District of New Jersey

TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 125 months in prison for nine robberies and two attempted robberies of businesses in Trenton, Acting U.S. Attorney Rachael A. Honig announced.

Derrick T. Beckett, Jr., 23, of Trenton, previously pleaded guilty before U.S. District Judge Anne E. Thompson to an information charging him with one count of conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, and one count of attempted Hobbs Act robbery. Judge Thompson imposed sentence today in Trenton federal court.

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

From July 20, 2017, to Feb. 28, 2018, Beckett committed nine robberies and two attempted robberies of businesses in Trenton. Beckett approached employees of the businesses, brandishing what appeared to be a firearm, but was later determined to be a BB-gun, and demanded money. On multiple occasions Beckett threatened and engaged in violence, both threatening to shoot some victims, and pistol-whipping others when they failed to comply. Beckett stole cash and fled the victim businesses on foot, where he was sometimes met and assisted by a getaway driver.

In addition to the prison term, Judge Thompson sentenced Beckett to three years of supervised release and ordered restitution of $9,100.  

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 conviction and sentence. She also thanked officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, for their assistance.

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

NEWARK, N.J. – Four individuals have pleaded guilty to conspiracy to commit bank fraud and related crimes, Acting U.S. Attorney Rachael A. Honig announced today.

Miguel Ortiz, 22, Victor Emilio Mejia Adames, 21, and Tiffany Diaz Fermin, 24, all of Paterson, pleaded guilty by videoconference before U.S. district Judge Kevin McNulty, to conspiracy to commit bank fraud. Brando Mancebo, 21, formerly of Paterson, pleaded guilty by videoconference before Judge McNulty to possession of stolen mail and conspiracy to commit bank fraud. Ortiz and Adames pleaded guilty today; Fermin and Mancebo pleaded guilty last week.

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

Ortiz, Adames, Fermin, Mancebo and others conspired to break into U.S. Postal Service collection boxes in Bergen, Hudson, and Morris counties and steal mail. They agreed to fraudulently deposit stolen checks into bank accounts associated with members of the conspiracy, even though they were not payees on the checks. Members of the conspiracy then withdrew funds from those accounts.

The conspiracy to commit bank fraud charges to which Ortiz, Adames, and Fermin pleaded guilty carries a maximum term of five years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greater. The possession of stolen mail charge to which Mancebo pleaded guilty carries a maximum term of five years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greater. The conspiracy to commit bank fraud charge to which Mancebo pleaded guilty carries a maximum term of 30 years in prison and a maximum fine of $1 million, or twice the gross profit to the defendant or loss the victim, whichever is greater.

Acting U.S. Attorney Honig credited inspectors of U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark, with the investigation leading to the guilty pleas.

The government is represented by Assistant U.S. Attorney Katherine Calle of the Organized Crime and Drug Enforcement Task Force/Narcotics Unit in Newark.

NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm and distributing methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.

Kevon Anderson, 25, of Newark, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a superseding information charging him with one count of gun possession by a convicted felon and one count of narcotics trafficking.

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

On Sept. 10, 2019, Anderson was arrested by Newark Police Department officers and found to be in possession of a .38 caliber Smith and Wesson Bodyguard handgun and seven rounds of .38 caliber ammunition. Anderson was also carrying 19 rounds of 9-millimeter ammunition, and he had several ecstasy (methamphetamine) pills intended for distribution. Anderson had been convicted of a felony in 2018 for resisting arrest.

The charge of being a felon in possession of a firearm carries a maximum penalty of 10 years in prison and a fine of up to $250,000. The narcotics trafficking charge carries a maximum penalty of 20 years in prison and a fine of up to $1 million. Sentencing is scheduled for Sept. 15, 2021.

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

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

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

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

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

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

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

The conspiracy and distribution charges to which Williams pleaded guilty both carry a statutory mandatory minimum term of five years in prison, a maximum of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Sept. 21, 2021.

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

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

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

NEWARK, N.J. – A Union County, New Jersey, man made his initial court appearance today on charges of tax evasion and failing to file tax returns, Acting U.S. Attorney Rachael A. Honig and Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division announced.

Jonathan Dean Michael, 52, of Springfield, New Jersey, was indicted by a federal grand jury on March 29, 2021, on one count of tax evasion, from 2014 through 2018, and five counts of failing to file tax returns during the same period. He appeared by videoconference before U.S. Magistrate Judge Andre M. Espinosa. He will be arraigned before U.S. District Judge John Michael Vazquez at a date to be determined.

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

Michael was employed as a mechanic by a port-operating company in New Jersey. From 2014 through 2018, Michael’s gross income from all sources was over $1.6 million, including over $1.4 million that was paid to him by the port-operating company. In February 2014, Michael submitted a Form W-4, “Employee’s Withholding Allowance Certificate,” to his employer in which he falsely claimed to be completely exempt from federal income tax withholding. In November 2016, after the IRS instructed the port-operating company to begin withholding income taxes from Michael, Michael wrote the company and claimed that his false W-4 was correct. Despite earning gross income in each year in excess of the threshold that would require him to file individual income tax returns, Michael failed to file such tax returns with the IRS for the years 2014 through 2018.

The maximum penalty for the count of tax evasion is five years of imprisonment; the maximum penalty for failure to file tax returns is one year per count.

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

The government is represented by Assistant U.S. Attorney Matthew Feldman Nikic of the Cybercrime Unit in Newark and by Trial Attorney Michael C. Vasiliadis of the Tax Division in Washington, D.C.

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

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 57 months in prison for being a felon in possession of a firearm and unlawfully possessing a machinegun, Acting U.S. Attorney Rachael A. Honig announced.

Davon Harley, 30, of Neptune City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of being a felon in possession of a firearm and one count of unlawful possession of a machinegun. Judge Sheridan imposed the sentence today in Trenton federal court.

According to documents filed today and statements made in court:

In February 2020, a Neptune City Police officer confronted Harley, a previously convicted felon, who was arguing with others in the yard of an apartment complex. Harley fled through the apartment complex into neighboring properties and discarded a handgun that, upon inspection, had been altered to fire exclusively in fully automatic mode. The weapon had a magazine capable of holding 31 rounds of ammunition. Law enforcement officers, assisted by the Neptune Township and Asbury Park police departments, located Harley and the machinegun and magazine that Harley had discarded. The magazine contained 22 rounds of ammunition.

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

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, Newark Division, Trenton Field Office, under the direction of Acting Special Agent in Charge Craig B. Kailimai; officers of the Neptune City Police Department, under the direction of Police Director Matthew Quagliato; officers of the Neptune Township Police Department, under the direction of Chief of Police James M. Hunt, Jr.; officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso; officers of the Monmouth County Sheriff’s Office, under the direction of Sheriff Shaun Golden; and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher  J. Gramiccioni, with the investigation leading to today’s sentencing.

The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 80 months in prison for possessing large quantities of heroin, cocaine, and methamphetamine, along with a firearm, Acting U.S. Attorney Rachael A. Honig announced.

Joseph Brandenberger, 36, of Absecon, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with possessing with intent to distribute 100 grams or more of heroin, 500 grams or more of cocaine, and 50 grams or more of methamphetamine, and possessing a firearm as a previously convicted felon. Judge Kugler imposed the sentence today by videoconference.

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

Brandenberger was arrested following an investigation that revealed he was using a rented storage unit to conceal a large cache of drugs and a firearm. Upon execution of a search warrant at the location on June 18, 2019, investigators seized 507.6 grams of heroin, 524.3 grams of cocaine, and 107.2 grams of methamphetamine, along with $1,812 in cash and drug packaging material. Investigators also found a loaded Tech-9 9mm handgun. As a previously convicted felon, Brandenberger is prohibited by federal law from possessing a firearm or ammunition. 

In addition to the prison term, Judge Kugler sentenced Brandenberger 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, Atlantic City Division; and inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s sentencing. She also thanked 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 Absecon Police Department, under the direction of Chief James R. Laughlin, for their assistance with the case.

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

CAMDEN, N.J. – An Illinois man was sentenced today to 36 months in prison for his role in a bank fraud scheme resulting in $1.4 million in losses, Acting U.S. Attorney Rachael Honig announced.

Dwayne Modeliste, 41, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging him with conspiracy to commit bank fraud. Judge Hillman imposed the sentence today by videoconference.

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

From 2016 to 2018, Modeliste conspired with Larry McGee and Adam D. Arena to defraud Synchrony Bank. Modeliste and his conspirators used the personally identifiable information of others, most of whom were incarcerated, to obtain credit cards from Synchrony Bank. Modeliste and his conspirators submitted to Synchrony Bank merchant applications so those enrolled merchants could accept Synchrony credit cards as a form of payment. After the merchants were enrolled with Synchrony Bank, the conspirators used the fraudulently obtained credit cards to conduct transactions at the merchants. The proceeds from the fraudulent transactions were deposited into bank accounts controlled by Modeliste and his conspirators. 

In addition to the prison term, Judge Hillman sentenced Modeliste to three years of supervised release. He also ordered Modeliste to make restitution to Synchrony Bank in the amount of $1.43 million and ordered forfeiture in the amount of $133,330. 

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

The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the

U.S. Attorney’s Office’s National Security Unit in Newark.

NEWARK, N.J. – A Paterson, New Jersey, man today admitted possessing and distributing heroin that caused the death of a Warwick, New York, resident, Acting U.S. Attorney Rachael A. Honig announced.

Shameik Byrd, 31, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of distribution and possession with intent to distribute heroin relating to the overdose death of a 25-year-old man, identified in court documents as Victim-1.

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

On April 1, 2016, Byrd sold Individual-1 and Individual-2 five glassine envelopes of heroin stamped “Trap Queen.” The next day, Byrd sold Individual-1 and Inidividual-2 approximately 13 additional glassine envelopes of heroin stamped “Trap Queen.” Immediately following each purchase, Individual-1 and Individual-2 sold the same heroin they had obtained from Byrd to Victim-1. On April 3, 2016, officers from the Warwick Police Department responded to a residence on a report of an unresponsive male, Victim-1, who was later pronounced dead at the scene. Law enforcement agents observed nine empty glassine envelopes stamped “Trap Queen” and eight glassine envelopes of heroin stamped “Trap Queen.” An autopsy was later conducted on Victim-1, whose cause of death was determined to be “acute heroin intoxication.”

The count of possession and distribution of heroin carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Sept. 14, 2021.

Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the New Jersey Division of Criminal Justice, Gangs and Organized Crime Bureau, under the direction of Director Veronica Allende; detectives from the Passaic County Sheriff’s Office, under the direction of Sheriff Richard H. Berdnik; and detectives from the Warwick Police Department, under the direction of Chief Thomas McGovern Jr., with the  investigation leading to today’s guilty plea.

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

NEWARK, N.J. – A Henderson, Nevada, man was sentenced today to 18 months in prison for his role in a scheme to use bogus information and simultaneous loan applications at multiple banks – known as “shot-gunning” – to attempt to obtain home equity lines of credit (HELOCs), Acting U.S. Attorney Rachael A. Honig announced.

Joseph A. Gonzalez, 46, previously pleaded guilty before U.S. District Judge John Michael Vazquez to Count One of an indictment charging him with one count of conspiracy to commit bank fraud. Judge Vazquez imposed the sentence today by videoconference. Gonzalez is the sixth person to plead guilty as part of the scheme.

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

From 2010 through 2018, Jorge Flores and Simon Curanaj, a real estate broker in the Bronx who has previously pleaded guilty and is awaiting sentencing, ran a mortgage fraud scheme in which they applied for more than $9 million in HELOCs from banks on residential properties in New Jersey and New York.

Gonzalez and Flores used a property in Jersey City, New Jersey, as part of the scheme. Gonzalez had been allowed by the owner of the property to live there in exchange for management services, but neither he nor Flores owned the property. Gonzalez also recruited an individual with good credit to act as a straw buyer (Individual 1). Unbeknownst to the owner of the property, a “quitclaim” deed – which contains no warranties of title – was prepared transferring the property to Individual 1. The signatures on the deed were forged.

Gonzalez and Flores then applied for two HELOCs from multiple banks using the Jersey City property as collateral in Individual 1’s name. They concealed the fact that the property offered as collateral was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also contained false information concerning Individual 1’s income, which was stated to be higher than his actual income. At the time the applications were made, the value of the property was less than the amount of the HELOC loans for which Gonzalez and Flores applied.

The victim banks eventually issued loans to Individual 1 in excess of $500,000. After the victim banks funded the HELOCs and deposited money into Individual 1’s bank account, Individual 1 disbursed almost all of it to Gonzalez, Flores, and others. Gonzalez used $43,000 of the illicit proceeds to buy a luxury car. Individual 1 eventually defaulted on both HELOC loans.

In addition to the prison term, Judge Vazquez sentenced Gonzalez to three years of supervised release and ordered him to pay restitution of $512,500.

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

The government is represented by Jason S. Gould, Acting Chief of the Violent Crimes Unit, and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted his role in a bank robbery, Acting U.S. Attorney Rachael A. Honig announced. 

Juan Rojas Hernandez, 21, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to Count Two of an indictment charging him with one count of bank robbery. His co-defendants were charged in the same indictment for their roles in a Union City bank robbery.

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

On Nov. 5, 2019, Rojas Hernandez and his co-defendants robbed a bank in Union City, New Jersey. Rojas Hernandez served as the lookout during the robbery while co-defendant William Tedeschi entered the bank and handed a note to a bank teller demanding money. Rojas Hernandez and his co-defendants then fled with approximately $10,200 and split the proceeds of the robbery.

The bank robbery charge to which Rojas Hernandez pleaded guilty carries a maximum potential penalty of 20 years in prison and $250,000 fine. Sentencing is scheduled for Aug. 26, 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. He also thanked the Union City Police Department for their assistance. 

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

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

CAMDEN, N.J. – A Gloucester City, New Jersey, man today admitted conspiring to distribute Adderall, selling oxycodone, and defrauding the federal Supplemental Nutrition Assistance Program (SNAP) in connection with his role in a drug trafficking ring operating in and around Gloucester City, Acting U.S. Attorney Rachael A. Honig announced.

Michael DePoder, 41, of Gloucester City, pleaded guilty by videoconference before U.S. District Judge Renée Marie Bumb to an information charging him with one count each of conspiring to distribute and possess with intent to distribute Adderall, distributing oxycodone, and unlawfully acquiring and using SNAP benefits.

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

DePoder admitted that on multiple occasions from December 2019 to March 2020, he distributed Adderall, a Schedule II controlled substance containing amphetamine, to his father, Rocco DePoder, as part of a drug distribution conspiracy. Michael DePoder also sold oxycodone pills to an associate on March 8, 2020. He also admitted unlawfully acquiring SNAP benefits in exchange for controlled substances and unlawfully using and possessing those and other SNAP benefits totaling $2,676. SNAP, formerly known as the Food Stamp program, is administered by the U.S. Department of Agriculture.  

Michael DePoder was charged along with 17 others in March 2020 in connection with an investigation by the FBI into the illegal distribution of prescription drugs, including high dosage oxycodone pills, to customers in Gloucester City and Camden.   

The drug conspiracy and distribution counts are punishable by up to 20 years in prison and the SNAP fraud counts are punishable by up to five years in prison.   Michael DePoder also faces a fine of up to $1,000,000 on each of the drug distribution offense and a fine of up to $250,000 for the SNAP fraud offense. As part of his plea agreement, he must pay $2,676 in restitution. Sentencing is scheduled for Aug. 24, 2021.

Eleven other defendants – Rocco DePoder, 68, Marcus Rushworth, 47, and Kenneth Rushworth, 60, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood; Wayne Muse, 74, of Lindenwold, New Jersey; Eric Bell, 50, Steven Walker, 50, Alexander Siaca, 55, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before Judge Bumb to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.

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

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

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden branch and Sara F. Merin of the Newark Office.

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

NEWARK, N.J. – Five individuals have been charged and two others have pleaded guilty in New Jersey for their roles in massive durable medical equipment and genetic cancer screening kickback fraud schemes, Acting U.S. Attorney Rachael A. Honig announced today.

 Thomas Farese, 78, of Delray Beach, Florida; Pat Truglia, 53, of Parkland, Florida; Domenic J. Gatto Jr., 46, of Palm Beach Gardens, Florida; and Nicholas Defonte, 72, and Christopher Cirri, 63, both of Toms River, New Jersey, are each charged by complaint with conspiracy to commit health care fraud.

Two additional individuals pleaded guilty today by videoconference before U.S. District Judge Kevin McNulty: Brian Herbstman, 46, of Jackson, New Jersey, pleaded guilty to an information charging him with conspiracy to commit health care fraud and to violate the Anti-Kickback Statute; and Sean Hogan, 48, Old Bridge, New Jersey, pleaded guilty to an information charging him with conspiracy to engage in money laundering. Sentencing for both is scheduled for Aug. 31, 2021.

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

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

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

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

• Herbstman and his conspirators had financial interests in multiple DME companies. The DME companies paid kickbacks to suppliers in exchange for DME orders, which the DME companies fraudulently billed to Medicare, TRICARE, CHAMPVA, and other health care benefit programs.

• Hogan and his conspirators agreed to launder the proceeds of the health care fraud conspiracy. From March 2018 to October 2019, Hogan and others withdrew approximately $1.16 million in ill-gotten gains.

 

Herbstman and his conspirators had business relationships with call centers through which they obtained patient referrals for genetic cancer screening tests. Herbstman provided these patient referrals to others in exchange for kickbacks and bribes from companies that performed the tests and fraudulently billed them to health care programs. 

The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $93 million.

The charge of conspiracy to commit health care fraud is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. The charges of conspiracy to violate the federal Anti-Kickback Statute and conspiracy to commit health care fraud, to which Herbstman pleaded guilty, are punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greater. The charge of conspiracy to transact in criminal proceeds, to which Hogan pleaded guilty, is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000 or twice the gross profit or loss caused by the offense, whichever is 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; the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the investigations leading to the charges and guilty pleas.

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

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

The owners of four orthotic brace suppliers and several marketing companies were charged in a complaint unsealed yesterday for allegedly orchestrating a nationwide kickback and bribery scheme to order medically unnecessary orthotic braces for Medicare beneficiaries.

Thomas Farese, 78, of Delray Beach, Florida and Pat Truglia, 53, of Parkland, Florida, the owners of orthotic brace suppliers, were each charged with one count of conspiracy to commit health care fraud and three counts of health care fraud, all in connection with paying and receiving health care kickbacks and bribes for orders of orthotic braces.

Christopher Cirri, 63, and Nicholas DeFonte, 72, both of Toms River, New Jersey, the owners and operators of a fraudulent marketing company were charged with one count of conspiracy to commit health care fraud in connection with paying and receiving health care kickbacks and bribes for orthotic brace orders. Cirri and DeFonte were arrested and appeared this afternoon before U.S. Magistrate Judge Jessica S. Allen of the District of New Jersey

Domenic Gatto, 46, of Palm Beach Gardens, Florida, an owner and operator of an orthotic brace supplier, was charged with one count of conspiracy to commit health care, in connection with soliciting and receiving health care kickbacks.  Gatto surrendered and appeared this afternoon before U.S. Magistrate Judge Jessica S. Allen of the District of New Jersey

The complaint alleges that between October 2017 and April 2019, Farese, Truglia, Cirri, DeFonte, and Gatto participated in a nationwide conspiracy to defraud Medicare, TRICARE, Civilian Health and Medical Program of the Department of

Veterans Affairs (CHAMPVA), and other federal and private health care benefit programs through the payment and receipt of illegal health care fraud kickbacks in exchange for orthotic brace orders that lacked medical necessity with a total loss of approximately $65 million.

The complaint further alleges that Truglia, Cirri, and DeFonte operated or controlled marketing call centers to solicit beneficiaries of federal and private health care benefit programs and to entice them to accept orthotic braces regardless of need.  Truglia, Cirri, and DeFonte paid telemedicine companies illegal kickbacks and bribes in exchange for doctors and other medical professions signing brace orders and falsely swearing to their medical necessity. Truglia, Cirri, and DeFonte concealed the kickbacks and bribes by entering into sham contracts with the fraudulent telemedicine companies and issuing invoices describing the payments as “marketing” or “business process outsourcing” expenses.

Farese and Truglia purchased these brace orders through orthotic brace suppliers in Georgia and Florida through which they billed the federal and private health care benefit programs for the orders. To conceal their ownership interests in the brace suppliers, Farese and Truglia used nominee owners and provided those names to Medicare in lieu of their own.

The complaint further alleges that Gatto connected Cirri and DeFonte to other co-conspirators and arranged for Cirri and DeFonte to sell orthotic brace orders to orthotic brace suppliers in New Jersey and Florida in exchange for illegal health care kickbacks and bribes. Gatto and others paid Cirri and DeFonte kickbacks and bribes for each federal health care beneficiary for whom orthotic brace orders were sold to orthotic brace suppliers to be billed to Medicare, TRICARE, CHAMPVA, and other federal and private health care benefit programs. To conceal the kickbacks and bribes, Cirri and DeFonte created sham invoices labeling the payments as “marketing” and “business processing outsourcing” expenses. To conceal his ownership interest in the brace supplier, Gatto used a nominee owner on forms submitted to Medicare and used shell corporations to transfer the funds he paid in connection with the purchase of the supplier.

The charges here—health care fraud and conspiracy to commit health care fraud—are punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross profit or loss caused by the offense, whichever is greater. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Rachael A. Honig of the District of New Jersey; Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Special Agent in Charge Christopher F. Algieri of Department of Veterans Affairs Office of Inspector General (VA-OIG); Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service (DCIS); and Special Agent in Charge George M. Crouch Jr. of the FBI’s Newark Field Office made the announcement.

This case was investigated by HHS-OIG, DCIS, the FBI, and VA-OIG. 

Trial Attorney Darren C. Halverson of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sean Sherman and Ryan O’Neill of the District of New Jersey are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine and durable medical equipment (DME) marketing schemes should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.

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

NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of engaging in mortgage fraud, fraudulently obtaining an SBA loan, and stealing another person’s identity information, Acting U.S. Attorney Rachael A. Honig announced.

Nathanael Zimmerman, 40, of Wyckoff, New Jersey, is charged by complaint with one count each of wire fraud, bank fraud and aggravated identity theft. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen.

According to the complaint:

From August 2013 through January 2014, Zimmerman orchestrated a scheme to engage in mortgage fraud concerning Federal Housing Administration (FHA)-insured loans. Zimmerman aided individuals in applying for FHA-insured loans and caused fraudulent representations to be made to the lenders, including submitting false bank statements. Zimmerman received a portion of the loan proceeds. Later, these unqualified individuals defaulted on their loans, causing losses to the U.S. Department of Housing and Urban Development of more than $300,000.

In 2020 Zimmerman used his deceased brother’s identity to obtain a U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL). Zimmerman received more than $150,00 by applying for EIDL funds in his brother’s name and using his brother’s personal identification information.

The charges of wire fraud affecting a financial institution and bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross profits or twice the gross loss suffered by the victims, whichever is greater. The charge of aggravated identity theft is punishable by a mandatory consecutive term of imprisonment of two years in prison and a fine of $250,000, twice the gross profits or twice the gross loss suffered by the victims, 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 agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s arrest.

The government is represented by Assistant U.S. Attorneys Sammi Malek and Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.

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

NEWARK, N.J. – A Somerset County, New Jersey, man was indicted today for his role in a large-scale heroin trafficking operation that involved the movement of large sums of money, Acting U.S. Attorney Rachael A. Honig announced.

William T. Bouza, 46, of Watchung, New Jersey, is charged by indictment with one count of conspiracy to distribute heroin and fentanyl, two counts of possession with intent to distribute controlled substances, and one count of conspiracy to commit money laundering. Bouza was previously charged by complaint. He will be arraigned on a date to be determined.

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

In February 2019, Bouza arranged for a vehicle equipped with a secret compartment, or “trap,” containing 15 kilograms of heroin, to be shipped from California to a location in Union County, New Jersey. Law enforcement officers intercepted the vehicle, seized the narcotics, and arranged for a controlled delivery. They observed Bouza enter the area, but he departed prior to taking possession of the vehicle. In October 2019, law enforcement officers determined that Bouza was storing and processing narcotics for street-level distribution at multiple locations in Essex County. They approached Bouza, who fled in a motor vehicle. He was apprehended approximately one week later. Law enforcement officers subsequently discovered approximately 1,000 packages, or “bricks” of heroin, each containing approximately 50 individual doses, in one of Bouza’s stash houses. Lab testing confirmed the presence of fentanyl in a portion of these items. The investigation also revealed that Bouza was in possession of approximately $400,000 in cash and was responsible for the illicit transfer of well over $800,000 in narcotics proceeds.

The controlled substances offenses carry a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine. The money laundering offense carries a maximum penalty of 20 years in prison.

Acting U.S. Attorney Honig credited law enforcement officers with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the indictment.

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

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

CAMDEN, N.J. – A Morris County man today admitted defrauding New Jersey county health benefits programs and obstructing justice by seeking to provide false information to federal agents and the grand jury investigating the scheme, Acting U.S. Attorney Rachael A. Honig announced.

Rocco Cammalleri, 49, of Budd Lake, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to obstruct justice. 

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

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

In 2015, the conspirators learned that certain New Jersey local government employees, including county prison guards, had insurance coverage for these compounded medications. An entity referred to as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the Bergen County Prescription Benefits Program (BCPBP), which covered certain local government employees, including county prison guards. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the BCPBP for the amounts paid.

The conspirators learned that certain compounded medication prescriptions – including vitamins and pain, scar, antifungal, migraine, and libido creams – reimbursed thousands of dollars for a one-month supply. From September 2015 through April 2017, the conspirators – a including Cammalleri and an individual referred as Individual 2 – recruited local government employees and others to obtain medically unnecessary compounded medications. Cammalleri, who had no medical or sales background or training, recruited several individuals to receive medically unnecessary compound medications. Cammalleri and Individual 2 directed the recruits to an unnamed doctor – referred to as Individual 1 – to obtain his authorization for the compounded prescription medications. The recruits agreed to receive the very expensive compounded medications not because they needed them, but rather because they were paid to do so.  Cammalleri received $175,467 in payments for the prescriptions he arranged and agreed to receive, and caused $2.98 million in fraudulent claims for compounded medications.

In 2017, Individual 2 informed Cammalleri that a federal grand jury was investigating the health care fraud conspiracy. Individual 2 and Cammalleri conspired to obstruct the federal investigation by providing and seeking to provide false information to federal agents and the grand jury. 

The health care fraud conspiracy count to which Cammalleri pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. The obstruction of justice conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for Nov. 18, 2021.

Acting U.S. Attorney Rachael A. Honig credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the U.S. Attorney’s Office in Camden.

TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted fraudulently receiving Payment Protection Program (PPP) funds and depositing a stolen and altered U.S. Treasury check, Acting U.S. Attorney Rachael A. Honig announced today.

Bernard Lopez, 40, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count each of bank fraud and theft of government funds.

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

Lopez devised a scheme to commit bank fraud through which a stolen and altered U.S. Treasury check was deposited into a corporate bank account Lopez created in the name of Pezlo Management LLC. The check was altered to be made payable to Pezlo in the amount of $211,886 and was then deposited into Pezlo’s corporate bank account. Lopez later withdrew or transferred the stolen proceeds from Pezlo’s bank account before the bank could detect the fraud.

On June 24, 2020, Lopez caused to be submitted a fraudulent PPP loan application to a lender on behalf of Company-1, a purported business that Lopez controlled. The Small Business Administration oversees the PPP, which is designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period after receiving the proceeds.

Lopez’s PPP application falsely represented that Company-1 employed 25 employees, had a monthly payroll expense of approximately $192,000, and had mortgage/lease and utilities expenses. Company-1 did not, in fact, employ any employees, nor did it incur payroll or utility expenses. Based on Lopez’s misrepresentations, the lender approved Lopez’s PPP loan application and provided Lopez’s purported business with $481,502 in federal COVID-19 emergency relief funds meant for distressed small businesses. Lopez then converted a portion of the proceeds for his own use.

The count of bank fraud is punishable by a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater. The count of theft of government funds is punishable by a maximum of 10 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 Oct. 6, 2021.

Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Department of the Treasury-OIG, under the direction of Assistant Inspector General for Investigations Sally D. Luttrell, with the investigation leading to the charges. She also thanked special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and special agents of the Federal Deposit Insurance Corporation Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca for assistance.

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

NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on charges stemming from illegally possessing ammunition in connection with two shootings, illegally possessing a handgun and possessing heroin with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.

Antoine Hawkins, 31, of Newark, is charged with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime. He will be arraigned on a date to be determined.

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

On Aug. 18, 2020, video surveillance footage showed Hawkins as he fired a gun on a Newark street, striking a victim, who survived. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings are a ballistics match.

On Sept. 16, 2020, law enforcement officers conducted a surveillance operation in connection with the Aug. 18, 2020, shooting. During the surveillance operation, a law enforcement officer approached Hawkins and observed what appeared to be the imprint of a firearm on Hawkins’s jacket. The law enforcement officer frisked Hawkins and located and seized a 9mm Springfield Armory XDM pistol, which was loaded with 19 rounds of ammunition.

After Hawkins was arrested for possessing the pistol and the ammunition, law enforcement executed a search warrant inside of Hawkins’s residence and found 626 glassine envelopes containing suspected heroin and three 9mm magazines.

The firearm and ammunition offenses each carry maximum potential penalties of 10 years in prison and fines of $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence Hawkins receives, and a maximum potential penalty of life in prison. The narcotics offense carries a maximum potential penalty of 30 years in prison, and a fine of $2 million.

Acting U.S. Attorney Honig credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.

This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark 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 sole purpose of combatting violent crime in and around the 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 includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.

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

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

NEWARK, N.J. – A Cumberland County, New Jersey, man was sentenced today to 144 months in prison for conspiring to distribute cocaine and possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.

Oscar J. Gonzalez, 37, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl. Judge Vazquez imposed the sentence today by videoconference.

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

From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute multiple kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase multiple kilograms of cocaine and traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash to pay for one kilogram of cocaine.

While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey.

In addition to the prison term, Judge Vazquez sentenced Gonzalez to five 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 in Charge Susan A. Gibson in New Jersey and Special Agent in Charge Raymond Donovan in New York, with the investigation leading to today’s sentencing. 

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

CAMDEN, N.J. – A federal grand jury today separately indicted a Camden man and woman for selling oxycodone pills as part of their roles in South Jersey high-dosage oxycodone trafficking rings, Acting U.S. Attorney Rachael A. Honig announced.

Maurice Williams, 40, of Mount Ephraim, New Jersey, was charged in a five-count indictment with conspiring to distribute and possess with intent to distribute oxycodone, distributing and possessing with intent to distribute quantities of oxycodone, and attempting to do the same, and using a communications facility to further a drug trafficking crime. Lolita Paynter, 56, of Camden, was separately charged in a four-count indictment with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone and attempting to do the same. Williams and Paynter were previously charged by criminal complaint in March 2020. They will be arraigned on dates to be determined. 

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

In early 2020, the FBI led a wiretap investigation into drug distribution operations that dealt in, among other drugs, high-dose, 60- and 80-mg oxycodone pills. Intercepted telephone calls revealed that on multiple occasions from January 2020 to March 10, 2020, Williams discussed obtaining redistribution quantities of oxycodone from Erick Bell in and around Camden, and surveillance confirmed their meeting. These included discussions of purchases by Williams from Bell of, on Feb. 3, 2020, 100 80 mg. oxycodone pills, and, on Feb. 18, 2020, 100 60 mg. oxycodone pills. Bell and Williams employed coded language and used multiple phones to conceal their activities. The investigation also revealed that on multiple occasions Paynter supplied quantities of oxycodone to Rocco DePoder on dates from January 2020 to March 10, 2020.  Intercepted calls and surveillance showed that DePoder was regularly reselling oxycodone pills to customers in and around Gloucester City, New Jersey. 

Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.

The conspiracy and distribution and possession with intent to distribute charges against Williams and Paynter each carry maximum prison terms of 20 years and maximum fines of $1 million. The use of a communication facility charges against Williams each carry a maximum prison term of four years and a maximum fine of $250,000.

Eleven other defendants – Rocco DePoder, 68, Marcus Rushworth, 47, and Kenneth Rushworth, 60, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood; Wayne Muse, 74, of Lindenwold, New Jersey; Bell, 50, Steven Walker, 50, and Alexander Siaca, 55, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to informations charging them with drug trafficking offenses involving the distribution of prescription drugs.  They are all awaiting sentencing.

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

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

The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden office and Sara F. Merin of the Newark Office.

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

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

Samet Doyduk, 35, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to violate the Arms Export Control Act and anti-smuggling laws.

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

Doyduk admitted that from November 2018 through March 2019, he and other conspirators agreed to ship firearms parts from the United States to Turkey and the Republic of Georgia. Doyduk and others used credit cards, Pay-Pal accounts, and other forms of payment to purchase firearms parts from suppliers in the United States. Doyduk and the other conspirators would then repackage the firearms parts, falsely label the contents of the package, and export the firearms parts to their customers in Turkey and the Republic of Georgia. To disguise their role in the conspiracy, the conspirators used aliases when sending the packages containing prohibited items. Upon receiving the firearms parts, the customers in Turkey and in the Republic of Georgia paid Doyduk and the other conspirators by international wire transfers or directly paid one of the conspirators in cash while that individual was in Turkey. The firearms parts included upper receivers, barrels, and magazines for several different types of Glock handguns, including Glocks in the following calibers: 9mm, .40 caliber, and .357 caliber.

The Arms Export Control Act prohibits the export of defense articles and defense services without first obtaining a license from the U.S. Department of State. Doyduk and others purchased and directed the unlawful exportation of more than $200,000 worth of defense articles from the United States to Turkey and the Republic of Georgia without the required export license.

The conspiracy charge to which Doyduk pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 23, 2021.

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

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

NEWARK, N.J. – An Ocean County, New Jersey man today admitted operating an illegal lottery and failing to pay more than $65,000 in federal taxes on his earnings from the scheme, Acting U.S. Attorney Rachael A. Honig announced. 

Edward O’Neill, 54, of Beachwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of managing an illegal gambling business and one count of subscribing to a false tax return.

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

Between 2014 and 2019, O’Neill managed an illegal lottery in Hudson County that was based on the New Jersey Lottery Commission’s Pick Six.  Participants in the illegal lottery paid a $20 entry fee and selected six numbers between 1 and 49. The first participant in the illegal lottery to have all six of their numbers selected in the official Pick Six drawing won a cash prize.   For each drawing of the illegal lottery, O’Neill collected entry fees and participants’ numbers and entered the numbers into ledgers, which included identifying information for each participant and the numbers each participant had selected. O’Neill monitored the numbers selected in the official Pick Six and, when there was a winner of the illegal lottery, caused the winning participant to be paid in cash. 

According to the ledgers, each drawing of the illegal lottery included up to 8,000 participants and the cash prize for each drawing often exceeded $100,000. In exchange for operating and managing the illegal lottery, O’Neill kept for himself 10 percent of the winnings from each drawing. O’Neill admitted that he failed to account for approximately $250,000 in cash winnings from the illegal lottery on tax returns he filed with the IRS between 2014 and 2018, causing him to underpay his federal incomes taxes by $65,674. 

The gambling charge to which O’Neill pleaded guilty carries a maximum penalty of five years in prison, while the subscribing to a false federal income tax return count is punishable by up to three years in prison. Both charges carry a potential fine of $250,000 or twice the gross gain or loss from the offenses, whichever is greater. Sentencing is scheduled for Aug. 25, 2021. 

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

The government is represented by Assistant U.S. Attorney Sean Farrell of the U.S. Attorney’s Office’s Special Prosecutions Division.

NEWARK, N.J. – A Hudson County, New Jersey, man today admitted participating in a conspiracy to use drones to smuggle contraband, including cell phones and tobacco, into the federal correctional facility at Fort Dix, and to possessing heroin and fentanyl with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.

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

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

According to the documents filed in this case:

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

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

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

During a search of Arteaga-Loayza’s residence on June 27, 2019, agents found a kitchen closet containing packages of empty cell phone boxes, including a package with empty cell phone boxes that had been shipped to Arteaga-Loayza the day before a drone drop on Oct. 30, 2018, cell phone chargers, empty boxes of SIM cards, and several cell phones. The kitchen closet also contained a Bugler tobacco box, consistent with the tobacco recovered in earlier drone drops.  Arteaga-Loayza also had a suitcase in his bedroom that contained his driver’s license, 20 packets of Suboxone Sublingual Film, a prescription opiate, and a plastic bag containing over 21 grams of a substance containing heroin and fentanyl.  Following the search of his home, Arteaga-Loayza moved and did not inform his probation officer of his whereabouts.

Arteaga-Loayza faces a maximum penalty of five years in prison and maximum fine of $250,000 for the conspiracy count, and 20 years in prison and a $1 million fine for the narcotics count. Arteaga-Loayza also faces a maximum penalty of two years in prison for violating the terms of his supervised release. Sentencing is scheduled for Sept. 9, 2021.

Acting U.S. Attorney Honig credited agents of the U.S. Department of Justice Office of the Inspector General, Cyber Investigations Office, under the direction of Special Agent in Charge Keith A. Bonanno; Detachment 307, Office of Special Investigations, Department of the Air Force, under the direction of Special Agent Nick Kaplan; and the U.S. Department of Transportation Office of Inspector General, Northeast Region, under the direction of Acting Special Agent in Charge Daniel Helzner, with the investigation leading to the charges.

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

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

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

CAMDEN, N.J. – A Camden County, New Jersey, man was arrested by federal agents today on charges of wire fraud, Acting U.S. Attorney Rachael A. Honig announced.

Frank N. Tobolsky, 59, of Cherry Hill, New Jersey, is charged by indictment with eight counts of wire fraud in connection with a fraudulent investment scheme. He will be arraigned today before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.

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

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

The charges of wire fraud each carry a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross loss to any victim or gain to Tobolsky, whichever is greater.

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

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

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

NEWARK, N.J. – An Ocean County, New Jersey, insurance producer today admitted filing false statements in connection with the delivery of $1.5 million in fraudulent claims by Blue Cross Blue Shield health care affiliates, Acting U.S. Attorney Rachael A. Honig announced today.

Jonas Knopf, 65, of Lakewood, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements related to a health care benefits program.

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

Starting in 2009, Knopf was chief executive officer of Madison Financial Services (MFS) in Lakewood and a licensed insurance producer – a person who is licensed to sell insurance products. MFS was the parent company of two sham companies created by Knopf and others solely for the purpose of marketing health insurance coverage to people who were not, in fact, his employees. These companies purported to be located and doing business in Pennsylvania and created the appearance of employment status for hundreds of individuals, largely Lakewood residents, who were seeking health care coverage through BCBS benefit plans. The fraud lasted until March 2013, when the Pennsylvania Department of Insurance caused Knopf to surrender his Pennsylvania insurance producer’s license and cease operation in the state. 

Knopf used false personal information, including false addresses, dates of birth, marital status and employment functions, to give BCBS the impression that his clients were actually employees being paid for services rendered. In total, the scheme caused the health care insurers to pay out $1.5 million in fraudulent claims. 

The count of making false statements relating to a health care benefit program carries a maximum penalty of five years in prison and a maximum fine of $250,000, or twice the gross gain or twice the gross loss from the offense, whichever is greater. Sentencing is scheduled for Aug. 19, 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; special agents of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region, under the direction of Special Agent in Charge Michael Mikulka; and Investigators of the U.S. Department of Labor, Employee Benefit Security Administration, under the direction of Regional Director Thomas Licetti,  with the investigation leading to today’s guilty plea.

The government is represented by Senior Litigation Counsel V. Grady O’Malley and Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit in Newark.

NEWARK, N.J. – A New York man made his initial appearance today for alleged abusive sexual contact with a female passenger on a flight to Newark Liberty International Airport, Acting U.S. Attorney Rachael A. Honig announced.

Ryan Manuella, 28, of Cheektowaga, New York, is charged by criminal complaint with one count of abusive sexual contact on an airplane. He had his initial appearance by videoconference before U.S. Magistrate Judge Jessica S. Allen in Newark federal court and was detained.

According to the complaint:

While on an April 16, 2021, flight from Denver, Colorado, to Newark, Manuella moved to a vacant center seat next to a female passenger, who was sitting in a window seat. Manuella was unknown to the victim. While seated next to the victim, Manuela touched her on the groin and inner thigh without her permission.

The abusive sexual contact charge carries a maximum term of two years in prison and a $250,000 fine.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Port Authority Police Department, under the direction of Superintendent of Police Edward Cetnar, with the investigation leading to the charge.

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

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

NEWARK, N.J. – A Georgia man was arraigned today on conspiracy and fraud charges after surrendering to federal authorities, Acting U.S. Attorney Rachael A. Honig announced.

Isaac Newton, 53, of Loganville, Georgia, is charged by indictment with one count of conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, two counts of mail fraud, and one count of unlawfully obtaining $5,000 or more from a federally funded local government. He appeared by videoconference before the U.S. Magistrate Judge James B. Clark III, entered a plea of not guilty, and was release on $100,000 unsecured bond.

According to the indictment:

Newton was a consultant whose family member was enrolled in a graduate program at a university in New Jersey with Willis Edwards III, a public official in the local government of the City of Orange Township, New Jersey.

From June 2015 to June 2016, Newton and Edwards conspired to dupe Orange into making payments to Newton, which were, at least in part, for academic papers that Newton arranged to have written for Edwards. Edwards plagiarized the papers that Orange paid for and passed them off as his own work to professors at the university. Between December 2015 and March 2016, Newton submitted three fraudulent invoices to Orange calling for payments of $12,000, $16,000, and $10,000 for purported professional services. Orange paid the money to Newton, and Edwards received from Newton academic papers that had been written for Edwards. On June 20, 2016, Edwards submitted to several professors papers that were virtually identical to the papers that he had received from Newton. In emails sent to the professors, to which the papers were attached, Edwards asked the professors to grade the attached outstanding assignments so that he did “not receive a failing grade for all of the hard work that [he had] done.”

On Sept. 29, 2020, Edwards was charged in a 31-count superseding indictment, Counts 17 to 25 of which are related to the charges contained in Newton’s indictment. His case is pending trial.

Each count of conspiracy to commit mail and wire fraud, mail fraud and wire fraud is punishable by up to 20 years in prison and a $250,000 fine. The count of unlawfully obtaining more than $5,000 from a local government receiving federal funds is punishable by up to 10 years in prison and a $250,000 fine.

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

The government is represented by Assistant U.S. Attorneys J Fortier Imbert and Cari Fais of the U.S. Attorney’s Office’s Special Prosecutions Division.

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

CAMDEN, N.J. – A Camden man is scheduled to make his initial appearance today on a sex trafficking charge, Acting U.S. Attorney Rachael A. Honig announced.

Semaj A. Gilmore, 31, is charged by complaint with one count of sex trafficking of a minor. He is scheduled to appear by videoconference before U.S. Magistrate Judge Karen M. Williams this afternoon.

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

In April 2021, investigators learned that a missing juvenile from Pennsylvania was being advertised for sexually illicit activities on a website that is often used to advertise acts of prostitution. On April 13, 2021, an undercover agent contacted a phone number associated with the advertisement. The undercover agent and the user of the phone number, later revealed to be Gilmore, exchanged a series of messages that ultimately led to the undercover agent meeting the victim in a motel room in or around Mount Laurel, New Jersey, purportedly to engage in sexual activities in exchange for cash. Among other messages, Gilmore instructed the undercover agent to “get condoms” and to confirm that he was not “a cop.” When uniformed officers entered the motel room, Gilmore, who had been waiting in a car in the adjacent parking lot, fled the scene.  Officers stopped Gilmore’s car and recovered the phone used to arrange the meeting between the victim and the undercover agent. 

The count of sex trafficking of a minor carries a statutory mandatory minimum penalty of 10 years in prison and a maximum of life in prison.

Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, with the investigation leading to the charge. She also thanked members of the Mount Laurel Police Department, under the direction of Chief Steve Riedener, and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina, for their assistance.

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

NEWARK, N.J. – Two operators of an illegal e-commerce business engaged in the sale of digital images of false identity documents, such as passports, driver’s licenses, and national identity cards associated with more than 200 countries and territories, were charged in a six-count federal indictment unsealed in the District of New Jersey today, Acting U.S. Attorney Rachael A. Honig announced.

Mohsin Raza, aka “Mohsin Raza Amiri,” 34, and Mujtaba Raza, aka “Mujtaba Ali Lilani,” “Mujtaba Ali,” and “Mujtaba,” 33, both of Karachi, Pakistan, are each charged with conspiracy to produce and transfer in false identification documents, three counts of transferring false identification documents, one count of false use of a passport, and one count of aggravated identity theft.

“The indictment alleges a global scheme to produce fraudulent identity documents that other wrongdoers then used to further additional illegal activity, including activity intended to interfere with U.S. elections,” Acting U.S. Attorney Honig said. “Together with the FBI and our other law enforcement partners around the world, we will continue to identify criminal operations such as these and shut them down.”

“Today’s actions demonstrate the FBI’s commitment to target the entire ecosystem supporting cyber actors, regardless of where those criminals reside, and hold them accountable,” Special Agent in Charge George M. Crouch Jr. of the FBI Newark Division said.  “The individuals indicted enabled criminal organizations around the world to perpetuate cyberattacks against Americans and our allies and to bypass anti-fraud measures designed to stop the flow of stolen funds through the financial system. Mohsin Raza and Mujtaba Ali Raza are now fugitives and have been added to the FBI’s White Collar Crimes Most Wanted website. The FBI will never stop pursuing these criminals until justice is served.”

According to the indictment:

From at least 2011, the defendants operated a fraudulent online business based out of Karachi, named, at various times, “SecondEye Solution” and “Forwarderz” (collectively, “SecondEye”). SecondEye, through various versions of its website, electronically produced, sold, and transferred digital versions of false government-issued identity and other documents. The false documents were the types of documents commonly needed and used to create online accounts at banks, payment processors, social media sites, and digital currency platforms. 

The defendants advertised SecondEye’s services on at least one well-known cyber hacker forum. SecondEye’s advertisements claimed that SecondEye documents could be used by customers who were “banned” or “suspended” to restore access to their online accounts. The defendants accepted more than $1.5 million in Bitcoin transfers alone from SecondEye customers related to more than 20,000 separate transactions.

SecondEye customers used the false SecondEye documents to commit and facilitate the commission of various cybercrimes and other criminal conduct. Between May 11, 2017, and Sept. 16, 2017, a member of the Internet Research Agency LLC, a Russian organization that engaged in operations to interfere with elections and political processes, including the 2016 U.S. presidential election, purchased multiple false identification documents from SecondEye in the names of real and fictitious U.S. persons. The false identification documents were later used as supporting documents for accounts previously operated by the Internet Research Agency at a social media company.

SecondEye customers used the false SecondEye documents to defraud payment processing companies, e-commerce businesses, social media, and social networking platforms, and virtual currency exchanges, both foreign and domestic, by gaining unauthorized access to online platforms provided by such entities, often to gain access to customer accounts that previously had been revoked or suspended.

As part of its investigation, the United States has seized three domestically-hosted domain names used by SecondEye in furtherance of its fraudulent document business: www.secondeyesolution.com, www.secondeyesolution.biz, and www.forwarderz.com. Visitors to the websites received the following message:

THIS WEBSITE HAS BEEN SEIZED

The conspiracy charge and each of the three counts of transferring false identity documents are punishable by a maximum of 15 years in prison. The false use of a passport charge is punishable by maximum of 10 years in prison. The aggravated identity theft charge is punishable by an additional consecutive mandatory minimum imprisonment term of two years. Each count has a maximum fine of up to $250,000 or twice the gross gain or loss from the offense, whichever is greater.  In addition, the United States will seek forfeiture of any proceeds derived from the offenses and any property used to facilitate the commission of the offenses.

Acting U.S. Attorney Honig credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation. 

The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and David E. Malagold of the U.S. Attorney’s Office Cybercrime Unit and Sarah Devlin, Chief of the U.S. Attorney’s Office Asset Recovery and Money Laundering Unit.

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

NEWARK, N.J. B A Camden, New Jersey, man was arrested this morning for fraudulently obtaining more than $150,000, Acting U.S. Attorney Rachael A. Honig announced.

Alfred Powner II, 39, is charged by complaint with one count of wire fraud. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge James B. Clark III.

According to the complaint:

The State of New Jersey, Unclaimed Property Administration (UPA), maintains a system to collect and maintain “abandoned” funds owed to New Jersey persons and entities. The UPA’s online website allows users to verify whether the UPA is holding funds for a particular person or entity. A person or entity seeking to claim funds held by the UPA on its behalf can use the UPA’s online portal to request a distribution of funds. From September 2019 through March 2020, Powner submitted a fraudulent application and other fraudulent information to the UPA in support of his claim for a distribution. As a result, Powner received approximately $150,000 from the UPA.

The New Jersey Department of Labor & Workforce Development (NJDOL) administers and manages unemployment insurance benefit (UIB) programs. Records revealed that NJDOL caused approximately $5,000 to be sent to a bank account Powner controlled in response to a claim for UIBs. NJDOL also received two additional UIB claims, from purportedly separate claimants, that requested that UIB funds be sent to Powner’s bank account. The three individuals whose names were used to make these UIB claims were deceased at the time the UIB claims were made.

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

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka, in Manhattan, New York, special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s arrest. She also thanked New Jersey’s Unclaimed Property Administration and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.

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

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

CAMDEN, N.J. – A Camden County, New Jersey, man under investigation by the Atlantic County Prosecutor’s Office for child pornography-related offenses was indicted today for allegedly paying $20,000 in bitcoin to have the 14-year old child victim murdered, Acting U.S. Attorney Rachael A. Honig announced.

John Michael Musbach, 31, of Haddonfield, was charged by indictment with one count of murder-for-hire and will be scheduled for an arraignment at a later date.

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

In the summer of 2015, Musbach began communicating via an Internet Relay Chat (IRC) website with his victim, who was 13 years old at the time. Musbach began using those IRC conversations to request and receive sexually explicit videos and photographs of the minor victim and to send to the victim sexually explicit videos and photographs of himself.

In September 2015, the victim’s parents discovered the nature of Musbach’s communications with the victim and notified local law enforcement officers in the State of New York, where the victim resided. Officers began investigating Musbach’s conduct and called Musbach to notify him that he was under investigation for his online sexual contact with the victim and that he was to stay away from the victim. Upon identifying Musbach as a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO), which continued the investigation.

On March 31, 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey. Law enforcement officers seized Musbach’s cellular telephone and his business. Musbach admitted to having sent sexually explicit images and videos of himself to the victim and having requested and received sexually explicit images and videos from the victim, all while knowing that the victim was 13-years old.

On Oct. 11, 2017, Musbach pleaded guilty to endangering the welfare of a child (the victim) by sexual contact and was sentenced on Feb. 9, 2018, by a New Jersey Superior Court Judge, to a two-year suspended sentence with parole supervision for life.

In 2019, a cooperating informant began providing law enforcement with messages between Musbach and a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency.

Those messages revealed that in May 2016, Musbach attempted to arrange a murder-for-hire through the website. He asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.

Agents were able to confirm Musbach’s identity through several means, including linking him to the same screen name he used to communicate with the murder-for-hire website and also by tracing the flow of monies from Musbach’s bank account to the purchase of bitcoin used to pay for the hit.

The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000, twice the gross profits to Musbach or twice the gross losses to the victim of his offense.

Acting U.S. Attorney Honig credited special agents of Homeland Security Investigations, in Newark, under the direction of Special Agent in Charge Jason Molina, and in St. Paul, Minnesota, under the direction of Special Agent in Charge Tracy Cormier, with the investigation. She also thanked the Atlantic County Prosecutor’s Office for its assistance.

The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.

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

Defense counsel: Rocco C. Cipparone, Jr., Esquire, of Haddon Heights, NJ.

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted to knowingly receiving child pornography, Acting U.S. Attorney Rachael A. Honig announced today.

Herman Christopher Jensen, 68, of Union Beach, New Jersey, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count of knowingly receiving child pornography.

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

Special agents of the FBI began investigating Jensen for assuming the identity of a 17-year-old boy to entice and solicit an underage girl to send nude and sexually explicit images over the internet. Jensen did this by creating a fake Facebook account, purporting to be a teenaged boy named “Kevin Bennett.” From January 2018 through August 2018, Jensen used the “Kevin Bennett” Facebook account to communicate with the victim frequently, causing her to believe that she was involved in a romantic relationship with “Kevin Bennett.” 

Jensen requested nude and semi-nude photographs from the victim through Facebook’s messenger service and the victim sent him images. Jensen received increasingly explicit videos depicting the victim engaging in sexually explicit activity.

In August of 2018, Jensen revealed to the victim that he was not the 17-year-old boy he purported to be, but instead an adult named Chris Jensen. The victim continued to communicate with Jensen via the “Chris Jensen” Facebook account. In December 2018, the victim traveled to New Jersey to live with Jensen. On Dec.19, 2018, local authorities removed the victim from Jensen’s residence.

The charge of knowingly receiving child pornography carries a minimum sentence of five years and a maximum of 20 years in prison, and a statutory maximum fine equal to the greatest of $250,000, or twice the gross amount of any pecuniary gain or loss, whichever is greater.  Sentencing is scheduled for September 14, 2021.

Acting U.S. Attorney Honig credited special agents and task force officers of the FBI and the Red Bank Resident Agencies Jersey Shore Gang and Criminal Organization Task Force, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked the Union Beach, New Jersey, Police Department, under the direction of Chief of Police Michael J. Woodrow, for assistance in the investigation.

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

Defense counsel: John C. Feggeler Esq., Matawan, New Jersey

NEWARK, N.J. – An Essex County, New Jersey, man today admitted 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.

Allen Varice, 24, of East Orange, 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 August 2018 through August 2019, Varice and others 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.

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, Varice and his conspirators used them to make unauthorized purchases at various retail stores and to withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere.  

The blank checks were also stolen from various New Jersey-based postal facilities and never reached their intended recipients. Varice 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 account holders’ accounts.

Three of Varice’s conspirators – his brother, Alexander Varice, Nasheed Jackson, and Dashawn Duncan – pleaded guilty last month to identical charges and are scheduled to be sentenced in July 2021.

The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for August 18, 2021.

Acting U.S. Attorney Honig credited inspectors of the U.S. Postal Inspection Service, in Newark, under the direction of Acting Inspector in Charge Rodney M. Hopkins, 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.

Defense counsel: Kathleen Theurer Esq., Jersey City, New Jersey

NEWARK, N.J. – A Utah man today admitted illegally selling erectile dysfunction pills that he falsely marketed as herbal supplements for men, Acting U.S. Attorney Rachael A. Honig announced.

Robert Zeng, 55, of Salt Lake City, Utah, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of introducing a misbranded drug into interstate commerce with intent to defraud and mislead consumers.

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

Zeng was the owner of various businesses, including NutopiaUSA, which sold purported natural supplements online and through e-commerce websites. On Feb. 29, 2020, Zeng imported three kilograms of sildenafil, an active ingredient in the brand name prescription drug Viagra, which is approved by the FDA for the treatment of erectile dysfunction. Zeng used the sildenafil to manufacture an unapproved and misbranded drug named “Mr. Richard Rocks.”

Zeng falsely marketed and labeled Mr. Richard Rocks as a dietary supplement containing only natural ingredients that treated erectile dysfunction, enhanced sexual performance, improved mood, and reduced blood sugar and cholesterol. The labeling for Mr. Richard Rocks did not disclose the presence of sildenafil, reveal the potentially adverse health consequences that may result from using a product containing sildenafil, nor provide adequate directions for use. Zeng sold Mr. Richard Rocks on the Nutopia website and on e-commerce platforms to consumers across the United States, including in New Jersey, without requiring a prescription. 

The felony misbranding charge to which Zeng pleaded guilty carries a maximum penalty of three years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss, whichever is greater. Sentencing is scheduled for Aug. 26, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the FDA Office of Criminal Investigations’ New York Field Office, under the direction of Special Agent in Charge Jeffrey J. Ebersole, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office, District of Utah, under the direction of Acting U.S. Attorney Andrea T. Martinez, and the FBI-Utah, under the direction of Special Agent in Charge Dennis W. Rice in Salt Lake City, Utah.

This case originally arose out of the COVID-19 Hoarding and Price Gouging Task Force led by the U.S. Attorney’s Office for the District of New Jersey, which is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving protective personal equipment occurs.

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

Hidden active pharmaceutical ingredients have been identified in products promoted not only for sexual enhancement, but also for weight loss, bodybuilding and pain relief. The FDA has issued hundreds of public warnings and recall announcements related to these types of fraudulent products. The FDA’s Tainted Products database can help consumers identify some of these potentially harmful products. Even if a product is not included in the list, consumers should be cautious about using these products.

NEWARK, N.J. – A Union County, New Jersey, man was arrested today for robbing a bank in Rutherford, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.

Senenca Wilson, aka “Seneca Wilson,” 42, of Clark, New Jersey, was arrested today and charged by complaint with one count of bank robbery. He is scheduled to make his initial appearance by videoconference today before U.S. Magistrate Judge James B. Clark III.

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

On April 7, 2021, at 4:12 p.m., Wilson entered Victim Bank-1 in Rutherford wearing a thin windbreaker over a dark t-shirt with a white logo. Wilson was also wearing a dark New York Yankees baseball cap, sunglasses, a neck gaiter over his face, and a glove on his left hand.

Wilson handed the teller a note demanding money with no straps on the bills. The teller put currency into a white plastic bag that Wilson provided. Wilson took the bag of cash and walked out of the bank. Moments later, a doorbell video camera on a nearby residence recorded footage of Wilson running south down the sidewalk away from Victim Bank-1.  A few seconds later, a car registered to Wilson was seen driving away from the area, and .the Yankees baseball cap that Wilson wore during the robbery was found by law enforcement in a recycling bin near Victim Bank-1 

The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine.

Acting U.S. Attorney Honig credited special agents of the FBI’s Violent Crimes/Interstate Theft Task Force, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.

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

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

CAMDEN, N.J. – A Camden man was sentenced today to 141 months in prison for robbing a Camden barbershop at gunpoint, Acting U.S. Attorney Rachael A. Honig announced.

Benjamin Daye, 34, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of Hobbs Act robbery and one count of brandishing a firearm during a crime of violence. Judge Kugler imposed the sentence today in Camden federal court.

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

On Nov. 23, 2019, Daye entered a barbershop in Camden armed with a loaded handgun. He grabbed a juvenile customer, pointed the gun at the customer’s head, and demanded cash and belongings from employees and customers. Daye fled and was apprehended shortly thereafter next to a bag containing the handgun and the stolen items.

In addition to the prison term, Judge Kugler sentenced Daye to three years of supervised release and ordered Daye to pay restitution in the amount of $1,672 to the victims of his offenses.

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 ATF, under the direction of Acting Special Agent in Charge Craig B. Kailimai; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer, with the investigation leading to today’s sentencing. This investigation was a joint efforts of the ATF Camden Field Office and the Camden County Police Department (CCPD) Shooting Response Team (SRT). ATF and CCPD have formulated a partnership composed of special agents, detectives, and intelligence analysts that investigate shooting incidents in real time.

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

CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 300 months in prison for producing and distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Andrew Nicholas, 24, of Williamstown, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of sexually exploiting children and one count of distributing child pornography. Judge Kugler imposed the sentence today in Camden federal court.  

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

On Feb. 26, 2019, an undercover officer entered a public Kik Messenger group and began communicating with Nicholas, who sent the officer images and videos of child sexual abuse involving a prepubescent minor. Nicholas admitted to producing those images and videos of child sexual abuse and sending them to the officer.

In addition to the prison term, Judge Kugler sentenced Nicholas to a lifetime term of supervised release, ordered him to pay restitution of $45,000 to the victims, and ordered him to register as a sex offender.

Acting U.S. Attorney Honig credited special agents of the FBI, Philadelphia Division, under the direction of Special Agent in Charge Michael J. Driscoll, and the Washington, D.C., FBI Field Office, under the direction of Assistant Director in Charge Steven D’Antuono; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations – Cherry Hill, under the direction of Special Agent in Charge Jason J. Molina in Newark, and detectives with the Gloucester County Prosecutor’s Office, under the direction of Acting County Prosecutor Christine Hoffman, with the investigation leading to today’s sentencing.

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

NEWARK, N.J. – Two Essex County men were arrested today for their roles in a fraudulent debit card scheme, Acting U.S. Attorney Rachael A. Honig announced.

Alateef Perry, 43, of Newark, and Rajohn Dawkins, 25, of Irvington, New Jersey, are charged by complaint with conspiracy to commit access device fraud. Both defendants are scheduled to make initial appearances this afternoon by videoconference before U.S. Magistrate Judge Michael A. Hammer.

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

From July 2019 through March 2020, Perry and Dawkins fraudulently used debit cards in the names of other individuals, without the cardholders’ consent or knowledge, to purchase diesel fuel for commercial truck drivers in exchange for cash. Perry and Dawkins met commercial truck drivers at multiple gas stations in New Jersey, including gas stations located in Hanover and Middlesex. Perry and Dawkins used the unauthorized debit cards to fill the drivers’ commercial trucks with diesel fuel. The truck drivers then typically paid Perry and Dawkins a fraction of the fuel’s purchase price in cash, which Perry and Dawkins pocketed. Perry and Dawkins used over 500 unauthorized debit cards and ultimately stole over $220,000.

The charge of conspiracy to commit access device fraud carries a maximum potential sentence of five years in prison and a maximum potential fine of $250,000, or twice the gross pecuniary gain or loss from the offense, whichever is greater.   

Acting U.S. Attorney Honig credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrests. She also thanked inspectors of the U.S. Postal Inspection Service – Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins; the Township of Hanover Police Department, under the direction of Chief Mark D. Roddy, and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance with this investigation. 

The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Criminal Division in Newark.

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

TRENTON, N.J. – An Ocean County, New Jersey, man was sentenced today to 15 months in prison for possessing cocaine with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.

Jason Vella, 39, of Toms River, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with one count of possession of cocaine with intent to distribute. Judge Thompson imposed the sentence by videoconference today.

On Sept. 19, 2019, investigators from the Ocean County Prosecutors Office executed a search warrant on Vella’s residence and recovered 150 grams of cocaine, drug paraphernalia, $2,295 in cash and pieces of jewelry. 

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

Acting U.S. Attorney Honig credited the members of the FBI’s Organized Crime Task Force under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley Billhimer, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel V. Grady O=Malley of the U.S. Attorney=s Office’s Organized Crime/Gangs Unit in Newark.

TRENTON, N.J. – A Camden County, New Jersey, woman today admitted receiving hundreds of thousands of dollars of consumer electronics before reselling the stolen goods in connection with a delivery fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.

Yanira Medina-Roman, 36, of West Berlin, New Jersey, pleaded guilty by videoconference before U.S. Senior District Judge Anne E. Thompson to an information charging her with one count of conspiracy to commit wire fraud.

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

From July 2018 through October 2018, Medina-Roman and others carried out a delivery fraud scheme targeting a corporate victim and government agency that resulted in the theft of more than $250,000 of consumer electronics. Medina-Roman and her conspirators used Medina-Roman’s residence – then in Highlands, New Jersey – as the delivery address for the stolen goods. Medina-Roman, under the direction of her conspirators, sold the goods for profit either to a fence of stolen goods, or to third parties through a national classified advertisement website, while retaining for herself a portion of the sale proceeds.

A related cyberattack involved the appropriation without authorization of the identity of an employee of a government agency, which Medina-Roman’s conspirators used by manipulating the employee’s government email address to place orders for consumer electronics and gift cards with a corporate victim located in Maryland. The Maryland corporate victim, believing the emails were authentic and sent by the government employee, with whom the corporate victim had a prior business relationship, was deceived into delivering the consumer electronics to Medina-Roman’s residential address. 

The conspiracy charge to which Medina-Roman pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss.  Sentencing is scheduled for Aug. 10, 2021. 

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the U.S. Secret Service, under the direction of Special Agent In Charge Mark McKevitt; special agents of the Defense Criminal Investigative Service – Cyber Field Office, under the direction of  Special Agent in Charge Kenneth A. DeChellis; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Damon Wood in Philadelphia; and officers of the Highlands, New Jersey, Police Department, under the direction of Chief Robert Burton, with the investigation leading to today’s guilty plea.

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

CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 210 months in prison for his role in distributing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.

Carlos Santiago-Gomez, 31, of Absecon, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to one count of distributing images of child pornography. U.S. District Judge Robert B. Kugler imposed the sentence today in Camden federal court.

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

On March 27, 2018, law enforcement officers from the FBI’s Atlantic City Child Exploitation Task Force executed a search warrant at Santiago-Gomez’s residence in Absecon, New Jersey, and seized multiple items of digital evidence, including cell phones, CDs, thumb drives, hard drives and computers, which contained thousands of images of child sexual abuse. Agents also located evidence showing that in July and August 2017, Santiago-Gomez posted videos of child sexual abuse on at least two KIK instant message groups, while also acting as the administrator of one of those groups.

In addition to the prison term, Judge Kugler sentenced Santiago-Gomez to 10 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; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner; the Atlantic County Sheriff’s Office, under the direction of Sheriff Eric Scheffler; and N.J. Human Services Police, under the direction of Director Timothy J. Gallagher, with the investigation leading to today’s sentencing.

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

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

Jose Salazar, aka “Tito,” 44, of Riverside, California, was indicted in 2015 and has been a fugitive. He was apprehended in Mexico City in September 2020 and returned in January 2021 via Philadelphia International Airport, where he was arrested. Salazar pleaded guilty today by videoconference before U.S. District Judge Joseph H. Rodriguez to Count 1 of an indictment charging him with conspiracy to commit bank fraud.

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

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

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

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

The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Aug. 10, 2021.

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

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

CAMDEN, N.J. – A California man was sentenced today to 48 months in prison for his role in a bank fraud scheme resulting in approximately $1.3 million in losses, Acting U.S.Attorney Rachael Honig announced.

Adam D. Arena, 44, previously pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an indictment charging him with bank fraud and conspiracy to commit bank fraud. Judge Hillman imposed the sentence by videoconference today.

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

Between 2016 and 2018, Arena conspired with Larry McGee and Dwayne Modeliste to execute a scheme to defraud Synchrony Bank. Arena obtained the personally identifiable information of others, most of whom were incarcerated individuals. Arena and his conspirators then used those individuals’ personal information to obtain credit cards from Synchrony Bank. Arena and his conspirators submitted to Synchrony Bank merchant applications so those enrolled merchants could accept Synchrony credit cards as a form of payment. After Arena and his conspirators enrolled the merchants with Synchrony Bank, they used the fraudulently obtained credit cards to conduct fraudulent transactions at the merchants. The fraudulent proceeds of those transactions were deposited into bank accounts controlled by Arena and his conspirators. 

In addition to the prison term, Judge Hillman sentenced Arena to three years of supervised release. He also ordered Arena to make restitution to Synchrony Bank in the amount of $1.3 million and ordered forfeiture in the amount of $608,282. 

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

The government is represented by Assistant U.S. Attorney Catherine R. Murphy of the

U.S. Attorney’s Office’s National Security Unit in Newark.

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

Andrew Chu, 30, of Garwood, New Jersey, pleaded guilty by videoconference before U.S. District Judge William J. Martini to an information charging him with one count of possession of child pornography.

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

In February 2018, Chu downloaded approximately 90 videos depicting the sexual abuse of children from a website on the darknet.

The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 26, 2021.

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

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

NEWARK, N.J. – A Monmouth County, New Jersey, man today admitted operating an illegal bitcoin exchange, Acting U.S. Attorney Rachael A. Honig announced.

William Green, 53, of Wall, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to Count 1 of an indictment charging him with operating an unlicensed money transmitting business.

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

From August 2017 through February 2019, Green operated a website called “Destination Bitcoin.”  Through the website and various referrals, Green received money from members of the public through cash, wire transfers into bank accounts controlled by Green, and online payment processors.  Green then converted the funds to bitcoin and transferred the bitcoin to bitcoin wallet addresses provided by the customers. Green charged the customers a fee for this service.

Federal law provides that any person who owns or controls a money transmitting business shall register the business (whether the business is licensed as a money transmitting business in any state) with the Secretary of the Treasury. Green admitted today that he knew he was required to register his business with the Secretary of the Treasury and that he failed to do so.

The unlicensed money transmitting charge to which Green pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 10, 2021.

Acting U.S. Attorney Honig credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Matthew Feldman Nikic of the U.S. Attorney’s Cybercrime Unit in Newark.

NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig today announced an update on the Office’s enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, and Unemployment Insurance (UI) programs, and schemes involving the price-gouging and hoarding of critical personal protective equipment

In the past year, the U.S. Attorney’s Office for the District of New Jersey has charged 18 defendants, including individuals and companies, with offenses based on fraud schemes, price-gouging, hoarding, and other crimes connected to the COVID-19 pandemic.

“Exploitation of the global pandemic for illicit financial gain victimizes consumers, taxpayers, and federal programs alike,” Acting U.S. Attorney Honig said. “We are working with our law enforcement partners to investigate these schemes and bring to justice all those who would try to take advantage of the programs established by Congress to help America through the pandemic. We will vigorously pursue anyone trying to steal from those programs, engage in the hoarding or price-gouging of necessary personal protective equipment, or otherwise defraud the public.”

Most recently, three defendants were charged last month in connection with an EIDL scheme: George Leguen, 46, of Paramus, New Jersey, and Shyteek Stevenson, 30, of Harrisburg, Pennsylvania, were charged in separate complaints with one count each of wire fraud and money laundering. Marc Orival, 37, of College Park, Georgia, is charged in a third complaint with two counts each of wire fraud and money laundering.

Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. The Act is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud. The U.S. Attorney’s Office for the District of New Jersey continues to lead the Department of Justice’s Hoarding and Price-Gouging Task Force.

 Other cases charged in New Jersey include:

 

Date of Charge

Lead Defendant

3/30/2020

Baruch Feldheim

3/30/2020

Erik Santos

6/5/2020

King Year Packaging and Printing

6/17/2020

Crawford Technology Group

8/14/2020

CSG Imports LLC and KG Imports LLC

9/3/2020

Jae Choi

9/17/2020

Jeffrey Bennett

9/29/2020

Dang Chanchai

10/21/2020

Jefferson Robert

10/23/2020

Justin Ezeiruaku

11/19/2020

Rocco Malanga

12/14/2020

Azhar Rana

12/16/2020

Maurice Mills

1/20/2021

Gauravjit Singh

3/18/2021

John Jhong

 

To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud. For further information on the Civil Division’s enforcement efforts, visit the following website: https://www.justice.gov/civil.

To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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TRENTON, N.J. –A Trenton man was charged today with assaulting a federal agent with a deadly weapon, armed robbery, and discharging a firearm during and in relation to a crime of violence, Acting U.S. Attorney Rachael A. Honig announced.

Jabree Johnson, 28, of Trenton, is charged by complaint with one count of assault on a federal officer with a deadly weapon, one count of robbery with a dangerous weapon of an individual with custody of federal property, and one count of using and carrying a firearm during and in relation to a crime of violence, in which the firearm was discharged. Johnson is currently in custody on related charges filed by the Mercer County Prosecutor’s Office in connection with the assault. He will make his initial appearance by videoconference before U.S. Magistrate Judge Zahid N. Quraishi on a date to be determined.

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

On March 22, 2021, federal law enforcement officers were investigating firearms trafficking and other illegal activities in Trenton and Hamilton, New Jersey. An undercover federal law enforcement agent arranged to purchase multiple firearms from an individual later identified as Johnson. 

After arriving at an agreed-upon location for the firearms transaction, Johnson entered the undercover federal agent’s vehicle and handed the agent a black, semi-automatic firearm. The undercover federal agent inspected the firearm and then returned it to Johnson, and requested to see the other firearms that Johnson had agreed to sell. Instead, Johnson pointed the loaded firearm directly at the undercover federal agent and demanded money from the agent. In response, the undercover federal agent provided Johnson with an amount of U.S. currency. Johnson then ordered the undercover federal agent out of the vehicle at gunpoint. The agent exited the vehicle as ordered, drew a service-issued firearm, and fired at Johnson, striking Johnson in the shoulder. Johnson fired his handgun multiple times at the undercover federal agent before fleeing the area. Johnson was later identified at a local hospital as the individual who had assaulted and robbed the undercover federal agent at gunpoint.    

The charge of assault on a federal officer with a deadly weapon carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of robbery of federal property with a dangerous weapon carries a maximum potential penalty of 25 years in prison and a $250,000 fine. The charge of using and carrying a firearm during and in relation to a crime of violence carries a statutory mandatory minimum sentence of 10 years in prison, which must run consecutive to any other sentence imposed, and a maximum of life in prison.

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.; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, Trenton Field Office, under the direction of Special Agent in Charge Charlie J. Patterson; officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; officers of the Hamilton Township Police Department, under the direction of Police Chief James Stevens; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, and detectives and prosecutors of the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo Onofri, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Eric A. Boden and Special Assistant U.S. Attorney Katie Magee Lee of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

NEWARK, N.J. – A New York man is scheduled to make his initial appearance today on charges that he attempted to engage in sex trafficking of two minors and transported the minors to engage in unlawful sexual activity, Acting U.S. Attorney Rachael A. Honig announced.

Berry Norman, 32, is charged in a three-count complaint with attempted sex trafficking of two minors and transporting the minors to engage in unlawful sexual activity. He is scheduled to appear by videoconference before U.S. Magistrate Judge Cathy L. Waldor this afternoon.

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

On Feb. 24, 2021, Norman enticed the victims, both minors, to travel with him from Ohio to New Jersey. On Feb. 25, 2021, Norman housed the victims in a hotel in Hudson County, New Jersey. Norman allegedly attempted to convince the victims to engage in commercial sex acts.  Norman told the victims that they could “get paid” for having sex with men and for performing sexually explicit “shows” on the computer. The victims declined. On Feb. 27, 2021, Norman engaged in sex acts with one victim. 

On Feb. 28, 2021, Norman transported the victims to another hotel in New York. Norman purchased lingerie for the victims. When they returned to the hotel room, Norman allegedly encouraged the victims to put on the lingerie and perform sexual acts while a computer live-streamed the victims over the Internet. The victims declined again. Later that evening, one victim observed a laptop that was on and streaming a video of the victims in the hotel room. The victim contacted a relative for help. In turn, the victim’s relative contacted law enforcement, leading to Norman’s arrest.

Each count of attempting to engage in sex trafficking with a minor and transportation of a minor to engage in unlawful sexual activity carries a statutory mandatory minimum penalty of 10 years in prison and a maximum of life in prison.

Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; members of the New York City Police Department, under the direction of Chief Terence A. Monahan; and members of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Kimberly Mitchell of the OCDETF/Narcotics Unit in Newark.

NEWARK, N.J. – Acting U.S. Attorney Rachael A. Honig and FBI Newark Field Division Special Agent in Charge George M. Crouch Jr., today reiterated federal law enforcement’s commitment to investigating and prosecuting all acts of bias-motivated violence and other deprivations of individuals’ civil rights, including crimes committed on the basis of race, ethnicity, religion, sex, national origin, disability, sexual orientation, or gender identity. 

“Some of the darkest hours that we have lived through recently as New Jersey residents have involved the horror of violence based on hate,” Acting U.S. Attorney Honig said. “We have seen anti-Semitic violence in Jersey City and a gender- and race-based attack at the home of a federal judge. Now, we face a rising tide of hatred directed at Asian-Americans.  New Jersey is one of the most diverse states in the country, and this kind of hate should find no home here. We urge the community to report hate-based crimes to the FBI and to contact our office’s civil rights hotline with information about discrimination in housing, employment, education, or public accommodations.”

“Hate crimes are not only an attack on an individual, but an entire community,” FBI Special Agent in Charge Crouch said. “Investigating these crimes is one of the FBI’s highest priorities. We will work diligently with our law enforcement partners to protect the rights of all Americans.”

The U.S. Attorney’s Office for the District of New Jersey employs four Assistant U.S. Attorneys dedicated full-time to federal civil rights enforcement: three in the Civil Rights Unit of the Civil Division, and one Senior Civil Rights Counsel in the Criminal Division. The Office works closely in these matters with the Civil Rights Division of the Department of Justice. In the past several years, the Office has brought multiple civil and criminal cases based on federal civil rights laws and has been recognized by the Executive Office of U.S. Attorneys with two Director’s Awards for its work in this area. These Assistant U.S. Attorneys also conduct frequent community outreach, including outreach focused on organizations serving women, people of color, religious groups, and the LBGTQ+ community. 

Acting U.S. Attorney Honig and Special Agent in Charge Crouch urged all New Jersey residents to report hate-based crimes to law enforcement. Members of the public who have a civil rights concern or complaint should contact the U.S. Attorney’s Office through its civil rights hotline, which can be reached at 855-281-3339, or by filling out the following form on the Office’s website:  /media/1184596/dl?inline. The FBI’s Newark Field office can be reached at (973) 792-3000.

The most recent statistics maintained by the FBI on hate crimes are available here:  https://ucr.fbi.gov/hate-crime/2019/hate-crime. Additional resources regarding hate crimes and bias incidents can be found by visiting these links: https://civilrights.justice.gov/#your-rights and https://fbi.gov/investigate/civil-rights/hate-crimes#FBI-Resources.

For additional information about the U.S. Attorney’s Office in the District of New Jersey visit: www.justice.gov/usao-nj/.