of the FBI’s highest priorities, particularly when the allegations involve members of law enforcement,” George M. Crouch Jr., Special Agent in Charge of the FBI, Newark Division, said. “We rely on the police to protect the public. The few who take advantage of this public trust, at any level, will be investigated by the FBI and prosecuted to the full extent of the law.”

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

At approximately 12:30 a.m. on December 14, 2020, in Paterson, Patino and Tineo-Restituyo approached the victim, who was walking with his hands in his pockets. Patino grabbed hold of the victim. When the victim attempted to separate himself, Patino struck the victim in the face and body numerous times. While Patino was striking the victim, Tineo-Restituyo picked the victim up and threw him to the ground. Patino and Tineo-Restituyo then repeatedly struck the victim while he was on the ground.      

Patino and Tineo-Restituyo then filed a police report regarding the arrest of the victim, which contained numerous false statements and omissions. For instance, the police report falsely stated that the victim had walked towards the officers “screaming profanities” and “acting belligerent” and that the victim had struck Patino with a closed fist in the chest. None of this was true. The report also omitted the fact that Patino and Tineo-Restituyo continued to strike the victim after the victim was on the ground.

The violation of civil rights count carries a maximum penalty of 10 years in prison. The false records count carries a maximum penalty of 20 years in prison. The maximum fine for each of the charges is $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; the New Jersey Attorney General’s Office, under the direction of Attorney General Gurbir Grewal; the Passaic County Prosecutor’s Office, under the direction of Passaic County Prosecutor Camelia M. Valdes; and the North Jersey Public Corruption Task Force, composed of members of FBI and New Jersey State Police, with the investigation leading to the charges.

The government is represented by Senior Civil Rights Counsel Joseph Gribko of the U.S. Attorney’s Office’s Criminal Division in Newark.

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

NEWARK, N.J. – A Tennessee man today admitted using a company’s bank information to pay off personal debts, Acting U.S. Attorney Rachael A. Honig announced.

Ketan Ghutadaria, 50, of Johnson City, Tennessee, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud. 

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

From March 2018 through September 2018, Ghutadaria engaged in a fraudulent scheme to enrich himself by using Company-1’s bank account information to pay off his personal debts, including an automobile loan for the purchase of a 2017 Audi Q7. Ghutadaria contacted companies to whom he owed money and provided those companies with Company-1’s bank account number and routing number. For example, on June 29, 2018, Ghutadaria contacted Bank of America and authorized it to submit an Automated Clearing House (ACH) debit transaction for $53,505 to Company-1’s bank account in New York. The release of those fraudulently obtained funds resulted in Ghutadaria paying off his automobile loan. Ghutadaria fraudulently caused Company-1 to pay off $164,109 of his personal debts.   

The count of wire fraud is punishable by a statutory maximum sentence of 20 years in prison and a fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for Sept. 14, 2021.

Acting U.S. Attorney Honig credited inspectors from the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney Hopkins in Newark, and Inspector in Charge Tommy Coke of the Knoxville Domicile, Atlanta Division; deputy U.S. marshals of the U.S. Marshal Service, under the direction of U.S. Marshal David Jolley, Eastern District of Tennessee; and members of the Hudson County Prosecutor’s Office, Special Investigations Unit, under the direction of the Hudson County Prosecutor Esther Suarez, with the investigation leading to today’s guilty plea.

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